Virginia First Time Homebuyer Grants Up To 10% Of Purchase Price

The Virginia Department Of Housing And Community Development (DHCD) provides a Down Payment Assistance (DPA) program for first-time homebuyers at, or below, 80 percent of the Area Median Income (AMI) to purchase homes that are safe, decent and accessible. Potential applicants can obtain this Virginia first time home buyer grant through local DPA provider agencies selected by the state through a competitive application process.




Virginia First Time Home Buyer GrantsAdministrative requirements for the HOMEownership Down Payment & Closing Cost Assistance Program adheres to the established guidelines specified in the HOME Final Rule (see http://www.access.gpo.gov/nara/cfr/waisidx_03/24cfr92_03.html). The maximum amount of direct financial assistance to the homebuyer cannot exceed 10% of the sales price, and your debt to income ratio cannot exceed the maximum FHA standard on a first mortgage loan for housing costs and revolving debt. Homebuyers in localities of the state which have been designated as “high cost areas” or “chronically economically depressed” may receive a grant of “up to” 20% of the sales price as the need demands.

These are the HIGH COST/CHRONICALLY ECONOMICALLY DEPRESSED Localities:
Albemarle
Floyd
Prince William
Alexandria
Frederick
Pulaski
Allegany
Fredericksburg
Rockingham
Annandale
Giles
Russell
Arlington
Grayson
Salem
Bath
Herndon
Scott
Bland
Highland
Shenandoah
Buchanan
King George
Smyth
Carroll
Lee
Spotsylvania
Charlottesville
Loudon
Stafford
Clark
Madison
Tazewell
Craig
Manassas
Warren
Culpepper
McLean
Winchester
Dickenson
Montgomery
Wise
Fairfax
Nelson
Wythe
Falls Church
Orange
Fauquier
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No monthly repayment is required on the forgivable HOME loan issued by DHCD. The applied subsidy will be forgiven at the end of the period of affordability, thus this “loan” turns into a grant. The period of affordability is 5 years for grants up to $14,999, 10 years for grants up to $40,000, and 15 years for grants over $40,000.

To find out more about this program, visit the DHCD webpage, view the fact sheet, or contact them directly at:

Virginia Department of Housing and Community Development
• Main Street Centre
• 600 East Main Street, Suite 300
• Richmond, VA 23219
• (804) 371-7000