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TL;DR: – Virginia Housing (formerly VHDA) is the primary state program for first-time buyer mortgages, offering DPA grants up to 2.5% of the purchase price with no repayment required.
- On a $350,000 home in Richmond, combining a 3% down conventional loan with available DPA assistance can reduce your out-of-pocket costs to under $10,000 at closing.
- This guide is for Virginia residents buying their first home who want exact income limits, credit score thresholds, and real cost scenarios in one place.
You're reading this because you want to buy a home in Virginia and you're not sure which program fits your situation, how much you actually need to save, or whether you even qualify. This guide answers all three.
Virginia has some of the most layered first-time buyer programs in the country. Navigating them without a clear map is where most buyers lose time and money. Based on our analysis of program documentation from Virginia Housing, DHCD Virginia, and federal agency guidelines, plus verified data from LendingTree and Lower.com, this guide gives you the side-by-side comparison no single competitor provides.
Note: This guide does not incorporate G2 or Capterra review data, as mortgage programs are government and agency products rather than software tools. All program data is sourced from official agency publications.
What Is a First-Time Home Buyer Mortgage in Virginia?
A first-time home buyer mortgage is any loan product specifically designed for buyers who have not recently owned a primary residence. The key word is "recently."
Per HUD's official definition, a first-time homebuyer is someone who has not owned a principal residence during the three-year period ending on the date of purchase. That means if you owned a home five years ago and sold it, you likely qualify today.
Virginia Housing – the state's housing finance authority, created in 1972 by the General Assembly – administers the primary state-level programs. They offer fixed-rate loans with competitive interest rates, down payment grants, and closing cost assistance specifically for Virginia buyers.
Quick eligibility checklist:
- Have not owned a primary residence in the past 3 years (or buying in a targeted area)
- Meet income limits for your region
- Meet minimum credit score requirements (620 for most Virginia Housing programs)
- Plan to occupy the home as your primary residence
- Complete a homebuyer education course (required for most Virginia Housing loans)
- Purchase price falls within program limits for your county
Key Takeaway: The 3-year rule is more flexible than most buyers realize. If you owned a home years ago, check your eligibility before assuming you don't qualify.
Which Virginia First-Time Buyer Programs Are Available in 2026?
Virginia offers multiple overlapping programs. The right one depends on your income, credit score, location, and military status.
Virginia Housing (VHDA) Loan Programs
Virginia Housing's first mortgage programs include both conventional and FHA-insured options. All require a minimum 620 credit score – that's a lender overlay above FHA's federal floor of 580.
According to Atlantic Union Bank's Virginia Housing program overview, income limits vary significantly by region. In Northern Virginia, maximum household income limits approach $217,000 with a maximum loan amount of $800,000. In other Virginia regions, household income caps range from $129,000 to $144,000 with loan amounts from $500,000 to $675,000.
The Virginia Housing DPA Grant provides 2% to 2.5% of the purchase price toward your down payment – and it's a true grant with no repayment required. A separate Closing Cost Assistance Grant covers up to 2% of the home's purchase price for upfront costs, per LendingTree's Virginia program analysis.
DHCD Down Payment Assistance Program
The DHCD HOMEownership Down Payment Assistance Program provides up to $40,000 as a deferred loan – no monthly payments during your occupancy period. The loan becomes due only when you sell, transfer, refinance, or stop occupying the home as your primary residence.
Eligibility targets buyers at or below 80% of Area Median Income (AMI). That threshold varies dramatically by county. A separate Virginia Pilot DPA program offers up to $50,000 in select localities, though availability depends on current funding cycles.
DHCD assistance is delivered through local nonprofit housing counseling agencies and local governments – not directly from DHCD. Contact your local provider early, as funding can be exhausted.
Federal Options: FHA, VA, and USDA Loans
FHA loans: Per HUD's FHA loan requirements, buyers with a 580+ credit score qualify for 3.5% down. Scores between 500–579 require 10% down. For 2026, FHA loan limits range from $541,287 in low-cost areas to $1,249,125 in high-cost areas nationally.
VA loans: If you're an eligible veteran or active-duty service member, the VA loan is the strongest option available. According to the VA Home Loan Buyer's Guide, there are no loan limits for buyers with full entitlement, no down payment required in most cases, and no PMI. The VA does not set a minimum credit score, though most lenders require 620. Learn more about using VA loan benefits to buy with no down payment through a VA-approved lender.
USDA loans: Available for eligible rural and suburban properties. No down payment required for income-qualified buyers (generally at or below 115% AMI). Most of Northern Virginia, Richmond city, and Virginia Beach are ineligible – verify your specific address before counting on this option.
Program Comparison Table:
| Program | Min Credit Score | Down Payment | Max Assistance | Notes |
|---|---|---|---|---|
| Virginia Housing Conventional | 620 | 3% | DPA Grant (2–2.5%) | No repayment on grant |
| Virginia Housing FHA Plus | 620 | 3.5% | DPA + CCA Grants | VA overlay above FHA floor |
| DHCD HOMEownership DPA | 620 (varies) | Varies | Up to $40,000 | Deferred loan; income ≤80% AMI |
| FHA (standalone) | 580 | 3.5% | None from FHA | Lenders may require 620 |
| VA Loan | None (lenders: 620) | $0 | No PMI | Veterans/active duty only |
| USDA | 640 (typical) | $0 | None | Rural/suburban areas only |
Key Takeaway: Virginia Housing programs require a 620 minimum credit score across the board – even for FHA-backed products. Buyers with scores between 580–619 should pursue standalone FHA through a non-Virginia Housing lender or work on credit improvement first.
What Are the Credit Score and Income Requirements?
Credit score and income limits are where most buyers get tripped up. Here's exactly where you stand.
Credit Score Minimums by Program
The Virginia Housing conventional program requires a minimum 620. Virginia Housing's FHA Plus also requires 620 – a stricter overlay than HUD's 580 floor. According to Atlantic Union Bank, homebuyers with median credit scores as low as 620 may qualify for Virginia Housing programs.
For standalone FHA loans outside Virginia Housing, HUD allows 580 for 3.5% down. VA loans have no stated minimum, but most lenders require 620 in practice.
The average credit score among Virginians was 723 in 2025, according to Experian data cited by – meaning most Virginia buyers are well above the minimum threshold.
How Income Limits Work in Virginia
Income limits are set as a percentage of Area Median Income (AMI) and vary by county and household size. The regional spread is significant.
| Region | Household of 4 (approx.) | Program |
|---|---|---|
| Northern Virginia | Up to ~$217,000 | Virginia Housing (some programs) |
| Richmond Metro | ~$106,000–$144,000 | Virginia Housing Conventional |
| Southwest Virginia | ~$79,900–$129,000 | Virginia Housing (lower AMI areas) |
| DHCD HOMEownership DPA | ≤80% AMI (varies by county) | DHCD |
Always verify current limits directly at Virginia Housing's loan limits page – they update annually.
DTI example: If you earn $5,500/month gross, Virginia Housing's 45% DTI cap means your total monthly debt – including your new mortgage payment – cannot exceed $2,475. At a $1,800 PITI payment, you have $675 of DTI cushion. That cushion matters if you carry a car payment or student loans.
Self-employed buyers face additional documentation requirements. Per Fannie Mae's selling guide, you'll need two years of signed federal tax returns including all schedules. Declining income over those two years is a red flag for underwriters. If your tax returns show heavy write-offs that reduce your qualifying income, explore mortgage options for self-employed buyers through NonQM products like Bank Statement loans.
Key Takeaway: A 620 credit score and 45% DTI cap are the two gatekeepers for most Virginia Housing programs. Know your numbers before you start house hunting.
How Much Do You Need to Save Before Buying?
Most buyers underestimate total cash needed. Here's the real math.
Richmond scenario – $350,000 home:
- 3% down payment: $10,500
- Closing costs (2%–5% of purchase price): ~$7,000–$9,000
- Total needed before assistance: ~$17,500–$19,500
According to Chartway Federal Credit Union's Virginia home buying guide, closing costs average between 2% to 5% of the purchase price in Virginia.
How DPA reduces your out-of-pocket:
The Virginia Housing DPA Grant covers 2%–2.5% of the purchase price – on a $350,000 home, that's $7,000–$8,750. The Closing Cost Assistance Grant adds up to 2% of the purchase price ($7,000). Stack both and your out-of-pocket drops dramatically.
If you qualify for DHCD's HOMEownership DPA (up to $40,000 as a deferred loan), a buyer needing $18,500 could potentially cover nearly all of it – leaving minimal cash required at closing.
Monthly payment comparison at 6.75% on a $350,000 home:
| Down Payment | Loan Amount | Monthly P&I | PMI (est.) | Total Monthly |
|---|---|---|---|---|
| 0% (VA/USDA) | $350,000 | ~$2,270 | $0 | ~$2,270 |
| 3% Conventional | $339,500 | ~$2,202 | ~$140 | ~$2,342 |
| 3.5% FHA | $337,750 | ~$2,191 | ~$155 | ~$2,346 |
| 5% Conventional | $332,500 | ~$2,158 | ~$110 | ~$2,268 |
Rate comparison: At 6.75%, a $339,500 loan costs approximately $2,202/month in principal and interest. At 7.25%, the same loan runs approximately $2,317/month – a $115/month difference, or $1,380 per year. Over five years, that's $6,900. Rate shopping is worth the effort.
Key Takeaway: On a $350,000 Richmond purchase, combining Virginia Housing's DPA Grant with DHCD assistance can reduce your out-of-pocket closing costs to under $10,000 – sometimes significantly less depending on your income eligibility.
How Do You Apply for a First-Time Home Buyer Mortgage in Virginia?
The process has five steps. Virginia Housing adds one requirement most buyers don't expect upfront.
Step 1: Complete homebuyer education. Virginia Housing requires a homebuyer education course for most loan programs. The online course through eHome America costs approximately $99. Some HUD-approved counseling agencies offer free in-person options. The certificate is valid for two years. Complete this before or during your pre-approval process – don't let it delay your closing.
Step 2: Get pre-approved. Gather your documents before contacting a lender. You'll need W-2s (2 years), pay stubs (30 days), federal tax returns (2 years), bank statements (2–3 months), and government-issued ID. Self-employed buyers add business returns and a year-to-date profit and loss statement. Having complete documents ready for a mortgage application speeds up the entire process.
Step 3: Find a Virginia Housing-approved lender. Virginia Housing loans can only be originated through approved lenders. Retail banks not on the approved list cannot originate these programs. A mortgage broker who is Virginia Housing-approved can access the programs and shop your file across multiple lenders simultaneously.
Step 4: Make an offer and lock your rate. Once pre-approved, work with your real estate agent to make an offer. When it's accepted, lock your interest rate. Rate locks typically last 30–60 days.
Step 5: Close. According to Chartway Federal Credit Union, the full loan process may take up to 45 days to complete. Virginia Housing programs may add time if your homebuyer education certificate isn't already in hand. Budget 30–45 days from contract to closing.
Key Takeaway: The homebuyer education certificate is a prerequisite – not an afterthought. Complete it before you start making offers so it never delays your closing.
How to Compare Mortgage Lenders as a Virginia First-Time Buyer
Shopping multiple lenders is one of the highest-ROI actions you can take. The rate difference between lenders on the same loan can easily exceed $100/month.
The good news: you can shop without damaging your credit score. Multiple mortgage inquiries made within a 14–45 day window count as a single inquiry under most credit scoring models. Complete all your rate shopping within 30 days to be safe across all scoring versions.
When you compare lenders, go beyond the interest rate. Request a Loan Estimate from at least three lenders and compare:
- APR (includes fees – more accurate than rate alone)
- Origination fees (can range from $0 to $3,000+)
- Lender credits (lender pays some closing costs in exchange for a slightly higher rate)
- Rate lock terms (length and cost to extend)
Virginia Housing-approved lenders vs. retail banks: A Virginia Housing-approved mortgage broker can access state programs AND shop your file across hundreds of lenders simultaneously. A retail bank can only offer their own products. If you want access to Virginia Housing programs, you need an approved lender.
For Virginia buyers across all four regions – Northern Virginia, Richmond, Hampton Roads, and Southwest Virginia – Duane Buziak Mortgage Maestro in Glen Allen offers a NoTouch Credit pre-qualification (no credit hit to check your options) and access to hundreds of lenders at once. Duane is a two-time back-to-back Virginia Broker of the Year (2024 and 2025), a Scotsman Guide Top Originator, and is licensed in VA, TN, GA, and FL. For buyers who've been told no by a bank, or self-employed borrowers who need NonQM options like Bank Statement or DSCR loans, that kind of access matters. Learn more at duanebuziakmortgagemaestro.com.
Key Takeaway: Get Loan Estimates from at least three lenders within a 30-day window. The APR comparison – not just the interest rate – tells you the true cost of each offer.
Frequently Asked Questions
What credit score do you need for a first-time home buyer mortgage in Virginia?
Direct Answer: Most Virginia Housing programs require a minimum 620 credit score, including the FHA Plus program. Standalone FHA loans allow 580 for 3.5% down, but many Virginia lenders apply a 620 overlay in practice.
Per Atlantic Union Bank's Virginia Housing guidelines, homebuyers with median credit scores as low as 620 may qualify. Buyers with scores below 620 should focus on credit improvement or explore NonQM options through a broker who works with alternative programs.
How much down payment assistance can Virginia first-time buyers get in 2026?
Direct Answer: Virginia Housing's DPA Grant covers 2%–2.5% of the purchase price with no repayment. DHCD's HOMEownership program offers up to $40,000 as a deferred loan. In select localities, the Virginia Pilot DPA offers up to $50,000.
According to LendingTree's Virginia program summary, the HOMEownership Down Payment and Closing Cost Assistance Program also provides $2,500 for closing costs in some configurations. Stacking multiple programs is possible – confirm combinations with an approved lender.
What is the income limit for Virginia Housing (VHDA) programs?
Direct Answer: Income limits vary significantly by region. Northern Virginia programs allow household incomes up to approximately $217,000 for some products. Other Virginia regions cap household income between $129,000 and $144,000.
Atlantic Union Bank notes that depending on the program, some Virginia Housing products have a maximum household income cap of $245,000 with no maximum loan amount. Always verify current limits at Virginia Housing's official site before applying.
Do you have to be a true first-time buyer to qualify for Virginia Housing loans?
Direct Answer: No. Per HUD's definition, anyone who hasn't owned a primary residence in the past three years qualifies as a first-time buyer. Virginia Housing also allows repeat buyers in federally designated targeted areas.
Atlantic Union Bank confirms that repeat homebuyers must not have owned a home within the previous three years – but in targeted areas, that restriction is waived entirely. Targeted areas often have higher income and purchase price limits as well.
How long does it take to close on a first-time buyer mortgage in Virginia?
Direct Answer: Plan for 30–45 days from contract to closing. Virginia Housing programs may add time if your homebuyer education certificate isn't complete.
Chartway Federal Credit Union's Virginia home buying guide notes the full loan process may take up to 45 days. Buyers who complete homebuyer education before going under contract and have all documents ready can often close faster. Working with an experienced Virginia Housing-approved lender helps speed up your mortgage approval by reducing back-and-forth on documentation. Find top mortgage brokers in Virginia who specialize in these programs to avoid unnecessary delays.
What are the biggest mistakes Virginia first-time buyers make when applying?
Direct Answer: The three most common mistakes are skipping pre-approval before house hunting, not comparing multiple lenders, and misunderstanding income limits before falling in love with a specific home.
A fourth mistake: not completing the homebuyer education course early. If you're under contract and haven't finished the course, it can delay your closing. Complete it before you start making offers.
How does the Virginia first-time buyer program compare to a standalone FHA loan?
Direct Answer: Virginia Housing's FHA Plus program pairs an FHA loan with a DPA Grant and Closing Cost Assistance Grant – giving you more upfront help than a standalone FHA loan, but with a stricter 620 credit score requirement.
A standalone FHA loan allows a 580 credit score for 3.5% down, per HUD's guidelines. For 2026, FHA loan limits range from $541,287 to $1,249,125 depending on location. If your score is between 580–619, a standalone FHA loan through a non-Virginia Housing lender may be your best path while you build credit toward 620.
Ready to Take the Next Step?
Virginia's first-time buyer programs can meaningfully reduce what you pay at closing – but only if you know which ones you qualify for and apply through the right lender.
Here's your action plan:
- Check your credit score and compare it to the 620 threshold
- Look up Virginia Housing income limits for your county
- Complete the homebuyer education course (it's required and takes one day)
- Get pre-approved through a Virginia Housing-approved lender – ideally one who can also access DHCD and federal programs
For buyers across Virginia who want to explore all available options without a hard credit pull upfront, Duane Buziak Mortgage Maestro in Glen Allen offers access to hundreds of lenders and specializes in situations where traditional banks have said no – including self-employed borrowers, veterans, and buyers with complex income. Licensed in VA, TN, GA, and FL.
The programs are there. The question is whether you're positioned to use them.