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Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance

Appalachian Community Action & Development Agency, Inc. (AppCAA) - regional DPA provider for VA DHCD · Gate City, Virginia

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Assistance

$1,000–$40,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 10 years

What is Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance?

Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance is a deferred second loan for homebuyers in Gate City, Virginia, administered by Appalachian Community Action & Development Agency, Inc. (AppCAA) - regional DPA provider for VA DHCD.

  • AppCAA is the Virginia DHCD HOMEownership DPA regional administrator for Lee, Scott, Wise counties and the City of Norton. It offers DHCD down payment assistance of up to 15% of the home cost for qualified first-time buyers, paired with Virginia Housing's SPARC 1% rate reduction and the VIDA savings match. AppCAA also provides free HUD-certified housing counseling and 502 Direct loan packaging.
  • Up to 15% of home cost in down payment assistance.
  • 0% deferred, forgiven after affordability period.
  • Stackable with SPARC (-1% rate) and VIDA ($10,000 match).
  • Free HUD housing counseling with credit/collections paydown support.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from HUD HOME funds via Virginia DHCD HOMEownership DPA program; Virginia Housing SPARC; VIDA.

How much assistance does it provide?

Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance offers between $1,000 and $40,000 in assistance.

  • The program asks buyers to contribute 1% of sales price if income 50-80% AMI; $500 if under 50% AMI.
  • Amounts are the program's published maximums, not an offer — Appalachian Community Action & Development Agency, Inc. (AppCAA) - regional DPA provider for VA DHCD determines any individual award.

Do you have to pay it back?

Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance is forgiven after 10 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale, transfer, or loss of owner-occupancy during affordability period; HOME investment recaptured from net proceeds.
  • The assistance is recorded in Second (silent/deferred deed of trust) position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: No primary ownership in most recent 3 years counts as first-time.
  • The home is occupied as a primary residence
  • On credit: Median FICO 620 per governing DHCD guidelines.
  • A completed homebuyer education course, through AppCAA is a HUD-certified housing counseling agency providing pre-purchase counseling + credit-improvement; HUD-certified homebuyer education required.
  • DRAFT (dpa-gap-finder 2026-06-12): pending review. GAP NOTES: AppCAA's site confirms it offers DHCD down payment assistance 'up to 15% of the cost of the home,' SPARC, and VIDA, but does not publish full money/eligibility terms; those confirmed from the DHCD HOMEownership DPA Program Guidelines that AppCAA administers per the DHCD DPA Local Provider Contact List (Rev. March 2026, listed for Lee, Norton, Scott, Wise). DPA contact Darlene Baker x122. 4-person dollar income limits not published on provider page.

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below 80% AMI by HUD household size/locality.
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance caps the purchase price as follows: Home value <=95% of area median sales price (HUD 203(b) limits).

  • Eligible property types include Single Family, Townhouse, Condo, Modular, and Manufactured.
  • New construction is eligible.
  • Manufactured homes are eligible.

Where does it apply?

Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance is a federal program, so it is not limited to Virginia.

  • The program targets specific areas: Lee, Scott, Wise are DHCD-designated high-cost/chronically depressed localities eligible for up to 15% of sales price.

How do you apply?

Applications for Appalachian Community Action & Development Agency (AppCAA) - HOMEownership Down Payment Assistance go through Appalachian Community Action & Development Agency, Inc. (AppCAA) - regional DPA provider for VA DHCD, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through AppCAA is a HUD-certified housing counseling agency providing pre-purchase counseling + credit-improvement; HUD-certified homebuyer education required..

  2. Contact Appalachian Community Action & Development Agency, Inc. (AppCAA) - regional DPA provider for VA DHCD to reserve funds

    Funds are reserved through First-come, first-served, and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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