City of Fredericksburg Direct Homeownership Assistance Program

City of Fredericksburg Direct Homeownership Assistance Program is a forgivable loan for homebuyers in Fredericksburg, Virginia, administered by City of Fredericksburg Office of Planning and Community Development. Funded through the City's CDBG allocation, the Direct Homeownership Assistance Program helps low- and moderate-income City residents (at/below 80% AMI) buy a primary residence within Fredericksburg city limits. It provides a secured forgivable loan of $3,000-$10,000 (tiered by income) toward closing costs and/or up to 50% of down payment costs. The loan is fully forgiven after five years; if sold sooner, the assistance plus 10% interest and a share of appreciation must be repaid. Up to $10,000 / 50% of down payment. Closing cost assistance. Fully forgiven after 5 years. 0% interest if held 5 years. Refinance assistance also available. Funding comes from Community Development Block Grant (CDBG).

City of Fredericksburg Direct Homeownership Assistance Program offers between $3,000 and $10,000 in assistance. Amounts are the program's published maximums, not an offer — City of Fredericksburg Office of Planning and Community Development determines any individual award.

City of Fredericksburg Direct Homeownership Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by If sold within 5 years, assistance plus 10% interest plus proportionate share of appreciation due; fully forgiven if owned past 5 years. The assistance is recorded in Secured by mortgage lien and promissory note position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of Fredericksburg Direct Homeownership Assistance Program is open to homebuyers who will live in the home as their primary residence. Residency requirement: City resident buying a primary residence within the City of Fredericksburg. Income tiers set loan caps: $10,000 (0-70% of threshold), $7,000 (70-80%), $5,000 (80-90%), $3,000 (90-100%), threshold = 80% AMI. Not first-time restricted; also offers refinance assistance. Program design PDF last amended 2009 but program remains listed active; reviewer should confirm current caps with the City. 4-person 80% AMI dollar figure imputed from regional HUD area.

City of Fredericksburg Direct Homeownership Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Total household income at/below 80% AMI (HUD Section 8 limits, 24 CFR 5.609) by household size. Fredericksburg is in the Washington-Arlington-Alexandria HUD area (4-person 80% ~ $106,800 for 2026). 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.

City of Fredericksburg Direct Homeownership Assistance Program caps the purchase price as follows: No stated max price; assistance limited to tiered loan caps.

City of Fredericksburg Direct Homeownership Assistance Program serves homebuyers purchasing in Fredericksburg, Virginia.

Applications for City of Fredericksburg Direct Homeownership Assistance Program go through City of Fredericksburg Office of Planning and Community Development, which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served at Office of Planning and Community Development; waitlist as funds allow. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.