City of Suffolk HOME Downpayment and Closing Cost Assistance Program

What is City of Suffolk HOME Downpayment and Closing Cost Assistance Program?

City of Suffolk HOME Downpayment and Closing Cost Assistance Program is a forgivable loan for homebuyers in Suffolk, Virginia, administered by Suffolk Redevelopment and Housing Authority (in partnership with the City of Suffolk).

• The Suffolk Redevelopment and Housing Authority, in partnership with the City of Suffolk, provides down payment and closing cost assistance to first-time homebuyers purchasing a primary residence in Suffolk. Eligible buyers (income at or below 80% AMI, no homeownership in the prior three years) may receive up to $14,500 as a 0% amortized forgivable loan secured by a deed of trust; 20% is forgiven each year and the balance is fully forgiven after five years. Buyers complete the Virginia Housing First-Time Homebuyers Class in person, attend two one-on-one counseling sessions, and contribute at least 1% of the sales price ($500 minimum).
• Up to $14,500 in down payment and closing cost assistance.
• 0% interest, no monthly payments.
• 20% forgiven each year, fully forgiven after 5 years.
• No prepayment penalty.
• Works alongside a standard first mortgage.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD HOME Investment Partnerships Program funds (City of Suffolk / Western Tidewater HOME Consortium).

How much assistance does it provide?

City of Suffolk HOME Downpayment and Closing Cost Assistance Program offers up to $14,500 in assistance.

• Buyer contribution: Buyer must contribute at least 1% of the sales price, with a $500 minimum.
• The program can be combined with May be paired with a first mortgage; buyer completes Virginia Housing homebuyer education.
• Amounts are the program's published maximums, not an offer — Suffolk Redevelopment and Housing Authority (in partnership with the City of Suffolk) determines any individual award.

Do you have to pay it back?

City of Suffolk HOME Downpayment and Closing Cost Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, lease, conveyance, title transfer, or death of the qualifying person within the 5-year affordability period; remaining unforgiven balance is recaptured.
• The assistance is recorded in Subordinate (deed of trust and promissory note behind first mortgage) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Suffolk HOME Downpayment and Closing Cost Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Suffolk HOME Downpayment and Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income cannot exceed 80% of Area Median Income.
• 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?

City of Suffolk HOME Downpayment and Closing Cost Assistance Program can be used for Single Family, Townhouse, and Manufactured.

• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

City of Suffolk HOME Downpayment and Closing Cost Assistance Program is a federal program, so it is not limited to Virginia.

How do you apply?

Applications for City of Suffolk HOME Downpayment and Closing Cost Assistance Program go through Suffolk Redevelopment and Housing Authority (in partnership with the City of Suffolk), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Virginia Housing First-Time Homebuyers Class (in person, signed certificate) plus at least two one-on-one sessions with a HUD-certified housing counselor through SRHA.

2. 2

   Contact Suffolk Redevelopment and Housing Authority (in partnership with the City of Suffolk) to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 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.