Closing Cost Assistance Grant

What is Closing Cost Assistance Grant?

Closing Cost Assistance Grant is a grant for homebuyers in Statewide, Virginia.

• Virginia Housing CCA Grant - 2% true grant of sales price for closing costs only. Pairs with Virginia Housing FHA, VA, or USDA-RD first mortgage. No repayment, no lien. 620 FICO. Statewide.
• Virginia Housing's Closing Cost Assistance (CCA) Grant provides a 2% grant of the home's sales price (or appraised value, whichever is less) to help cover closing costs on government-insured first mortgages. Pairs ONLY with a Virginia Housing FHA, VA, or USDA-RD 30-year fixed first mortgage. Funds may be used for closing costs and prepaid items - NOT down payment. The 2% is a TRUE grant (no repayment, no recapture, no lien). Income limits up to $90,000-$174,000 depending on county and household size (per Virginia Housing combined income/sales-price limits). Sales price limits $500,000 statewide low-cost / $800,000 in highest-cost NoVA jurisdictions. 620 minimum FICO. 45% max DTI (up to 50% with AUS approval). Homebuyer education required (Virginia Housing free online course or in-person class).
• Funding comes from State and Bond.

How much assistance does it provide?

Closing Cost Assistance Grant provides assistance worth 2% of the purchase price, as set by the program.

• Buyer contribution: No mandatory borrower minimum contribution from Virginia Housing CCA Grant; first-mortgage agency overlays may impose minimum (e.g., FHA 3.5% down).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Closing Cost Assistance Grant is structured as a grant, so it is not repaid.

• Repayment is triggered by TRUE GRANT - no repayment required. No lien recorded. No forgiveness schedule (immediate forgiveness at closing). No recapture on the grant itself (though the underlying MRB first mortgage may trigger IRS Section 143 9-year recapture).
• The assistance is recorded in No Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Closing Cost Assistance Grant is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Closing Cost Assistance Grant limits household income to $174,000.

• 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?

Closing Cost Assistance Grant caps the purchase price at $800,000.

• Eligible property types include Single-family detached, attached townhouse, condominium (project-approved), 2-4 unit owner-occupied (per FHA/VA/USDA overlays). PUD eligible.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Closing Cost Assistance Grant names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Closing Cost Assistance Grant serves buyers purchasing in Statewide, Virginia.

• The program targets specific areas: Federally designated targeted census tracts (per IRS Section 143) where MRB FTHB requirement is waived. High-cost NoVA jurisdictions (Arlington, Fairfax, Loudoun, Prince William, Alexandria, Falls Church, Fairfax City, Manassas, Manassas Park) have higher income / sales-price limits. Verify by county.

How do you apply?

Applications for Closing Cost Assistance Grant go through the administering agency, 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 free homebuyer education (online via virginiahousing.com or in-person via Virginia Housing-approved counseling agencies including HUD-approved housing counseling agencies, Framework, eHome America). Required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through Virginia Housing Lender Online portal at time of rate lock by approved participating lender. Daily rate sheet posted at virginiahousing.com/partners/lenders/rates., 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.