Down Payment Assistance Grant

What is Down Payment Assistance Grant?

Down Payment Assistance Grant is a grant for homebuyers in Statewide, Virginia.

• Virginia Housing DPA Grant - 2% (FHA) / 2.5% (Conventional) true grant of sales price for down payment. ≤80% AMI required. Pairs with FHA or Conventional No-MI first. 620/640 FICO. Statewide.
• Virginia Housing's Down Payment Assistance (DPA) Grant provides a 2% (FHA) or 2.5% (Conventional No-MI) grant of the home's sales price (or appraised value, whichever is less) to help cover the down payment for buyers at or below 80% Area Median Income (AMI). Pairs with a Virginia Housing FHA or Conventional No-MI 30-year fixed first mortgage. Funds may be used for down payment - and any leftover may apply to closing costs. The grant is a TRUE grant (no repayment, no recapture, no lien). Targeted to lower-income buyers who need help with the down payment specifically. Income limit at or below 80% AMI (varies by county and household size.
• ranges from $90,000-$174,000 area-adjusted in highest-cost NoVA, lower elsewhere). Sales price limits $500,000-$800,000. 620 FICO (FHA) / 640 FICO (Conventional). Homebuyer education required.
• Funding comes from State and Bond.

How much assistance does it provide?

Down Payment Assistance Grant provides assistance worth 2.5% of the purchase price, as set by the program.

• Buyer contribution: No mandatory borrower minimum contribution from Virginia Housing DPA Grant; can fully cover FHA 3.5% down on lower-cost homes.
• 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?

Down Payment 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.
• 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?

Down Payment 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?

Down Payment Assistance Grant limits household income to 80% of the area median income, which varies by county and household size.

• Income limit at or below 80% Area Median Income (AMI) per Virginia Housing combined household income table. AMI thresholds vary by county and household size - verify on Virginia Housing income limits page. Highest-cost NoVA tops out near $174,000 for large households; lower-cost rural counties as low as $50,000-$70,000 for small households.
• 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?

Down Payment 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 (FHA), 1-unit (Conventional). PUD eligible.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Down Payment 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?

Down Payment Assistance Grant serves buyers purchasing in Statewide, Virginia.

• The program targets specific areas: Federally targeted census tracts and high-cost NoVA jurisdictions have higher income / sales-price limits. The 80% AMI cap on this product still applies but the AMI base is higher in NoVA.

How do you apply?

Applications for Down Payment 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 or in-person via approved counseling agencies). 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., 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.