Down Payment & Closing Cost Loan Program

What is Down Payment & Closing Cost Loan Program?

Down Payment & Closing Cost Loan Program is a deferred second loan for homebuyers in Charlottesville, Virginia, administered by Piedmont Housing Alliance.

• Piedmont Housing Alliance administers funds loaned for down payment and closing costs to first-time homebuyers in the Charlottesville region. Assistance is a deferred-payment subordinate loan with no required monthly payments; repayment is triggered only on sale, refinance, or moving out. Most funds come from outside sources, each with its own eligibility and terms. Households generally must be below 80% AMI, first-time buyers, 620+ credit, contribute at least 1% of their own money, and hold no more than 10% of purchase price in liquid assets.
• Achieve homeownership without saving a full down payment.
• No mandatory monthly payments.
• Repayment only on sale, refinance, or move-out.
• Some (Virginia HOME) funds are forgivable over time.
• Funding comes from Multiple: federal, state, local government, nonprofit/for-profit sources incl. Commonwealth of Virginia HOME funds; each source has its own guidelines.

Do you have to pay it back?

Down Payment & Closing Cost Loan Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Due on sale, refinance of the first mortgage, or moving out; no required monthly payments. Voluntary payments allowed.
• The assistance is recorded in Subordinate (second/junior 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 & Closing Cost Loan Program 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 & Closing Cost Loan Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income generally below 80% AMI; three income-limit guidelines apply by fund source. 4-person 80% AMI for Charlottesville VA HUD FMR Area = $106,800 (eff. May 1, 2026). Different limits in Louisa County and other jurisdictions.
• 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 & Closing Cost Loan Program can be used for Single Family, Modular, and Manufactured.

• New construction is not eligible.
• Manufactured homes are eligible.

Where does it apply?

Down Payment & Closing Cost Loan Program serves buyers purchasing in Charlottesville, Virginia.

How do you apply?

Applications for Down Payment & Closing Cost Loan Program go through Piedmont Housing Alliance, 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 Homebuyer Class certificate of completion required.

2. 2

   Contact Piedmont Housing Alliance to reserve funds

   Funds are reserved through First-come once a ratified contract and all documents are received; fund balances change daily and assistance is not guaranteed until reserved., 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.