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.

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.

Down Payment & Closing Cost Loan Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time = not owned real estate in over 3 years. On credit, the program states: 620+ required (lender or PHA tri-merge soft-pull for $25). A homebuyer education course is required, through Virginia Housing Homebuyer Class certificate of completion required. Assistance amount, min/max, forgiveness years, max DTI, household-size cap, and per-fund interest rates are not published (vary by fund source, awarded by need) and left blank rather than guessed. Liquid-asset cap = 10% of purchase price (not a fixed dollar). SPARC is a separate Virginia Housing 1.00% rate-reduction program PHA combines with local/state DPA funds. Confirmed active: page modified May 2026; 2026 AMI charts effective May 1, 2026.

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.

Down Payment & Closing Cost Loan Program can be used for Single Family, Modular, and Manufactured. New construction is not eligible. Manufactured homes are eligible.

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

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. 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. 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.