Down Payment Programs

What is Down Payment Programs?

Down Payment Programs is a deferred second loan for homebuyers in Charlottesville, Virginia.

• Piedmont Housing Alliance is the Charlottesville region's primary nonprofit housing counseling and DPA provider. Their Down Payment Programs umbrella includes multiple HUD HOME-funded products serving low- to moderate-income first-time homebuyers in the Thomas Jefferson Planning District (Albemarle, Charlottesville, Fluvanna, Greene, Louisa, Nelson). Provides up to $40,000 as a 0% interest deferred-payment second mortgage depending on tier. Funds are sourced from HUD HOME pass-through dollars, City of Charlottesville general fund, Albemarle County, and private/philanthropic sources.
• Down-payment and closing-cost assistance up to $40,000 (varies by program tier) for low- to moderate-income first-time homebuyers purchasing in the Charlottesville/Thomas Jefferson region. Provided as a 0% interest deferred-payment second mortgage. No monthly payments.
• repaid upon sale, refinance with cash-out, transfer, or loss of primary-residence status.
• Funding comes from HOME, Federal, Local Government, Private, and Philanthropic.

Do you have to pay it back?

Down Payment Programs is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Deferred 0% second-mortgage repayable in full upon sale, refinance with cash-out, transfer, or loss of primary-residence status.
• The assistance is recorded in 2 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 Programs 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 Programs limits household income to 120% of the area median income, which varies by county and household size.

• Household income between $18,900 (1-person minimum threshold) and $161,200 (8-person maximum) tracking up to 120% AMI for Charlottesville MSA. Multiple program tiers serve different income brackets.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• 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 Programs caps the purchase price as follows: Tracks HUD HOME and Virginia Housing maximum sales price for the Charlottesville MSA.

• Eligible property types include Single-family detached, Townhouse, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Down Payment Programs serves buyers purchasing in Charlottesville, Virginia.

How do you apply?

Applications for Down Payment Programs 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 Piedmont Housing Alliance (HUD-certified housing counseling agency); 8-hour homebuyer-education classes provided in-house in English and Spanish..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application through Piedmont Housing Alliance; counseling appointments scheduled directly with PHA staff. First-come, first-served subject to annual funding., 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.