Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program

What is Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program?

Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program is a deferred second loan for homebuyers in Statewide (all Virginia counties and independent cities) County, Virginia, administered by Habitat for Humanity Virginia.

• Habitat for Humanity Virginia is a designated statewide administrator of the Virginia DHCD HOMEownership Down Payment & Closing Cost Assistance Program (federally funded by HUD HOME). It provides down payment and closing-cost assistance to income-eligible first-time homebuyers at or below 80% AMI across the entire Commonwealth, including buyers who are NOT purchasing a Habitat-built home. The DPA is a deferred, 0% second loan up to 10% of the sales price (up to 15% in DHCD-designated high-cost/economically depressed localities) plus up to $2,500 toward closing costs, to a maximum of $40,000, secured by a deed of trust for a 5- or 10-year affordability period and forgiven if the home remains the buyer's principal residence through the period. Because Habitat Virginia covers every Virginia locality on DHCD's provider list, it functions as the statewide backstop DPA provider in addition to regional nonprofit administrators.
• Statewide coverage including non-Habitat home purchases.
• Up to 10% of sales price (15% in high-cost areas) toward down payment.
• Up to $2,500 toward closing costs.
• Deferred 0% loan, fully forgiven after affordability period.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from U.S. HUD HOME Investment Partnerships Program, administered by Virginia DHCD.

How much assistance does it provide?

Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program offers between $1,000 and $40,000 in assistance.

• Award tiers: Up to 10% of sales price for standard localities; up to 15% for DHCD-designated high-cost/chronically economically depressed localities.
• Buyer contribution: Borrower must contribute 1% of the sales price from personal funds if income is 50%-80% AMI; if income is below 50% AMI, contribution is $500 (receipts required).
• The program can be combined with VIDA, ARS, Virginia Housing DPA, Virginia Housing SPARC, FHLB programs, USDA programs, Freddie Mac/Fannie Mae assistance, lender/employer/housing-authority programs.
• Amounts are the program's published maximums, not an offer — Habitat for Humanity Virginia determines any individual award.

Do you have to pay it back?

Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale or transfer of title (voluntary or involuntary), or failure to occupy as principal residence, during the affordability period triggers recapture/repayment of the entire outstanding HOME investment from available net proceeds.
• The assistance is recorded in Second (silent second / deferred loan behind first trust mortgage) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Total household income at or below 80% of HUD Area Median Income for the locality and household size, per HUD's annually updated HOME income limits. Because coverage is statewide, the dollar limit varies by jurisdiction and household size; see DHCD 2025 HUD HOME Income Levels. (Unconfirmed: no single statewide dollar figure applies.).
• 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?

Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program caps the purchase price as follows: Home value may not exceed 95% of the area median sales price (HUD 203(b) limits), established annually by HUD per locality.

• Eligible property types include Single-family detached (one unit), Duplex/Triplex/Fourplex (assisted unit individually sold and deeded, owner-occupied), Townhome, Condominium, Modular home, and Manufactured home (post-June 15, 1976; permanent utility hookups; owned land or long-term lease).
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program is a federal program, so it is not limited to Virginia.

How do you apply?

Applications for Habitat for Humanity Virginia Statewide HOMEownership Down Payment Assistance Program go through Habitat for Humanity Virginia, 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 HUD-certified homebuyer education through Virginia Housing, NeighborWorks, or a HUD-certified agency; one-on-one HUD-certified housing counseling required..

2. 2

   Contact Habitat for Humanity Virginia to reserve funds

   Funds are reserved through First come, first served; funds reserved only after lender pre-approval and DPA eligibility. Contact via DPA@habitatvirginia.org., 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.