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HOME of Virginia HOMEownership Down Payment & Closing Cost Assistance Program

Housing Opportunities Made Equal of Virginia, Inc. (HOME of VA) · Richmond, Virginia

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See what you qualify forOfficial program site →
Assistance

$1,000–$40,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is HOME of Virginia HOMEownership Down Payment & Closing Cost Assistance Program?

HOME of Virginia HOMEownership Down Payment & Closing Cost Assistance Program is a deferred second loan for homebuyers in Richmond, Virginia, administered by Housing Opportunities Made Equal of Virginia, Inc. (HOME of VA).

  • Housing Opportunities Made Equal of Virginia (HOME of VA), a HUD-approved nonprofit founded in 1975, administers the Virginia DHCD HOMEownership Down Payment & Closing Cost Assistance Program (HUD HOME funded) as the regional provider for the Richmond metro area, serving the City of Richmond and the counties/cities of Chesterfield, Colonial Heights, Goochland, Hanover, Henrico, Hopewell, and Powhatan. The DPA is a deferred, 0% second loan for income-eligible first-time homebuyers at or below 80% AMI, providing funds for a required full house inspection, down payment, and closing costs. Assistance is up to 10% of the sales price (up to 15% in DHCD-designated high-cost areas) 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. HOME of VA pairs the assistance with free one-on-one pre-purchase counseling, group homebuyer education, money-management and credit-recovery classes.
  • Up to 10% of sales price (15% in high-cost areas) toward down payment.
  • Up to $2,500 toward closing costs.
  • Funds for required full house inspection.
  • Deferred 0% loan, fully forgiven after affordability period.
  • Free pre-purchase counseling and homebuyer education.
  • 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?

HOME of Virginia HOMEownership Down Payment & Closing Cost 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; may include appraisal, insurance, inspection, credit report, closing costs).
  • 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 — Housing Opportunities Made Equal of Virginia, Inc. (HOME of VA) determines any individual award.

Do you have to pay it back?

HOME of Virginia HOMEownership Down Payment & Closing Cost 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?

HOME of Virginia HOMEownership Down Payment & Closing Cost Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer = never owned a home OR has not held primary ownership in a principal residence within the most recent 3-year period. Mobile homes titled as personal property and investment/inherited property not occupied as principal residence in the last 3 years still qualify the buyer as first-time.
  • The home is occupied as a primary residence
  • On credit: DHCD HOME DPA requires a median FICO of 620 with at least 3 open, current trade lines (alternative credit considered with 3 trades). (Unconfirmed: HOME of VA does not publish a separate credit-score minimum on its homeownership page.)
  • A completed homebuyer education course, through HOME of VA's own homebuyer education course (HUD-certified); also accepts Virginia Housing, NeighborWorks, or HUD-certified agency courses.
  • Residency: Property must be purchased in HOME of VA's service area: Chesterfield, Colonial Heights, Goochland, Hanover, Henrico, Hopewell, Powhatan, or City of Richmond.
  • DRAFT (dpa-gap-finder 2026-06-12): pending admin review. Loan TERM: deferred 0% second with 5-year affordability period for $1,000-$14,999 and 10-year for $15,000-$40,000; fully forgiven at end of term; not assumable. Buyer must have at least $40,000 combined annual household income, complete HOME of VA homebuyer education and counseling, have a 90-day minimum work history, pay off collections of $1,000+ and all judgments before closing, and hold cash assets below 10% of sales price. No cash back at closing. Unconfirmed: HOME of VA page does not publish annual funding cap or a credit-score minimum; those plus loan-structure details come from the official DHCD HOME DPA Program Guidelines (Revised Oct 2024). Provider mailing address from HOME of VA contact records (Unconfirmed exact suite). No special-population set-asides.

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

HOME of Virginia HOMEownership Down Payment & Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income must be at least $40,000 combined annual income AND at or below 80% of HUD AMI per HOME of VA's published chart: 1 person $63,600; 2 persons $72,650; 3 persons $81,750; 4 persons $90,800; 5 persons $98,100; 6 persons $105,350; 7 persons $112,600; 8 persons $119,900.
  • 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?

HOME of Virginia HOMEownership Down Payment & Closing Cost 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?

HOME of Virginia HOMEownership Down Payment & Closing Cost Assistance Program is a federal program, so it is not limited to Virginia.

How do you apply?

Applications for HOME of Virginia HOMEownership Down Payment & Closing Cost Assistance Program go through Housing Opportunities Made Equal of Virginia, Inc. (HOME of VA), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HOME of VA's own homebuyer education course (HUD-certified); also accepts Virginia Housing, NeighborWorks, or HUD-certified agency courses..

  2. Contact Housing Opportunities Made Equal of Virginia, Inc. (HOME of VA) to reserve funds

    Funds are reserved through First come, first served; funds reserved only after lender pre-approval and DPA eligibility. Apply via HOME of VA online homeownership application (allow up to 10 business days to process)., and are subject to availability.

  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.

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