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Homeownership Down Payment Assistance Program (DPA)

Statewide, Virginia

Last verified
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Assistance

25%

Of the purchase price, as the program sets it

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$1.5M

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is Homeownership Down Payment Assistance Program (DPA)?

Homeownership Down Payment Assistance Program (DPA) is a deferred second loan for homebuyers in Statewide, Virginia.

  • Virginia DHCD HUD HOME-funded statewide DPA - 0% deferred 2nd mortgage up to 10-25% of purchase price + up to $2,500 closing-cost assistance. ≤80% AMI. Forgivable typically over 5 years. Borrower 1% contribution. Pairs with any conforming first. Administered by DHCD sub-recipient network. 620 FICO. Statewide.
  • Virginia DHCD's Homeownership Down Payment Assistance Program (DPA) provides up to 10-25% of the purchase price (or 17% in some regions) plus up to $2,500 for closing costs as a 0% deferred-payment second mortgage to qualifying first-time homebuyers at or below 80% Area Median Income (AMI). Funded by HUD HOME Investment Partnerships Program funds and administered through DHCD's network of sub-recipient nonprofit and housing-authority partners statewide. The DPA second is typically forgivable over 5 years (some sub-recipients use 10-30 year forgiveness or amortization) and may be paired with ANY conforming first mortgage (FHA, VA, USDA-RD, conventional, Virginia Housing). Income limit at or below 80% AMI ($39,400 1-person low-cost rural to $129,100 8-person high-cost NoVA, per HUD HOME income limits). Purchase price tied to HUD HOME 95% area median home value caps ($233,000 rural low-cost to $1,459,000 highest-cost NoVA). 620 minimum FICO. 45% max DTI. Borrower must contribute at least 1% of own funds. Homebuyer education required.
  • Funding comes from Federal and HUD HOME.

How much assistance does it provide?

Homeownership Down Payment Assistance Program (DPA) provides assistance worth 25% of the purchase price, as set by the program.

  • Buyer contribution: Minimum 1% of purchase price from borrower's own funds (gift funds and seller concessions do not count toward the 1%).
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Homeownership Down Payment Assistance Program (DPA) is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by 0% deferred second mortgage. Forgivable typically over 5 years (1/60 per month, or pro-rata) - some sub-recipients use 10-30 year forgiveness or amortization. Full unforgiven balance due in full on sale, refinance (cash-out), transfer of title, payoff of first, or non-owner-occupancy during the affordability period. No monthly payment.
  • The assistance is recorded in 2nd 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?

Homeownership Down Payment Assistance Program (DPA) 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 (no primary-residence ownership in past 3 years). HUD HOME does not provide a targeted-area FTHB waiver, so FTHB applies broadly.
  • The home is occupied as a primary residence
  • On credit: 620 minimum FICO; some sub-recipients require higher (640-660) per their internal underwriting.
  • A completed homebuyer education course, through HUD-approved housing counseling agencies; DHCD sub-recipients typically run/coordinate education. Eight hours of pre-purchase counseling typically required.
  • Residency: Property in Virginia; primary residence. Statewide. Specific sub-recipient may have geographic service area limitations.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per HUD HOME requirements (lawful presence required).
  • First-time homebuyer required (no ownership of a primary residence in the past 3 years). Owner-occupied primary residence. Income at or below 80% AMI per HUD HOME income limits ($39,400 1-person rural low-cost to $129,100 8-person high-cost NoVA). 620 minimum FICO. Maximum 45% DTI. Purchase price within HUD HOME 95% area median home value caps ($233,000 rural to $1,459,000 highest-cost NoVA). Borrower must contribute at least 1% of own funds toward purchase. Borrower must have liquid assets less than $50,000 (varies by sub-recipient). Homebuyer education / counseling required (typically 8 hours of pre-purchase counseling via HUD-approved counselor). Must apply through a DHCD sub-recipient nonprofit / housing authority partner. Must be paired with a conforming first mortgage (FHA, VA, USDA-RD, conventional, Virginia Housing eligible).

The program excludes

  • Purchases above the $1.5M price cap
  • 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?

Homeownership Down Payment Assistance Program (DPA) limits household income to 80% of the area median income, which varies by county and household size.

  • At or below 80% Area Median Income (AMI) per HUD HOME income limits. Varies by jurisdiction and household size: $39,400 (1-person rural low-cost - SW Virginia, Lee/Wise/Buchanan counties) to $129,100 (8-person high-cost NoVA - Arlington/Fairfax/Loudoun/Prince William). Verify by county/household size with sub-recipient.
  • 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?

Homeownership Down Payment Assistance Program (DPA) caps the purchase price at $1.5M.

  • Eligible property types include Single-family detached, attached townhouse, condominium (project-approved), 2-4 unit owner-occupied (per first-mortgage overlays), manufactured home on permanent foundation (per HUD HOME).
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Homeownership Down Payment Assistance Program (DPA) names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and American Indian and Alaska Native buyers among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Homeownership Down Payment Assistance Program (DPA) serves buyers purchasing in Statewide, Virginia.

  • The program targets specific areas: DHCD sub-recipient network covers all of Virginia. High-cost areas (NoVA - Arlington, Fairfax, Loudoun, Prince William, Alexandria) have higher HUD HOME income / purchase-price limits. Rural low-cost areas (SW Virginia - Lee, Wise, Buchanan, Dickenson) have lower limits but typically higher per-buyer DPA percentages.

How do you apply?

Applications for Homeownership Down Payment Assistance Program (DPA) go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved housing counseling agencies; DHCD sub-recipients typically run/coordinate education. Eight hours of pre-purchase counseling typically required..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application through DHCD sub-recipient nonprofit / housing authority partner (varies by region). DHCD allocates HOME DPA funds annually to sub-recipients via competitive RFP., 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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