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HOMEownership Down Payment Assistance Program (VHCDC)

Virginia Housing and Community Development Corporation (VHCDC) · Suffolk, Virginia

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See what you qualify forOfficial program site →
Assistance

$25,000

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 once the program's conditions are met

What is HOMEownership Down Payment Assistance Program (VHCDC)?

HOMEownership Down Payment Assistance Program (VHCDC) is a forgivable loan for homebuyers in Suffolk, Virginia, administered by Virginia Housing and Community Development Corporation (VHCDC).

  • VHCDC, a 501(c)(3) community development corporation based in Suffolk, is a local administering provider of the Virginia DHCD HOMEownership Down Payment and Closing Cost Assistance (DPA) program. It provides flexible gap financing to first-time homebuyers at or below 80% of area median income to purchase safe, decent, accessible homes. The assistance is a forgivable second-mortgage loan with a mandatory affordability period during which the buyer must occupy the home as their primary residence; an eligible buyer may receive up to 10% or 15% (in approved areas) of the sales price (max $25,000) plus up to $1,200 toward closing costs. Applicants must be enrolled in VHCDC's Home Ownership Assistance Program (HOAP).
  • Down payment assistance (up to 10% or 15% of sales price, max $25,000).
  • Up to $1,200 closing cost assistance.
  • Forgivable second mortgage.
  • 15 hours pre-purchase housing education.
  • Two pre-purchase counseling sessions.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Virginia DHCD HOME Investment Partnerships funds (federal).

How much assistance does it provide?

HOMEownership Down Payment Assistance Program (VHCDC) offers up to $25,000 in assistance.

  • The program can be combined with Can be combined with VHCDC VIDA, Virginia Pilot DPA, SPARC rate reduction, and Transition Assistance Grant (TAG).
  • Amounts are the program's published maximums, not an offer — Virginia Housing and Community Development Corporation (VHCDC) determines any individual award.

Do you have to pay it back?

HOMEownership Down Payment Assistance Program (VHCDC) is a forgivable loan, so the balance is forgiven once the program's conditions are met.

  • Repayment is triggered by Recaptured if the home is refinanced, sold, no longer the primary residence, or the affordability covenants are breached during the affordability period.
  • The assistance is recorded in Second 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 (VHCDC) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: No published numeric minimum; applicant must be mortgage-ready with no open collections or judgments.
  • A completed homebuyer education course, through VHCDC First-Time Home Buyers College (15 hours) plus two pre-purchase counseling sessions
  • Residency: Home must be purchased in Virginia within VHCDC's service MSAs.
  • DRAFT (dpa-gap-finder 2026-06-12): pending admin review. Loan is a forgivable second mortgage with affordability period tied to amount of assistance. Requires enrollment in VHCDC HOAP ($99.95 fee), 15 hours of education, two counseling sessions, three consecutive months of personal financial statements, DTI under 45%, no open collections/judgments. No special-population targeting. Unconfirmed: exact forgiveness term in years (governed by DHCD HOME affordability period schedule), max purchase price dollar figure, min credit score numeric, manufactured/new-construction eligibility.

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?

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

  • 2026 Adjusted Household Income Limits (4-person): Hampton Roads $86,150; Franklin City $76,800; Henrico County $90,800; Isle of Wight County $86,150; Northampton County $69,050; Petersburg $90,800; Pittsylvania County $63,900; Richmond $90,800; Southampton County $76,800; Surry County $86,150; Northern VA/DC/MD $106,800. Full 1-8 person tables published on the program page.
  • 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?

HOMEownership Down Payment Assistance Program (VHCDC) caps the purchase price as follows: Subject to DHCD HOME homeownership sales price limits (per the DHCD program guidelines).

  • Eligible property types include Single Family, Condo, and Townhouse.

Where does it apply?

HOMEownership Down Payment Assistance Program (VHCDC) is a federal program, so it is not limited to Virginia.

How do you apply?

Applications for HOMEownership Down Payment Assistance Program (VHCDC) go through Virginia Housing and Community Development Corporation (VHCDC), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through VHCDC First-Time Home Buyers College (15 hours) plus two pre-purchase counseling sessions.

  2. Contact Virginia Housing and Community Development Corporation (VHCDC) to reserve funds

    Funds are reserved through First-come, first-served, subject to funding availability; allow 21-30 days for processing., 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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