HOMEownership Down Payment & Closing Cost Assistance

What is HOMEownership Down Payment & Closing Cost Assistance?

HOMEownership Down Payment & Closing Cost Assistance is a grant for homebuyers in Petersburg, Virginia.

• PRHA acts as a sub-recipient of the Virginia DHCD HOMEownership Down Payment & Closing Cost Assistance Program for the Petersburg/Tri-Cities region, offering up to 10% of sales price (max ~$25,000) as a forgivable grant for first-time homebuyers.
• Petersburg Redevelopment and Housing Authority (PRHA) administers the Virginia DHCD HOMEownership Down Payment & Closing Cost Assistance Program (DPA) as a sub-recipient. Eligible first-time homebuyers in the Petersburg service area receive a grant equal to up to 10% of the home's sales price (with the borrower contributing at least 1% own funds), capped per DHCD program guidelines (typically $25,000 max in higher-cost markets). Structured as a forgivable grant - no repayment if owner-occupancy is maintained.
• Funding comes from Virginia DHCD HOMEownership DPA (HUD HOME pass-through and state appropriation).

How much assistance does it provide?

HOMEownership Down Payment & Closing Cost Assistance provides assistance worth 10% of the purchase price, as set by the program.

• Buyer contribution: Borrower must contribute at least 1% of sales price from own funds.
• 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 & Closing Cost Assistance is structured as a grant, so it is not repaid.

• Repayment is triggered by Grant - no repayment if owner-occupancy maintained per program affordability period and sale/transfer during affordability period may trigger pro-rata recapture per HUD HOME rules.
• The assistance is recorded in 2nd Lien (DPA grant secured by note) 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 & Closing Cost Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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

• 80% AMI per applicable HUD area; range approximately $41,100 (1-person, lower-income areas) to $116,500 (8-person, higher-income areas) per VA DHCD HOMEownership DPA program guidelines.
• 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 & Closing Cost Assistance caps the purchase price at $361,000.

• Eligible property types include Single-family detached, townhomes, condos (must meet HUD HQS).
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

HOMEownership Down Payment & Closing Cost Assistance names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, law enforcement officers, firefighters, healthcare workers, and buyers with disabilities 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 & Closing Cost Assistance serves buyers purchasing in Petersburg, Virginia.

How do you apply?

Applications for HOMEownership Down Payment & Closing Cost Assistance 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 HUD-approved homebuyer education provider; 8-hour pre-purchase course and one-on-one counseling required.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served subject to available DHCD HOMEownership DPA funds via PRHA, 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.