Loudoun County Public Employee Homeownership Grant Program (PEG)

What is Loudoun County Public Employee Homeownership Grant Program (PEG)?

Loudoun County Public Employee Homeownership Grant Program (PEG) is a forgivable loan for homebuyers in Leesburg, Virginia, administered by Loudoun County Department of Housing and Community Development.

• The PEG Program helps full- or part-time employees (>=20 hrs/week, 12+ months service) of Loudoun County government, Loudoun County Public Schools, and Courts/Constitutional Officers buy a home in Loudoun County. It provides a 0% forgivable second of up to 10% of sales price (max $25,000) for down payment and closing costs, forgiven 20%/yr over 5 years while the employee keeps their job and occupies the home. Educator-eligible because LCPS staff are a primary eligible group.
• Up to $25,000 for county & school employees.
• 0% interest, no monthly payments.
• Forgivable over 5 years.
• Down payment & closing cost coverage.
• Educators (LCPS) eligible.
• Funding comes from Loudoun County Housing Fund (local).

How much assistance does it provide?

Loudoun County Public Employee Homeownership Grant Program (PEG) offers up to $25,000 in assistance.

• Buyer contribution: Min $1,000 of borrower's own funds.
• The program can be combined with Conventional/FHA/VA/VHDA first-trust loans.
• Amounts are the program's published maximums, not an offer — Loudoun County Department of Housing and Community Development determines any individual award.

Do you have to pay it back?

Loudoun County Public Employee Homeownership Grant Program (PEG) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven 20% ($5,000)/yr over 5 years; unforgiven balance due if borrower stops County/LCPS employment, sells, or ceases owner-occupancy before term.
• The assistance is recorded in Subordinate (second) 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?

Loudoun County Public Employee Homeownership Grant Program (PEG) is open to buyers who will live in the home as their primary residence.

What are the income limits?

Loudoun County Public Employee Homeownership Grant Program (PEG) limits household income to 70% of the area median income, which varies by county and household size.

• Gross household income 30%-70% AMI; eligible range ~$49,850-$116,300 regardless of family size. Loudoun 4-person: 70%=$116,300, 80%=$132,900.
• 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.

Is there eligibility for specific groups?

Loudoun County Public Employee Homeownership Grant Program (PEG) names educators among the groups it serves.

• The program is also limited to employees of Loudoun County Government, Loudoun County Public Schools, Courts and Constitutional Officers.
• 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?

Loudoun County Public Employee Homeownership Grant Program (PEG) serves buyers purchasing in Leesburg, Virginia.

How do you apply?

Applications for Loudoun County Public Employee Homeownership Grant Program (PEG) go through Loudoun County Department of Housing and Community Development, 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 Virginia Housing Homebuyer Education certificate required for all borrowers before settlement.

2. 2

   Contact Loudoun County Department of Housing and Community Development to reserve funds

   Funds are reserved through First-come, first-served; Loan Committee approval; reservation valid 90 days; waitlist when depleted, 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.