Petersburg RHA Down Payment & Closing Cost Assistance (DPA)

What is Petersburg RHA Down Payment & Closing Cost Assistance (DPA)?

Petersburg RHA Down Payment & Closing Cost Assistance (DPA) is a deferred second loan for homebuyers in Petersburg, Virginia, administered by Petersburg Redevelopment and Housing Authority (PRHA).

• PRHA is a DHCD-designated regional administrator of the Virginia HOMEownership Down Payment and Closing Cost Assistance Program (DPA). It provides deferred assistance to lower-income, first-time homebuyers who cannot typically qualify for conventional mortgage products, for the purchase of a primary residence. An income-eligible buyer may receive up to 10% of the purchase price toward the down payment plus up to $2,500 toward closing costs, to a maximum of $40,000. Assistance is structured with a mandatory affordability period and secured by a restricted deed of covenant and promissory note.
• Up to 10% of purchase price for down payment.
• Up to $2,500 for closing costs.
• Maximum assistance $40,000.
• No monthly payments or interest during affordability period.
• Serves buyers who cannot qualify for conventional products.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD HOME funds passed through the Virginia DHCD HOMEownership Down Payment and Closing Cost Assistance Program.

How much assistance does it provide?

Petersburg RHA Down Payment & Closing Cost Assistance (DPA) offers up to $40,000 in assistance.

• Buyer contribution: Must provide 1% of sales price from personal funds, or a minimum of $500.
• The program can be combined with Buyer's first mortgage; HUD-certified homebuyer education through Virginia Housing.
• Amounts are the program's published maximums, not an offer — Petersburg Redevelopment and Housing Authority (PRHA) determines any individual award.

Do you have to pay it back?

Petersburg RHA Down Payment & Closing Cost Assistance (DPA) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, transfer, refinance, or cessation of owner-occupancy as primary residence before the end of the affordability period.
• The assistance is recorded in Subordinate position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Petersburg RHA Down Payment & Closing Cost Assistance (DPA) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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

• Household income at or below 80% AMI by household size (Richmond MSA): 1p $61,780; 2p $70,600; 3p $79,450; 4p $88,250; 5p $95,350; 6p $102,400; 7p $109,450; 8p $116,500.
• 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?

Petersburg RHA Down Payment & Closing Cost Assistance (DPA) caps the purchase price as follows: Initial purchase price or after-rehab value cannot exceed 95% of area median purchase price for single-family housing per HUD (HOME homeownership sales price limits).

• Eligible property types include Single Family.

Where does it apply?

Petersburg RHA Down Payment & Closing Cost Assistance (DPA) is a federal program, so it is not limited to Virginia.

• The program targets specific areas: Serves Chesterfield, Petersburg, Colonial Heights, Dinwiddie, Hopewell, Prince George, Emporia, Greensville, Sussex and Surry; up to 15% of sales price available within DHCD-approved targeted areas.

How do you apply?

Applications for Petersburg RHA Down Payment & Closing Cost Assistance (DPA) go through Petersburg Redevelopment and Housing Authority (PRHA), 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-certified Homebuyer Education class sponsored by Virginia Housing (1-888-643-2696).

2. 2

   Contact Petersburg Redevelopment and Housing Authority (PRHA) to reserve funds

   Funds are reserved with the provider 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.