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. Funding comes from HUD HOME funds passed through the Virginia DHCD HOMEownership Down Payment and Closing Cost Assistance Program.

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

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.

Petersburg RHA Down Payment & Closing Cost Assistance (DPA) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required, through HUD-certified Homebuyer Education class sponsored by Virginia Housing (1-888-643-2696). Residency requirement: Property must be located within PRHA's DPA service area. Up to 10% of purchase price toward down payment plus up to $2,500 closing costs (attorney fee, title insurance, taxes). First-time homebuyer; primary residence; contribute 1% of sales price (min $500). Complete HUD-certified Virginia Housing homebuyer education. Income at or below 80% AMI by family size. DTI not to exceed 45%; housing ratio not to exceed 33%. Applicants with cash/liquid assets of 10% or more of sales price are ineligible. Sign homebuyer agreement and execute restricted deed of covenant and promissory note; lien placed for affordability period. Required docs: signed application, mortgage application from lender, monthly household budget. Up to 15% of sales price within DHCD-approved areas. PRHA DPA contact: Latysha Carpenter, ext. 136. Application packet effective 05-15-24.

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.

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.

Petersburg RHA Down Payment & Closing Cost Assistance (DPA) serves homebuyers purchasing in Petersburg, 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.

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. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.