hey prescott.
See what you qualify for

Plus Second Mortgage

Statewide, Virginia

Last verified
See what you qualify forOfficial program site →
Assistance

5%

Of the purchase price, as the program sets it

Income limit

$245,000

The household income limit the program publishes

Price cap

$800,000

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Plus Second Mortgage?

Plus Second Mortgage is a deferred second loan for homebuyers in Statewide, Virginia.

  • Virginia Housing Plus Second Mortgage - 3-5% amortizing 30-year second at same rate as first mortgage. Pairs with FHA, VA, USDA-RD, HFA Conv, Conv No-MI, or Conv No-MI Plus. FICO tiered 620/640/660/680. Statewide.
  • Virginia Housing's Plus Second Mortgage provides a 30-year amortizing second mortgage for 3-5% of the home's sales price to help cover the down payment and/or closing costs. Pairs with a Virginia Housing 30-year fixed first mortgage (FHA, VA, USDA-RD, HFA Conventional, Conventional No-MI, or Conventional No-MI Plus). The Plus Second is fully amortizing over 30 years at the SAME interest rate as the paired first mortgage - meaning a monthly payment is required (this is NOT a deferred soft second). Maximum percentage varies by first-mortgage product: up to 5% with FHA, VA, USDA-RD, and HFA Conventional.
  • lower percentages with Conventional No-MI and No-MI Plus per Virginia Housing matrix. Income up to $245,000 in highest-cost NoVA areas (highest of the three Virginia Housing DPA products). Sales price limits $500,000-$800,000. FICO tiers: 620 (FHA/VA/USDA), 640 (HFA Conv), 660 (Conv No-MI), 680 (Conv No-MI Plus). 45% max DTI. Homebuyer education required.
  • Funding comes from State and Bond.

How much assistance does it provide?

Plus Second Mortgage provides assistance worth 5% of the purchase price, as set by the program.

  • Buyer contribution: No mandatory borrower minimum contribution from Virginia Housing; first-mortgage agency overlays may impose minimum.
  • 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?

Plus Second Mortgage is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Fully amortizing 30-year second mortgage with monthly principal+interest payments at the SAME rate as the paired first mortgage. NOT a deferred soft second - borrower pays monthly. Balance also due in full on sale, refinance, transfer, or payoff. No forgiveness.
  • The assistance is recorded in 2nd 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?

Plus Second Mortgage is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: FTHB waived in federally targeted tracts and for qualifying veterans under IRS Section 143(d)(2)(B).
  • The home is occupied as a primary residence
  • On credit: FICO tiered by first-mortgage product: 620 (FHA/VA/USDA), 640 (HFA Conventional), 660 (Conventional No-MI), 680 (Conventional No-MI Plus).
  • A completed homebuyer education course, through Virginia Housing free homebuyer education (online or in-person via approved counseling agencies). Required prior to closing.
  • Residency: Property in Virginia; primary residence. Statewide.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien.
  • First-time homebuyer required (waived in federally targeted census tracts and for qualifying veterans). Owner-occupied primary residence. FICO tiered by first-mortgage product: 620 (FHA/VA/USDA), 640 (HFA Conventional), 660 (Conventional No-MI), 680 (Conventional No-MI Plus). Maximum 45% DTI (up to 50% with AUS). Income within Virginia Housing limits ($90,000-$245,000 by county/household size). Sales price within Virginia Housing limits ($500,000-$800,000). Homebuyer education required. Must use a Virginia Housing-approved participating lender. Must be paired with a Virginia Housing first mortgage. Cannot combine with CCA Grant or DPA Grant. Borrower must qualify for both the first AND the Plus Second on combined DTI.

The program excludes

  • Purchases above the $800,000 price cap
  • Households above $245,000

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?

Plus Second Mortgage limits household income to $245,000.

  • 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?

Plus Second Mortgage caps the purchase price at $800,000.

  • Eligible property types include Single-family detached, attached townhouse, condominium (project-approved), 2-4 unit owner-occupied (per FHA/VA/USDA overlays). PUD eligible.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Plus Second Mortgage names veterans, active-duty service members, reservists and National Guard members, and surviving spouses 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?

Plus Second Mortgage serves buyers purchasing in Statewide, Virginia.

  • The program targets specific areas: Federally targeted census tracts (MRB FTHB waiver) and high-cost NoVA jurisdictions (Arlington, Fairfax, Loudoun, Prince William, Alexandria, Falls Church, Fairfax City, Manassas, Manassas Park) have elevated income / sales-price limits.

How do you apply?

Applications for Plus Second Mortgage go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Virginia Housing free homebuyer education (online or in-person via approved counseling agencies). Required prior to closing..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved through Virginia Housing Lender Online portal at time of rate lock by approved participating lender. Daily rate sheet at virginiahousing.com/partners/lenders/rates., 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.

Other programs in Statewide, Virginia

See every program in Statewide, Virginia →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs