Public Employee Homeownership Grant Program (PEG)

What is Public Employee Homeownership Grant Program (PEG)?

Public Employee Homeownership Grant Program (PEG) is a deferred second loan for homebuyers in Loudoun County, Virginia.

• PEG (Public Employee Homeownership Grant) is Loudoun County's down-payment assistance program restricted to Loudoun County public employees. Provides up to $25,000 as a 0% interest deferred-payment second mortgage to assist county employees with purchasing primary residences in Loudoun County. Applicants must be employed full-time by Loudoun County Government, Loudoun County Public Schools, or other qualifying Loudoun County public agencies. Maximum purchase price $408,100. Funds are sourced from Loudoun County general fund. Administered by Loudoun County Department of Housing and Community Development.
• Up to $25,000 in down-payment and closing-cost assistance for Loudoun County public employees purchasing in Loudoun County. Provided as a 0% interest deferred-payment second mortgage. No monthly payments.
• repaid upon sale, refinance with cash-out, transfer, loss of primary-residence status, or termination of qualifying public employment within the recapture period.
• Funding comes from Local Government.

Do you have to pay it back?

Public Employee Homeownership Grant Program (PEG) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Deferred 0% second-mortgage repayable in full upon sale, refinance with cash-out, transfer, loss of primary-residence status, or termination of qualifying Loudoun County public employment within the recapture period.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Public Employee Homeownership Grant Program (PEG) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Public Employee Homeownership Grant Program (PEG) limits household income to 100% of the area median income, which varies by county and household size.

• Household income between $45,650 (1-person minimum threshold) and $106,500 (8-person maximum) at 100% AMI for Washington-Arlington-Alexandria HMFA. Restricted to Loudoun County public employees.
• 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?

Public Employee Homeownership Grant Program (PEG) caps the purchase price at $408,100.

• Eligible property types include Single-family detached, Townhouse, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Public Employee Homeownership Grant Program (PEG) names educators, law enforcement officers, and firefighters 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?

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

How do you apply?

Applications for Public Employee Homeownership Grant Program (PEG) 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 housing counseling agencies serving Loudoun County; 8-hour homebuyer-education certificate required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application through Loudoun County Department of Housing and Community Development; first-come, first-served subject to annual funding allocation., 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.