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SCDHC HOMEownership Down Payment & Closing Cost Assistance Program

Southside Community Development & Housing Corporation (SCDHC) · Richmond; Petersburg; Emporia, Virginia

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See what you qualify forOfficial program site →
Assistance

$1,000–$40,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is SCDHC HOMEownership Down Payment & Closing Cost Assistance Program?

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program is a deferred second loan for homebuyers in Richmond; Petersburg; Emporia, Virginia, administered by Southside Community Development & Housing Corporation (SCDHC).

  • Southside Community Development & Housing Corporation (SCDHC), a HUD-approved housing counseling agency and the largest single-family nonprofit housing developer in the Richmond MSA, administers the Virginia DHCD HOMEownership Down Payment & Closing Cost Assistance Program (federally funded by HUD HOME) as a regional provider for the Crater/Southside region (Brunswick, Charles City, Dinwiddie, Emporia, Greensville, Petersburg, Prince George, Southampton, Sussex) and the Richmond metro (Henrico, Chesterfield, City of Richmond). The DPA is a deferred, no-payment, no-interest second loan that helps income-eligible first-time homebuyers at or below 80% AMI cover down payment and closing costs. Assistance is provided up to 10% of the sales price (up to 15% in DHCD-designated high-cost/economically depressed localities), plus up to $2,500 toward closing costs, to a maximum of $40,000. The loan is secured by a deed of trust for a 5-year (assistance of $1,000-$14,999) or 10-year ($15,000-$40,000) affordability period and is fully forgiven if the buyer keeps the home as their principal residence through the period. SCDHC also offers homebuyer education, one-on-one counseling, and a VIDA matched-savings program.
  • Up to 10% of sales price (15% in high-cost areas) toward down payment.
  • Up to $2,500 toward closing costs.
  • Deferred 0% loan, no monthly payments.
  • Fully forgiven after affordability period.
  • HUD-certified homebuyer education and one-on-one counseling.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from U.S. HUD HOME Investment Partnerships Program, administered by Virginia DHCD.

How much assistance does it provide?

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program offers between $1,000 and $40,000 in assistance.

  • Award tiers: Up to 10% of sales price for standard localities; up to 15% for DHCD-designated high-cost/chronically economically depressed localities.
  • Buyer contribution: Borrower must contribute 1% of the sales price from personal funds if income is 50%-80% AMI; if income is below 50% AMI, contribution is $500. The 1% may include appraisal, insurance, third-party inspection fees, credit report, and closing costs (receipts required). SCDHC pre-screen asks for at least $2,000 in savings.
  • The program can be combined with VIDA, ARS (Acquire/Renovate/Sell), Virginia Housing DPA, Virginia Housing SPARC, FHLB programs, USDA programs, Freddie Mac/Fannie Mae assistance, lender/employer/housing-authority programs.
  • Amounts are the program's published maximums, not an offer — Southside Community Development & Housing Corporation (SCDHC) determines any individual award.

Do you have to pay it back?

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale or transfer of title (voluntary or involuntary), or failure to occupy as principal residence (rented/vacant), during the affordability period triggers recapture/repayment of the entire outstanding HOME investment from available net proceeds.
  • The assistance is recorded in Second (silent second / deferred loan recorded behind first trust mortgage) position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program 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: First-time homebuyer = never owned a home OR has not held primary ownership in a principal residence within the most recent 3-year period. Mobile homes titled as personal property and investment/inherited property not occupied as principal residence in the last 3 years still qualify the buyer as first-time.
  • The home is occupied as a primary residence
  • On credit: SCDHC's own screening states a credit score above 640. The underlying DHCD HOME DPA program requires a median FICO of 620 with at least 3 open, current trade lines (alternative credit considered with 3 trades).
  • A completed homebuyer education course, through HUD-certified homebuyer education course through Virginia Housing, NeighborWorks, or a HUD-certified agency; SCDHC provides its own HUD-approved homebuyer education workshops and counseling.
  • Residency: Property must be in SCDHC's DHCD-assigned service area (Crater/Southside counties and Richmond metro localities listed).
  • DRAFT (dpa-gap-finder 2026-06-12): pending admin review. Loan TERM: deferred second with 5-year affordability period for assistance of $1,000-$14,999 and 10-year affordability period for $15,000-$40,000; no payments and 0% interest; fully forgiven at end of affordability period; not assumable. Borrower must complete HUD-certified homebuyer education and one-on-one counseling, have a 90-day minimum work history, pay off collections totaling $1,000+ and all judgments before closing, and have cash assets below 10% of the sales price. No cash back to buyer at closing. Unconfirmed: SCDHC's own page does not republish the full DHCD income-limit-by-household-size chart, annual funding cap, or specific participating lenders; figures here are drawn from the official DHCD HOME DPA Program Guidelines (Revised Oct 2024) and DHCD DPA Local Provider Contact List (Revised March 2026). No special-population set-asides; program is open to all income-eligible first-time buyers.

The program excludes

  • Households above 80% of area median income

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?

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Total household income at or below 80% of HUD Area Median Income (AMI) for the locality and household size, per HUD's annually updated HOME income limits. SCDHC's own pre-screen also asks that annual income be at least $40,000. Exact dollar limits vary by jurisdiction and household size; see DHCD/HUD HOME income limit tables (Unconfirmed: SCDHC does not publish a per-household-size dollar chart on its site).
  • 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?

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program caps the purchase price as follows: Home value may not exceed 95% of the area median sales price (HUD 203(b) limits), established annually by HUD per locality.

  • Eligible property types include Single-family detached (one unit), Duplex/Triplex/Fourplex (assisted unit individually sold and deeded, owner-occupied, no other units owned as rentals), Townhome, Condominium, Modular home, and Manufactured home (post-June 15, 1976; permanent utility hookups; on owned land or long-term lease).
  • New construction is eligible.
  • Manufactured homes are eligible.

Where does it apply?

SCDHC HOMEownership Down Payment & Closing Cost Assistance Program is a federal program, so it is not limited to Virginia.

How do you apply?

Applications for SCDHC HOMEownership Down Payment & Closing Cost Assistance Program go through Southside Community Development & Housing Corporation (SCDHC), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-certified homebuyer education course through Virginia Housing, NeighborWorks, or a HUD-certified agency; SCDHC provides its own HUD-approved homebuyer education workshops and counseling..

  2. Contact Southside Community Development & Housing Corporation (SCDHC) to reserve funds

    Funds are reserved through First come, first served; funds reserved only after the buyer is pre-approved by a lender and meets DPA eligibility. Workshop registration and online application via SCDHC., 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.

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