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Workforce Housing Program - For-Sale Component

City of Virginia Beach Department of Housing and Neighborhood Preservation (DHNP) · Virginia Beach, Virginia

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Income limit

120% AMI

Of area median income; varies by county and household size

Price cap

$452,667

Highest purchase price the program allows

Repayment

Shared appreciation

Settled on the terms set by City of Virginia Beach Department of Housing and Neighborhood Preservation (DHNP)

What is Workforce Housing Program - For-Sale Component?

Workforce Housing Program - For-Sale Component is a shared-appreciation loan for homebuyers in Virginia Beach, Virginia, administered by City of Virginia Beach Department of Housing and Neighborhood Preservation (DHNP).

  • The City of Virginia Beach's Workforce Housing Program (For-Sale Component) helps income-eligible working households (80-120% AMI) buy newly built, for-sale workforce housing units priced below market. The buyer pays the discounted price with their own first mortgage while the City provides a 0%-interest, no-payment second mortgage equal to the discount, repaid only on resale or transfer with the City's proportional share of net appreciation. Buyers must occupy the home as their primary residence, live or work in Virginia Beach, and complete homebuyer education.
  • Buy a new home at a discount of up to 25% below market.
  • City-provided 0% interest second mortgage with no monthly payments.
  • No repayment until resale or transfer.
  • City may waive part of its appreciation share to prevent a loss.
  • Funding comes from Workforce Housing Revolving Fund (recaptured WFH discounts, fees, and shared net appreciation); City may also make available CDBG and HOME funds.

Do you have to pay it back?

Workforce Housing Program - For-Sale Component is a shared-appreciation loan and is repaid under the terms set by City of Virginia Beach Department of Housing and Neighborhood Preservation (DHNP).

  • Repayment is triggered by Due and payable from the proceeds of resale or transfer of the WFH Unit. Owner may not repay the second deed of trust until the unit is resold. On resale the owner repays the full principal of the WFH Discount plus the City's proportional share of net appreciation.
  • The assistance is recorded in Second (subordinate only to the purchase-money first deed of trust) position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Workforce Housing Program - For-Sale Component is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Mandatory homebuyer education; the City provides a list of local homebuyer education classes (e.g., Virginia Housing, NACA).
  • Residency: At least one borrower must live or work full-time in Virginia Beach, or have a bona fide full-time job offer in the City starting within 3 months of application.
  • City holds an exclusive right to purchase up to 1/3 of WFH units in a development. Buyer must apply for a mortgage within 5 days of signing a sales contract; annual owner-occupancy certification; City right of first refusal before resale. Net worth cap 50% of unit sales price (with exclusions). Refinancing requires prior DHNP Director approval.

The program excludes

  • Manufactured homes
  • Purchases above the $452,667 price cap
  • Households above 120% 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?

Workforce Housing Program - For-Sale Component limits household income to 120% of the area median income, which varies by county and household size.

  • Household combined annual gross income must be between 80% and 120% of AMI, adjusted for household size. WFH Income Guidelines (adopted Oct 20 2025; HUD AMIs eff. Apr 1 2025; VB-Norfolk-Newport News MSA; 4-person median $106,500): 120% 4p $127,800; 110% 4p $117,150; 100% 4p $106,500; 90% 4p $95,850; 80% 4p $85,200 (full table by 1-6 persons in source).
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 6.
  • 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?

Workforce Housing Program - For-Sale Component caps the purchase price at $452,667.

  • Eligible property types include Single Family, Townhouse, Condo, and 2-4 Unit.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Workforce Housing Program - For-Sale Component serves buyers purchasing in Virginia Beach, Virginia.

  • The program targets specific areas: WFH units built in Strategic Growth Areas (Burton Station, Centerville, Newtown, Pembroke, Resort, Rosemont). Excluded: Accident Potential Zones, Noise Zones 65-70 dB DNL+, and R-10 through R-40 districts.

How do you apply?

Applications for Workforce Housing Program - For-Sale Component go through City of Virginia Beach Department of Housing and Neighborhood Preservation (DHNP), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Mandatory homebuyer education; the City provides a list of local homebuyer education classes (e.g., Virginia Housing, NACA)..

  2. Contact City of Virginia Beach Department of Housing and Neighborhood Preservation (DHNP) to reserve funds

    Funds are reserved through DHNP maintains a waiting list of pre-screened Eligible Buyers; next Eligible Buyer is verified, issued a Certificate of Eligible Buyer Status, and has 7 days to decide to purchase., 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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