City of Alexandria Flexible Homeownership Assistance Program (FHAP)

At a glance

Amount

Up to $50,000 (up to $75,000 on a Neighborhood Stabilization Program home), sized by income tier, for down payment, principal reduction, or closing costs

Type of help

Deferred loan

Where

City of Alexandria

Run by

City of Alexandria Office of Housing

First-time buyer

First-time buyers only

Income limit

Yes, see below

Price limit

Yes, see below

Homebuyer education

Required

Your own funds

At least $2,000

How the deferred loan works

A second loan with no interest and no payment. You repay it when you sell, refinance, or pay off the first mortgage.

• Interest: 0%
• Monthly payment: None
• When you would repay: Resale of the home, or 99 years, whichever comes first. The city also applies its shared equity policy at resale, and an anti-speculation surcharge if you sell within 5 years.

Who qualifies

• First-time buyers only. No current ownership of any real estate. Prior ownership is reviewed case by case, for example when it ended in a divorce.
• Income. Two federal and two local tiers set the maximum help (HUD 2026 limits). Up to $50,000 at or below HUD 80% of AMI ($74,800 for 1 person, $85,450 for 2, $96,150 for 3, $106,800 for 4). Up to $40,000 at the mathematical 80% ($93,040 / $106,320 / $119,600 / $132,880). Up to $30,000 at 90% ($104,670 / $119,610 / $134,550 / $149,490). Up to $20,000 at 100% ($116,300 / $132,900 / $149,500 / $166,100). The property being marketed sets which limit applies.
• Price. FHAP only works on homes the Office of Housing markets: resale Affordable Set-aside units, Resale Restricted units, and Neighborhood Stabilization Program homes. Those units carry their own restricted prices (recent listings ran from about $194,000 to $367,000). When federal HOME funds are used, HUD's HOME purchase price limit for the area also applies.
• Property types: Condo, Cooperative, Townhouse or rowhouse, Duplex or semi-detached, Single-family detached, when marketed by the city. Must be your primary residence.
• Everyone in the household must have lived or worked inside Alexandria's city limits for at least 6 months before applying.
• The home must be inside the corporate limits of Alexandria and be one the city is marketing for the program.
• You pay at least $2,000 to $3,000 of the settlement and down payment costs yourself, not counting prepaids. Extra cash you bring goes to the purchase; nothing is refunded at closing.
• Net worth cannot exceed 50% of the sales price, not counting retirement accounts, life insurance, household goods, and the funds you use for the down payment and closing costs (up to 25% of the price).
• Housing ratio target 32% and total debt ratio 41%, with compensating factors allowed. The city generally follows Virginia Housing first-trust rules.
• Get pre-approved with a lender on the city's Participating Lender list. A non-Virginia Housing loan needs a written comparison to the Virginia Housing product.

How to apply

1. 1Read the city's Income Guidelines and Shared Equity Homeownership Policy so you know your tier and how resale works.
2. 2Subscribe to the city's Affordable Housing eNews list. Eligible homes are announced there and sold first come, first served, or by lottery when several units release at once.
3. 3Complete Virginia Housing's free 6-hour homebuyer class and get the certificate. A one-on-one counseling session is also required.
4. 4Get a mortgage pre-approval from one of the city's Participating Lenders, and set aside cash for earnest money, appraisal, and inspection.
5. 5Tour eligible homes with your agent. Before writing an offer, notify the Office of Housing and your lender. Then submit the city's FHAP application.
6. 6Close through your lender and the Office of Housing, which places the second trust on the home.

Watch out for

• FHAP is tied to city-marketed homes, so the pool is small. As of 2026-09-23 the city listed two available units and said no Neighborhood Stabilization or Workforce homes were available.
• Selling within 5 years costs you: a surcharge of 25% of the city loan in year one, shrinking to zero by year six, on top of repaying the loan and the shared equity.
• Resale of these homes is controlled. You cannot list the home yourself, the unit must be in good repair, and there is a 6-month marketing process the city oversees.
• The live-or-work rule is 6 months before you apply. A new Alexandria job does not count until it has lasted that long.
• Alexandria also sponsors SPARC, a 1% rate reduction on Virginia Housing loans for buyers at or below 100% of AMI. You do not need FHAP to use SPARC, so ask about both.

Straight answers

Sources

• City of Alexandria Homebuyer Resources (FHAP, set-aside units, SPARC, current listings) (read Sep 23, 2026)
• City of Alexandria Flexible Homeownership Assistance Program flyer (posted June 2026) (read Sep 23, 2026)
• City of Alexandria HUD 2026 Income Guidelines for Homeownership (FHAP tiers) (read Sep 23, 2026)
• City of Alexandria Participating Lenders (2025) (read Sep 23, 2026)
• City of Alexandria Shared Equity Homeownership Policy (read Sep 23, 2026)
• City of Alexandria SPARC Program Description (2025) (read Sep 23, 2026)

Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.