Loudoun County Down Payment / Closing Cost Assistance Program (DPCC)

At a glance

Amount

Up to 10% of the purchase price or $70,000, whichever is less, for down payment and closing costs

Type of help

Forgivable loan

Where

Loudoun County

Run by

Loudoun County Department of Housing and Community Development

First-time buyer

First-time buyers only

Income limit

Yes, see below

Price limit

Yes, see below

Minimum credit score

620

Homebuyer education

Required

Your own funds

At least $1,000

How the forgivable loan works

A second loan with no payment that is forgiven over time or after a set number of years in the home.

• Interest: 0%
• Monthly payment: None
• Forgiveness: Forgiven at about 6.666% per year over 15 years while you keep the home as your primary residence. Fully forgiven after year 15.
• When you would repay: Selling, or refinancing with cash out or a home equity loan, before year 15 means the unforgiven balance is due. A rate-and-term refinance can be subordinated if no cash comes out.

Who qualifies

• First-time buyers only. No ownership interest in a home or other residential property in the last 3 years, anywhere in the world. Co-signing a mortgage or inheriting property counts as ownership even if you never lived there.
• Income. Gross annual household income from all sources must be between $49,850 and $116,299 regardless of household size (30% to 70% of area median income for a family of four, HUD 2026 figures). Households from $116,300 to $166,100 use the companion DPCC Plus program instead. Everyone 18 and over must document income unless they are a full-time student.
• Price. No fixed price cap is published. The loan is limited to 10% of the price or $70,000, and the county reviews your debt ratios (34% housing / 45% total, up to 35/46 with three compensating factors).
• Property types: Loudoun Affordable Dwelling Unit (ADU), Existing market-rate home in Loudoun County. Must be your primary residence.
• You must have lived or worked in Loudoun County for at least the last 6 months.
• Minimum middle credit score of 620.
• At least $1,000 of your own money toward down payment or closing costs. If your liquid assets exceed 12 months of the proposed mortgage payment, the county may require more from you first.
• Works with conventional, FHA, VA, and Virginia Housing first trusts. Subprime and adjustable-rate first mortgages are not allowed.
• Virginia Housing's free homebuyer education certificate is required for every applicant before settlement.
• A $200 servicing fee is due at settlement and cannot be financed. Loudoun County is listed as second mortgagee on your homeowner's insurance.
• No cash back at closing. The loan covers only what is needed for down payment and closing costs.

How to apply

1. 1Complete Virginia Housing's free homebuyer education class and keep the certificate.
2. 2Get pre-approved with a lender and tell them you plan to use Loudoun DPCC. The lender submits reservation paperwork later.
3. 3Write a contract. Loudoun requires a complete ratified sales contract signed by all parties when you submit the application, so plan on a 45 to 60 day closing.
4. 4Review the DPCC Application Packet, then submit your application and all supporting documents online through the county's Neighborly portal linked at loudoun.gov/dpcc.
5. 5The county confirms eligibility, your lender submits a Request for Reservation of Funds, and the Loan Committee approves the loan. You and the lender receive a Confirmation of Reservation of Funds good for 90 days.
6. 6Settle no sooner than 15 business days after Loan Committee approval. Bring the $200 servicing fee to closing.

Watch out for

• Funding is limited and first come, first served. The application only starts once you have a ratified contract, so ask the Housing Finance Specialist about available funds before you write an offer.
• The 15 business day wait after Loan Committee approval is firm. Build it into your contract dates.
• A cash-out refinance or a home equity line during the 15 years means paying off the DPCC balance. Only no-cash rate reductions can be subordinated.
• If your income is above $116,299, you are in DPCC Plus territory ($116,300 to $166,100). Same loan structure, $1,500 minimum contribution, and a waiting list when funds run out.
• A denial cannot be appealed and you cannot reapply for a year, so make sure the debt ratios work before you apply.

Straight answers

Sources

• Loudoun County Homeownership Loan Programs (DPCC, DPCC Plus, PEG, SPARC) (read Sep 23, 2026)
• Loudoun County DPCC Application Packet and Program Guidelines (PDF) (read Sep 23, 2026)
• Loudoun County DPCC Program Information for Lenders (PDF) (read Sep 23, 2026)
• Loudoun County DPCC Plus Application Packet (PDF) (read Sep 23, 2026)
• Loudoun County DPCC Homebuyer Eligibility FAQs (read Sep 23, 2026)
• Loudoun County Income Guidelines for Housing Programs (updated July 2026) (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.