Down payment assistanceVirginia
Virginia Housing Closing Cost Assistance Grant
Up to 2% of the purchase price toward closing costs on a Virginia Housing VA or USDA (RHS) bond loan
This is a grant, not a loan. No lien, no interest, nothing to repay. It covers closing costs, discount points, prepaid items, and the upfront VA funding fee or USDA guarantee fee. It cannot go toward a down payment, and if 2% is more than your closing costs the grant is reduced to fit.
Funding was available the last time we checked.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Up to 2% of the purchase price toward closing costs on a Virginia Housing VA or USDA (RHS) bond loan
- Type of help
- Grant
- Where
- Statewide, Virginia
- Run by
- Virginia Housing (formerly VHDA)
- First-time buyer
- First-time buyers, with exceptions
- Income limit
- Yes, see below
- Price limit
- Yes, see below
- Minimum credit score
- 620
- Homebuyer education
- Required
How the grant works
Money you do not pay back, as long as you meet the program's stay-in-the-home terms.
- Monthly payment: None
Who qualifies
- First-time buyers, with exceptions. Every borrower must be a first-time buyer (no ownership of a primary residence in the last 3 years) unless the home is in a Virginia Housing Area of Economic Opportunity.
- Income. Uses Virginia Housing's lower grant income limits for all household members, effective 2026-08-01: $148,000 for 1 to 2 people and $174,000 for 3 or more in the Washington-Arlington-Alexandria area (Northern Virginia). Lower elsewhere; see the full table on the DPA Grant page. The higher bond and targeted-area limits do not apply.
- Price. Sales price and loan limits by area, effective 2026-08-01: $800,000 in the Washington-Arlington-Alexandria area, $675,000 in Culpeper, $575,000 in Norfolk-Virginia Beach-Newport News, $550,000 in Richmond and Charlottesville, $500,000 everywhere else.
- Extra help for: active military, veterans.
- Only works with a Virginia Housing VA Bond or Rural Development (USDA/RHS) Bond first mortgage from a Virginia Housing approved lender. Conventional and FHA loans use the DPA Grant instead.
- You must qualify for the underlying VA or USDA loan. VA loans need VA eligibility; USDA loans have their own property location and income rules.
- Minimum credit score follows the first mortgage, 620 for Virginia Housing VA and USDA loans.
- The grant can be layered with non-Virginia Housing assistance if the first mortgage allows it.
- No cash back at closing beyond verified earnest money and fees paid outside closing.
| Area | 1-2 people | 3+ people |
|---|---|---|
| Washington-Arlington-Alexandria | $148,000 | $174,000 |
| Richmond | $96,000 | $110,000 |
| Charlottesville | $95,000 | $109,000 |
| Norfolk-Virginia Beach-Newport News | $97,000 | $113,000 |
| Culpeper | $98,000 | $115,000 |
| All Other Areas of Virginia | $90,000 | $103,000 |
How to apply
- 1Complete Virginia Housing's free homebuyer education class. It is required for first-time buyers and the certificate is good for 2 years.
- 2Choose a lender from the Virginia Housing approved lender search and ask for a VA Bond or RHS Bond first mortgage with the Closing Cost Assistance Grant.
- 3Confirm with the lender that your household income and price fit the grant limits for your area.
- 4With a ratified contract, your lender locks the loan and reserves the grant. The grant follows the rate lock and expires with it.
- 5Sign the Grant Award Letter at closing. The lender funds the grant and Virginia Housing reimburses the lender.
Watch out for
- Closing costs only. If you want help with the down payment on a conventional or FHA loan, this is the wrong grant; look at the DPA Grant or Plus Second Mortgage.
- VA and USDA loans usually need no down payment from the buyer, so this grant can bring your cash to close down to a very small number, but a seller or lender credit is still worth negotiating for the rest.
- Cannot be combined with the DPA Grant or Plus Second Mortgage.
- Bond loans carry the federal recapture tax provision (sale within 9 years plus income above federal limits). Rare, but ask your lender to walk you through the notice you sign at closing.
- Funds are reserved only with a ratified contract and rate lock. Terms can change without notice.
If you are a veteran or buying in a USDA-eligible area of Northern Virginia, pair this grant with the Virginia Housing VA or USDA loan and your cash to close can get very small.
Straight answers
Is this really a grant?
Yes. Virginia Housing calls it a gift. There is no note, no lien, and no repayment. It is paid to your closing costs at settlement.
Can I put the 2% toward my down payment instead?
No. The grant must be used for closing costs, discount points, prepaid items, and the VA funding fee or USDA guarantee fee. If your closing costs are less than 2% of the price, the grant is reduced.
Can I get this and the DPA Grant?
No. The DPA Grant is for Conventional Bond and FHA Bond loans, and this grant is for VA Bond and USDA Bond loans. They never apply to the same loan.
Sources
- Virginia Housing Closing Cost Assistance Grant (homebuyer page) (read Sep 23, 2026)
- Virginia Housing CCA Grant Program Guidelines and Procedures (Last Revised August 2026) (read Sep 23, 2026)
- Virginia Housing Closing Cost Assistance Grant (lender page) (read Sep 23, 2026)
- Virginia Housing Income and Sales Price / Loan Limits (effective 2026-08-01) (read Sep 23, 2026)
- Virginia Housing Home Loans overview (minimum credit scores by loan type) (read Sep 23, 2026)
- Virginia Housing Loans and Grants for Veterans (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.
Programs are the easy part. Timing is the hard part.
Most buyers lose assistance on a deadline, not on eligibility. Sean helps you map out the counseling, the lender conversation, and the contract dates so nothing slips.