Down payment assistanceVirginia
Virginia Housing Plus Second Mortgage
A second mortgage for the full down payment: 3% to 3.5% of the price, or 4.5% to 5% with 680+ credit so 1.5% can cover closing costs
A 30-year fixed-rate second mortgage that covers your entire required down payment. It has a monthly payment, like a small second loan. With an FHA first mortgage the second is 3.5% of the price; with a conventional first it is 3%. If every borrower has a 680 or higher score you can borrow 5% (FHA) or 4.5% (conventional), and that extra 1.5% is meant for closing costs. The rate on the second matches your first mortgage rate.
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
- A second mortgage for the full down payment: 3% to 3.5% of the price, or 4.5% to 5% with 680+ credit so 1.5% can cover closing costs
- Type of help
- Repayable loan
- Where
- Statewide, Virginia
- Run by
- Virginia Housing (formerly VHDA)
- First-time buyer
- Repeat buyers welcome
- Income limit
- Yes, see below
- Price limit
- Yes, see below
- Minimum credit score
- 620
- Homebuyer education
- Required
How the repayable loan works
A small second loan with its own monthly payment. More cash at closing, a little more each month.
- Interest: Fixed, same rate as your Virginia Housing first mortgage (with a small add-on)
- Monthly payment: Yes
- When you would repay: Paid monthly over 30 years. Any remaining balance is due when you sell or pay off the home. No prepayment penalty.
Who qualifies
- Repeat buyers welcome. Open to first-time and repeat buyers. If your first mortgage is a bond loan (Conventional Bond or FHA Bond), the bond loan's own first-time rule applies unless you buy in an Area of Economic Opportunity. Non-bond Virginia Housing first mortgages have no first-time rule.
- Income. Follows the first mortgage. With a Conventional Bond or FHA Bond first, the standard bond limits apply to all household income (effective 2026-08-01): $186,000 for 1 to 2 people and $217,000 for 3 or more in the Washington-Arlington-Alexandria area, which covers Northern Virginia. With a non-bond Conventional or FHA first, the expanded limit applies to the borrowers' qualifying income: $245,000 in the Washington-Arlington-Alexandria area for any household size, $175,000 in Richmond.
- Price. With a bond first mortgage: $800,000 sales price and combined loan limit in the Washington-Arlington-Alexandria area (effective 2026-08-01), lower elsewhere. With a non-bond first there is no Virginia Housing price cap; Fannie Mae, Freddie Mac, or FHA limits apply. First and second together cannot exceed the lower of price or appraised value plus standard closing costs.
- Must be paired with a Virginia Housing Conventional, Conventional Bond, FHA, or FHA Bond first mortgage from a Virginia Housing approved lender. Not available with VA or USDA loans.
- Minimum credit score: 620 for the 3.5% FHA second, 640 for the 3% conventional second. Every borrower needs 680 or higher for the 5% or 4.5% option.
- The second sits in second lien position. Other assistance (a county loan, an employer grant) can sit in third position if the first mortgage allows it.
- No cash back at closing beyond verified earnest money and fees paid outside closing. If the numbers show cash back, the second is reduced.
- Homebuyer education is required if the first mortgage requires it (all first-time buyers on Virginia Housing loans). The certificate is good for 2 years.
| Area | 1-2 people | 3+ people |
|---|---|---|
| Washington-Arlington-Alexandria | $186,000 | $217,000 |
| Richmond | $120,000 | $138,000 |
| Charlottesville | $119,000 | $137,000 |
| Norfolk-Virginia Beach-Newport News | $121,000 | $141,000 |
| Culpeper | $123,000 | $144,000 |
| All Other Areas of Virginia | $112,000 | $129,000 |
How to apply
- 1If you are a first-time buyer, complete Virginia Housing's free homebuyer education class before loan approval.
- 2Choose a lender from the Virginia Housing approved lender search and ask for a Conventional or FHA first mortgage with the Plus Second Mortgage. Ask them to price the bond and non-bond versions side by side.
- 3Get pre-approved. The lender confirms which income limit applies (bond or expanded) and whether every borrower's score reaches 680 for the larger second.
- 4With a ratified contract the lender locks the first and second mortgages separately. You receive a separate Loan Estimate and Closing Disclosure for the second.
- 5At closing you sign a second note and deed of trust. Both loans are funded by the lender and serviced with Virginia Housing.
Watch out for
- This is a real second mortgage with a monthly payment. Compare the total payment against a first mortgage with the DPA Grant if you qualify for the grant's lower income limits.
- Using Plus adds a small amount to the first mortgage rate (0.25% on FHA, 0.125% on conventional) and the second carries the same adjusted rate. Ask for the all-in payment.
- The 1.5% closing cost add-on only exists at 680+ for every borrower. A 679 score means the smaller second and cash for closing costs.
- If you later refinance the first mortgage, the Plus Second does not automatically subordinate. Your lender must request subordination from Virginia Housing Servicing, and it may be simpler to pay the second off in the refinance.
- Bond first mortgages carry the federal recapture tax provision (sale within 9 years plus income above federal limits). Non-bond firsts do not.
This is the Virginia Housing option for buyers over the grant income limits, and for repeat buyers. Northern Virginia households up to $245,000 of qualifying income can still finance the whole down payment.
Straight answers
Is the Plus Second forgiven or deferred?
Neither. It is a fully amortizing 30-year fixed second mortgage with a monthly payment. You can pay it off early with no penalty, and any balance is due when you sell.
How much can I borrow on the second?
Enough to cover the full required down payment: 3.5% of the price with an FHA first, 3% with a conventional first. If every borrower has a 680 or higher score, that rises to 5% (FHA) or 4.5% (conventional), and the extra 1.5% is intended for closing costs. There is no dollar cap beyond the loan-to-value rules.
I already own a home. Can I use this?
Yes, with a non-bond Virginia Housing Conventional or FHA first mortgage. Repeat buyers use the expanded income limit ($245,000 of qualifying income in the Washington-Arlington-Alexandria area as of 2026-08-01) and have no Virginia Housing price cap.
Can I combine it with the DPA Grant?
No. Virginia Housing lets you use one of its three assistance products per loan: the DPA Grant, the Closing Cost Assistance Grant, or the Plus Second Mortgage. You can still layer a local program such as a county down payment loan in third position if the first mortgage allows it.
Sources
- Virginia Housing Plus Second Mortgage (homebuyer page) (read Sep 23, 2026)
- Virginia Housing Plus Second Mortgage (lender page) (read Sep 23, 2026)
- Virginia Housing Plus Second Mortgage Program Guidelines and Procedures (Last Revised August 2026) (read Sep 23, 2026)
- Virginia Housing Income and Sales Price / Loan Limits (effective 2026-08-01) (read Sep 23, 2026)
- Virginia Housing Conventional Bond Program Guidelines (first-time definition, education; Last Revised August 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.
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.