Virginia Down Payment Assistance Programs

Buying a home is a major financial decision. The main hurdle homebuyers face is the down payment. The down payment is a certain percentage of the home’s purchase price, but spending a large amount at once isn’t always easy or possible for everyone. 

Fortunately, several programs can help homebuyers with the down payment. These programs can alleviate much of the financial burden of buying a house. Assistance programs make homeownership more accessible and can be invaluable support to homebuyers in Virginia.

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Benefits of Down Payment Assistance Programs in Virginia

The Virginia housing market is favorable for buyers, but if you can’t afford the down payment, owning a home can be difficult, if not impossible. Virginia has plenty of federal and state programs to help lower your down payment or even cover all of it.  

The main benefit of these programs is that they lower the initial cost of the down payment and allow you to buy a home sooner rather than later. With a lower initial payment, you’ll likely have a lower monthly mortgage payment, which can make a difference once you’re in your new home. 

Lastly, certain programs offer some tax benefits. These extra tax benefits can help financially and make buying and owning a home more affordable in the long run.

Why Apply for a Virginia Down Payment Assistance Program with an F5 Mortgage?

As you look for a brokerage to take out a home mortgage loan in Virginia, F5 Mortgage can help you secure a great rate and guide you through these assistance programs. Our mortgage lenders have experience with all types of homebuyers throughout Virginia. We specialize in down payment assistance and can help you choose the right program. 

We focus on making the mortgage process a personalized experience since no two homebuyers are alike. Whether you’re looking for a conventional loan, VA loan, FHA loan, or another type of home loan, we offer benefits like: 

  • Streamlined application process 
  • Personalized mortgage solutions 
  • Invaluable experience in the industry 
  • Competitive rates
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Down Payment Assistance Programs in Virginia

Down Payment Assistance Programs in Virginia

Support programs are available if you want to buy a home in Virginia but are worried about the down payment and closing costs. There are a few state-wide programs as well as city-specific options that you should consider when buying your new primary residence. These include:

Homeownership Down Payment Assistance Program (DPA)

Virginia’s most well-known program for down payment help is the Homeownership Down Payment Assistance Program (DPA). The DPA supports first-time homebuyers or those at or below 80% of the area’s median income, helping them purchase accessible, decent, and safe homes. 

Eligible borrowers can receive between 10% and 15% of the home’s purchase price to help with the down payment and up to an additional $2,500 to help with closing costs. Other eligibility requirements include a credit score of at least 620 and a debt-to-income ratio (DTI) of 43% or less. However, the buyer must contribute at least 1% of the home’s sale price.

Virginia Individual Development Accounts (VIDA)

The Virginia Individual Development Accounts (VIDA) program differs slightly from traditional down payment programs. Many people find saving money for the down payment and closing costs difficult. VIDA is a program from the Virginia Department of Housing and Community Development (DHCD) that helps with that. 

VIDA helps eligible individuals save enough money for this large payment through training, support, and fund matching. The match rate can change, but for every $1 the eligible individual saves, they get $10. This program’s income requirements vary depending on the county in Virginia you’re buying in. Such a program is particularly helpful for first-time homebuyers. 

Other requirements include:

  • Being over 18 years old.
  • A Virginia resident.
  • Earning income from a full-time, part-time, or self-employed job.
  • Being able to complete the VIDA program within six to 24 months.

The program includes a homebuyer education course that provides information on buying a home and more about saving for the various fees.

Virginia Down Payment Assistance Grant

Virginia also offers assistance with the down payment through a grant. The Virginia Down Payment Assistance Grant is a great option for first-time homebuyers and other buyers who need help in addition to anything they’ve saved for this fee. This is an appealing option for Virginia homebuyers because it’s a grant, so you never have to worry about repaying the amount. 

You can use this down payment grant in addition to other down payment programs, as long as they’re non-Virginia housing assistance programs. Since this is a grant and you won’t be repaying it, there are very specific eligibility requirements to meet. 

You’ll need to be a first-time homebuyer or repeat buyer buying a home in areas of economic opportunity and have an income within Virginia housing’s income limits. You must also be within Virginia housing’s sales price and loan limits and have a conventional or FHA loan from Virginia.

Virginia Down Payment Assistance Programs by Location (Roanoke)

Total Action for Progress (TAP) is a local organization that offers a down payment assistance program to those who live or are looking to buy a home in Roanoke, Virginia. They’ll provide up to 10% of the home’s sale price to eligible homebuyers. Eligibility is based on several factors, including household size and subsequent annual gross income.

Who Qualifies for Down Payment Assistance in Virginia?

Not every homebuyer will qualify for assistance with the down payment. These programs help those who otherwise might not be able to afford the various home costs. This means that there are specific criteria you have to meet to be eligible for the programs. 

What makes you eligible for these programs in Virginia will depend on the program you’re applying for. While most have similar eligibility requirements, some might have slightly different ones that can determine whether you’re approved. The main things that a down payment or closing cost assistance program looks at are the buyer’s: 

  • Annual gross income (most programs have limits in place)
  • Credit score 
  • DTI ratio 
  • First-time homebuyer status 
  • Property type 
  • Location of the property 

Each program evaluates the above factors to determine whether you’ll be approved and how much assistance they can provide. Most programs target first-time home buyers, but some will help repeat buyers. The main consideration is meeting the eligibility requirements. 

The Department of Veterans Affairs (VA) offers assistance with more specific eligibility criteria for veterans, surviving spouses, and active military. When you take out a VA loan to buy a home, the VA can also help with the down payment and closing costs. In many cases, they’ll even waive the VA funding fee to help make buying more affordable. 

Working with an experienced mortgage lender, like F5 Mortgage, can help you find programs that you’re likely to qualify for and complete the application.

How to Apply for Down Payment Assistance in Virginia?

Buying a home involves a lot of paperwork and applications, including when applying for a down payment and closing cost assistance program. As long as you’re prepared, the process can go more smoothly and feel far less intimidating than it would if you weren’t. If you’re planning on applying for one or more programs, here’s what the process might look like: 

  • Research Different Programs

There are a few options for assistance, so you’ll want to make sure you take some time to research them thoroughly. This will help you figure out which ones you have the best chance of qualifying for. 

  • Gather Your Documentation

As you research, you’ll see the eligibility requirements and documentation you’ll need. Take some time to gather tax returns, bank statements, proof of income, and your personal identification documents.

  • Complete a Homebuyer Education Course

Most programs require a homebuyer education course. The course helps give you valuable information on the buying process and how to manage your finances through that time. 

  • Complete and Submit Your Application

After choosing the program you want to apply for, you must complete and submit the application. Before submitting it, double-check that everything is correct and you didn’t miss anything.

How to Apply for Down Payment Assistance in Virginia?

  • Wait for Approval

You’ll then have to wait to see whether the program approves your application. The time it takes from submission to decision depends on which program you’re applying for and if you filled everything out correctly. They also consider many other factors in the approval process. 

  • Close on Your New Virginia Home

Once you receive the approval from the program you’ve applied for and your home loan is approved, you can officially start closing on your new home with less financial burden.

Prepare For Your Mortgage Application

As you had to prepare for assistance program applications, you’ll want to prepare for your mortgage application. Partnering with a trusted mortgage broker like F5 Mortgage can ensure you have everything you need to complete your application and, hopefully, be approved. Some things you’ll want to do as you prepare for your application are: 

Maintain a Job

Lenders are looking for borrowers with a steady income, which translates to a steady job. Maintain your job throughout the process to show you’re a more reliable borrower. 

Keep Your Credit Score Good or Improve It

Keep your credit score as best as possible. If you know your lower score doesn’t meet lender requirements, focus on paying off debt and building your score up. 

Organize Your Financial Documentation

Gather all the documentation you’ll need and organize it so it’s all readily available to your mortgage lender to look at. Taking the time to organize it all will make sure you don’t miss anything important. 

Save for Homebuying Costs

Even if you’re approved for an assistance program, you’ll want to focus on saving up for the upfront costs of buying a home. You can use that money to move after being approved for down payment and closing costs assistance.

Work With Experienced Professionals

Working with mortgage brokers who understand the housing market in Virginia and how to navigate the application process will be highly beneficial so you can get everything squared away without mistakes.

FAQs About Virginia Down Payment Assistance

How do I buy a house in Virginia with no money down?

There are ways to buy a house with no money down in Virginia if you use certain programs, like USDA loans in rural areas or VA loans if you qualify.

What is the minimum credit score to buy a house in Virginia?

The minimum credit score to buy a house in Virginia depends on the lender you use and the type of loan you’re taking out. On average, lenders look for a minimum credit score of 620 when applying for conventional loans, but some unconventional loans, like FHA loans, will accept credit scores of 580 and even lower

How much can I get for down payment assistance in Virginia?

The amount you can get for a down payment via assistance programs in Virginia will vary. It depends on the program, your location, and other factors. Contact an experienced mortgage professional for more advice applicable to your needs.

Is down payment assistance in Virginia a loan or a grant?

In Virginia, down payment assistance can be a loan or a grant. There are programs for both. Many programs have forgivable loans, which don’t require repayment if you meet certain requirements. Furthermore, other grants don’t require repayment at all. 

Are there any income limits for Virginia down payment assistance?

Most Virginia down payment assistance programs have an income limit to ensure that only those who need the help can benefit from them. The limits vary by program but are typically based on the county or area median income.

Can first-time homebuyers in Virginia get down payment assistance?

Yes. First-time homebuyers can take advantage of down payment assistance programs in Virginia. Most programs target first-time homebuyers because having the money for a down payment is one of the most expensive parts of buying a home. They strive to reduce some of the financial burdens of buying a first home.

What are the best programs for down payment assistance in Virginia?

The two best programs for down payment assistance in Virginia are the Homeownership Down Payment Assistance Program (DPA) and the Virginia Individual Development Accounts (VIDA). These programs help homebuyers with down payment coverage and help them decide how best to save for this payment.

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Down Payment Assistance Programs
in Other States We Serve

California

California offers many down payment assistance options, mainly through the California Housing Finance Agency (CalHFA). One is the MyHome Assistance Program, which offers up to 3.5% of the purchase price of the home to help with upfront costs. This program supports low—to moderate-income homebuyers.

Florida

Florida has several options for down payment assistance. One of the programs is the Florida Assist Second Mortgage Program. It provides up to $10,000 to help homebuyers with closing costs and down payments. This program and the others are there to make homeownership more accessible in the Sunshine State.

Texas

Texas offers several great programs, including the Home Sweet Texas Home Loan Program. Texas State Affordable Housing Corporation (TSACH) program offers eligible residents up to 5% down payment assistance and favorable mortgage terms. First-time homebuyers and those who haven’t owned a home in over three years qualify.

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Colorado

The Colorado Housing and Finance Authority (CHFA) offers eligible residents a down payment assistance grant. Homeowners aren’t required to repay the grant, which can be used to purchase up to $25,000 on their first mortgage. 

Georgia

Georgia offers down payment assistance via its Dream Homeownership Program. The program helps make buying and owning a home more affordable and accessible to Georgia residents. It helps buyers qualify for better loan terms and includes down payment and closing cost assistance.

Michigan

The Michigan State Housing Development Authority offers residents the MI Home Loan Program. This program includes down payment assistance for eligible first-time homebuyers up to $7,500. The funds can then be used for any upfront homebuying costs, such as prepaid expenses, closing costs, or a down payment. 

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Ohio

Ohio offers many programs to help residents afford the down payment on a home. The Ohio Housing Finance Agency (OHFA) has the “Your Choice!” program. This assistance program helps low—to moderate-income individuals with 2.5% or 5% of the home’s purchase price for the down payment. The good news is that this loan is forgiven after seven years. 

Pennsylvania

Pennsylvania has several assistance programs and grants, depending on which county you’re buying in. In Philadelphia, there’s the Philly First Home program, which helps first-time buyers with closing costs and the down payment. The grant is up to $10,000 or 6% of the home’s purchase price. 

South Carolina

You’ll find many down payment and closing cost assistance programs in South Carolina. SC Housing’s Homebuyer Program is a mortgage and down payment program that offers homebuyers a low interest rate and helps them with the down payment on their new home. 

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