What is Virginia Housing?
Virginia Housing is the state's housing finance agency. It doesn't lend to you directly — instead, it offers first-time buyer mortgage programs and down payment help through a network of approved lenders across the state, including plenty here in Hampton Roads.
For a lot of buyers, the hardest part of buying isn't the monthly payment — it's coming up with the down payment and closing costs. That's the gap Virginia Housing's programs are built to fill.
Virginia Housing first-time buyer loans
Virginia Housing offers its own versions of the common loan types, including FHA, VA, USDA and conventional options, that come with its program benefits attached. These loans are aimed mainly at first-time buyers, though "first-time" is broader than it sounds: generally, if you haven't owned a home as your primary residence in the past three years, you may count. Buyers purchasing in certain targeted areas may not need to be first-time buyers at all.
Most programs also require completing a homebuyer education class, which is free and can be done online. I actually recommend it even if it isn't required — it covers the whole process in plain language.
Down payment assistance grants and second mortgages
Virginia Housing's down payment help generally comes in two forms. The first is a grant: money toward your down payment that you don't have to repay, as long as you follow the program rules. The second is a second mortgage: a separate, smaller loan that covers your down payment and sits behind your main mortgage, typically with its own payment or repayment terms.
Which one fits depends on your income, your credit, the loan you pair it with and whether grant funds are available at the time you buy. Program details, amounts and funding change, so your lender will confirm what's currently offered before you commit.
Income and purchase price limits
Because these programs are designed for moderate-income buyers, there are limits on both your household income and the price of the home you buy. The caps vary by where you're buying and by household size, and they're updated periodically, so a limit that applies in one Hampton Roads city may differ slightly in another.
Your credit matters too — most programs set a minimum score, and lenders will look at your debt-to-income ratio the same way they would on any mortgage. A lender approved with Virginia Housing can run your numbers against the current limits in a single conversation.
Layering assistance with FHA or conventional financing
Down payment assistance isn't a loan type on its own — it's layered on top of your main mortgage. Paired with an FHA loan, assistance can cover some or all of the 3.5% minimum down payment, which is why this combination is so popular with first-time buyers who have lower savings or are rebuilding credit.
Paired with a conventional loan, assistance can help you reach a down payment that lowers your mortgage insurance, and conventional mortgage insurance can be removed later once you build equity. If you're a veteran or service member, a VA loan already offers zero down, so assistance is usually less important — but it's still worth asking about closing costs.
The easiest way to see the difference is to compare payments side by side. Plug a few scenarios into my mortgage calculator — full down payment versus assisted — and see how the monthly number changes.
How I help first-time buyers use these programs
Not every lender offers Virginia Housing programs, so I connect buyers with local lenders who work with them often and can tell you quickly what you qualify for. I also make sure your offer is written so the assistance and closing timeline work smoothly for the seller. See how I work with buyers across Hampton Roads, or visit my First-Time Homebuyers page for the full process.
Wondering if you qualify for down payment help? Reach out and I'll help you figure out your options before you start touring.
