Virginia's statewide homebuyer programs come from Virginia Housing, the state's housing finance agency. Virginia Housing offers first mortgages in several loan types plus grants and a second mortgage that can help with the down payment and closing costs, and you reach them through a lender that works with Virginia Housing. Many of its loans call for a free homebuyer class, and eligibility and terms vary by borrower, property and program, so confirm the details with Virginia Housing and a participating lender.
What Virginia Housing is
Virginia Housing is the housing finance agency for the Commonwealth of Virginia. Its homeownership programs pair a first mortgage with optional assistance, and it also offers free homebuyer education to help buyers prepare.
You do not apply to Virginia Housing directly. Its website directs buyers to work with a lender and offers a Find a Lender tool to locate one that offers Virginia Housing loans. If you have owned a home before, Virginia Housing suggests talking with a lender about the options available to repeat buyers as well.
Virginia Housing homebuyer programs by name
First mortgage loans
Virginia Housing offers first mortgages in four loan types:
- Conventional. A standard loan type with lower upfront cash requirements and an affordable monthly payment as its stated aim.
- FHA. A loan insured by the Federal Housing Administration, with lower upfront cash requirements and flexible credit qualifying.
- VA. A loan guaranteed by the Department of Veterans Affairs for eligible veterans and service members, who need a Certificate of Eligibility.
- USDA Rural Development. A loan guaranteed through USDA for eligible rural properties and income-eligible households.
Assistance programs
These are combined with a Virginia Housing first mortgage:
- Down Payment Assistance Grant (DPA). Reduces the cash you need for a down payment. It is a grant and does not have to be repaid.
- Closing Cost Assistance (CCA) Grant. Can help cover funds needed at closing. It is also a grant and does not have to be repaid.
- Plus Second Mortgage. A second mortgage that covers the down payment and is designed to help keep the total mortgage payment affordable.
Because the assistance is paired with a Virginia Housing first mortgage, think of your options as a combination: a loan type that fits you, plus whichever grant or second mortgage you may be eligible for. Ask your lender how each piece works and what you would owe on any second mortgage.
Income limits, sales price limits, credit guidelines and funding can all change. Check eligibility and current terms with Virginia Housing and a participating lender before you build your plans around any program.
Homebuyer education in Virginia
Virginia Housing notes that many of its loans require a free homebuying course. Its homebuyer education page lists three ways to take it:
- In-person classes, which Virginia Housing describes as free.
- Virtual sessions led by an instructor.
- A self-paced online course that covers the same material as the in-person class.
Virginia Housing also offers a free eBook on the homebuying process. Ask your lender whether the loan you are considering requires the course and when your certificate needs to be in the file, so the class does not hold up your closing.
Beyond Virginia Housing's class, HUD-approved housing counseling agencies offer free or low-cost help with budgeting, deciding how much home you can afford, comparing loan types, choosing a lender and preparing for closing. HUD's housing counseling locator lists approved agencies in Virginia.
Get answers for your situation. Programs vary by borrower, property and investor.
How to work with a Virginia Housing lender
- Use the Find a Lender tool. Not every lender offers Virginia Housing loans. Ask each one which loan types and assistance programs it works with.
- Take the class early. Completing the homebuyer course before you start house hunting gives you time to act on what you learn.
- Match the loan type to your situation. If you are a veteran or service member, ask about the VA option. If you are looking in a rural area, ask whether the property may be eligible for USDA financing.
- Compare Loan Estimates. Get a Loan Estimate for the Virginia Housing option and any other loan you are considering, and compare cash to close and monthly costs on the same form.
Approval is subject to credit approval, property review and program guidelines. A lender can tell you whether you may qualify, but cannot promise eligibility before reviewing your full application.
Virginia closing items to know about
Virginia's closing taxes are set out in the Code of Virginia and are collected by the clerk of the circuit court where the documents are recorded. No deed or deed of trust can be recorded until the tax and applicable fees are paid.
State recordation tax
Virginia imposes a state recordation tax on deeds admitted to record, unless an exemption applies. It also imposes a recordation tax on deeds of trust and mortgages, measured by the obligation secured. Virginia home loans are commonly secured by a deed of trust rather than a mortgage, so expect recordation tax on both the deed and your deed of trust. Your Closing Disclosure will list each recording charge separately.
City or county recordation tax
A city or county may add its own local recordation tax. Whether one applies, and how much it adds, depends on where you buy.
Grantor tax
Virginia's grantor tax applies to deeds conveying real estate that is sold. The law places it on the grantor, meaning the seller, though the parties may agree that the buyer will pay all or part of it. Read your purchase contract to see how it is handled.
Property tax relief
Virginia's main property tax relief for homeowners is set locally. State law lets each locality adopt, by ordinance, real estate tax relief such as an exemption or deferral for owners who meet age requirements or who are permanently and totally disabled and who own and live in the home as their sole dwelling. Programs and rules differ from one city or county to the next, so ask your local commissioner of the revenue or assessor what relief may be available, and talk to a tax professional about how it applies to you.
Virginia first-time buyer checklist
- Review Virginia Housing's first mortgage loan types and assistance programs.
- Take Virginia Housing's free homebuyer class in person, virtually or online.
- Use the Find a Lender tool to locate a lender that offers Virginia Housing loans.
- If you are a veteran or service member, request your Certificate of Eligibility.
- Gather income, asset, employment and credit documents.
- Ask how any second mortgage works and which grants you may qualify for.
- Compare Loan Estimates, including state and local recordation taxes.
- After closing, ask your locality about any real estate tax relief programs.
Frequently asked questions
Do I have to repay Virginia Housing's down payment or closing cost help?
Virginia Housing describes its Down Payment Assistance Grant and Closing Cost Assistance Grant as grants that do not have to be repaid. The Plus Second Mortgage is a second mortgage, so it is repaid under its own terms. Check eligibility and current terms with Virginia Housing and a participating lender before relying on any of these.
Is the Virginia Housing homebuyer class required?
Virginia Housing says many of its loans require a free homebuying course. You can take it in person, in a virtual session or through a self-paced online course that covers the same material. Ask your lender whether your loan requires it and when the certificate is due, so it does not delay closing.
What recordation taxes will I see at a Virginia closing?
Virginia imposes a state recordation tax on deeds and on deeds of trust or mortgages, and cities and counties may add a local recordation tax. The seller generally owes the grantor tax unless the contract says otherwise. The circuit court clerk collects these taxes before recording. Your Loan Estimate and Closing Disclosure will show the amounts.
What property tax relief is available to Virginia homeowners?
Relief is set locally. State law lets each locality adopt real estate tax relief, such as an exemption or deferral, for owners who meet age requirements or are permanently and totally disabled and live in the home. Ask your local commissioner of the revenue or assessor, and talk to a tax professional.
Next steps
- First-Time Home Buyer Loans
- Virginia mortgage overview
- First-time buyer loans in Virginia
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- First-time buyer loans in Arlington
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- First-time buyer loans in Newport News
- First-time buyer loans in Fredericksburg
- First-time buyer loans in Alexandria
- First-time buyer loans in Hampton
- First-time buyer loans in Lynchburg
- First-time buyer loans in Charlottesville
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