Category: State Programs | Published: September 10, 2025 | Reading Time: 12 minutes
Quick Summary: Virginia offers excellent first-time home buyer assistance through VHDA programs providing up to $15,000 in down payment assistance, competitive interest rates, and various tax benefits. This complete guide walks you through every step with a free printable checklist.
Free Virginia First-Time Buyer Checklist
Download our comprehensive printable checklist to track your progress through every step of the Virginia first-time home buyer process.
Grant program: No repayment required if used as primary residence
VHDA FHA Loan Program
Low down payment options
FHA-insured loans with low down payment requirements and flexible credit guidelines.
Down payment: As low as 3.5%
Credit score: Minimum 580
Mortgage insurance: FHA-required
Available statewide: All 95 counties and cities
VHDA VA/USDA Programs
Government-backed loans
Government-insured loans with zero down payment options for eligible buyers.
VA loans: 0% down for eligible veterans
USDA loans: 0% down in eligible rural areas
No private mortgage insurance: VA loans have no PMI
Competitive rates: Below market interest rates
Step-by-Step Process for Virginia First-Time Buyers
1
Determine Your Eligibility
First-Time Buyer Definition:
Haven't owned a home in the past 3 years
Single parent who owned with former spouse
Displaced homemaker
Individual who owned mobile home only
Income Limits (2025):
Fairfax County: Up to $141,600 (1-person) / $161,400 (4-person)
Arlington County: Up to $141,600 (1-person) / $161,400 (4-person)
Prince William County: Up to $141,600 (1-person) / $161,400 (4-person)
Richmond City: Up to $88,800 (1-person) / $101,200 (4-person)
Other localities: Varies by area median income
2
Complete Homebuyer Education
Required for all VHDA programs:
Choose HUD-approved counseling agency
Complete 8-hour homebuyer education course
Obtain certificate of completion
Course must be completed within 2 years of application
Tip: Many courses are available online and can be completed at your own pace. Budget 2-3 days to complete the full course.
3
Gather Required Documents
Income Documentation:
Pay stubs for past 30 days
W-2 forms for past 2 years
Tax returns for past 2 years
Bank statements for past 2 months
Employment verification letter
Asset Documentation:
Savings account statements
Checking account statements
Investment account statements
Retirement account statements
Gift letter (if applicable)
4
Find VHDA-Approved Lender
Use VHDA's Lender Directory:
Visit VHDA.com lender directory
Search by your locality or ZIP code
Contact multiple lenders for rate quotes
Verify lender offers your desired program
Important: Only VHDA-approved lenders can originate VHDA loans. Working with non-approved lenders will disqualify you from the programs.
5
Apply for Pre-Approval
Submit Complete Application Package:
VHDA loan application
Down payment assistance application (if applicable)
All required documentation
Homebuyer education certificate
Pre-approval fee (varies by lender)
Timeline: Pre-approval typically takes 3-5 business days
6
Shop for Homes
Property Requirements:
Must be your primary residence
Single-family homes, condos, townhomes eligible
Property must meet VHDA inspection standards
Purchase price must not exceed locality limits
2025 Locality Loan Limits:
Fairfax County: $895,750
Arlington County: $895,750
Prince William County: $647,200
Loudoun County: $895,750
Richmond City: $420,680
Most other localities: $420,680
7
Submit Purchase Contract
After Offer Acceptance:
Submit signed purchase contract to lender
Order home inspection and appraisal
Finalize loan application
Provide any additional documentation requested
Timeline: Standard 30-45 day closing period
8
Complete Final Loan Processing
Underwriting Process:
Lender submits file to VHDA for approval
Final income and asset verification
Property appraisal review
Clear any final conditions
Timeline: 7-14 days for final approval
9
Close on Your Home
Closing Day Tasks:
Review all closing documents
Sign loan documents and deed
Receive keys to your new home
VHDA assistance funds applied at closing
Pro Tip: Bring a cashier's check for any down payment amount not covered by assistance programs. Personal checks are typically not accepted at closing.
Printable Virginia First-Time Buyer Checklist
Virginia First-Time Home Buyer Checklist
Pre-Application Preparation
Verify first-time buyer eligibility (no home ownership in past 3 years)
Check income limits for your locality
Complete HUD-approved homebuyer education course
Obtain homebuyer education certificate
Document Collection
Pay stubs for past 30 days
W-2 forms for past 2 years
Tax returns for past 2 years (complete with schedules)
Bank statements for past 2 months (all accounts)
Employment verification letter
Social Security card and driver's license
Investment/retirement account statements
Gift letter and gift funds documentation (if applicable)
Lender Selection & Pre-Approval
Research VHDA-approved lenders in your area
Contact multiple lenders for rate quotes
Submit complete loan application
Apply for VHDA down payment assistance
Receive pre-approval letter
Home Shopping & Purchase
Find qualified real estate agent
Verify properties meet VHDA requirements
Confirm purchase price within locality limits
Submit purchase offer and negotiate terms
Order home inspection
Review inspection report and negotiate repairs
Loan Processing & Closing
Submit signed purchase contract to lender
Complete loan application and provide additional docs
Review appraisal report
Clear all underwriting conditions
Schedule final walk-through
Review closing disclosure
Prepare cashier's check for closing costs
Attend closing and sign documents
Post-Closing
Set up homeowner's insurance
Transfer utilities to your name
Register for VHDA loan servicing account
Keep all loan documents for tax purposes
Virginia Tax Benefits for First-Time Buyers
Mortgage Credit Certificate (MCC) Program
Annual Tax Credit: Receive up to 25% of your mortgage interest as a federal tax credit each year. For example, if you pay $14,000 in mortgage interest annually, you could receive a $3,500 tax credit.
Property Tax Deductions
State and local tax (SALT) deduction up to $10,000 annually
Mortgage interest deduction on loans up to $750,000
PMI deduction may be available based on income
Important Virginia Contacts
VHDA Customer Service
Phone: (804) 782-1986
Website: VHDA.com
Hours: Monday-Friday, 8:30 AM - 5:00 PM EST
HUD Housing Counseling
Phone: (800) 569-4287
Website: HUD.gov/counseling
Service: Free homebuyer education and counseling
❓ Frequently Asked Questions
How long does the VHDA loan process take?
From application to closing typically takes 30-45 days, similar to conventional loans. Allow extra time for homebuyer education completion if not already done.
Can I use VHDA programs for condominiums?
Yes, condos are eligible if they meet VHDA requirements and are located in approved developments. Your lender can verify eligibility.
What happens to the VHDA assistance if I sell?
VHDA down payment assistance is provided as a grant and does not need to be repaid as long as the property remains your primary residence.
Are there credit score requirements?
Minimum credit scores vary by program: 620 for conventional VHDA loans, 580 for FHA, varies for VA/USDA. Higher scores may qualify for better interest rates.
Ready to Calculate Your Virginia Mortgage?
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Virginia's first-time home buyer programs provide substantial assistance to help you achieve homeownership. The VHDA programs can provide up to $15,000 in down payment grants, while the state's various loan programs offer competitive rates and flexible terms.
Success with these programs requires careful preparation, especially completing homebuyer education early and working with VHDA-approved lenders. Use the printable checklist above to stay organized throughout your home buying journey.
Remember that program requirements and benefits can change, so always verify current details with VHDA or your approved lender before making decisions.
Need help with your mortgage calculations?
Our mortgage calculator includes Virginia-specific features to help you plan your home purchase with state assistance programs.