Virginia Housing (formerly known as VHDA) is one of the best-kept secrets in Virginia real estate. The state agency offers below-market mortgage rates, down payment grants, and closing cost assistance that can save eligible buyers thousands of dollars. Here is a complete breakdown of every program available in 2026 and how to take advantage of them.
What Is Virginia Housing (VHDA)?
Virginia Housing Development Authority, now branded simply as Virginia Housing, is a state-run agency created to help Virginians achieve homeownership. It is not a lender itself. Instead, it partners with approved lenders across the state to offer special mortgage products with lower rates and additional financial assistance.
The key thing to understand: Virginia Housing programs are not just for low-income buyers. Moderate-income households across a wide range of Virginia localities qualify, and the income limits may be higher than you expect.
Virginia Housing Plus: The Flagship Mortgage
The Virginia Housing Plus program is the core product. It combines a competitive fixed-rate mortgage with optional down payment and closing cost assistance. There are two tiers:
- Virginia Housing Plus: A 30-year fixed-rate mortgage with below-market interest rates. No down payment assistance included, but the rate savings alone can be worth thousands over the life of the loan.
- Virginia Housing Plus with Down Payment Assistance: Same competitive rate, plus a grant covering 2% to 2.5% of the purchase price that does not need to be repaid. On a $350,000 home, that is $7,000 to $8,750 in free money toward your down payment.
Down Payment Assistance Options
Virginia Housing offers several forms of down payment help beyond the Plus program:
DPA Grant (2% to 2.5%): A true grant that does not need to be repaid. Combined with the Virginia Housing Plus mortgage.
Closing Cost Assistance Grant: Covers a portion of your settlement fees. Can be stacked with the DPA grant in some cases.
FHA Plus with Virginia Housing: Pairs FHA loan benefits (3.5% down, flexible credit) with Virginia Housing rate advantages.
Mortgage Credit Certificate (MCC): A federal tax credit that reduces your annual tax bill by up to $2,000 per year for the life of the loan. This one is often overlooked but adds up fast.
Who Qualifies? Income and Purchase Price Limits
Eligibility depends on your household income, the purchase price of the home, and the locality where you are buying. Here are the general guidelines for 2026:
- First-time buyer requirement: Most programs require that you have not owned a home in the past three years. However, some programs waive this requirement in targeted areas or for veterans.
- Income limits: Vary by county and household size. As a rough guide, a household earning up to $100,000 to $120,000 may qualify in many Virginia localities. Northern Virginia limits tend to be higher due to the cost of living.
- Purchase price limits: These also vary by locality. In most areas, the cap is around $400,000 to $500,000. NoVA limits are typically higher.
- Credit score: Most Virginia Housing programs require a minimum 620 credit score.
- Homebuyer education: All first-time buyers must complete a Virginia Housing-approved homebuyer education course. Most are available online and take about 6 to 8 hours.
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How to Apply for Virginia Housing Programs
The application process is straightforward but does require working with an approved lender:
- Check your eligibility. Review the income and purchase price limits for your target area on the Virginia Housing website, or ask your Settle agent to pull the latest figures for you.
- Complete homebuyer education. Enroll in a Virginia Housing-approved course online or in person. You will receive a certificate upon completion that your lender will need.
- Connect with an approved lender. Virginia Housing programs are only available through their network of approved lenders. Your Settle agent can recommend several who specialize in these products.
- Apply for your mortgage. Your lender handles the Virginia Housing program enrollment as part of your standard mortgage application. The process feels the same as any other mortgage.
- Close on your home. Your down payment assistance and closing cost grants are applied at the settlement table. There is no separate disbursement to manage.
Common Misconceptions
Many buyers skip Virginia Housing programs because they assume they will not qualify. Here are the facts behind the most common myths:
- “I make too much money.” Income limits are higher than most people think, especially in NoVA where the area median income is factored in.
- “It takes longer to close.” Virginia Housing loans close on the same timeline as conventional mortgages. Lenders experienced with the program process them efficiently.
- “Sellers will not accept Virginia Housing offers.” Sellers see a pre-approved buyer with a competitive-rate loan. The funding source does not matter to them.
The Bottom Line
Virginia Housing programs represent real, meaningful savings for eligible buyers. Between the below-market rates, the down payment grants, and the Mortgage Credit Certificate, qualified buyers can save tens of thousands of dollars over the life of their loan. If you are buying in Virginia in 2026, it is worth spending 15 minutes to check your eligibility before you commit to a conventional mortgage.