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Virginia first-time homebuyer programs: VHDA (Virginia Housing) explained

By Daniel Keeton Updated 2 min read

Virginia Housing, formerly VHDA, offers first-time buyers FHA, conventional, VA and USDA loans through approved lenders, plus a Down Payment Assistance Grant of up to 2.5% of the price with an FHA bond loan or 2% with a conventional bond loan. The grant is a gift, not a loan, and requires a 1% down payment from the buyer.

The Virginia Housing programs

First mortgages. Virginia Housing (the state housing agency formerly known as VHDA) offers FHA, conventional, VA and USDA rural loans through approved private lenders. Bond versions of these loans carry income and sales-price limits and are the ones that pair with the grant.

Down Payment Assistance (DPA) Grant. A gift of up to 2.5% of the price with an FHA bond loan or 2% with a conventional bond loan. It goes toward the down payment, not closing costs, and requires a 1% down payment from you.

Plus Second Mortgage. A second loan for the down payment, as an alternative to the grant. It cannot be combined with the grant.

Closing Cost Assistance (CCA) Grant. Help with closing costs for eligible buyers. It cannot be combined with the DPA grant.

Homebuyer education. Virginia Housing offers a free homebuyer class online and in person; most of its loans require it.

Current rates, income limits and lender lists are posted at virginiahousing.com.

What first-time buyers pay in the Richmond area

Closed residential sales in the CVR MLS, 12 months ending October 31, 2026:

Area Median sale price
Richmond metro $429,788
City of Richmond $401,837
Henrico County $405,000
Chesterfield County $425,000
Hanover County $485,550

A 2.5% grant on a $400,000 FHA bond purchase is $10,000 toward the down payment.

How to use it with Keeton & Co

  1. Get pre-approved with a Virginia Housing-approved lender and ask which program fits.
  2. Take the homebuyer class.
  3. Search homes within your approved price and sign up for alerts.
  4. Your Keeton & Co buyer agent writes offers that leave room for the program’s timeline.

Questions? Contact us or call (804) 556-1228.

Who wrote this

Daniel Keeton is the broker and founder of Keeton & Co, with 1,250 closed sides ($408M) in his career and 435 sides ($165.6M) in the last three years (CVR MLS, through Oct 31, 2026). Keeton & Co has offices in Glen Allen (HQ), Forest (15115 Forest Rd) and Charlottesville (969 2nd St SE) and 1,623 five-star Google reviews (see them). Call (804) 556-1228, or contact us to talk with a buyer’s agent.

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