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Virginia VHDA Loan Program

The Virginia VHDA Loan Program, offered by Virginia Housing (formerly the Virginia Housing Development Authority), is designed to make homeownership more accessible and affordable. By providing competitive fixed-rate mortgage options and down payment assistance, this program supports eligible first-time and repeat homebuyers across Virginia.

Benefits

  • Offers 30-year fixed-rate mortgages with competitive interest rates, ensuring stable and predictable monthly payments.
  • Provides down payment and closing cost assistance, reducing upfront expenses for homebuyers.
  • Supports first-time homebuyers and those purchasing in federally designated targeted areas.
  • Includes options for reduced private mortgage insurance (PMI), lowering monthly housing expenses.
  • Can be combined with other Virginia Housing programs for enhanced financial support.

Eligibility Requirements

  • Applicants must meet income and purchase price limits, which vary based on household size and the location of the property within Virginia.
  • The property must be located in Virginia and used as the buyer’s primary residence.
  • A minimum credit score of 620 is typically required, with lender-specific underwriting criteria also applicable.
  • Debt-to-income ratios must comply with program guidelines to ensure affordability and financial readiness.
  • Participants must complete a Virginia Housing-approved homebuyer education course to prepare for the responsibilities of owning a home.

Additional Information

The Virginia VHDA Loan Program is an essential resource for individuals and families seeking to achieve homeownership while minimizing financial challenges. By offering affordable mortgage options and targeted assistance, the program empowers eligible buyers to secure stable housing and invest in their futures. Administered by Virginia Housing, this initiative supports sustainable homeownership and strengthens communities across the state.

Frequently Asked Questions About Our Program

What is the Virginia VHDA Loan Program?

The Virginia VHDA Loan Program offers low-interest fixed-rate mortgages and down payment assistance to help first-time and repeat homebuyers in Virginia achieve affordable homeownership.

Who qualifies for the VHDA Loan Program?

Eligibility is based on income and purchase price limits, and applicants must intend to use the home as their primary residence. First-time and repeat homebuyers can qualify, with special benefits for first-time buyers.

Do I need to be a first-time homebuyer to qualify?

No, the program is available to both first-time and repeat buyers, although first-time homebuyers may have access to additional benefits and programs.

What is the minimum credit score required for the VHDA Loan Program?

Applicants typically need a credit score of at least 620 to qualify. Higher credit scores may improve eligibility and access to better loan terms.

How much down payment assistance is available?

Eligible buyers can receive up to 2.5% of the purchase price or loan amount as down payment and closing cost assistance through VHDA programs.

Are there income limits for the VHDA Loan Program?

Yes, income limits vary based on household size and the county where the property is located. These limits are designed to assist low-to-moderate-income families.

What types of properties are eligible for the VHDA Loan Program?

Eligible properties include single-family homes, condominiums, and townhouses. Manufactured homes may also qualify if they meet program requirements and are permanently affixed to a foundation.

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What is the maximum purchase price allowed?

As of 2025, the maximum purchase price varies by location but generally ranges from $300,000 to $500,000, depending on program criteria.

Does the down payment assistance need to be repaid?

The assistance is provided as a second mortgage with zero interest and deferred payments. Repayment is required only if the home is sold, refinanced, or no longer used as the buyer’s primary residence within a specific timeframe.

Is homebuyer education required?

Yes, completing a homebuyer education course is mandatory for all participants to ensure they are well-prepared for homeownership responsibilities.

Can the VHDA Loan Program help with closing costs?

Yes, the down payment assistance can also be applied toward eligible closing costs, reducing the upfront expenses for buyers.

Are there location restrictions for properties?

Yes, properties must be located within Virginia and meet the program’s eligibility criteria for type and price limits.

Can the program be used for newly constructed homes?

Yes, newly constructed homes are eligible as long as they meet the program’s purchase price and other requirements.

Are there debt-to-income (DTI) ratio requirements?

The maximum allowable DTI ratio is typically 45%, though exceptions may be made for applicants with strong credit or other compensating factors.

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Can the VHDA Loan Program be combined with other assistance programs?

Yes, the VHDA Loan Program can often be combined with other state or local assistance programs to maximize financial benefits for buyers.

What are the benefits of the VHDA Loan Program?

The program provides affordable mortgage options, down payment assistance, and homebuyer education, making it easier for Virginians to achieve and sustain homeownership.

Can this program be used with FHA, VA, or USDA loans?

Yes, the VHDA Loan Program can be combined with FHA, VA, USDA, and conventional loans, provided all eligibility requirements are met.

How does the deferred second mortgage work?

The deferred second mortgage provides financial assistance without requiring monthly payments. Repayment is only required if the buyer sells, refinances, or no longer uses the home as their primary residence.

What is the application process for the VHDA Loan Program?

Applicants work with an approved lender who will verify eligibility, guide them through the application process, and assist in securing both the loan and any available assistance.

Is there a fee to participate in the VHDA Loan Program?

Yes, a one-time program fee may apply, typically included in the closing costs. The lender will provide specific details during the application process.

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