Overview
Virginia spans two very different housing markets — the pricey Northern Virginia suburbs of Washington, D.C., where homes routinely top $600,000, and far more affordable regions in the south and west — for a statewide median around $380,000. Virginia Housing, the state's housing finance agency, offers a distinctive menu of true grants alongside a deferred second mortgage, and the state's large military population makes the zero-down federal VA loan especially relevant here.
Virginia Housing's signature feature is that some of its assistance comes as non-repayable grants rather than loans. The Down Payment Assistance Grant provides up to 2.5% of the purchase price, and a separate Closing Cost Assistance Grant covers up to 2% toward closing costs — neither has to be paid back, which is rarer than the deferred or forgivable seconds most states offer. Both require a Virginia Housing first mortgage and income within the agency's limits, which vary by region and are higher in expensive Northern Virginia.
State Programs
Virginia Housing Down Payment Assistance Grant
Non-repayable grantClosing Cost Assistance Grant
Non-repayable grantPlus Second Mortgage
Deferred second mortgageFederal Programs Available in Virginia
These nationwide programs can be combined with Virginia state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Virginia
For buyers who need more help with the down payment itself, the Plus Second Mortgage provides a second loan of up to 5% of the purchase price (plus up to another 1.5% for closing costs), with payments deferred until you sell, refinance, or pay off the home. It requires a 680 credit score and a Virginia Housing first mortgage, and it isn't limited to first-time buyers. Combining a Plus Second Mortgage with the grant programs can effectively eliminate the upfront down payment for eligible buyers — a powerful option in Virginia's higher-cost markets.
Virginia's taxes are moderate. The state income tax is graduated but tops out at a relatively low 5.75%, reached at a modest income level, so most working buyers pay close to that marginal rate. Property taxes are a genuine advantage, averaging about 0.82% of home value — well below the national norm — though Northern Virginia localities sit at the higher end. Rates are set by city and county, so confirm the specific bill, and note that many Virginia localities also levy an annual personal property tax on vehicles, a cost newcomers sometimes overlook when budgeting.
Virginia's military footprint is enormous, and the federal VA loan — zero down, no mortgage insurance — is often the best option for the many eligible buyers near Naval Station Norfolk, Joint Base Langley-Eustis, Quantico, or Fort Belvoir. For everyone else, a HUD-approved housing counselor can help weigh Virginia Housing's grants and Plus Second Mortgage against an FHA loan and identify any city or county programs in markets like Richmond, Virginia Beach, or the D.C. suburbs. Virginia Housing requires a free homebuyer education course, so starting it early keeps your options open.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.