Down payment assistance, grants, forgivable loans, and tax credits available to Virginia buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed July 2026·3 programs·6 federal programs
Sponsoring Partnerships and Revitalizing Communities (SPARC)
Administered by Virginia Housing
1 percentage point off the mortgage rate
Reduces the Virginia Housing first-mortgage rate by 1 percentage point through sponsoring organizations and localities. Accessed via local partner organizations, not directly.
Income limit
Income limits apply
Minimum credit score620
First-time buyer requiredYes
Special requirements: Must purchase through a participating sponsoring organization or locality.
View official program page
Ask a Virginia Housing-approved lender or local housing organization about SPARC allocations.Verified July 2026
Virginia Housing Plus Second Mortgage
Administered by Virginia Housing
3-5% of purchase price
A 30-year, fixed-rate, fully amortizing second mortgage at the same rate as the first mortgage (FHA firsts add 0.25%). Amount is 3-5% depending on loan type and credit score; 680+ borrowers can add about 1.5% for closing costs. Monthly payments required.
Income limit
Income limits apply
Minimum credit score620
First-time buyer requiredYes
Special requirements: Must use with Virginia Housing first mortgage.
Low down payment mortgage with reduced mortgage insurance. Allows income from non-borrower household members. A $2,500 credit for very-low-income borrowers (50% AMI or less) is available through early 2027 when at least one borrower is a first-time buyer.
Do I have to be a first-time homebuyer to qualify?
Most Virginia programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most Virginia programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
