Think You Need 20% Down to Buy a Home? Think Again.

One of the most common reasons people delay purchasing a home is the belief that they need a large down payment to get started.

The reality is that many first-time homebuyers qualify for grant programs, down payment assistance, and closing cost assistance that can significantly reduce the amount of cash needed at closing.

If you're considering purchasing your first home in Virginia Beach, Chesapeake, Norfolk, Suffolk, or anywhere throughout Coastal Virginia, understanding the programs available may help make homeownership more attainable than you realize.

What Is a First-Time Homebuyer Grant?

A first-time homebuyer grant is financial assistance designed to help eligible buyers cover some of the upfront costs associated with purchasing a home.

Unlike many loan programs, grants generally do not require repayment, provided all program requirements are met. Program guidelines, funding availability, and eligibility requirements vary and may change over time.

These funds may be used toward:

• Down payments
• Closing costs
• Prepaid expenses
• Other eligible home purchase costs, depending on the program
  
  

Virginia Housing Down Payment Assistance Grant

One of the most widely used homebuyer assistance programs in Virginia is offered through Virginia Housing.

The Virginia Housing Down Payment Assistance Grant provides eligible buyers with funds that can be applied toward their down payment and do not require repayment. The program is available through participating lenders and must be used with eligible Virginia Housing loan products.

Eligibility requirements may include:

• Income limits
• Sales price limits
• Minimum credit requirements
• Homebuyer education requirements
• Occupancy requirements
  
  

Program guidelines are subject to change, so buyers should consult a participating lender for current eligibility requirements.

Closing Cost Assistance Programs

In addition to down payment assistance, some buyers may qualify for programs that help reduce closing costs.

Virginia Housing offers a Closing Cost Assistance Grant for certain eligible loan programs. These funds can help offset expenses such as lender fees, title charges, prepaid taxes, and insurance costs. The grant does not require repayment if eligibility requirements are met.

Local Down Payment Assistance Programs

Depending on where you purchase, additional local assistance programs may be available through housing authorities, redevelopment agencies, or regional housing organizations.

Several Hampton Roads localities participate in various homeownership assistance initiatives that may provide grants, forgivable loans, or closing cost assistance for income-qualified buyers. Availability, funding levels, and eligibility requirements vary by locality.

Because local programs frequently change based on available funding, buyers should research current offerings early in the home-buying process.

Do You Have to Be a First-Time Buyer?

Not always.

While many assistance programs are specifically designed for first-time homebuyers, some programs may also be available to repeat buyers who meet certain criteria or who are purchasing within designated areas. Eligibility requirements vary by program.

Generally, a first-time homebuyer is defined as someone who has not owned a primary residence within the previous three years. However, individual program guidelines may differ.

Common Requirements Buyers Should Expect

Although every program is different, many assistance programs require:

• Minimum credit qualifications
• Stable income and employment
• Primary residence occupancy
• Completion of a homebuyer education course
• Household income within program limits
  
  

Buyers must still qualify for the mortgage itself in addition to any grant or assistance program.

Why Buyers Should Explore Assistance Early

Many grant and assistance programs require additional documentation, education courses, or lender approvals.

Exploring these options before beginning your home search can help you:

• Understand your true purchasing power
• Estimate cash needed at closing
• Identify programs for which you may qualify
• Create a realistic home-buying plan
  
  

In some cases, assistance programs may be combined with other eligible programs, depending on lender and program guidelines.

Final Thoughts

Many prospective buyers assume homeownership is years away because they have not saved a large down payment.

However, Virginia offers a variety of programs that may help eligible buyers reduce upfront costs and achieve homeownership sooner than expected.

If you're considering purchasing your first home in Coastal Virginia, understanding your financing and assistance options is an important first step.

Thinking About Buying Your First Home?

Our team helps first-time buyers throughout Virginia Beach, Chesapeake, Norfolk, Suffolk, Hampton, and the surrounding Hampton Roads communities navigate every step of the home-buying process.

If you're curious about available grant programs, down payment assistance options, or what it takes to become a homeowner, we'd be happy to connect you with trusted lending professionals and help you explore your options.

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Liz Bradley, REALTOR®
Community Partner Group
Brokered by REAL Broker, LLC
Licensed in Virginia and North Carolina

Disclaimer

This article is provided for informational purposes only and should not be considered legal, tax, financial, mortgage, or lending advice. Grant programs, assistance programs, eligibility requirements, and funding availability are subject to change without notice. Buyers should consult with a licensed mortgage professional, housing counselor, or program administrator regarding their specific situation and eligibility.