Who Qualifies for a VHDA Loan?

Purchasing a home is a big life achievement for many people. That’s because it takes plenty of time and saving to be able to afford a down payment. Luckily, there are plenty of government resources to help expedite that process and make it much more affordable.

If you are planning on purchasing a home in Virginia, the Virginia Housing Development Authority (VHDA) works with lenders in the state to make homeownership achievable for residents. First-time homebuyers can take advantage of programs like down payment grants or federal tax breaks that allow access to affordable, 30-year fixed-rate mortgages.


Eligibility Requirements

The eligibility requirements for VHDA loans vary depending on your unique situation and the type of funding you need, however, there are a few recurring requirements:

  • Must be a first-time homebuyer (can’t have owned a home in the past three years)
  • You are purchasing a home in Virginia
  • Have a minimum credit score of 620
  • Cannot exceed certain income and purchase price limits, which vary based on the location of your property


Scenarios Where VHDA Applies

The VHDA offers a variety of affordable 30-year fixed-rate mortgages including Conventional Fixed, FHA, VA, and USDA home loans. On top of home loan options, let’s look at a few additional instances where the VHDA can step in and help provide additional home buying assistance.


Down Payment Assistance Grant

If you are looking to buy a home in Virginia and need help covering a down payment, the VHDA DPA Grant is the perfect solution. This grant offers up to 2.5% of the purchase price in the form of a gift, which means free money with no repayment required.


Closing Cost Assistance Grant

Typically, homebuyers will pay about 2-5% of the purchase of a home in closing fees. These fees can be a surprise to homebuyers, but the VHDA can step in to help if needed. Similar to the DPA Grant, the Closing Cost Assistance (CCA) Grant can eliminate funds needed for closing with no repayment required.


Mortgage Credit Certificates

The Mortgage Credit Certificate tax credit can be paired with each of the VHDA home loan options mentioned above. With an MCC, borrowers can receive a dollar-for-dollar tax credit portion of the mortgage interest they would pay each year. The MCC is effective for the life of your mortgage as long as you live in that home.



Virginia homebuyers are fortunate to have plenty of options when it comes to purchasing a home. If you are wondering if you may qualify for a VHDA loan, the best plan of action is to discuss your goals with a loan officer who can help you begin the journey to affordable homeownership.

This is not financial or credit management advice. The included content is intended for informational purposes only and should not be relied upon as professional advice. Consult with a finance professional for tax advice or a mortgage professional to address your mortgage questions or concerns. This is an advertisement. Prepared 8/1/2019.