First-Time Buyer Programs in Virginia: Grants, USDA Loans & Low Down Payment Options Explained

(Spoiler: none of them require Monopoly money. Real money only, promise.)

If you've seen my recent video, you know the bit: I counted out what a 20% down payment on a Richmond-area home actually looks like in cash, and it was... a lot. Comedically a lot.

But here's the actual point behind the joke: most buyers aren't putting 20% down. Not even close. Between low-down-payment loans and real, legitimate down payment assistance, the "20% or nothing" myth keeps good buyers sitting on the sidelines longer than they need to.

Let's break down what's actually available.

Virginia Housing runs the primary down payment assistance programs available statewide:

DPA Grant, a true grant (never repaid) when paired with an eligible Virginia Housing loan Plus Second Mortgage, a second loan that can cover 3-5% of the purchase price toward your down payment, plus a bit more for closing costs Mortgage Credit Certificate, a dollar-for-dollar federal tax credit for the life of your loan, as long as it stays your primary residence A required homebuyer education course, usually just a few hours, and it unlocks eligibility for the programs above

Income limits and exact grant amounts vary by household size, loan type, and locality, so the number that applies to you isn't a one-size-fits-all figure. This is exactly the kind of thing worth confirming directly with a lender before you assume you don't qualify.

On top of the statewide options, there are city- and locality-specific programs, including forgivable down payment loans through local nonprofit and municipal housing initiatives in the Richmond area. These typically come with income requirements and are tied to specific jurisdictions, so availability depends on exactly where you're buying.

Yes, this is a real thing, and yes, it can mean 0% down, but there's a catch most people don't realize: it's not just for "farms." USDA eligibility is based on the property being in a designated rural or suburban-edge area, and a lot of Metro Richmond's outer suburbs actually qualify. Worth checking before you assume you don't.

If you or your spouse served, a VA loan can mean 0% down with no private mortgage insurance, one of the strongest low-down-payment options that exists, period.

Not every low-down-payment option requires a special program. Conventional loans through Fannie Mae/Freddie Mac now offer options as low as 3% down for qualifying first-time buyers, that's the "as little as 3% down" number from my video, not a typo.

The "you need 20% down" myth is one of the most expensive pieces of misinformation floating around real estate right now, expensive because it keeps ready buyers renting for years longer than they need to.

I'm not a lender, and I won't pretend to know your exact numbers off the top of my head. But I can tell you which of these programs are worth asking about, and I can connect you with lenders who actually specialize in matching buyers to the right one.

Real estate doesn't have to feel overwhelming, and neither does the down payment conversation, once someone walks you through it in plain English.

Source: Virginia Housing (the Commonwealth's official state housing finance agency), Loans and Grants for Homebuyers: https://www.virginiahousing.com/homebuyers/loan-grants

Buying in Midlothian, Chesterfield or anywhere in Metro Richmond and want to talk it through first? I'm Christine Case, a REALTOR® with NextHome Advantage, and I would rather help you understand your options than rush you into anything. Start with what living in Midlothian is really like, browse more straight answers on the blog, or send me your question and I'll answer it myself.