Virginia Housing Down Payment Grants, Plus Second Mortgages and MCCs in 2026
Updated October 2026
Virginia Housing assistance can change how much cash you need at closing, but the program name alone does not tell you whether money must be repaid. Dogwood & Dormer recommends comparing the assistance amount, repayment terms, first-mortgage pricing, and eligibility requirements together rather than choosing the largest advertised percentage.
Separate grants from borrowed assistance
The Down Payment Assistance Grant may provide 2%–2.5% under the applicable program. It is grant assistance rather than a conventional amortizing second loan; confirm the award’s conditions and any repayment triggers instead of assuming every forgivable assistance product works identically.
The Plus Second Mortgage may provide 3%–5%. Because it is a second mortgage, examine its payment, interest rate, maturity, and treatment when you sell or refinance. Do not treat its proceeds as free equity.
| Assistance option | Question to resolve before applying |
|---|---|
| Down Payment Assistance Grant | Which percentage and first-mortgage pairing apply? |
| Plus Second Mortgage | What repayment obligation will appear in the household budget? |
| Closing Cost Assistance Grant | Is this loan type eligible, and which expenses qualify? |
| Mortgage Credit Certificate | Is issuance currently available, and does this transaction qualify? |
Use Virginia Housing (VHDA) to verify current offerings, funding, participating lenders, and program documents. Availability can differ from a program description found in an older search result.
Check eligibility before counting the money
Income and sales-price limits, household circumstances, occupancy, credit, and homebuyer education can affect eligibility. Some programs have first-time-buyer requirements or targeted-area exceptions. Assistance cannot automatically be stacked with every other grant or mortgage product.
Ask for a written comparison showing:
- Required buyer funds after eligible assistance.
- First- and second-mortgage payments, where applicable.
- Mortgage insurance and financed fees.
- Restrictions affecting a later sale or refinance.
A Mortgage Credit Certificate, when available, concerns a federal tax credit tied to eligible mortgage interest. It is not a down payment deposit or an automatic refund of all interest paid.
Compare total cost, not just closing cash
A smaller upfront contribution can be worthwhile, but compare the interest rate and ongoing payment against a mortgage without assistance. The Consumer Financial Protection Bureau provides tools for understanding Loan Estimates and mortgage costs.
Start with the closing cost estimator, then review the Virginia mortgage options guide. For military households, compare eligible assistance against VA financing rather than assuming state assistance is always the lower-cost route.
Compare Current Home Equity & HELOC Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Virginia Housing Down Payment Grants, Plus Second Mortgages and MCCs in 2026 — Compare IHCDA First Place 6.0% FHA assistance and Next Home 2.5%–3.5% in Indiana with MSHDA up to $10,000 in Michigan; verify eligibility and repayment or forgiveness terms.
Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.