What is Virginia Housing?
Buying a home in Virginia is an exciting milestone, but saving enough for a down payment and covering closing costs can be a major challenge for many families. That’s where Virginia Housing steps in. Through a variety of programs, Virginia Housing partners with local lenders to make homeownership more attainable. Whether it’s a grant that doesn’t need to be repaid, a second mortgage with favorable terms, or a program that reduces your interest rate, these tools can significantly reduce the financial barriers to purchasing a home.
In this article, we’ll explain four of Virginia Housing’s most impactful programs: the Down Payment Assistance (DPA) Grant, the Second Plus program, the SPARC program, and the First Home Dream program. We’ll also cover eligibility basics, share examples of how these programs are used, and help you understand which option may be the best fit for your situation.
Why Virginia Housing Programs Matter
For many first-time buyers, the biggest hurdle isn’t affording a monthly mortgage payment — it’s coming up with the large upfront costs required at closing. Between the down payment, closing costs, and moving expenses, even buyers with steady incomes often struggle to save enough to purchase a home.
Virginia Housing programs are designed specifically to bridge this gap. They help homebuyers who might otherwise wait years to save enough cash finally take the step into homeownership. These programs are particularly valuable for:
- First-time buyers who are just starting out.
- Moderate-income households who qualify within income limits.
- Buyers in higher-cost areas where saving 5–20% down is unrealistic.
- Community-focused buyers who want to put down roots in Virginia.
Virginia Housing Down Payment Assistance (DPA) Grant
The Down Payment Assistance Grant is one of the most popular Virginia Housing programs because it provides funds that never have to be repaid.
Key Features
- Grant funds applied directly to your down payment.
- No repayment required — unlike a loan, this is true financial assistance.
- Can be combined with Virginia Housing’s first mortgage products for additional savings.
How It Helps
Imagine a first-time homebuyer in Richmond looking at a $250,000 home. Without help, they’d need at least $7,500 for a 3% down payment — plus closing costs. With the DPA Grant, a significant portion of that down payment can be covered, allowing the buyer to keep more savings for emergencies or moving expenses.
Eligibility Snapshot
- Typically for first-time buyers (those who haven’t owned a home in the last three years).
- Must meet income and sales price limits based on the area.
- Must complete an approved homebuyer education course.
Why It Stands Out
The DPA Grant is ideal for buyers who have steady income but struggle to save enough upfront cash. Since it doesn’t need to be repaid, it provides immediate relief without adding to your long-term debt.
Virginia Housing Second Plus
The Second Plus program offers a different kind of assistance — an affordable second mortgage to cover down payment and closing costs.
Key Features
- Structured as a second mortgage on your home.
- Allows buyers to finance their entire down payment, making a true “no money down” purchase possible.
- Provides extra financing for closing costs and other loan expenses, not just the down payment.
How It Helps
Consider a couple buying a $300,000 home in Virginia Beach. They have $10,000 in savings but need closer to $15,000 to cover the down payment and closing costs. Instead of delaying their purchase, they can use Second Plus to borrow the extra funds at a low rate, making their home purchase possible today.
Eligibility Snapshot
- Available to qualified buyers using Virginia Housing loans.
- Subject to income and sales price caps.
- Requires completion of homebuyer education.
Why It Stands Out
The Second Plus program stands out because it extends down payment assistance opportunities beyond first-time buyers. While the DPA Grant is limited to first-time buyers who meet strict income and eligibility requirements, Second Plus offers a path for repeat homebuyers and those who don’t qualify for the grant. By providing an affordable second mortgage, it ensures that more Virginians — not just first-time buyers — can access the support they need to cover upfront costs and move into a home sooner.
Virginia Housing SPARC Program
SPARC stands for Sponsoring Partnerships and Revitalizing Communities, and it works differently than the DPA Grant or Second Plus. Instead of providing cash assistance, it helps buyers by lowering their mortgage interest rate.
Key Features
- Access to reduced interest rates below standard Virginia Housing offerings.
- Partnered with localities, nonprofits, and housing authorities.
- Available only through approved partnerships.
How It Helps
Let’s say a homebuyer qualifies for a $200,000 loan. A reduction of even half a percent in the interest rate could lower their monthly payment by over $50 and save thousands in interest over the life of the loan. That long-term savings can be just as impactful as upfront assistance.
Eligibility Snapshot
- Buyers must work with partner organizations.
- Program availability varies depending on the locality.
- Income and sales price limits apply.
Why It Stands Out
SPARC is a great choice for buyers who have some funds saved for their down payment but want to maximize affordability month-to-month with a lower mortgage payment.
Virginia Housing First Home Dream Program
The First Home Dream Program is designed to help first-time buyers build savings while preparing for homeownership.
Key Features
- Provides matching funds for money saved toward a home purchase.
- Includes financial education and support.
- Encourages long-term stability by reinforcing savings habits.
How It Helps
For example, a buyer who saves $1,500 may have those funds matched, doubling their buying power. This approach not only provides more money at closing but also instills healthy financial habits that support successful homeownership.
Eligibility Snapshot
- Designed for first-time buyers within income limits.
- Requires completion of an approved homeownership course.
- Must demonstrate consistent savings contributions.
Why It Stands Out
This program is about more than money — it’s about empowerment and education. By the time you’re ready to buy, you’ve built both the financial resources and the knowledge to be a confident homeowner.
How to Apply for Virginia Housing Programs
The process for applying is straightforward but does require working with a participating lender like CapCenter. Here’s a step-by-step overview:
- Check eligibility: Review income, sales price, and first-time buyer requirements.
- Take a homebuyer course: Most programs require education that prepares you for success.
- Work with a lender: A lender will determine which programs you qualify for and help structure your financing.
- Submit your application: Your lender will apply for the grant, loan, or program on your behalf.
- Close on your home: Funds are applied at closing, reducing the cash you need to bring.
Which Program Is Right for You?
Each Virginia Housing program tackles affordability in a different way:
- DPA Grant → Best for upfront help you don’t need to repay.
- Second Plus → Ideal if you need more funds and are comfortable with a small, affordable second loan.
- SPARC Program → Great for lowering your long-term monthly payments.
- First Home Dream Program → Perfect if you’re preparing to buy but need time to build savings.
In many cases, these programs can be layered. For instance, a buyer might use the DPA Grant for part of their down payment while also securing a lower interest rate through SPARC.
CapCenter and Virginia Housing: Your Partners in Homeownership
At CapCenter, we specialize in helping Virginia buyers maximize affordability through zero closing cost loans and Virginia Housing programs. Our loan officers are trained to evaluate your unique situation and match you with the program (or combination of programs) that makes the most sense.
Because these programs vary by location, income, and household size, working with an experienced lender is key to ensuring you don’t leave money on the table.
Final Thoughts
Virginia Housing programs can make the dream of owning a home more realistic, even if you don’t have a large down payment saved. Whether you need immediate upfront help, long-term savings, or extra financing, there’s a program designed to meet your needs.
If you’re considering buying a home in Virginia, now is the perfect time to explore your options. With the right combination of Virginia Housing programs and CapCenter’s zero closing cost loans, you could be closer to homeownership than you think.
