Virginia Housing (VHDA) Rates & Programs 2026: The TRUE Grant DPA
Virginia Housing offers what most state agencies don\'t: a DPA Grant that\'s actually a grant — ~2-2.5% of the purchase price, never repaid, no lien — plus a Plus Second Mortgage up to 5% for bigger help, and one of the lowest credit bars in the country.
Check Your Virginia Housing Eligibility — Free
Below-market rate + grant DPA. 2 minutes, no credit pull.
~6.25-6.75%
VH Rate (Oct 2026)
below market
~2-2.5%
DPA Grant
NEVER repaid
Up to 3-5%
Plus Second
0% deferred
620-640
Min Credit
lowest in class
All Virginia Housing Programs — October 2026
| Program | Rate | DPA | Min Credit | Repayment |
|---|---|---|---|---|
| Virginia Housing First Mortgage 🏆 FLAGSHIP | ~6.25-6.75% | Pairs with DPA options | 620-640 | 30-yr fixed — FHA/Conv/VA pairs |
| DPA Grant 🎁 NEVER REPAID | N/A | ~2-2.5% of price | 620-640 | TRUE GRANT — never repaid |
| Plus Second Mortgage 💰 DEFERRED | 0% deferred | Up to 3-5% | 620-640 | Repay on sale/refi/payoff |
| Conventional No-MI option 🔥 NO PMI | ~6.4-6.9% | Pairs with DPA | 640 | Conventional pair skipping PMI |
Who Qualifies?
First-Time (3-yr) or Targeted Area
Regional Income Limits (NoVA higher)
Purchase-Price Caps by Region
620-640+ Credit
Homebuyer Ed Required
Approved Lenders Only
Why the DPA Grant Is Rare
Most state DPA is a lien — deferred (repaid at sale/refi) or forgivable (repaid if you leave early). Virginia Housing's DPA Grant is neither: it never attaches to the property. Refi in year 2, sell in year 3 — the money is already gone, legitimately.
The trade-off: the Grant is smaller (~2-2.5%) than deferred options. On a $350K home that's ~$8K — usually enough for a 3.5% FHA down payment's gap plus some closing help, but short of the Plus Second's ceiling.
620 floor: Virginia Housing undercuts the 640 standard at most agencies — the most accessible state-agency credit bar on the East Coast.
5 Virginia Housing Gotchas
1. Grant funding rotates
The DPA Grant depends on the current funding series — it pauses when allocations dry up. The Plus Second is the steadier fallback. Confirm TODAY's menu.
2. NoVA price-cap squeeze
Northern Virginia's income caps are the state's highest — but purchase-price caps can lag NoVA market prices. Arlington and Fairfax listings routinely exceed the cap; outer counties (Prince William, Stafford, Loudoun edges) fit better.
3. Deferred second wakes at refi
The Plus Second comes due when you refinance — budget the payoff into future refi math.
4. Household income counts
All adult occupants 18+ count toward the regional cap — dual-income NoVA households hit limits fast.
5. Homebuyer ed before closing
Virginia Housing requires education — free online options exist, but the certificate takes hours and has a validity window.
Frequently Asked Questions
Q1. What is the Virginia Housing rate in October 2026?
Virginia Housing (formerly VHDA) posts one statewide rate — roughly 6.25-6.75% as of October 2026, typically 0.25-0.5% below standard market. Identical at every participating lender; shop fees and VHDA-file experience. Verify the posted rate at virginiahousing.com.Compare VA lender rates — free →
Q2. Is the Virginia Housing DPA Grant really free?
Yes — the DPA Grant (~2-2.5% of the purchase price) is a TRUE grant: no lien, no repayment, no forgiveness schedule. One of the few genuinely free DPA lanes among state agencies — most "grants" nationally are deferred or forgivable loans. Eligibility tracks the first-mortgage criteria; funding can rotate, so confirm current availability.
Q3. DPA Grant vs Plus Second Mortgage — which is better?
If both are on the table: the Grant (~2-2.5%) never comes back; the Plus Second (up to 3-5%) is bigger but sits as a 0% lien repaid at sale/refi/payoff. On a $350K purchase: Grant ≈ $7-9K free; Plus Second ≈ $10-17K deferred. Take the Grant for the cleanest exit, the Plus Second if you need maximum cash at closing.Check my DPA eligibility →
Q4. What are Virginia Housing income limits?
Regional — Northern Virginia runs the highest caps (~$140-160K+), Richmond and Hampton Roads mid (~$110-130K), rural Virginia lowest (~$95-110K). Household income counts. NoVA buyers get the biggest cap but also face the tightest price caps relative to local prices. Verify your region at virginiahousing.com.
Q5. Do I need to be a first-time buyer?
Most Virginia Housing loans require it (3-year rule) — except in federally targeted areas and for veterans. Virginia targeted tracts cover a surprising share of the state outside the NoVA/Richmond cores — check the map before self-rejecting.
Q6. What credit score does Virginia Housing require?
620 minimum on some pairs, 640 on others — among the lowest bars at any state agency. FHA-paired options lean to the 620 side; conventional pairs 640+. Under the bar, HUD-approved counseling is free.Check my score free →
Related Virginia & DPA Guides
A Grant That\'s Actually a Grant — Rare in State DPA
No lien, no repayment, 620 credit floor. Check if the DPA Grant lane is open for you.