Many borrowers want to know what down payment help Virginia Housing offers. They are concerned that a credit score may influence their Virginia home loan review. This guide explains what lenders may look for so you can move forward with confidence.
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What Down Payment Help Does Virginia Housing Offer?
SHORT ANSWER
Virginia Housing offers 2 main forms of down payment help, and you have to choose 1. The Down Payment Assistance Grant is never repaid. The Plus Second Mortgage is a 30-year fixed loan that covers your down payment and carries no prepayment penalty. Smart Loan Savings Educational Content
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| Virginia Housing Assistance Factor | Program Rule |
|---|---|
| Repaying the Virginia Housing grant | Never required |
| Virginia Housing Plus Second Mortgage cap | 5% of the purchase price |
| Using the grant and second together | Not allowed |
| Credit score for a Virginia Housing FHA loan | 620 |
| Credit score for a Virginia Housing conventional loan | 640 |
| Credit score for the no mortgage insurance loan | 660 |
| Credit score to finance closing costs in the second | 680 |
| Extra a 680 score can borrow for closing costs | 1.5% above the purchase price |
| Plus Second Mortgage term and prepayment penalty | 30 years, no penalty |
| Repeat buyers and the Virginia Housing grant | Allowed in Areas of Economic Opportunity |
| Repeat buyers and the Plus Second Mortgage | Allowed anywhere in Virginia |
| Loans the Closing Cost Assistance Grant pairs with | USDA and VA bond loans |
| When Virginia Housing income limits reset | Annually, by application date |
You can check your loan options in about 60 seconds — fast, secure, and no credit impact.
| Virginia Down Payment Assistance Deep Dive | Underwriting Impact on Your Virginia Home Loan Profile |
|---|---|
| Two Paths, and You Pick One | Virginia Housing runs 2 main down payment programs. The Down Payment Assistance Grant is a true grant. You never repay it and it places no lien on your home. The Plus Second Mortgage is a real loan. It runs 30 years at a fixed rate with no prepayment penalty, and it covers your down payment. Both require a Virginia Housing first mortgage. The Virginia Mortgage Guide covers the other local factors that shape a home loan file in the state. |
| You Cannot Use Both | Here is the rule that decides your path. Virginia Housing does not allow the Down Payment Assistance Grant to be paired with the Plus Second Mortgage. You choose one. The grant is free money. It also carries the tighter income limit. The Plus Second Mortgage has to be repaid. It reaches further up the income scale. A buyer just over the grant’s income line is not shut out of help. That buyer moves to the second mortgage instead. |
| Your Credit Score Sets Your Loan Type | Virginia Housing publishes a different minimum credit score for each first mortgage. An FHA loan needs 620. A Virginia Housing conventional loan needs 640. The conventional loan with no private mortgage insurance needs 660. That last one costs the most in credit and saves the most each month. A 20-point difference in score can move you between 2 loans with very different monthly payments. |
| The 680 Line on Closing Costs | Credit score matters a second time inside the Plus Second Mortgage. The loan is capped at 5% of the purchase price. A borrower below 680 can borrow the required down payment. A borrower at 680 or above can borrow an extra 1.5% above the purchase price and put it toward closing costs. That is the difference between arriving at closing with cash and arriving with almost none. Virginia Recordation Tax Rules for Home Buyers covers the recording taxes inside those costs, and Virginia Home and Flood Insurance Requirements covers the first year of coverage you also pay for at closing. |
| Repeat Buyers Are Not Always Shut Out | Both programs reach past first-time buyers, in different ways. The Plus Second Mortgage is open to repeat buyers anywhere in Virginia. The grant is normally first-time only, with one exception. A repeat buyer purchasing in an Area of Economic Opportunity qualifies for the grant. Those areas are designated by Virginia Housing and change over time. Ask before assuming you are out, because the answer depends on the specific address. |
| Help Aimed at Rural and Military Buyers | A third grant sits alongside the other 2. The Closing Cost Assistance Grant reduces out-of-pocket costs for a first-time buyer using a USDA Rural Housing Service or VA bond loan through Virginia Housing. That grant never requires repayment either. Virginia Housing also runs dedicated programs for service members and veterans, including accessibility grants for disabled veterans. Virginia Disabled Veteran Property Tax Exemption Rules covers a separate benefit worth checking. When the time comes to pay off a Plus Second Mortgage, Virginia Refinance Recordation Tax Rules covers what a refinance costs at the courthouse. |
You can check your loan options in about 60 seconds — fast, secure, and no credit impact.
| What Lenders Check | How Virginia Housing Assistance Affects Your Loan File |
|---|---|
| Your Credit Score Against the Program Floor | Each Virginia Housing first mortgage carries its own minimum score. Your score decides which loans are open to you, and a score at 680 or above unlocks closing cost help inside the Plus Second Mortgage. |
| Household Income Against the Limit | The grant uses a lower income limit than the Plus Second Mortgage. Income just over the grant line moves a file to the second mortgage rather than ending the conversation. |
| The Purchase Price Against the Limit | Virginia Housing sets a maximum sales price by area alongside the income limit. A home priced above the limit that applies to you has to be financed another way. |
| The Second Payment Against Your Income | The Plus Second Mortgage carries its own monthly payment, counted with your other monthly bills. The grant creates no payment at all, which is part of why the income limit on it runs lower. |
| Your Application Date | Income and sales price limits reset on a set date each year. The date your application goes in decides which table applies to your file, so a delayed application can land under different limits. |
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| Every borrower’s situation is different. Tell us about yours. Our secure form asks a few basic questions and takes about 60 seconds. No office visit. No paperwork. No credit score impact. A licensed lending partner may reach out by phone — someone who understands your situation and can walk you through the options that may make sense for where you are right now. Clear, straightforward guidance about the paths that may fit your goals. |
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| Main Loan Types | Primary Income & Target Qualification Fit |
|---|---|
| Conventional Loans | Standard W-2 income with strong credit profiles. |
| FHA Loans | Flexible down payments and lower credit score requirements. |
| VA Loans | Exclusive 100% financing for military veterans and families. |
| Jumbo Mortgages | High-balance luxury financing exceeding standard loan limits. |
| DSCR Loans | Real estate investor solutions qualifying purely on property cash flow. |
| HELOC Options | Borrowers leveraging existing home equity for flexible cash lines. |
| Why Smart Loan Savings | How We Support Borrowers Nationwide |
|---|---|
| Free Educational Resources | Every guide, calculator, and loan program breakdown is provided at no cost — no hidden fees and no obligations. |
| No Pressure Environment | We do not accept advertising and we are not paid to feature any lender, product, or program. |
| Nationwide Coverage | Our lending partners work with borrowers across the country and may be able to present options from multiple programs side by side. |
| Private and Secure Process | Borrowers may submit their basic details online and receive loan options by phone — privately, from the comfort of their own home. |
ADDITIONAL GUIDANCE
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| People Also Ask | Why These Questions Matter |
|---|---|
| Can you use the Virginia Housing grant and second mortgage together? | Virginia Housing does not allow the Down Payment Assistance Grant to be paired with the Plus Second Mortgage. A buyer chooses one path. The grant carries a lower income limit and is never repaid, while the second mortgage reaches higher incomes and has to be paid back. |
| What credit score does a Virginia Housing loan require? | Virginia Housing sets 620 for an FHA loan, 640 for its conventional loan, and 660 for its conventional loan without mortgage insurance. A score of 680 or above also lets a borrower finance closing costs inside the Plus Second Mortgage. |
| Can a repeat buyer get Virginia Housing down payment help? | A repeat buyer can use the Plus Second Mortgage anywhere in Virginia. The Down Payment Assistance Grant is normally limited to first-time buyers, with an exception for a repeat buyer purchasing in an Area of Economic Opportunity. |
| Explore Our Learning Center | What You’ll Find Inside |
|---|---|
| Mortgage Basics Guide | Simple explanations of core terms like principal, interest, escrow, and PMI |
| Income and Employment Requirements | How income, self-employment, bonuses, and job gaps affect your approval |
| Credit & Approval | Credit score requirements, how to improve your score, and how lenders approve a file |
| Homebuying Tips | Preparing for a mortgage, choosing the right program, and avoiding common mistakes |
| Loan Comparisons | Side-by-side comparisons to help you see which loan program actually fits |
| Refinance Guides | Rate-and-term, cash-out, and streamline refinance options explained plainly |
| Loan Program Guides | In-depth guides to Conventional, FHA, VA, USDA, Jumbo, and more |
| State-Specific Mortgage Info | Local rules, programs, and agencies for your specific state |
| Sources Used on This Page |
| Virginia Housing — Loans and Grants page, covering the grant, the Plus Second Mortgage, the Closing Cost Assistance Grant, and military and veteran programs | Down Payment Assistance Grant page, covering the true grant terms, the bond loan requirement, income and sales price limits, and the Areas of Economic Opportunity exception | Plus Second Mortgage pages, covering the 5% cap, the 30-year fixed term with no prepayment penalty, and the 680 credit score threshold for closing costs | Down Payment Assistance Grant information for lenders, covering minimum credit scores by loan type and the prohibition on pairing the grant with the Plus Second Mortgage | Income, Sales Prices and Loan Limits page |
| Disclaimer |
| Virginia Housing sets program terms, credit score minimums, income limits, and sales price limits, and states that this information is subject to change without notice. Income and sales price limits reset annually and vary by area and household size. Assistance amounts are not published publicly and are confirmed by an approved lender. Individual lender rules may apply and vary by program. This page is provided for educational purposes only. Smart Loan Savings Educational Content |