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Guide to the First Time Home Buyer Programs in Virginia Beach & Hampton Roads (2023)

Imagine owning your very own home in Hampton Roads. Sounds like a dream, right? Well, it’s 2023 and this dream could be your reality sooner than you think! We are here to help you discover the first-time home buyer programs in Virginia.

These down payment assistance programs in Virginia offer a range of benefits, from down payment assistance to closing cost reductions, making the path to homeownership in Virginia more achievable. You will even be surprised to find out that some of these programs require little to no down payment!

So, whether it’s a cozy ranch style home for sale in Virginia Beach or a house in Hampton Roads you want as your first home, these first time home buyer programs in Virginia are here to help you achieve your goals. Ready to take the first step towards homeownership? Let’s take a deep dive and learn about what these exciting first-time home buyers programs in VA have to offer!

first time home buyer programs in Virginia standing out front of their new home with a sold sign in the front yard.

Table of Contents | First Time Home Buyer Programs in Virginia

How Do I Qualify for a First-Time Home Buyer in Virginia?

To qualify as a first-time home buyer in Virginia, you must have not owned a home in the past three years. You’ll also need to meet income and minimum credit score, which vary by loan program. Some programs require you to complete a home buyer education course.

Are there a First Time Homebuyer Programs in Virginia?

Yes, Virginia Housing offers first-time home buyer Virginia programs. These programs include low-interest-rate loans, down payment and closing cost assistance grants, and free virginia first-time home buyer programs for homebuyer classes.

There are also tax credit programs for eligible first-time buyers. Each program has specific eligibility requirements related to income, credit score, and property location.

How to Buy a House in Virginia with No Down Payment?

To buy a house in Virginia with no down payment, you can explore several options. The Virginia Housing Down Payment Assistance Grant provides up to 2.5% of the home’s purchase price for qualifying first-time and repeat buyers.

The HOMEownership Down Payment and Closing Cost Assistance program also offers gap financing for a first time home buyer in Virginia at or below 80% of the area median income.

Other options include VA and USDA loans, which require no down payment. Each program has specific requirements, so it’s important to check eligibility. We would love to help you figure out how to do the first-time home buyer programs in Virginia with no down payment.

What Bank has the Best First-Time Home Buyer Programs in VA?

Several banks in Virginia offer excellent programs for first-time home buyers in Virginia. The Wells Fargo’s “Your First Mortgage” offers reduced down payments and out-of-pocket costs.

Bank of America’s “Affordable Loan Solution” mortgage also caters to first-time buyers with low down payments. Navy Federal Credit Union provides 100% financing for qualified members.

It’s advisable to compare these programs and consult with a financial advisor to find the best fit for your needs. Please let contact us for more information.

First-time Home Buyer Virginia Qualifications

Virginia Housing Highlights and Eligibility Requirements

Virginia Housing First is an organization that offers a variety of programs to aid first-time Virginia home buyers. These initiatives provide valuable resources like lower mortgage rates, relaxed loan requirements in certain areas, and assistance with closing costs.

First time home Buyer Programs in Virginia Highlights

Virginia Housing First provides several unique programs tailored to the specific needs of homebuyers.

For instance, the FHA Plus Loans program will offer a low 30-year fixed interest rate along with plus second mortgage that covers all required down payment and closing costs. This is particularly beneficial for a first-time home buyer in Va who is struggling to meet the initial expenses.

On the other hand, the Conventional Bond program is designed for those purchasing in an Area of Economic Opportunity. This program does not require the buyer to be a first time home buyer VA which offers flexibility for those looking to invest in growing areas.

Eligibility Requirements for First time Home Buyer Programs in Virginia

To qualify for these programs, there are specific eligibility criteria that potential Virginia homeowners must meet.

These requirements include income limits, sales price restrictions, and a requirement to complete a Virginia Housing-approved homeownership education class.

The first time home buyer programs in VA can be completed either online or in person and are designed to ensure that homebuyers have a solid understanding of the process of the first-time buyer program in Virginia before applying for a loan.

For the FHA Plus Loans program, lower credit qualifying is an additional plus, making it accessible to a large range of new homeowners.

It’s important to note that VA first-time home buyer loan has a maximum income and sales price/loan limits based on the area of the home. However, there are exceptions to this guideline, particularly for homes located in Federal Targeted Areas where the maximum allowable income and sales limits may be relaxed to stimulate growth!

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Virginia first-time Home Buyer Programs 2023

Virginia continues to extend a variety of first-time home buyer assistance in Virginia, making homeownership more attainable. These initiatives include down first-time home buyer grants in Virginia and flexible financing options. Here’s an overview of the key first time home buyer programs in VA that are available:

  1. FHA Down Payment Assistance Grants for 2023: In collaboration with the Federal Housing Administration (FHA), this program helps first-time homebuyers purchase homes in Virginia. It provides first-time home buyer grants in VA that are used towards the down payment and closing costs. Which reduces the financial burden for new homebuyers.
  2. Virginia Department of Housing and Community Development Program: This program provides first-time homebuyers in VA with down payment and closing cost assistance. By reducing these initial costs more Virginians to enter the housing market.

These homebuyer programs reflect Virginia’s commitment to making homeownership accessible to a greater number of its residents. Whether you’re a millennial aspiring to buy your first home or a repeat buyer seeking opportunities in new areas, these initiatives provide great support.

Down Payment Assistance Grant

Offered by Virginia Housing, this first home buyer grant program provides qualifying homebuyers with up to 2.5% of the home’s purchase price for their down payment. It is open to both first-time homebuyers and repeat buyers purchasing in Areas of Economic Opportunity.

First-time Home Buyer Virginia No Down Payment (DPA)

The First-time home buyer in virginia with no down payment program offers flexible gap financing for first-time homebuyers at or below 80 percent of the area median income. It aims to assist those who might not have enough savings for a down payment and closing costs.

Down Payment Assitance Grant (FHA)

In collaboration with the Federal Housing Administration (FHA), this program helps first-time homebuyers purchase homes in Virginia. It provides grants that help with down payment assistance in Virginia and can also be used towards closing costs, which really reduces the financial burden for new homebuyers.

Virginia Department of Housing and Community Development Program

This program provides first-time homebuyers with down payment and closing cost assistance. Reducing these initial costs facilitates more Virginians to enter the housing market.

$5,000 First-Time Home Buyer Grant

  1. Eligibility: The grant is available to first-time homebuyers or repeat buyers purchasing in Areas of Economic Opportunity. It’s important to note that eligibility requirements may vary between programs and areas within Virginia. For instance, some programs may require the buyer to have an income at or below 80% of the area median income.
  2. Grant Amount: Qualifying homebuyers can receive up to $5,000 to be used towards for down payment and closing costs. This is a significant boost, especially for those who might not have enough savings for these upfront costs.
  3. Education Course: Typically, to qualify for this grant, homebuyers are required to complete an approved vhda first-time homebuyer class. This ensures that they fully understand the home-buying process, including the responsibilities and financial commitments of owning a home in Virginia.
  4. Home Price and Loan Types: There are restrictions on the price of the home you can buy with this grant. Additionally, the type of mortgage loan you are eligible for could also be specified by the grant program.
  5. Repayment: The best part about this grant is that it does not need to be repaid! Provided the new VA homeowner meets certain conditions, such as maintaining the home as their primary residence for a set period of time.

First-time Home Buyers $7,500 Government Grant

  1. Eligibility: The grant is available to first-time homebuyers who meet specific eligibility criteria. These can include income limitations, credit score minimums, and restrictions on the price of the home you can buy. Some programs also require the buyer to purchase a primary residence.
  2. Grant Amount: Qualifying homebuyers can receive up to $7,500 in grant funds. The funds can be used towards the down payment and closing costs.
  3. Education Course: Most programs require homebuyers to complete an approved homeownership education course to qualify for the grant.
  4. Repayment: Unlike a loan, a grant does not need to be repaid. However, the programs do require the homeowner to repay the grant if they sell or refinance the home within a certain period of time.
  5. Application Process: The application process involves submitting financial information and completing a homebuyer education course. It’s recommended to apply well in advance of when you plan to start looking for a home, as processing times can vary.

Virginia First-time Home Buyer Class 2023

We’re proud to facilitate access to Virginia Housing’s free First-time Homebuyer Class. This is a comprehensive first-time home buyer program for va loans that is designed to guide potential homeowners through the entire home-buying process.

With Griffin Realty you’ll learn about every aspect of home buying. From understanding credit scores to securing a mortgage loan, and closing the deal we’ve got you covered.

But that’s not all. Completing this course could also qualify you for incredible financial assistance programs. You can receive up to $7,500 in government grants or a $5,000 grant specifically designed for first-time home buyer programs in Virginia.

At Griffin Realty, we believe in empowering our clients with up-to-date knowledge and resources. We’re not just a real estate agency; we’re your partners in your journey to homeownership. Let us make your home-buying experience smoother and more successful.

First-time Home Buyer VA Income Limits

Income and Sales Price/Loan Limits: The state’s housing finance agency, Virginia Housing, sets maximum income and sales price/loan limits for its first-time homebuyer loans. These limits vary based on the area of the home. For instance, the income limit may be higher in areas with a higher cost of living compared to areas with a lower cost of living.

In addition to income limits, there are also maximum sales price/loan limits. These determine the maximum price of a home that you can purchase or the maximum loan amount you can get through the program. Like the income limits, these also vary depending on the geographic area of the home.

It’s important to note that there are exceptions to these guidelines under certain circumstances. For example, if you’re purchasing a home in a designated high-cost area, you may be eligible for higher loan limits. Or, if you’re participating in a specific program, such as the Down Payment Assistance Program (DPA), different income and sales price/loan limits may apply.

Understanding Virginia First time homebuyer Down payment assistance

National First-time Home Buyer Programs

1. Federal Housing Administration (FHA) Loans: These loans are insured by the Federal Housing Administration and are designed for low-to-moderate-income buyers. FHA loans require lower minimum down payments (as low as 3.5%) and lower credit scores compared to conventional loans. They are a good option for first-time home buyers who may not have a large amount saved for a down payment or who have a lower credit score.

2. Veterans Administration (VA) Loans: VA loans are available to active service members, veterans, and eligible spouses. They offer 100% financing, which means no down payment is required. These VA loans also do not require private mortgage insurance (PMI), which usually reduces your monthly payments.

3. USDA Loans: The U.S. Department of Agriculture (USDA) offers loans for buyers in rural areas who meet certain income requirements. These loans also offer 100% financing which makes them an excellent option for first-time buyers in Virginia without a large down payment.

4. Fannie Mae or Freddie Mac Loans: These government-sponsored first time home buyer programs in Virginia work with local lenders to offer mortgage options that benefit low- and moderate-income families. They require a minimum down payment of 3% and a lower credit score than many conventional loans.

5. Good Neighbor Next Door Program: This program is run by the Department of Housing and Urban Development (HUD) and they offer up to 50% off the list price of a home for teachers, firefighters, police officers, and EMTs who commit to living in revitalization areas for at least 36 months!

6. Energy-Efficient Mortgage (EEM): This program allows homebuyers to include the cost of energy-efficient upgrades in their mortgage without needing a larger down payment.

7. Native American Direct Loan (NADL): This program provides direct home loans from the VA to eligible Native American veterans to help purchase, construct, or improve homes on Federal Trust Land.

In Virginia Beach, known for its miles of beaches and vibrant boardwalk area, there has been significant growth in home prices, indicating a robust housing market. However, specific price trends were not available from the search results. See the Homes for sale in Virginia Beach.

Hampton homes for sale were up 8.4% compared to last year, selling for a median price of $260K. On average, homes in Hampton sell after 21 days on the market. The median home sold price in Hampton VA is around $300,000.

Norfolk, Virginia’s real estate market has seen a 7% increase in home prices compared to last year. The median list price stands at $324,633 and the average home value is at $284,367. Looking ahead, the sales prices are predicted to rise by 8.50% over the next decade.

The real estate market in Chesapeake, Virginia has seen an 8.4% increase in home prices compared to last year. The median sale price for homes was $380,000. On average, homes in Chesapeake were selling after 2 weeks on the market.

Portsmouth, Virginia’s housing market saw an 8.9% increase in home prices in 2023. On average, homes in Portsmouth were sold after being on the market for 25 days. The median listing home price was $260K, showing a year-over-year increase of 4%.

The real estate market in Suffolk, Virginia has seen significant growth. The median home value has risen by 6.2% over the past year to reach $320,104. The median list price for homes in Suffolk is $349,990, which shows an increase of 2.7%.