Home Mortgages Mortgages
Sigrid Forberg By Sigrid Forberg

Home values have been rising throughout Virginia and are up 5.2% from a year ago. According to Zillow’s Home Value Index (ZHVI), the typical value of a single-family home in Virginia is currently $299,164.

Mortgage rates in Virginia

Mortgages in Virginia

From grants to tax credits, Virginia Housing offers a number of assistance programs to help residents buy their first home when they otherwise wouldn’t be able to afford it.

Virginia Housing Conventional No Mortgage Insurance

This program allows first-time homebuyers to put down just 3% on a home loan without having to sign up for mortgage insurance. Paired with a Virginia Housing DPA Grant, you could end up putting down as little as 1%.

By contrast, with a conventional loan, applicants need to put down 20% of the purchase price to receive the same terms. The program is also available for repeat buyers who are hoping to “move up.”

To qualify, applicants must have at least a 660 credit score.

More: Get a free credit score and credit monitoring from Credit Sesame.

Down payment assistance grant

Virginia Housing’s Down Payment Assistance (DPA) grant helps eligible first-time homebuyers with the funds they need to make a down payment.

Some of the eligibility requirements include:

  • A minimum credit score of 620.
  • A maximum 45% debt-to-income ratio.
  • An income at or below the program’s current limits.

Successful applicants will be granted up to 2.5% of the purchase price, based on the down payment required. These grants can only be used with eligible Virginia Housing loans.

Mortgage credit certificates (MCC)

This program reduces the amount first-time homebuyers in Virginia owe in federal income tax.

It’s not a mere tax deduction: It’s a dollar-for-dollar credit against your taxes. You’ll get a credit for 10% of your annual mortgage interest, and the other 90% can still be taken as a tax deduction.

The MCC is effective for the life of your loan, or as long as you live in the home.

To qualify, applicants must go through an approved lender, submit an MCC Homebuyer Application and Fact Sheet, confirm your request at loan application, fall within the maximum household income and loan brackets and intend to use the home as their principal residence.

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About the Author

Sigrid Forberg

Sigrid Forberg

Staff Writer

Sigrid is a staff writer with MoneyWise. A graduate of Carleton University's journalism program, she spent the better part of the last six years writing about business and retail. In her spare time, she enjoys reading, baking and riding her bicycle.

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