VA Down Payment Assistance in Virginia: Grants + Closing Costs
Mike Certo · Cornerstone First Mortgage · NMLS #260555 ·
Program figures verified July 2026 — details change; confirm your scenario with us.
VA loans don't require a down payment, so why add assistance? Closing costs and the funding fee. Virginia Housing's grants can cover those on a $0-down VA loan, getting an eligible buyer close to zero cash to close. We help you decide whether assistance makes sense and which single program fits best.
What is VA down payment assistance in Virginia?
VA down payment assistance in Virginia comes from Virginia Housing, since the VA loan already needs $0 down. Its Closing Cost Assistance Grant (up to about 2% of the price) is a true VA closing cost grant that can even cover the VA funding fee, and for a disabled Veteran whose funding fee is already waived, it goes straight to other closing costs.
The Virginia Housing programs
| Program | What it does | Repaid? |
|---|---|---|
| Down Payment Assistance Grant | A grant toward down payment, used with an eligible Virginia Housing loan | Never |
| Closing Cost Assistance (CCA) Grant | Up to ~2% of the price toward closing costs — and it can cover the VA funding fee | Never |
| Plus Second Mortgage | A second lien that pairs with a Virginia Housing first; helps buyers over grant income limits or who aren't first-time | Per loan terms |
For a VA buyer, the CCA Grant is often the most useful piece because VA already handles the down payment — the grant goes to closing costs and the funding fee instead.
Eligibility
- Credit: generally a 620-640 score depending on the program and loan type.
- Homebuyer education: a free Virginia Housing course is required before closing.
- Income and price limits: vary by area; we check yours up front.
- One program per transaction: you cannot combine multiple down payment assistance programs.
Things to watch
- Use a Virginia Housing-approved lender who can run the VA first mortgage and the assistance together.
- Run the income test early — a working spouse's income can affect eligibility.
- Funding fee waiver: a 10%+ service-connected disability rating waives the VA funding fee entirely.
- The Plus Second is repaid per its terms; a VA IRRRL can usually subordinate it, but a cash-out refinance may require paying it off.
Frequently asked questions
Why would a VA buyer need down payment assistance if VA is $0 down?
VA already covers the down payment, so Virginia Housing assistance is most useful for closing costs and the VA funding fee. The Closing Cost Assistance Grant can even be applied to the VA funding fee, getting an eligible buyer close to zero cash to close.
What does Virginia Housing offer?
Virginia Housing offers a Down Payment Assistance Grant (a true grant, never repaid), a Closing Cost Assistance Grant (up to about 2% of the price, which can cover the VA funding fee), and a Plus Second Mortgage that pairs with a Virginia Housing first mortgage.
Does using Virginia Housing assistance affect my VA entitlement?
No. The assistance is separate from your VA first mortgage. Your VA loan uses entitlement; the grant or second does not, so you preserve future-purchase entitlement.
What are the credit and income requirements?
Virginia Housing programs generally look for a 620 to 640 credit score and completion of a free homebuyer education course, with income and sales-price limits that vary by area. We confirm your numbers up front.
Can I combine more than one down payment assistance program?
Only one down payment assistance program applies per transaction. We help you choose the single program that fits your situation best rather than trying to layer several.
Want Mike to model your specific scenario? Send your numbers or call (480) 296-6513.