Most people who call me for the first time believe they need 20% down. In Northern Virginia, where prices are what they are, that number stops them before they start. It is also wrong for almost everyone I work with.
I have written mortgages here since 2014, and most of my clients are first-time and first-generation buyers. The programs below are the ones that actually apply to them. None of this is a rate quote, and none of it is a promise that you will qualify. It is the map I wish every buyer had before their first call.
The loan programs that lower the down payment
FHA, for a buyer still building credit. The minimum down payment is 3.5%, and buyers with a credit score of 580 or higher can use that minimum (HUD). FHA charges mortgage insurance for the life of most loans, which is the trade-off. It is often the realistic entry point when savings are modest or credit is young. For more on how credit score affects which loan fits, see credit score requirements by loan type.
VA, if you served, start here. Eligible veterans, active-duty service members, and some surviving spouses can buy with zero down and no private mortgage insurance (VA.gov). There is a one-time VA funding fee, but it is waived entirely for buyers receiving VA disability compensation, among other exempt groups. If you qualify, it is hard to beat.
Conventional 3%-down (HomeReady and Home Possible). Fannie Mae's HomeReady and Freddie Mac's Home Possible allow as little as 3% down for buyers whose income is within 80% of the area median for the home's location. At least one borrower completes a free homeownership education course. The advantage over FHA is that the mortgage insurance can be cancelled once you reach enough equity. This is the step up once your credit is strong.
The grants that bring cash-to-close toward zero
This is the part most buyers never hear about, and the part that changes who can actually buy this year.
Virginia Housing Down Payment Assistance grant. It is a grant, not a loan, and it is never repaid (Virginia Housing). It pairs with a Virginia Housing loan and goes toward your down payment. Grant amounts and income limits change, so confirm the current figures directly with Virginia Housing or with me before relying on a specific dollar amount.
Virginia Housing Closing Cost Assistance grant. Also a grant, never repaid, applied to closing costs on USDA or VA loans through Virginia Housing. Useful for buyers who qualify for VA or USDA and want help covering the cash at closing beyond the down payment.
Community Heroes grant. A $10,000 grant, never repaid, toward down payment and closing costs, for first-time buyers in qualifying professions such as healthcare, teaching, and first response (Virginia Housing). Only one borrower needs to qualify, and it can stack with other Virginia Housing grants.
Virginia's state DPA (through DHCD). Separate from Virginia Housing, the state offers a deferred loan with no payments while you live in the home: up to $40,000 for buyers at or below 80% of area median income, and a pilot up to $50,000 for buyers at or below 60% (Virginia DHCD). Loudoun and Fairfax also run their own local programs.
Every Virginia Housing grant is gated by income limits and sales-price limits that change by locality and household size. In Northern Virginia, those limits are usually the deciding factor, which is exactly why the right answer depends on your specific numbers.
Which one fits you?
| Your situation | Start with |
|---|---|
| You served in the military, or are an eligible spouse | VA loan |
| Modest savings, credit still building | FHA |
| Income within 80% of area median, solid credit | HomeReady or Home Possible |
| Cash to close is the obstacle | A Virginia Housing grant, stacked on the loan |
| You work in a qualifying profession | Community Heroes ($10,000) |
| Very low income | State DHCD program + local county programs |
The move most buyers miss is the last column on the top rows: the grant rides on top of the loan. You pick the loan that fits your credit and service history, then stack the assistance that fits your income and locality. That pairing is the whole game, and it is the conversation a loan officer is supposed to run with you.
What "first-generation buyer" means now
If you are the first in your family to buy, there is now a standard definition that assistance programs use. Fannie Mae and Freddie Mac, aligned with the FHFA, define a first-generation homebuyer as someone who will live in the home, has not owned a home in the past three years, and whose parents have not owned a home in the past three years (or who aged out of foster care). That classification is the key that unlocks several assistance programs, so if it describes you, say so on your first call. It can decide which help you qualify for.
Frequently asked questions about down payment help in Northern Virginia
Do I really need 20% down to buy in Northern Virginia?
No. FHA allows 3.5% down, conventional programs like HomeReady and Home Possible allow 3%, and VA allows zero down for those who qualify. Grants can lower your cash-to-close further. For the full breakdown by loan type, see down payment requirements by loan type in Virginia.
What is the difference between a down-payment grant and a loan?
A grant is not repaid. Virginia Housing's down-payment and closing-cost assistance are grants. The state's DHCD assistance is a deferred loan, which means no payments while you live in the home, but it is still owed later. Always confirm which one you are being offered.
Can I combine a low-down-payment loan with a grant?
Often, yes. A Virginia Housing grant is designed to pair with a Virginia Housing loan. The right combination depends on your income, credit, and the home's price and location.
What does "first-generation homebuyer" qualify me for?
It can make you eligible for assistance programs aimed at buyers whose families have not owned a home. The exact programs change, so confirm current eligibility with a loan officer before relying on any specific benefit.
Tareq Maayta is a mortgage loan officer (NMLS #1443073) and Managing Director at Finance USA Corporation, serving first-time and first-generation buyers across Northern Virginia since 2014.
This article is for informational purposes only and is not a commitment to lend. Program availability and terms are subject to change and to underwriting approval. Equal Housing Opportunity.