Virginia Down Payment Assistance + FHA Loan
An FHA loan needs 3.5% down. Virginia Housing can help cover it with a grant you never repay or a larger repayable second. Here is how the two fit together.
Why FHA pairs with Virginia Housing
FHA is a common first-time-buyer loan because it allows a 3.5% down payment and is flexible on credit. Virginia Housing pairs with it, so a DPA Grant can go toward that 3.5% down payment and a CCA Grant toward closing costs, both of which you never repay. A buyer with a 620 score can get into a home across Virginia with very little of their own cash. That said, ask us to compare FHA with Virginia Housing’s reduced- or no-MI conventional loan, for some buyers the conventional route is cheaper monthly.
How it stacks
Two pieces work together. The FHA first mortgage is your primary loan, with its usual mortgage insurance. Virginia Housing’s help sits on top: a grant (no second loan, no payment, never repaid) or the Plus Second Mortgage (a larger, repayable second). With a grant, there is nothing extra on your file and nothing to pay back. With the Plus Second, you take on a larger benefit in exchange for a repayable balance. Either way the FHA loan behaves like any FHA loan.
Who this fits
The FHA pairing fits many first-time Virginia buyers, especially with a grant toward the cash to close. If you have decent credit, compare it with the reduced/no-MI conventional option. And veterans should look at the VA pairing, which needs no down payment and lets a grant cover closing costs.
Program facts verified August 2026 against Virginia Housing and HUD FHA guidance. This is not a commitment to lend. Related: DPA + VA · Eligibility.
Common questions
Can Virginia Housing assistance cover an FHA down payment?
Yes. FHA requires a 3.5% minimum down payment, and a Virginia Housing DPA Grant (never repaid) can go toward it, with a CCA Grant toward closing costs. The larger, repayable Plus Second Mortgage is also available. A 620 credit score is required.
Is FHA or the Virginia Housing conventional loan cheaper?
It depends on your credit and down payment. Virginia Housing's reduced- or no-mortgage-insurance conventional loan can be cheaper monthly than FHA for a borrower with decent credit. Ask a lender to compare the two for your situation.
Do I repay Virginia Housing assistance on an FHA loan?
It depends which you choose. The DPA and CCA Grants are never repaid. The Plus Second Mortgage is a larger benefit that you do repay over time.
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