Virginia Housing: Grant vs. Plus Second Mortgage
Virginia gives you a real choice: a grant you never repay, or a larger second mortgage you do. Here is how to tell which one, or which combination, fits your down payment and your plans.
The core trade-off
This is the cleanest way to think about it. The grants, the DPA Grant toward your down payment and the CCA Grant toward closing costs, are free money: no second loan appears on your file, there is no monthly payment, and you never pay it back. The Plus Second Mortgage is a larger amount, so it can cover more of an expensive down payment, but it is a real loan you repay over time. Free but smaller, or larger but repaid, that is the decision.
Grant vs. Plus Second at a glance
| Feature | DPA / CCA Grant | Plus Second Mortgage |
|---|---|---|
| What it is | A grant | A second mortgage |
| Repay? | Never | Yes, over time |
| Monthly payment | None | Yes, on the second |
| Relative size | Smaller | Larger |
| Best for | Buyers who want nothing to repay | Buyers who need more help now |
Current grant and Plus Second amounts are published at virginiahousing.com. The CCA Grant is for FHA, VA, and USDA loans.
Who picks which
If a grant covers enough of your down payment and closing costs, take it, there is no reason to add a repayable loan you do not need. That is common in Virginia’s more affordable markets like Roanoke and Richmond. In a high-cost market like Northern Virginia, the grant may not be enough on its own, and the larger Plus Second can bridge the gap, or a grant toward closing plus the Plus Second toward the down payment. We run your numbers and show you the mix that costs you the least. See a high-cost example on our Northern Virginia page.
Common questions
What is the difference between the Virginia Housing grant and the Plus Second Mortgage?
The DPA and CCA Grants are true grants toward down payment and closing costs, with no second loan, no monthly payment, and nothing to repay. The Plus Second Mortgage is a larger second loan covering the same costs that you do repay over time. Grants are smaller but free; the Plus Second is larger but repaid.
Should I take the Virginia grant or the Plus Second Mortgage?
If a grant covers enough of your down payment and closing costs, take it, there is nothing to repay. If you need more, especially in a high-cost market like Northern Virginia, the larger Plus Second can bridge the gap, sometimes combined with a grant toward closing costs.
Can I combine a Virginia Housing grant with the Plus Second?
Often yes, for example a CCA Grant toward closing costs alongside the Plus Second toward the down payment. The right combination depends on your cash, income, and price. A lender runs the numbers to find the lowest-cost mix.
Ready to see your options?
Tell us your county, credit range, and price target, and we’ll map your Virginia path in a no-pressure 20-minute call. No obligation.