Virginia Home Loans for Heroes: Every Program You Need to Know in 2026

Virginia Home Loan Programs for Heroes 2026 — Complete Guide | StatewiseFinance
Updated: June 2026 | Sources: VirginiaHousing.com · DVS.virginia.gov · VA.gov · Zillow · NerdWallet · Veterans United

Virginia Home Loan Programs for Heroes (2026)

Teachers · Nurses · Firefighters · Police · Public Employees · Veterans · Active Military · Healthcare Workers

Virginia stands out for two reasons: a dedicated $10,000 Community Heroes Grant for educators, first responders, healthcare workers, and public servants — and one of the strongest veteran benefit packages in the nation, including a full property tax exemption for 100% disabled veterans and the Granting Freedom accessibility grant. This guide covers every program available to Virginia heroes in 2026, with income limits verified at VirginiaHousing.com.

2026 Virginia Market Update: Virginia median home price was approximately $412,000 (Experian/Curinos, May 2026). Northern Virginia (Washington/Arlington/Alexandria metro) runs significantly higher. VA loan rate: 5.75% (Veterans United, June 11, 2026). 30-year conventional: 6.49% (Zillow, June 8, 2026). Virginia ranked consistently among the top 10 states for military veteran population — creating strong demand for VA and hero loan products statewide.

⚠️ Community Heroes Grant — Verify Current Availability: Virginia Housing launched the $10,000 Community Heroes Grant in late 2025. Some lender notices from early 2026 have indicated the pilot may have been temporarily suspended. The official virginiahousing.com page currently returns a 404 error. Always confirm current availability with a Virginia Housing-approved lender before planning your finances around this grant. Contact Virginia Housing directly at Grants@VirginiaHousing.com or 877-843-2123.

Current Virginia Mortgage Rates — June 2026

30-yr Conventional
6.49%
Zillow, June 8, 2026
30-yr FHA
6.25%
NerdWallet, June 10, 2026
Virginia Housing Rate
Competitive*
Verify at virginiahousing.com
30-yr VA Loan
5.75%
Veterans United · June 11, 2026
15-yr Fixed
5.875%
Zillow, June 8, 2026
30-yr USDA
~6.0–6.2%
Rural VA areas — verify with lender

*Virginia Housing does not publicly post current bond loan rates — contact a Virginia Housing-approved lender for the current rate. Market rates sourced from Zillow (June 8, 2026), NerdWallet (June 10, 2026), and Veterans United (June 11, 2026). Rates change daily — always verify before locking.

Who Qualifies as a Hero in Virginia?

Virginia Housing's Community Heroes Grant uses one of the broadest hero definitions in the nation. It covers current employees AND retirees across education, healthcare, public safety, military, and government. This is especially important: retired teachers, nurses, and first responders qualify — unlike many other states that restrict benefits to active employees only.

ProfessionCommunity Heroes Grant $10K*DPA / CCA GrantVA LoanGNND (HUD)Granting Freedom
Teachers / Educators (K-12)✓ Active & Retired✓ (income limits)✓ 50% off
Nurses / RNs / LPNs / CNAs✓ Active & Retired✓ (income limits)If veteran
Other Healthcare Workers (social workers, lab techs, medical assistants)✓ Active & Retired✓ (income limits)If veteran
Firefighters / EMTs / Paramedics✓ Active & Retired✓ (income limits)If veteran✓ 50% off
Law Enforcement / Police✓ Active & Retired✓ (income limits)If veteran✓ 50% off
Active Military / Veterans✓ Active & Retired✓ (income limits)✓ Full benefits
Veterans with Service-Connected Disability✓ Active & Retired✓ + fee waiver✓ Up to $8,000
Other Government / Public Employees✓ Verify with lender✓ (income limits)If veteran

*Community Heroes Grant: verify current availability before applying — see alert above. Source: Virginia Housing Community Heroes Grant Program Guidelines (December 2025) and virginiahousing.com/homebuyers/community-heroes-grant (confirmed via lender sources, June 2026).

Program-by-Program Breakdown

1. Community Heroes Grant — $10,000 True Grant

State Program — Virginia Housing True Grant — No Repayment ⚠️ Verify Availability
Administrator: Virginia Housing (VHDA). Launched late 2025. Verify current availability at virginiahousing.com or contact Grants@VirginiaHousing.com · 877-843-2123. Community Heroes Certification required before closing.

Virginia Housing's dedicated hero program provides $10,000 as a true grant — never repaid — to eligible first-time homebuyers in qualifying professions. This grant can be combined with other Virginia Housing programs (DPA Grant, Plus Second Mortgage, CCA Grant) to maximize total assistance. Eligible professions include current and retired teachers, nurses, all healthcare workers, firefighters, EMTs, law enforcement, active military, veterans, and other public servants.

Grant amount$10,000 — true grant, no repayment required ever
Who qualifiesCurrent or retired: teachers, nurses/healthcare workers (CNAs, LPNs, RNs, social workers, lab techs, medical assistants, patient care staff), firefighters, EMTs, paramedics, law enforcement, active military, veterans, other public servants — verify exact career list with lender or at Grants@VirginiaHousing.com
Homebuyer statusMust be first-time homebuyer under Virginia Housing guidelines (no ownership in past 3 years; exceptions for Areas of Economic Opportunity)
Loan requirementMust use a Virginia Housing bond loan (Conventional, FHA, VA, or RHS bond) — not available with non-bond Virginia Housing loans
Income limitsVirginia Housing Standard/Bond income limits apply by metro area — see income limits table below. Targeted area income limits may apply if combined with other programs.
Sales price limitsVirginia Housing Bond program sales price limits apply by metro area — see income limits table
StackingCan be combined with Virginia Housing DPA Grant, CCA Grant, and Plus Second Mortgage (lowest income limit of combined programs applies)
Required documentationCommunity Heroes Certification form (completed before closing), employment or retirement documentation, income verification
⚠️ Availability noteConfirm current availability with Virginia Housing-approved lender BEFORE making financial plans. Funds may be limited or program status may have changed. Contact: Grants@VirginiaHousing.com
Official sitevirginiahousing.com — search "Community Heroes Grant" or contact 877-843-2123

2. Virginia Housing Down Payment Assistance (DPA) Grant

State Program — Virginia Housing True Grant — No Repayment Active 2026
Administrator: Virginia Housing (VHDA). Verified at virginiahousing.com/down-payment-assistance-grant, June 2026. Statewide program through participating lenders.

Virginia Housing's core down payment assistance program provides 2–2.5% of the purchase price as a true grant — never repaid. Available only with eligible Virginia Housing FHA or Conventional bond loans. Cannot be combined with the CCA Grant or Plus Second Mortgage in the same transaction.

Grant amount2% of purchase price (standard) — up to 2.5% in some cases. True grant — no repayment
Compatible loansVirginia Housing FHA bond or Conventional bond first mortgage only. Cannot use with VA loan (use CCA Grant for VA loans instead).
First-time buyer required?Yes — or purchasing in a Virginia Housing Area of Economic Opportunity
Income limitsDPA Grant income limits (lower tier) — see table below. Verify by metro area at virginiahousing.com/income-limits
Can stack with Heroes Grant?Yes — lowest income limit of the two programs applies when combined
Official sitevirginiahousing.com — DPA Grant

3. Closing Cost Assistance (CCA) Grant — VA Loan Veterans

State Program — Virginia Housing True Grant — No Repayment Active 2026
Key distinction: This grant is designed specifically for VA loan borrowers and RHS (rural housing) borrowers — filling the gap that the DPA Grant cannot fill, since the DPA Grant is not compatible with VA loans. Veterans using a Virginia Housing VA bond loan can receive this grant for closing costs and the VA funding fee.

The CCA Grant provides up to 2% of the purchase price to cover closing costs, RHS guarantee fees, or VA funding fees. It is a true grant requiring no repayment. Available only when paired with a Virginia Housing VA bond loan or RHS bond loan.

Grant amountUp to 2% of purchase price — true grant, no repayment. Can cover VA funding fee.
Compatible loansVirginia Housing VA bond loan or RHS bond loan only. Cannot use with FHA or conventional Virginia Housing loans.
Can cover VA funding fee?Yes — CCA Grant funds can be applied to the VA funding fee, significantly reducing out-of-pocket costs at closing
Income limitsVirginia Housing Bond income limits apply — verify by metro area at virginiahousing.com/income-limits
Can stack with Heroes Grant?Yes — veteran heroes can potentially receive $10,000 Community Heroes Grant + CCA Grant for closing cost coverage
Official sitevirginiahousing.com — CCA Grant

4. Virginia Housing Plus Second Mortgage

State Program — Virginia Housing Active 2026
Note: Unlike the DPA Grant and CCA Grant, the Plus Second Mortgage is a loan — not a grant. It does not require repayment until sale, refinance, or payoff. Available to first-time AND repeat buyers above DPA Grant income limits.

The Plus Second Mortgage provides up to 5% of the purchase price (up to 6.5% for borrowers with 680+ credit score who finance closing costs) as a 30-year fixed-rate second mortgage. No prepayment penalty. Available to buyers who don't qualify for the grant due to income limits or repeat buyer status.

Assistance amountUp to 5% of purchase price. Up to 6.5% for 680+ credit score borrowers who finance closing costs into the second mortgage.
Structure30-year fixed-rate second mortgage — not a grant. Must be repaid (deferred until sale/refinance/payoff).
First-time buyer required?No — available to repeat buyers who don't qualify for DPA Grant programs
Income limitsExpanded / Non-bond income limits apply: $245,000 (Washington/Arlington/Alexandria), $175,000 (Richmond and other metros) — verify at virginiahousing.com/income-limits
Can stack with Heroes Grant?Yes — can be combined with Community Heroes Grant when income limits are met
Official sitevirginiahousing.com — Plus Second Mortgage

5. Granting Freedom — Disabled Veterans Home Modification Grant

State Program — Virginia Housing + DVS True Grant — No Repayment Disabled Veterans Only Active 2026
Administrator: Virginia Housing in partnership with Virginia Department of Veterans Services. Verified at virginiahousing.com/accessibility-grants, June 2026. Applications must be completed through accepted agents — first-come, first-served.

The Granting Freedom program provides up to $8,000 in grant funds to modify an owner-occupied home or rental unit to be accessible for Virginia veterans and service members with a service-connected disability resulting from a line-of-duty injury. This is a true grant — no repayment ever required. Separate from standard homebuyer DPA programs.

Grant amountUp to $8,000 — true grant, no repayment. First-come, first-served basis.
Who qualifiesVirginia veterans and active service members with a service-connected disability resulting from a line-of-duty injury. Applies to both owner-occupied homes and rental units.
Eligible modificationsWheelchair ramps, widened doorways, grab bars, other VA-recommended accessibility modifications that make the home accessible for the specific disability
Separate from home purchase?Yes — Granting Freedom can be applied to any existing home, not only at time of purchase. Also applies to rental units (landlord must cooperate).
Application processMust be submitted through a Virginia Housing-accepted agent. Contractor has 120 days from approval to complete work.
Required documentationVA disability award letter or rating letter citing service-connected disability, or MEB/PEB documentation for active service members
Official sitevirginiahousing.com — Accessibility Grants

6. Virginia Housing VA Bond Loan

State Program — Virginia Housing With Federal VA Benefit Active 2026
Note: Virginia Housing's VA bond loan is a state-administered VA-guaranteed loan that may have a different interest rate than the standard federal VA loan rate. Eligible veteran borrowers using Virginia Housing's VA bond loan also qualify for the CCA Grant and Community Heroes Grant. Verify current rate at a Virginia Housing-approved lender.

Virginia Housing offers its own VA bond loan program for eligible veterans, which can be paired with state grants (CCA Grant, Community Heroes Grant) that are not available with the standard federal VA loan. Veterans should compare rates between the Virginia Housing VA bond loan and the standard federal VA loan before choosing.

Down payment$0 — VA benefit, no down payment required
RateMay differ from standard federal VA rate — contact Virginia Housing-approved lender for current rate
CCA Grant compatible?Yes — CCA Grant (up to 2% of purchase price) can cover VA funding fee and closing costs
Heroes Grant compatible?Yes — Community Heroes Grant ($10,000, verify availability) can be layered on top of VA bond loan
Income limitsVirginia Housing Bond income limits apply by metro area — verify at virginiahousing.com/income-limits
First-time buyer required?Yes for bond loan — unless purchasing in a Virginia Housing Area of Economic Opportunity
Official sitevirginiahousing.com — Home Loans

7. Standard Federal VA Loan (Non-Bond)

Federal Program — VA Active 2026
Key distinction: The standard federal VA loan (not through Virginia Housing's bond program) has no income limit and no sales price cap (below conforming limit). Veterans above Virginia Housing's income limits should use the standard federal VA loan. The CCA Grant and Community Heroes Grant are NOT available with the standard federal VA loan — they require a Virginia Housing bond loan.

The standard federal VA loan provides the best overall value for most Virginia veterans — $0 down payment, no PMI, and competitive rates. Veterans with incomes above Virginia Housing's limits, or buying above state price caps, should prioritize the standard federal VA loan over Virginia Housing's bond programs.

Current rate5.75% (Veterans United, June 11, 2026) — $0 down, no PMI
Income limitsNone — no income limit for standard federal VA loans
Purchase priceUp to $806,500 with $0 down (2026 conforming limit for most VA counties). No limit with down payment.
VA funding fee1.25%–3.3% of loan amount — WAIVED for veterans with any service-connected disability rating
Mortgage insuranceNone — no PMI, no MIP ever
CCA/Heroes Grant available?No — state grants require Virginia Housing bond loan. Virginia Beach or local city DPA programs may stack with standard VA loan.
Official siteVA.gov — VA Home Loans

8. Good Neighbor Next Door (GNND) — HUD

Federal Program — HUD Active 2026
Virginia military connection: Virginia has among the highest veteran and active-duty populations in the nation (DoD, Pentagon, Fort Belvoir, Joint Base Langley-Eustis, NAS Oceana, NAS Norfolk, Quantico, Fort Gregg-Adams, and more). Many active-duty personnel and veterans who also work as teachers, firefighters, or law enforcement qualify for GNND's 50% discount. Check current Virginia GNND listings at HUD.gov.

HUD's Good Neighbor Next Door provides 50% off the list price of HUD-owned REO homes for eligible full-time law enforcement officers, K-12 teachers, firefighters, and EMTs who commit to living in the home as their primary residence for 36 months.

Discount50% off HUD list price — HUD carries silent second mortgage for 50%, forgiven after 36 months of owner-occupancy
Who qualifiesFull-time law enforcement, K-12 teachers (public or accredited private), firefighters, EMTs — must serve in the area where the home is located
Property typeHUD-designated REO property in a HUD revitalization area — check current Virginia listings weekly at HUD.gov
Can stack with VA loan?Yes — veterans qualifying for GNND can use their VA loan for the reduced 50% purchase price
Official siteHUD.gov — Good Neighbor Next Door

Virginia Housing Income & Sales Price Limits — June 2026

These limits were verified directly at virginiahousing.com/partners/lenders/lending-limits-requirements (effective 8/19/2025). Always confirm current limits with a Virginia Housing-approved lender before applying — limits update periodically.

Metro Area DPA / CCA Grant Programs (Bond) Standard / Bond Programs
Income (1–2 persons) Income (3+ persons) Sales Price / Loan Limit Income (1–2 persons) Income (3+ persons) Sales Price / Loan Limit
Washington / Arlington / Alexandria$148,000$174,000$800,000$186,000$217,000$800,000
Richmond$96,000$110,000$550,000$120,000$138,000$550,000
Norfolk / Virginia Beach / Newport News$97,000$113,000$575,000$121,000$141,000$575,000
Charlottesville$95,000$109,000$550,000$119,000$137,000$550,000
Culpeper / Rappahannock$98,000$115,000$675,000$123,000$144,000$675,000
All Other Areas of Virginia$90,000$103,000$500,000$112,000$129,000$500,000

For repeat buyers using the Plus Second Mortgage (non-bond): income limit is $245,000 for Washington/Arlington/Alexandria and $175,000 for all other Virginia metros, with no sales price limit. Source: virginiahousing.com, effective 8/19/2025. Verify current limits at virginiahousing.com/income-limits.

City-Level Programs — Virginia Heroes

Arlington — Moderate-Income Purchase Assistance Program (MIPAP)

County Program — Arlington ⚠️ Verify Availability — Not Currently Accepting

Arlington's MIPAP provides up to 25% of the purchase price as a 0% interest deferred second loan (maximum $112,500). As of June 2026, this program was NOT accepting new applications. Verify current status at arlingtonva.us before planning. Arlington is eligible for Virginia Housing's high-limit programs ($148,000–$186,000 income limits, $800,000 sales price limit).

MIPAP status as of June 2026: Not accepting new applications. Verify current funding status at arlingtonva.us/housing before making financial plans. Program may reopen with new funding — contact Arlington Housing at 703-228-3765.

Richmond — Homebuyer Assistance

City Program — Richmond Active — Verify Availability

The City of Richmond provides up to $20,000 in down payment and closing cost assistance as a zero-interest deferred loan for income-eligible first-time homebuyers within Richmond city limits. Heroes in public service qualifying under income limits are eligible. Also: Richmond Redevelopment and Housing Authority (RRHA) launched the ComeHome homeownership program in 2025 for public housing residents and voucher holders — contact RRHA directly for current status.

Verify current Richmond program availability at richmond.gov or contact RRHA at 804-780-4200. Income limits based on local AMI — verify before applying. Richmond Bond income limits: $96,000 (1–2 persons) / $110,000 (3+ persons), sales price limit $550,000.

Henrico County — County Employee DPA

County Program — Henrico County Employees Only Active — Verify Availability

Henrico County offers up to $25,000 as a forgivable loan to full-time county employees who have worked for the county at least one year. The loan is forgiven after five years of owner-occupancy. This program specifically benefits Henrico County teachers, firefighters, police, and other county employees — making it a strong hero-specific city-level benefit for Henrico workers.

Must be employed full-time by Henrico County for at least one year. Must be a first-time homebuyer and earn below Virginia Housing's income limits. Verify current program status and availability at henrico.us or contact Henrico's Department of Community Revitalization.

Smart Stacking — How Virginia Heroes Maximize Savings

Virginia's strongest stacking combinations layer state, federal, and local programs together. The key is finding a lender approved for all programs you want to combine. Always confirm program compatibility before going under contract.

Non-Veteran Hero Stack (Best Statewide)

Community Heroes Grant: $10,000 (verify availability)

+ Virginia Housing DPA Grant: 2% of purchase price (~$8,000–$11,000 on median VA home)

+ Homes for Heroes network: ~$1,500–$3,000 cash back

Total potential: $19,000–$24,000+ on a median Virginia home

Veteran Hero Stack (Best — Virginia Housing VA Bond)

Community Heroes Grant: $10,000 (verify availability)

+ CCA Grant: up to 2% (covers VA funding fee + closing costs)

+ VA loan: $0 down, no PMI

+ Homes for Heroes: ~$1,500–$3,000 cash back

Near-zero out of pocket at closing on most Virginia homes

High-Income Hero Stack (Above Bond Limits)

Standard federal VA loan: $0 down, no PMI (no income limit)

+ Plus Second Mortgage: up to 5% for closing cost coverage

+ Homes for Heroes: ~$1,500–$3,000 cash back

For heroes above bond income limits — VA loan has no income cap

Disabled Veteran Stack (Maximum Benefits)

Standard VA loan: $0 down, no PMI, VA funding fee WAIVED

+ Granting Freedom: up to $8,000 for accessibility modifications

+ Full property tax exemption: $0 real estate tax (Code § 58.1-3219.5)

Lowest total cost of homeownership available to any Virginia buyer

How to Apply — Step by Step

1
Confirm the Community Heroes Grant is currently available. Contact Virginia Housing directly at Grants@VirginiaHousing.com or 877-843-2123, or ask a Virginia Housing-approved lender to confirm current status before building your financial plan around this grant.
2
Verify your income and sales price limits for your metro area. Virginia Housing income limits vary significantly by metro area — from $90,000 (rural areas, DPA tier) to $186,000 (Northern Virginia, bond tier). Check the table above or verify current limits at virginiahousing.com/income-limits.
3
Veterans: get your Certificate of Eligibility (COE) first. Request your COE at VA.gov or have your lender pull it electronically. Check your disability rating — any service-connected disability rating may waive the VA funding fee entirely. Bring your VA disability award letter to every lender meeting.
4
Find a Virginia Housing-approved lender who handles all your target programs. Your lender must be Virginia Housing-approved for state programs AND VA-approved for VA loans. Find Virginia Housing lenders at virginiahousing.com/find-lender. Confirm the lender has processed the Community Heroes Grant before and knows current program status.
5
Complete Virginia Housing homebuyer education. Required for bond loan programs. Virginia Housing offers free online homebuyer education classes — check the schedule at virginiahousing.com/homebuyers/homebuyer-education. Military-specific homebuyer education classes are also available.
6
Veterans: apply for property tax exemption after closing. 100% disabled veterans file with the Commissioner of the Revenue in their locality — bring VA disability documentation. The exemption is statewide under Code § 58.1-3219.5. Also explore Granting Freedom for accessibility modifications if applicable.

Warnings and Common Pitfalls

These mistakes cost Virginia hero buyers thousands of dollars and valuable program access every year.

Warning 1 — DPA Grant and VA Loan Cannot Be Combined

This is the most common stacking mistake Virginia heroes make. The Virginia Housing DPA Grant (2% of purchase price) is only compatible with FHA and Conventional Virginia Housing bond loans — NOT with VA loans. Veterans who want state grant assistance with their VA loan must use the CCA Grant (up to 2%), not the DPA Grant. These are two separate programs with different compatible loan types.

Veterans: ask your lender specifically about the CCA Grant (Closing Cost Assistance Grant) — not the DPA Grant. CCA Grant pairs with VA bond loans and can cover your VA funding fee. DPA Grant cannot be used with any VA loan. Confirm which grants your lender is offering before signing anything.

Warning 2 — Community Heroes Grant: Confirm Before You Count On It

The Community Heroes Grant ($10,000) was launched in late 2025 as a new program. Some lender communications from early 2026 indicate the program may have experienced a temporary pause or suspension. If you build your entire financial plan around this grant and it is not currently available, you may face a funding gap at closing.

Contact Virginia Housing directly at Grants@VirginiaHousing.com before making an offer on any property. Ask your lender: "Is the Virginia Housing Community Heroes Grant currently active and available for new reservations?" Do not proceed until you have a clear yes from a Virginia Housing-approved lender who has recently reserved this grant.

Warning 3 — Northern Virginia Heroes Often Exceed Standard Bond Income Limits

Virginia's Northern Virginia metro (Washington/Arlington/Alexandria) has significantly higher income limits than the rest of the state — but many teachers, nurses, and first responders in the area still earn above even the elevated DPA Grant limit of $148,000 (1–2 persons). Heroes above Virginia Housing bond limits cannot use bond loan programs, but the standard federal VA loan (for veterans) and the Plus Second Mortgage non-bond program ($245,000 income limit) remain available.

If your income exceeds $148,000 (NoVA, DPA tier) or $186,000 (NoVA, bond tier), the Virginia Housing Plus Second Mortgage's non-bond tier ($245,000 income limit, no sales price cap) is worth exploring. Veterans above all income limits always have the standard federal VA loan as a zero-down option with no income limit.

Warning 4 — 100% Disabled Veterans Must Apply for Property Tax Exemption — It Is Not Automatic

Virginia's full real estate tax exemption for 100% permanently disabled veterans (Code § 58.1-3219.5) is a statewide right — but it requires an application with your local Commissioner of the Revenue. Veterans who close on a home and don't apply immediately lose the exemption for that tax year. On a typical Virginia home, this saves thousands of dollars annually.

Immediately after closing, contact your local Commissioner of the Revenue with your VA disability documentation (100% permanent and total service-connected disability certification). Once granted, the exemption continues automatically — but it must be applied for initially. Contact the Virginia Department of Veterans Services at dvs.virginia.gov for guidance on the process in your locality.

Warning 5 — Retired Heroes Often Don't Know They Qualify

The Virginia Housing Community Heroes Grant (when available) explicitly covers retired professionals — retired teachers, nurses, firefighters, police, and veterans all qualify. Many retired heroes assume they must be currently employed to access hero-specific programs. This is NOT the case for Virginia Housing's Community Heroes Grant. If you are a retired teacher, retired nurse, or retired first responder, you qualify the same as active employees.

Tell your lender you are a retired teacher / nurse / firefighter / police / veteran from day one. Bring your retirement documentation, employment verification letter from your former employer, or military discharge papers (DD-214). The Community Heroes Certification requires documentation of qualifying career — active or retired both qualify.

Virginia Veteran Property Tax Benefits

Virginia offers one of the strongest veteran property tax benefits in the nation. Under Virginia Code § 58.1-3219.5, 100% permanently disabled veterans receive a full real estate tax exemption — $0 property tax on their primary residence, statewide. This is not a partial reduction — it is a complete exemption.

BenefitWho QualifiesAnnual Savings ExampleHow to Apply
Full Real Estate Tax Exemption (Code § 58.1-3219.5)Veterans with 100% service-connected permanent and total disability (certified by VA). Surviving spouse (not remarried) of qualifying veteran or servicemember killed in the line of duty.On a $412,000 VA median home at average effective rate of 0.74%: saves ~$3,049/year · $91,470 over 30 yearsFile with Commissioner of the Revenue in your locality. Bring VA disability certification. Once granted, continues automatically. Contact dvs.virginia.gov.
Vehicle Personal Property Tax Exemption100% P&T disabled veterans — one vehicleVaries by locality and vehicle valueFile with Commissioner of the Revenue
Surviving Spouse of Servicemember Killed in Line of DutyNon-remarried surviving spouse (per 2024 constitutional amendment — expanded from "killed in action" to "died in the line of duty")Same as full real estate exemptionSame process — contact dvs.virginia.gov

Source: Virginia Code § 58.1-3219.5 verified at law.lis.virginia.gov, June 11, 2026. Virginia Department of Veterans Services: dvs.virginia.gov. Annual savings example uses Virginia's average effective property tax rate of 0.74% (propertytaxrates.org, 2026) on median home value of $412,000 — actual savings depend on your locality's specific rate, which varies widely (Fairfax County: $1.135 per $100; rural counties: as low as $0.37). Verify exemption application process with your local Commissioner of the Revenue.

Real Buyer Scenarios — 2026 Virginia Market

Names and identifying details changed for privacy. Dollar amounts use June 2026 market conditions and verified program rules. Community Heroes Grant scenarios assume grant is active — verify current availability before relying on this program.

Scenario A — Nurse, Richmond, $340,000 Home

RN at VCU Health · Non-veteran · First-time buyer · Income $87,000 · Credit score 694 · Richmond metro area

A Richmond nurse was quoted a standard FHA loan by her bank — $11,900 down, $8,500 closing costs, FHA MIP for life. A Virginia Housing-approved lender showed her a very different picture using the hero-specific programs.

Bank's Quote (Standard FHA)

Rate: 6.25% FHA

Down payment: $11,900 (3.5%)

Closing costs: ~$8,500

FHA MIP: ~$138/mo (life of loan)

Monthly P+I: ~$1,982 + $138 MIP = $2,120

Out of pocket: ~$20,400

Virginia Housing Heroes Stack (Best)

Virginia Housing FHA bond rate: competitive (verify)

Community Heroes Grant: $10,000 (if available — verify)

DPA Grant: 2% = $6,800

Combined: $16,800 covers down payment + partial closing costs

Income $87,000: within Richmond DPA limit ($96,000 for 1–2 persons) ✓

Homes for Heroes: ~$1,700 cash back

Out of pocket: ~$2,000 (partial closing costs + prepaid items)

Result: The nurse saved approximately $18,400 at closing using the Virginia Housing heroes stack. Her bank was not Virginia Housing-approved and never mentioned the Community Heroes Grant or DPA Grant. Richmond's $96,000 income limit (DPA tier, 1–2 persons) comfortably covered her $87,000 salary. Note: Assumes Community Heroes Grant is active — confirm current availability before proceeding.

Scenario B — 100% Disabled Army Veteran / Firefighter, Virginia Beach, $385,000 Home

Virginia Beach Fire Rescue · Army veteran (100% P&T service-connected disability) · First-time buyer · Income $79,000 · Credit score 711 · Norfolk/VA Beach metro area

A Virginia Beach firefighter and 100% disabled Army veteran had an extraordinary combination of benefits — but his first lender didn't mention the VA funding fee waiver, the state property tax exemption, or the Granting Freedom program for his limited mobility needs.

What He Was Initially Quoted

Standard FHA loan: 3.5% down ($13,475)

Rate: 6.25% FHA

FHA MIP: ~$155/mo (life of loan)

VA funding fee: not mentioned

Property tax exemption: not mentioned

Out of pocket: ~$21,500 · Monthly: ~$2,238 + $155 MIP = $2,393

Full Hero Package (Best)

VA loan: 5.75% · $0 down · No PMI

VA funding fee: WAIVED (100% disability) — saves $4,813

Community Heroes Grant: $10,000 (verify availability) — covers closing costs

CCA Grant: up to 2% ($7,700) — additional closing cost coverage

Income $79,000: within NoVA Beach DPA limit ($97,000, 1–2 persons) ✓

Property tax: FULL EXEMPTION (Code § 58.1-3219.5) — saves ~$3,735/year at VA Beach rate

Granting Freedom: up to $8,000 for home modifications (if needed)

Out of pocket: ~$500 · Monthly: ~$2,248 P+I only — $0 property tax

Result: The disabled veteran-firefighter's annual property tax savings alone ($3,735/year at Virginia Beach's $0.97 rate on $385,000) totaled $112,050 over 30 years. VA funding fee waiver saved $4,813 at closing. No FHA MIP saves ~$55,800 over 30 years vs FHA path. Total 30-year advantage vs. his initial quote: over $170,000. His first lender missed every single one of these benefits. Assumes Community Heroes Grant is active — verify before proceeding.

Official Resources and Useful Links

Frequently Asked Questions

Is the Virginia Housing Community Heroes Grant currently available in 2026?
Virginia Housing launched the Community Heroes Grant in late 2025, and lender documentation confirms the grant was active as of early 2026. However, some lender communications from early 2026 indicate the program may have experienced a temporary pause. The official virginiahousing.com page for the grant is currently returning a 404 error, which may indicate a temporary suspension or page migration. Always confirm current availability with a Virginia Housing-approved lender or contact Virginia Housing directly at Grants@VirginiaHousing.com or 877-843-2123 before building your financial plan around this grant.
Can I combine the Community Heroes Grant with the DPA Grant?
Yes — the Community Heroes Grant can be combined with the Virginia Housing DPA Grant (2% of purchase price, FHA/Conventional bond loans) and the CCA Grant (VA bond/RHS bond loans). When combining programs, the lowest income limit of the combined programs applies. For example, if you combine the Community Heroes Grant with the DPA Grant, the DPA Grant's lower income limit applies to both. Confirm combination rules with your Virginia Housing-approved lender.
I'm a retired nurse — do I qualify for the Virginia Housing Community Heroes Grant?
Yes — and this is one of Virginia's most distinctive features. The Community Heroes Grant (when available) explicitly covers retired professionals. Retired nurses, retired teachers, retired firefighters, retired police, and retired military all qualify. You must provide documentation of your qualifying career through retirement papers, employment verification, or professional certification records. Virginia Housing's program guidelines confirm retired professionals qualify — tell your lender explicitly that you are a retired nurse from day one.
What is Virginia's property tax benefit for 100% disabled veterans?
Under Virginia Code § 58.1-3219.5, veterans with 100% service-connected permanent and total disability (as certified by the VA) are fully exempt from real estate taxes on their primary residence — statewide, regardless of home value. This is a complete exemption, not a partial reduction. Surviving spouses (not remarried) of qualifying veterans and of servicemembers who died in the line of duty also qualify. You must apply with your local Commissioner of the Revenue — the exemption is not automatic. Once granted, it continues automatically unless your status changes. Contact dvs.virginia.gov for guidance.
Can a Virginia veteran use both the standard federal VA loan and a Virginia Housing grant?
It depends on which grant. The Virginia Housing DPA Grant is NOT compatible with any VA loan — it only works with FHA or Conventional Virginia Housing bond loans. The CCA Grant IS compatible with the Virginia Housing VA bond loan. The Community Heroes Grant IS compatible with the Virginia Housing VA bond loan. The standard federal VA loan (not through Virginia Housing's bond program) cannot be combined with Virginia Housing state grants — but it has no income limit and allows you to stack with local city programs (Richmond, Virginia Beach, etc.) that are separate from Virginia Housing. Discuss your options with a Virginia Housing-approved lender who is also VA-approved.
My income is above Virginia Housing's limits — can I still get help as a hero?
Yes — you have two main options. First, the Virginia Housing Plus Second Mortgage (non-bond program) has much higher income limits: $245,000 for Washington/Arlington/Alexandria and $175,000 for other Virginia metros. It provides up to 5% of purchase price as a second mortgage with no sales price cap. Second, veterans above all income limits always have the standard federal VA loan — $0 down, no PMI, no income limit, up to $806,500 without a down payment. The standard federal VA loan is often the strongest single option for high-income veteran heroes who exceed Virginia Housing's program limits.

Virginia Hero Loan Series

Post 1 of 2 — You are here
Virginia Hero Loan Programs — Complete Guide
Community Heroes Grant, DPA/CCA Grant, Granting Freedom, VA loan, city programs, real scenarios
Post 2 of 2
Virginia Housing vs. VA Loan
Which saves Virginia veterans more? Side-by-side comparison with real numbers for Northern VA, Richmond, and Virginia Beach

Bottom Line: Virginia's hero loan landscape is led by the $10,000 Community Heroes Grant — one of the few state programs that explicitly covers retired heroes alongside active employees. Verify current availability of this grant before building your financial plan around it. For veterans, the combination of the federal VA loan + CCA Grant (closing cost coverage) + full property tax exemption for 100% disabled veterans creates one of the most powerful homebuying packages available anywhere in the country. Disabled veterans who qualify for Granting Freedom ($8,000 home modification grant) and the full property tax exemption can save $170,000+ over 30 years compared to a standard FHA path. Complete Virginia Housing homebuyer education first — it's free, required for bond programs, and available online.

Disclaimer: This post is for informational and educational purposes only and does not constitute financial, legal, or mortgage advice. It is not a substitute for advice from a licensed mortgage professional, financial advisor, or attorney. Virginia Housing program details (income limits, sales price limits, grant programs) verified directly at virginiahousing.com (effective 8/19/2025), June 2026. Virginia Housing Community Heroes Grant: program documentation confirmed via lender sources (December 2025–March 2026); current availability should be verified directly with Virginia Housing at Grants@VirginiaHousing.com or 877-843-2123 before relying on this grant. Granting Freedom grant amount of $8,000 verified at virginiahousing.com/accessibility-grants, June 2026. Arlington MIPAP: not accepting new applications as of June 2026 — verify current status at arlingtonva.us. Virginia disabled veteran property tax exemption: Code § 58.1-3219.5 verified at law.lis.virginia.gov, June 11, 2026. Mortgage rates: 30-yr VA 5.75% (Veterans United, June 11, 2026); 30-yr Conventional 6.49% (Zillow, June 8, 2026); 30-yr FHA 6.25% (NerdWallet, June 10, 2026); 15-yr Fixed 5.875% (Zillow, June 8, 2026). Virginia Housing bond loan rates not publicly available — contact approved lender. Buyer scenarios are illustrative examples; names and identifying details are fictional. StatewiseFinance.com is not affiliated with Virginia Housing, the Virginia Department of Veterans Services, the U.S. Department of Veterans Affairs, or any lender referenced in this post. Always verify current program details directly with official sources before making any financial decision.

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