Updated: July 2026 | Source: VirginiaHousing.com · DHCD.Virginia.gov · FHFA · HUD · Freddie Mac PMMS

Virginia Home Loans 2026 — Complete Guide

From 3.5% down FHA to a true, never-repaid down payment grant — here is what home buyers in Virginia can access in 2026.

Virginia runs down payment assistance through two separate agencies with very different structures, and property tax is set entirely at the local level with no statewide rate. This guide covers loan limits, current rates, property tax, and the assistance programs available to general buyers this year.

$453,389

VA median home price (May 2026)

6.55%

Avg. 30-yr conventional rate

Up to 15%

DHCD down payment assistance

$541K–$1.25M

2026 FHA/conforming limits by county

The number people miss: Virginia has no statewide property tax rate at all — all 133 counties and independent cities set their own rate and their own reassessment schedule. A home worth the same amount can carry a meaningfully different bill in Fairfax versus Loudoun versus Richmond, and some jurisdictions reassess annually while others only every two to four years.

Virginia Down Payment Assistance — Two Separate Agencies

Virginia runs down payment help through two different agencies with different structures: Virginia Housing (the state's housing finance authority) and the Department of Housing and Community Development (DHCD, administered through local HUD-certified partners).

Virginia Housing DPA Grant

Amount2%–2.5% of purchase price

RepaymentTrue grant — never repaid

Income limitsRoughly $90,000–$174,000 by household size/location

RequirementMust pair with a Virginia Housing FHA or Conventional loan

DHCD HOMEownership Down Payment & Closing Cost Assistance

AmountUp to 10% of price (15% in DHCD-designated areas) + $2,500 closing costs

Structure0% deferred loan

Forgiveness5 yrs (under $15K) / 10 yrs ($15K–$40K) / 15 yrs (over $40K)

Income limit80% of Area Median Income (AMI)

Why this matters: The Virginia Housing grant is smaller but never needs repayment under any circumstance. The DHCD program offers substantially more money but is a deferred loan whose forgiveness timeline scales with the amount you receive — a larger grant takes longer to fully forgive. They are administered by different organizations, so confirm which one a given lender or local housing counselor is actually offering before assuming the terms.

Other Virginia Housing options: The Closing Cost Assistance Grant helps RHS (USDA rural) and VA loan borrowers with up to 2% toward closing costs. The Virginia Housing Plus Second Mortgage lets you borrow additional funds for your down payment, unlike the grant, this option must be repaid. Virginia Individual Development Accounts (VIDA) match your own savings toward a future down payment.

Current Rates

Product	Rate	Source
30-yr Conventional	6.55%	Freddie Mac PMMS, week of July 16, 2026
15-yr Fixed	5.93%	Freddie Mac PMMS, week of July 16, 2026
Virginia Housing first mortgage	Below market	Confirm current pricing with a Virginia Housing-approved lender

2026 Loan Limits by County

Northern Virginia counties inside the Washington DC metro area share the same elevated limit as DC itself. The rest of the state uses the standard national floor.

Loan Type	Standard Counties	Arlington, Fairfax, Loudoun, Prince William, Stafford, Fauquier, Alexandria City
FHA	$541,287	$1,249,125
Conventional (Conforming)	$832,750	$1,249,125
VA	No county limit for buyers with full entitlement

Unlike some neighboring high-cost states, Virginia's Northern Virginia counties see the FHA and conforming limits match exactly at the ceiling. Verify your exact county at HUD.gov.

Property Tax in Virginia

What Buyers Should Budget For

Statewide average effective rate~0.73%–0.87%

Statewide property taxNone — 100% locally set

100% disabled veteran exemptionFull statewide exemption

Senior/disabled reliefSet entirely by each county/city

Virginia is one of the few states where property tax is entirely a local matter — there is no state-level rate, and each of the state's 133 counties and independent cities sets its own rate per $100 of assessed value and its own reassessment schedule. Some jurisdictions like Arlington, Fairfax, and Alexandria reassess annually, while others such as Loudoun, Prince William, and Stafford reassess every two years, and rural counties can go up to four years between reassessments. The one benefit guaranteed statewide is a full property tax exemption for honorably discharged veterans with a 100% service-connected permanent and total disability. Senior and disabled homeowner relief exists in most localities but with income and asset limits, relief amounts, and application deadlines that vary — check directly with your county or city Commissioner of the Revenue.

Pick Your Loan Type

FHA3.5% down, flexible credit ConventionalSkip MIP with 20% down USDA$0 down in eligible areas VA$0 down for veterans

Try the Loan Calculator Compare FHA, Conventional, USDA & VA with Virginia prices and current rates

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Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? Virginia may run additional hero-specific loan programs on top of the general options covered here. Browse the Hero Home Loan Programs hub and select Virginia for profession-specific options.

Frequently Asked Questions

Can I use the Virginia Housing Grant and the DHCD program together?

They are administered by different organizations with separate first-mortgage requirements, so combining them is not automatic. Ask your lender or local DHCD-contracted housing counselor whether stacking is possible for your specific situation.

Which program gives more money — Virginia Housing or DHCD?

DHCD's HOMEownership program offers substantially more (up to 10-15% of the purchase price plus closing costs) compared to Virginia Housing's 2-2.5% grant. However, DHCD funds must eventually be forgiven over a multi-year schedule, while the Virginia Housing grant is never repaid regardless of timeline.

Why does my Northern Virginia neighbor's tax bill differ from mine even though our homes are worth about the same?

Virginia has no state property tax rate — every county and independent city sets its own rate and reassessment schedule. Two similarly priced homes in different jurisdictions, or even reassessed on different cycles, can carry meaningfully different bills.

Do all Virginia veterans get a property tax exemption?

Only veterans with a 100% service-connected permanent and total disability qualify for Virginia's statewide exemption. Other veteran, senior, and disability relief programs exist but are set locality by locality with their own income and asset limits.

Bottom Line: Virginia buyers should compare both down payment programs carefully since they come from separate agencies with very different tradeoffs — a smaller grant that is never repaid versus a larger deferred loan with a longer forgiveness horizon. Property tax is genuinely a local decision here, so research your specific county or city rather than relying on a statewide average.

Disclaimer: This post is for informational purposes only and does not constitute financial, legal, or mortgage advice. Program terms, rates, income limits, and availability change frequently — verify all details directly with official program sources before making any financial decisions. StatewiseFinance is not affiliated with any government agency or lender listed in this post.