Buying your first home in Virginia is more achievable than many people realize — especially in areas like New Kent County, where home prices are more moderate than in downtown Richmond or Northern Virginia and state programs stretch further. Virginia Housing (formerly the Virginia Housing Development Authority, or VHDA) administers a suite of programs designed to help first-time buyers get into homes with less money down, lower interest rates, and in some cases direct cash grants toward down payment and closing costs.
For military families relocating to the area — whether to Joint Base Langley–Eustis, Fort Gregg-Adams, Naval Station Norfolk, or any of the other installations in Hampton Roads and central Virginia — the benefits stack even higher. VA loans already eliminate the biggest barrier to homeownership (the down payment), and Virginia's state programs can cover closing costs and other expenses on top.
This guide covers the major programs available to buyers in New Kent, Quinton, Providence Forge, Lanexa, and surrounding areas. All details are based on current program guidelines as of mid-2026. Programs evolve, so always confirm eligibility with a Virginia Housing–approved lender before applying.
In this guide
What does "first-time homebuyer" actually mean in Virginia?
You don't need to be a brand-new buyer to qualify. In Virginia, a "first-time homebuyer" is defined as anyone who has not owned and occupied a primary residence within the past three years. If you sold your home more than three years ago, or if you've been renting since a previous purchase, you likely still qualify as a first-time buyer for program purposes.
There's also an exception: buyers purchasing in a designated Area of Economic Opportunity may qualify for certain programs even if they don't meet the three-year requirement. Your lender can check whether a specific property falls in one of these targeted areas.
Virginia Housing Down Payment Assistance (DPA) Grant
A true grant — not a loan — that provides up to 2.5% of the purchase price toward your down payment. No repayment required.
Who qualifies
First-time homebuyers (no ownership interest in a primary residence within the past 3 years). Non-first-time buyers may qualify if purchasing in a designated Area of Economic Opportunity.
How much
Up to 2.5% of the home's purchase price. On a $350,000 home, that's up to $8,750 — a significant down payment boost that does not need to be repaid.
Key requirements
Must be paired with a Virginia Housing bond-financed mortgage (FHA or Conventional). Borrowers must contribute at least 1% of the sales price from their own funds. Must complete a Virginia Housing–approved homebuyer education course. Household income and sales price limits apply and vary by county and household size — these were updated in August 2025 and increased across all areas.
Credit score
Minimum credit score of 620 is typically required, though some lenders may have slightly higher thresholds.
Virginia Housing Plus Second Mortgage
A repayable second loan that covers up to 3–5% of the purchase price, applied toward down payment or closing costs — helpful if you need more than the grant alone provides.
Who qualifies
Same first-time homebuyer requirements as the DPA Grant. Must meet Virginia Housing income and sales price limits for your area.
How much
Typically 3% to 5% of the purchase price. On a $350,000 home, that could be $10,500–$17,500 available for down payment or closing costs.
Key requirements
This is a repayable loan with a 30-year term at a competitive interest rate, not a free grant. Must be paired with a Virginia Housing first mortgage. Same homebuyer education requirement applies.
When it makes sense
Best for buyers who have solid income but need help with upfront costs and are comfortable taking on a small additional monthly payment.
Community Heroes Grant
A $10,000 grant for down payments and closing costs, targeted at educators, law enforcement, firefighters, first responders, military personnel, and healthcare workers.
Who qualifies
Active or retired military personnel, veterans, educators, law enforcement officers, firefighters, first responders, and healthcare workers. This is one of the most valuable grants available to military families relocating to Virginia.
How much
$10,000 for down payments and closing costs. This is a non-repayable grant — free money toward purchasing your home.
Key requirements
Must be used with a Virginia Housing mortgage. Same income and sales price limits as other Virginia Housing programs. Documentation of qualifying employment or military service is required.
Why it matters for military families
If you're a service member, veteran, or military spouse working in healthcare or education, this grant stacks with VA loan benefits to dramatically reduce out-of-pocket costs.
DHCD HOMEownership Program
Gap financing for lower-income first-time buyers — assistance up to $50,000 for those whose household income is at or below 60–80% of the Area Median Income (AMI).
Who qualifies
First-time homebuyers whose household income falls at or below 60–80% of the Area Median Income for their county. This is administered through the Virginia Department of Housing and Community Development (DHCD) and local participating agencies.
How much
Up to $50,000 in gap financing for down payment and closing costs. The amount depends on income level, purchase price, and available funding in your locality.
Key requirements
Income-targeted: this program is designed for buyers who earn less than the area median and need deeper assistance. Must complete homebuyer counseling. Purchase price limits are lower than other programs.
How to apply
Contact your local housing authority or a participating lender. DHCD works through local intermediaries, so the application process starts locally. In the New Kent area, your local housing authority or a Virginia Housing–approved lender can guide you through the process.
VA Loans: The Best Mortgage Benefit in the Country
If you're a veteran, active-duty service member, National Guard/Reserve member with qualifying service, or an eligible surviving spouse, the VA home loan program is the single most powerful mortgage benefit available — and Virginia's military community is positioned to take full advantage of it.
VA loans are backed by the U.S. Department of Veterans Affairs but originated by private lenders. The VA guarantee lets lenders offer terms that conventional mortgages can't match. Here are the key benefits for buyers in the New Kent area:
Zero Down Payment
VA loans require 0% down — no minimum down payment whatsoever. On a $350,000 home in New Kent, that's $17,500–$70,000 you don't have to save for compared to conventional or FHA loans.
No Private Mortgage Insurance (PMI)
Unlike conventional loans with less than 20% down, VA loans do not require PMI. This saves most borrowers $100–$300+ per month.
Competitive Interest Rates
VA loans typically carry interest rates 0.25–0.5% lower than comparable conventional mortgages, saving thousands over the life of the loan.
Higher Loan Limits
For 2025–2026, the standard VA loan limit for a single-family home is $806,500 in most Virginia counties including New Kent, with higher limits in designated high-cost areas.
More Flexible Credit Standards
VA loans are more forgiving of lower credit scores and higher debt-to-income ratios than conventional loans. Many lenders approve VA borrowers with scores as low as 580–620.
Reusable Benefit
Your VA loan entitlement is reusable — you can use it multiple times throughout your life. Veterans who have paid off a previous VA loan retain full entitlement for future purchases.
VA Loan Eligibility — Who Qualifies?
- Veterans with at least 90 consecutive days of active service during wartime, or 181 days during peacetime.
- Active-duty service members after 90 continuous days of service.
- National Guard and Reserve members with at least 6 years of qualifying service, or 90 days of active-duty service.
- Eligible surviving spouses of service members who died in the line of duty or from service-connected disabilities.
To get started, request your Certificate of Eligibility (COE) through the VA.gov eBenefits portal. Many lenders can also pull your COE electronically in minutes.
What about the VA Funding Fee?
VA loans include a one-time funding fee (typically 1.25%–3.3% of the loan amount depending on your down payment, service history, and whether it's a first-time or subsequent use). This fee can be rolled into the loan, paid at closing, or — in many cases — covered by Virginia Housing's closing cost assistance grants.
Veterans with a service-connected disability rated by the VA, Purple Heart recipients on active duty, and surviving spouses are generally exempt from the funding fee entirely. Virginia also offers a full real estate tax exemption on the primary residence of veterans with a 100% service-connected, permanent and total disability rating — a significant ongoing financial benefit.
How do these programs stack together?
One of the biggest advantages of Virginia's program ecosystem is that many benefits can be layered together. Here's how a typical military family might combine them:
Example: A military family buying a $350,000 home in New Kent
This example is for illustrative purposes only. Actual savings depend on individual eligibility, lender terms, and current program guidelines.
Even non-military first-time buyers can stack the DPA Grant with Virginia Housing's competitive first mortgage rates and low-cost closing. The key is working with a lender approved by Virginia Housing — they'll know which programs can be combined and which have restrictions.
What should you do next?
Talk to a Virginia Housing–approved lender
Not all lenders participate in Virginia Housing programs. Start with a lender on the Virginia Housing approved lender list. They'll pre-qualify you and tell you which programs you're eligible for based on your income, credit, and the area you're buying in.
Complete homebuyer education
Most Virginia Housing programs require a homebuyer education course — typically a 4–8 hour class (now available online) that covers budgeting, the purchase process, and homeownership responsibilities. Virginia Housing offers free and low-cost courses through approved providers.
Get your VA COE (if military)
If you're eligible for a VA loan, request your Certificate of Eligibility at VA.gov. You can also have your lender pull it electronically — often faster than applying yourself.
Start looking at homes
Once you're pre-approved, a local agent who knows the area can help you find homes within your price range — and flag properties in Areas of Economic Opportunity or other targeted zones that may unlock additional benefits.
Official Resources & Links
Virginia Housing — Homebuyer Programs
virginiahousing.com — The primary source for DPA grants, second mortgages, Community Heroes, and approved lender lists.
VA Home Loan Benefits — Official VA.gov
va.gov — Eligibility requirements, Certificate of Eligibility application, and the VA home loan benefit overview.
Virginia DHCD — HOMEownership Program
dhcd.virginia.gov — Down payment and closing cost gap financing for income-eligible first-time buyers.
Virginia Housing and Community Development Corporation
vhcdc.org — Non-profit intermediary that administers DHCD homebuyer assistance programs and provides counseling.
Disclaimer: This article is provided for informational purposes only and does not constitute financial, legal, or real estate advice. Program details, eligibility requirements, income limits, and funding availability change regularly. Always verify current program terms with the administering agency or a Virginia Housing–approved lender before making purchasing decisions. Shannon Russell is a licensed real estate agent — not a mortgage lender or financial advisor.
