First-Time Home Buyer Programs & Down Payment Assistance in Northern Virginia (2026)

Last reviewed and updated: July 1, 2026 by David Mount, REALTOR® and Certified Probate Real Estate Specialist with The Redux Group of eXp Realty.

Quick Answer

Northern Virginia has more help for first-time buyers than most people realize. Virginia Housing offers a statewide down payment grant, and Fairfax County, Loudoun County, Arlington, and the City of Alexandria each run their own local program. VA loans add a zero-down option for eligible military buyers. The honest catch: with the exception of the Virginia Housing grant, most of these are loans with strings attached, not free cash. Some are forgiven over time, some take a share of your future appreciation, and some limit what you can resell the home for. Almost all have income caps and require the home to be your primary residence. Below is who qualifies and the real catch for each. Questions? Call David at (571) 946-8418 or email david.mount@thereduxgroup.com.

Are These Programs Free Money? Mostly No

This is the first thing to understand, because it changes the math. There are really four flavors of assistance in Northern Virginia:

A true grant you never repay. The Virginia Housing Down Payment Assistance Grant is the main one.
A forgivable loan that disappears if you stay long enough. Loudoun County’s program is forgiven over 15 years.
A shared appreciation or equity-share loan, where you repay the money plus a slice of your home’s gains when you sell or refinance. Arlington and Alexandria work this way.
A price-restricted home, where you buy below market but agree to resell at a controlled price later. Fairfax County’s Affordable Dwelling Units work this way.

None of these are bad. They put homeownership in reach for a lot of buyers who could not do it otherwise. You just want to go in knowing exactly which kind you are signing up for.

Virginia Housing Down Payment Assistance Grant (Statewide)

What it gives: Up to 2 percent of the purchase price on a conventional loan, or 2.5 percent on an FHA loan, as a true grant with nothing to repay.

Who qualifies: First-time buyers (generally no ownership in the last three years) using a Virginia Housing loan, who complete a homebuyer education course and fall under the program’s income and sales-price limits. Those limits were raised in August 2025 and run into the six figures in Northern Virginia, so more buyers qualify here than you might expect. Confirm the current figure with a Virginia Housing-approved lender.

The catch: Very little, which is why it is the best starting point. You do have to use a Virginia Housing loan and stay under the income and price caps, and the grant is a percentage, so it is smaller than the county programs. It also pairs well with some of the local programs below.

VA Loans (Eligible Military and Veterans)

What it gives: Zero down payment, no monthly mortgage insurance, and competitive rates. For a qualifying first-time buyer, this is often the single strongest option.

Who qualifies: Eligible active-duty service members, veterans, and some surviving spouses. There is no income cap and no first-time-buyer requirement.

The catch: Honestly the fewest of any option. There is a one-time VA funding fee, though it is waived for veterans with a service-connected disability, and the home must be your primary residence. As a Veterans United preferred agent, David helps VA buyers use this benefit and stay competitive against cash and conventional offers.

Fairfax County First-Time Homebuyers Program (ADU and WDU)

What it gives: Access to price-restricted homes through the Affordable Dwelling Unit (ADU) program and the Workforce Dwelling Unit (WDU) program, sold well below market to income-eligible first-time buyers. The county also offers financing help that can layer on top.

Who qualifies: You generally need a household income of at least $25,000 and no more than the program limit, which for the ADU program is roughly 70 percent of the area median income. For context, 70 percent of area median for a four-person household is around $115,000 in this region as of 2025, though it adjusts yearly. The WDU program reaches higher incomes for workforce buyers. You cannot have owned a home in the past three years, you need a credit score around 620 or better, and you must complete a homebuyer class. Apply through the Fairfax County Redevelopment and Housing Authority at homeownership@fairfaxcounty.gov or 703-246-5087.

The catch: This is the big one to understand. An ADU is a price-controlled home. You buy it below market, but you agree to a long affordability covenant and must resell it later at a formula-controlled price, not whatever the open market would pay. That means your appreciation is capped. It is a genuine path into ownership, but it is not the same wealth-building engine as a market-rate home, so it is a trade-off worth weighing carefully.

Loudoun County Down Payment and Closing Cost Assistance (DPCC)

What it gives: A loan of up to 10 percent of the sales price or $70,000, whichever is less, at zero interest, to cover your down payment and closing costs.

Who qualifies: Households earning roughly between $49,850 and $116,299, which is 30 to 70 percent of the area median, regardless of family size. You need to have lived or worked in Loudoun County for at least six months, a credit score of 620 or higher, and at least $1,000 of your own money in the deal, and your debt-to-income ratio generally cannot exceed 34/45. Details are at loudoun.gov/dpcc.

The catch: This is one of the friendlier programs. The loan is forgiven over 15 years, so if you stay in the home that long, you never repay it. The catch is time: if you sell, move out, or refinance before the 15 years are up, you repay the unforgiven portion. It has to remain your primary residence the whole time.

Arlington Moderate Income Purchase Assistance Program (MIPAP)

What it gives: A zero-interest, deferred second loan of up to 25 percent of the purchase price, capped at $112,500, toward your down payment and closing costs. There are no monthly payments on it.

Who qualifies: First-time buyers with income around or below 80 percent of the area median, which for a four-person household is roughly $131,000 in this region as of 2025, though it adjusts yearly. You must complete a Virginia Housing homebuyer course and buy in Arlington. Confirm current limits at arlingtonva.us.

The catch: This is a shared appreciation loan, so it is not free. When you sell or refinance, the county gets an appraisal, and you repay the original loan amount plus a proportionate share of the home’s appreciation, up to 25 percent of the gains. You share the upside in exchange for the help getting in. Funding is also limited, so the program opens and closes, and you have to apply while it is accepting buyers.

City of Alexandria Flexible Homeownership Assistance Program (FHAP)

What it gives: Up to $50,000 as a zero-interest loan toward your down payment and closing costs.

Who qualifies: First-time buyers who have lived or worked in the City of Alexandria for at least six months, meet the program’s HUD-based income limits (set by household size and adjusted annually), and complete a Virginia Housing homebuyer course. See alexandriava.gov/housing for the current income table. Important: this applies to homes in the City of Alexandria, not the Fairfax County neighborhoods that share an Alexandria mailing address.

The catch: Like Arlington, this is an equity-share loan. When you sell, you repay the loan plus a share of your appreciation proportional to the assistance you received. You also have to meet the City residency or work requirement, and the home must be your primary residence.

Do You Qualify? The Requirements Almost All of These Share

Before you get attached to a program, check yourself against these, because they trip up more buyers than the income caps do:

First-time status. Most define this as not having owned a home in the last three years, not literally never.
Income caps. These target moderate incomes. In pricey Northern Virginia the caps run into six figures, but a strong dual income can still put you over.
Primary residence only. You cannot use these to buy a rental or investment property, and you generally cannot rent the home out while the assistance is in place.
Credit and debt. A credit score around 620 or higher and a manageable debt-to-income ratio are typical.
Homebuyer education. Nearly all require a certified homebuyer course, which is worth taking anyway.
Local ties. Loudoun and Alexandria want you to already live or work there. Others do not.
Funding availability. Some programs, Arlington especially, have limited money and pause when it runs out.

David helps first-time buyers figure out which program actually fits their situation, connects them with lenders who work with these programs every day, and makes sure the assistance does not quietly cost them a better home. Call (571) 946-8418 or email david.mount@thereduxgroup.com.

Program Details by Market

Each of these ties into a full local guide with prices, neighborhoods, and the rest of the buying process:

First-Time Buyer Program FAQ

Are down payment assistance programs free money?

Mostly no. Only the Virginia Housing grant is truly free. Loudoun’s program is a loan forgiven over 15 years, Arlington and Alexandria are shared-appreciation loans you repay with a share of your gains, and Fairfax County ADUs are price-restricted homes with capped appreciation.

What are the income limits for first-time buyer programs in Northern Virginia?

They vary by program. Loudoun’s DPCC runs roughly $49,850 to $116,299. Fairfax County’s ADU program targets about 70 percent of area median income, and Arlington’s MIPAP about 80 percent, which for a four-person household is roughly $115,000 and $131,000 respectively in this region as of 2025. Alexandria and Virginia Housing use HUD-based limits that also reach six figures here. Always confirm the current figure, since they adjust yearly.

Can I rent out a home I bought with a first-time buyer program?

Generally no. Almost all of these programs require the home to be your primary residence for as long as the assistance is in place. Renting it out can trigger repayment.

Do I have to be a first-time buyer to qualify?

Usually you just cannot have owned a home in the last three years, so many repeat buyers still qualify. VA loans have no first-time requirement at all.

What is the catch with these programs?

Depending on the program, the catch is a share of your future appreciation (Arlington, Alexandria), repayment if you leave before the loan is forgiven (Loudoun), a capped resale price (Fairfax ADUs), or income and residency limits. The Virginia Housing grant and VA loans have the fewest strings.

Can I combine more than one program?

Sometimes. The Virginia Housing grant can often layer with a county program, but the rules vary and some cannot be stacked. A lender who works with these programs, along with David, can tell you what actually combines for your purchase.

Ready to see which program fits you? Talk with David about your income, your timeline, and where you want to buy. Call (571) 946-8418 or email david.mount@thereduxgroup.com.

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