🏡 Your FirstHome Dream: A Game-Changer for Virginia's First-Generation Homebuyers
New FirstHome Dream Program Slashes Mortgage Rates by 2% for Virginia’s First-Generation Buyers—Here’s the Scoop:
As of May 1, 2025 FirstHome Dream gives first generational home buyers a 2% rate reduction off of Virginia Housing’s prevailing interest rate; so if rates for 30 year loans are at 7%, then the buyer would be given a 5% mortgage rate for the life of the loan!
👥 Who Qualifies as a First Generational Buyer?
- First-Time Ownership: All borrowers including their spouses, must have never owned a home or investment property before.
- Parental Ownership: All borrower's parents or legal guardians should not currently own, or have owned, a home or investment property in the past three years.
- Heir’s Property Exception: If borrowers, their spouses and their parents/legal guardians have inherited property where multiple heirs are co-owners (tenants in common), the borrowers may still qualify.
💼 How to Access the Program
Eligible buyers must work with through Virginia Housing-approved lenders as this program works specifically with their bond programs for conventional, FHA, VA, and USDA loans. Additionally, it can be combined with the following other Virginia Housing assistance options:
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Down Payment Assistance (DPA) Grant: Provides funds for your down payment that do not require repayment.
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Closing Cost Assistance (CCA) Grant: Helps cover closing expenses, reducing your out-of-pocket costs.
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Plus Second Mortgage: Offers 100% financing options, further easing the path to homeownership.
🔍 Why This Matters
Homeownership is a significant step toward building wealth and stability. Programs like FirstHome Dream are designed to break down barriers and make this dream achievable for more Virginians. By reducing interest rates and offering additional financial assistance, Virginia Housing is committed to supporting first-generation homebuyers on their journey.
As this is a new program, it's important to act quickly while funds are still available.
🧠 FirstHome Dream FAQ: What Buyers Ask Me All the Time
Whether you're just starting your homeownership journey or just thinking about the process, these are the real questions buyers ask—and the answers that help them move forward with confidence.
❓ 1. “What exactly is the FirstHome Dream program—and why should I care?”
It’s a Virginia Housing initiative that gives first-generation buyers a 2% interest rate reduction on eligible bond loans. That means if rates are 7%, you could lock in a 5% mortgage for the life of your loan. It’s not just a discount—it’s a game-changer for affordability.
❓ 2. “Do I count as a first-generation buyer if my parents owned a home years ago?”
If your parents or legal guardians haven’t owned a home in the last 3 years—and you’ve never owned one yourself—you likely qualify. Even if you inherited property, you may still be eligible under the “heir property” exception.
❓ 3. “Can I combine this with other assistance like down payment help?”
Yes! You can pair FirstHome Dream with Virginia Housing’s DPA Grant, CCA Grant, or Plus Second Mortgage—but only one of those at a time. You can also use other non-Virginia Housing assistance, as long as it meets the guidelines.
❓ 4. “How do I actually get the reduced rate? Is it automatic?”
Not automatic—you’ll need to work with a Virginia Housing-approved lender and a sponsor organization (like Catholic Charities or the Urban League in Hampton Roads). They’ll confirm your eligibility and lock in the rate.
❓ 5. “What paperwork do I need to prove I qualify?”
You’ll need a notarized First Generation Homebuyer Affidavit, your loan application, credit report, and a signed Borrower Affidavit. Your lender and sponsor will guide you through it, but yes—paperwork matters here.
🏁 Summary & Final Thoughts: Your FirstHome Dream, Within Reach
The FirstHome Dream program isn’t just another mortgage perk—it’s a targeted opportunity for first-generation buyers to break into homeownership with real financial leverage. With a 2% interest rate reduction on eligible Virginia Housing bond loans, this program can dramatically lower monthly payments and long-term costs. But it’s not automatic: you’ll need to qualify as a first-generation buyer, work with a participating sponsor organization, and provide the right documentation—including a notarized affidavit.
Here in Hampton Roads, where affordability and access matter more than ever, FirstHome Dream is a powerful tool for bridging the gap between aspiration and ownership. Whether you're navigating this path solo or with a partner, the right guidance (and a little paperwork) can unlock a future you may not have thought possible.
🎯 Bottom line: If you’ve never owned a home—and your parents haven’t in the last 3 years—this program could be your launchpad. Let’s make sure you don’t leave that 2% on the table.
📞 Ready to Take the Next Step?
If you're considering purchasing your first home and want to explore the benefits of the FirstHome Dream program, let's connect.
✨ Ready to Make Your FirstHome Dream a Reality?
If you're a first-generation buyer and wondering whether this program is the right fit for you, let's talk it through. I’ll help you decode the fine print, connect with local sponsors, and map out your next steps with confidence.
📅 Schedule Your Free Call NowThanks for Reading,
Liz Schuyler is a top Virginia Beach REALTOR® with RE/MAX Allegiance, licensed since 2001 and trusted across Hampton Roads. With 350+ homes sold, she helps clients Sell, Move, and Invest with confidence and strategy.
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