🏡 Your FirstHome Dream: A Game-Changer for Virginia's First-Generation Homebuyers

Hello Hampton Roads,

Breaking news for aspiring homeowners in Virginia! Virginia Housing has introduced the FirstHome Dream program, designed to make homeownership more accessible for first-generation buyers. This initiative offers a significant interest rate reduction, that you won't find anywhere in this market and did I mention that it's FREE for first generational buyers?!

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:​

• Down Payment Assistance (DPA) Grant: Provides funds for your down payment that do not require repayment. ​

• Closing Cost Assistance (CCA) Grant: Helps cover closing expenses, reducing your out-of-pocket costs. ​

• Plus Second Mortgage: Offers 100% financing options, further easing the path to homeownership.

The ability to combine an interest rate reduction with special loan programs and grants is a powerful tool to boost affordability.

Virginia Housing gives the funds for the rate reduction to 11 sponsor entities throughout the state and lenders must work with a sponsor to ensure their buyers get the FirstHome Dream reduced interest rate.  There are 2 sponsors in the Hampton Roads area (Catholic Charities and the Urban League) however all sponsors can provide FirstDream Home funds regardless of where the buyers are in the state of the Virginia—in other words, sponsor don’t just help the buyers in their locality. 

Here is a list of all 11 sponsors in the state:

🔍 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. 

📞 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. Schedule a free call with me to discuss your options and chart a path to homeownership: https://calendly.com/liz-schuyler

Thanks for Reading,

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