🧭💸 What are First Time Home Buyer Incentives in Hampton Roads? 📍💰

Hello Hampton Roads,

Are there really programs that help first-time buyers cover their down payment and closing costs in Hampton Roads?

Yes—more than you might expect. Across Virginia and right here in Hampton Roads, there are numerous incentives designed to make homeownership more attainable. These include grants, forgivable loans, and soft second mortgages that can significantly reduce upfront costs. Whether you're exploring statewide options like Virginia Housing or city-specific programs in Hampton, Portsmouth, or Norfolk, these resources are tailored to support first-time buyers. Some even offer special perks for educators, first responders, and military families. Let’s break down what’s available and how to navigate it like a pro. 

📌 Key Takeaways: First-Time Buyer Incentives in Hampton Roads 

• 📋 Eligibility Essentials  Get clear on first time buyer status, income, credit, and DTI requirements that determine access to these programs.

• 💰 Statewide Programs: Virginia Housing and the Federal Home Loan Bank  Discover how these programs can provide down payment assistance, closing costs, and attractive rates to help to first time buyers anywhere in the state of Virginia.

• 📍 Local City Programs  Explore grants and assistance from Chesapeake & Portsmouth, tailored to first-time buyers

• 🎖️ Special Perks for Military & Public Servants  Closing costs and down payment assistance for active duty and retired military, educators, police officers, and other first responders.

• 🏡 Strategic Buyer Tips  Actionable advice for navigating timelines, working with the right team, securing funding, and having a successful closing—plus why working with a local expert makes all the difference.

📋 Eligibility Basics

What You Need to Qualify for First-Time Homebuyer Incentives in Hampton Roads

Before diving into grants, forgivable loans, and city-specific perks, it’s essential to understand the basic eligibility criteria that determine whether you qualify for first-time homebuyer assistance in Virginia and across Hampton Roads. These requirements ensure that programs are targeted toward buyers who need the most support—and they vary slightly depending on the locality and funding source.

✅ First-Time Buyer Status

To meet first time home buyer status,the following apply:

• You've never owned a home as your primary residence.

• You have owned a home that was your primary residence but it was more than 3 years ago and currently don't own one.

• Ownership in property other than your principal residence (investment property or co ownership in inherited property) is allowed to still qualify.

• Ownership of a manufactured home not permanently attached to the land is allowed to still qualify.

💡 Discover More About First Time Home Buyer Status

Curious if you can qualify as a first-time buyer more than once? You might be surprised.

Additional Reading: Can You Be a First-Time Home Buyer Twice?

💰 Income Limits

Many first time buyer programs are subject to income limts based on household size. 

• In general the household income limit must be within 80% of the Area Median Income (AMI) but there are also programs with higher limits.

• Limits vary by city (Chesapeake & Portsmouth)

• Larger households may qualify at higher income levels

The information below show the income limits of the programs we will be discussing in this blog. 

Program Name	Household Size	Income Limit
Virginia Housing – DPA Grant	2 or fewer	$97,000
Virginia Housing – DPA Grant	3 or more	$113,000
Virginia Housing – Bond Program (Plus Second Loan)	2 or fewer	$121,000
Virginia Housing – Bond Program (Plus Second Loan)	3 or more	$141,000
FHLB – 80% Income Limit	1 Person	$66,550
FHLB – 80% Income Limit	2 Persons	$76,050
FHLB – 80% Income Limit	3 Persons	$85,550
FHLB – 80% Income Limit	4 Persons	$95,050
FHLB – 80% Income Limit	5 Persons	$102,700
FHLB – 80% Income Limit	6 Persons	$110,300
FHLB – 80% Income Limit	7 Persons	$117,900
FHLB – 80% Income Limit	8+ Persons	$125,500
City Programs – Chesapeake & Portsmouth	1 Person	$59,650
City Programs – Chesapeake & Portsmouth	2 Persons	$68,200
City Programs – Chesapeake & Portsmouth	3 Persons	$76,700
City Programs – Chesapeake & Portsmouth	4 Persons	$85,200
City Programs – Chesapeake & Portsmouth	5 Persons	$92,050
City Programs – Chesapeake & Portsmouth	6 Persons	$98,850
City Programs – Chesapeake & Portsmouth	7 Persons	$105,650
City Programs – Chesapeake & Portsmouth	8 Persons	$112,500

📊 Credit Score

A credit score is important because these programs don't replace financing and you still must be able to qualify for a mortgage. A lender will look at scores for each of the 3 bureaus (Equifax, Experian and Transunion) and use the middle score of the three. 

• Most programs require a score of 620 or higher. Virginia Housing's FHA program requires a 620 score and it's conventional program requires a 640 score minimum.

• Higher scores open the door for more programs and with more incentives. The Plus Second Program requires a minimum score of 680.

• Some lenders place "overlays" on the score requirement so even though the program may require a 620 score, the lender may require a 640 score 

🧠 Debt to Income (DTI) Limits

Your DTI ratio compares your monthly debt payments to your gross monthly income. It includes:

• Mortgage payment (principal, interest, taxes, insurance)

• Credit cards, car loans, student loans, etc.

Most programs calculate two types:

• Front-end DTI: Housing costs only

• Back-end DTI: Housing + all other debts

📊 Debt-to-Income (DTI) Requirements by Program

Program Name	Max DTI Ratio	Notes
Virginia Housing – DPA Grant & Bond Program	Up to 50% with AUS approval	Prior limit was 43% but has since been increased
FHLB (Federal Home Loan Bank)	Typically 43–50%	DTI limits vary by lender; FHLB does not set a fixed cap.
City Programs – Chesapeake & Portsmouth	Up to 43% (or 50% with FHA)	Follows HUD/FHA guidelines; higher DTI allowed with compensating factors.

🏛️ Statewide Help: Virginia Housing & the Federal Home Loan Bank

Virginia offers powerful statewide programs to help first-time buyers overcome financial barriers and access affordable homeownership. These programs are designed to reduce upfront costs, expand eligibility, and support long-term stability—especially for buyers who need help with today's housing affordability crisis.

🏠 Virginia Housing Programs

Virginia Housing partners with approved lenders to offer flexible financing tools tailored for first-time buyers:

• 💰 Down Payment Assistance (DPA) Grant Provides beetween 2% -2.5% of the purchase price as a grant—no repayment required. Must be paired with an eligible Virginia Housing first mortgage either FHA or Conventional. 1% buyer contribution is required.

• ➕ Plus Second Program Offers a second mortgage to cover down payment and some closing costs. Can include up to 1.5% toward closing cost assistance (CCA). Total financing is 101.5% which is attractive for cash strapped buyers.

• 🌟 FirstHome Dream Program Designed for first-generation buyers. Offers a 2% interest rate reduction on eligible Virginia Housing bond loans. Must meet specific first-generation criteria and income limits.

• ⚡ SPARC (Sponsoring Partnerships & Revitalizing Communities) Provides 1% discounted interest rates through local housing partners. Availability is limited and often targeted to specific revitalization areas or populations.

🏦 Federal Home Loan Bank (FHLB) First-Time Buyer Program

• 🔑 FHLB Affordable Housing Program (AHP) Offers up to $17,500 in grant funds for eligible first-time buyers through participating lenders. Funds can be used for down payment and closing costs. Income limits apply baased on household size—buyers must complete homeownership counseling and meet lender criteria.

🏙️ Local City Programs: Chesapeake & Portsmouth

For first-time buyers exploring homeownership in Chesapeake or Portsmouth, local governments offer targeted assistance to make the journey more affordable. These programs are designed to support lower- and moderate-income households with grants, down payment help, and closing cost support—often layered with state or federal programs for maximum impact.

Here's what your need to know about these programs:

• 💰 Up to $25,000 in Assistance:
  Provided as a silent second mortgage—typically forgivable after 10 years.
• 📍 City-Specific Purchase Required:
  You must buy within the city offering the program.
• 🏡 Primary Residences Only:
  No investment properties, foreclosures, or “as-is” homes allowed.
• 🔍 Property Standards Apply:
  Homes must meet minimum condition requirements per city inspection.
• 📝 Apply Before You Shop:
  You must apply before going under contract—or risk disqualification.
• 💵 Buyer Contribution Required:
  You must contribute at least 1% of the purchase price.
• 📊 Income Limits Apply:
  Eligibility is based on household size and HUD income guidelines.

🎖️ Special Perks for Military & Public Servants

Virginia recognizes the service and sacrifice of military members, educators, law enforcement, and first responders—and offers targeted financial support to help them achieve homeownership. These programs provide meaningful assistance with closing costs and down payments, often stackable with other grants and mortgage options.

🏛️ Virginia Housing – Closing Cost Assistance (CCA) Grant

• Up to 2% closing costs assistance 
• Eligible for Rural Housing RHS loans and VA loans only. Note in Hampton Roads, VA loans are more prevalent as RHS loans are primarily outside of our area.
• True grant and does not require repayment

🏦 FHLB – Community Partners Grant

• Up to $20,000 for current or retired law enforcement officers, educators, healthcare workers, firefighters, and other first responders; veterans or active-duty members of the military or surviving spouse 
• Can be first time and non first time home buyers
• Buyers must contribute a minimum of $1K

❓ First-Time Buyer FAQ

1. Can I qualify as a first-time home buyer if I’ve owned a home before? Yes—many programs define “first-time buyer” as someone who hasn’t owned a home in the past three years. Some even allow exceptions for divorce, inheritance, or first-generation buyers.

2. How much down payment assistance can I get in Virginia? Depending on the program, you may qualify for up to $25,000 in combined grants and silent second loans. Virginia Housing, FHLB, and local city programs each offer different tiers of support.

3. Do I have to live in the home I buy? Yes—these programs are for primary residences only. Investment properties, foreclosures, and “as-is” homes are typically excluded.

4. When should I apply for buyer assistance programs? Before you go under contract. Most grants and city programs require pre-approval before you make an offer—applying too late can disqualify you.

5. What’s the minimum I need to contribute as a buyer? Most programs require buyers to contribute at least 1% of the purchase price. This shows financial commitment and helps meet lender guidelines.

🏡 Strategic Buyer Tips

Buying your first home isn’t just about finding the right property—it’s about timing, working with the right team of people, securing funding, and having a successful closing. Here’s how to navigate the process like a pro and unlock every available advantage.

📅 Get Your Timeline Right

Start early. Many programs require pre-approval before you go under contract. Waiting until after you’ve found a home can disqualify you from certain grants or programs.  Many programs are first come-first served so if you wait too long the program may run out of funding and you'll have to wait until it re-funds to apply

💡 The Early Bird Gets the Worm

📅 It never hurts to plan ahead. Schedule a free, no-obligation home buyer consultation to discuss your goals and explore your options.

Book Your Consultation

🤝 Build the Right Team

Your lender and real estate agent should work together like a well-oiled machine. Not every lender and not every agent is familiar with these programs so it's important to work with ones that do.

• Choose a lender familiar with Virginia Housing, FHLB, and city-level programs. 

• Work with a local agent who understands how to layer incentives and navigate city requirements. Your local agent will also have trusted lender partners who can help if you don't already have someone in place.

• Ask about homebuyer education courses early—they’re often required.

💰 Secure & Stack Your Funding

Don’t settle for one source of help. Many programs can be combined if you meet all eligibility requirements. For example:

• Virginia Housing’s DPA Grant can be paired with the FHLB First-Time Buyer Product

• Add SPARC or FirstHome Dream for interest rate reductions

• City-level grants (like Chesapeake or Portsmouth) may also be layered for deeper affordability

📋 Prepare for a Smooth Closing

Once you’re under contract, things move fast and deadlines are ultra important so you don't jeopardize your funding.

• Make sure your lender has all required documentation for each program

• Work with your agent to schedule inspections early—some city grants require property standards to be met

• Stay in close contact with your agent and lender to avoid last-minute surprises

🧭 Why a Local Expert Matters

I help first-time buyers unlock powerful local incentives and grant programs—because knowing how to navigate them isn’t optional, it’s strategic. The funding is out there, but it takes local expertise to find it, and know how to use it effectively to your advantage. The truth is, who you work with matters. The right agent doesn’t just open doors—they open opportunities.

 Choose local experts:

• They’ll know which programs are active, which neighborhoods qualify, and how to time your offer

• They’ll help you avoid disqualifying missteps—like going under contract before applying

• They’ll advocate for you with lenders, inspectors, and city officials

📝 Summary

Virginia offers a rich landscape of homebuyer assistance—from statewide grants to city-specific programs and special perks for those who serve. Whether you're a first-time buyer, a public servant, or navigating affordability challenges, there are layered solutions designed to help you succeed.

🎯 Ready to Maximize Your Buyer Incentives?

📅 Schedule your free, no-obligation Buyer Incentive Discovery Call to explore which programs fit your goals!

🚀 Book Your Free Call

Thanks for Reading,   

____________________________

Liz Schuyler, Virginia Beach Real Estate Agent
RE/MAX Allegiace

🏡 Think You Can’t Afford to Buy a Home? Think Again.
Many buyers think they need $20,000 saved up to buy—but that’s simply not true. Down payment assistance programs are available right here in our area, and some offer up to $40,000 in support for eligible buyers 💰

Whether you’re a first-time buyer or returning to the market, programs exist to help you bridge the gap to homeownership. Many opportunities are often first come, first served, so timing is everything ⏳.

✅ No 20% down required
✅ Programs for 1st time & repeat buyers
✅ Real help is just a click away

Learn More: https://1sttimehomebuyergrants.com/