by Daniel Yoon | eXp Realty | Richmond, Virginia
If you are a first-time home buyer in Richmond, Virginia, you can access down payment grants, tax credits, and below-market interest rates that most people never hear about. Virginia Housing alone offers up to $40,000 in down payment assistance for qualifying buyers. Combined with federal programs and local grants, some Richmond-area buyers are purchasing homes with less than $5,000 out of pocket.
I bought my first home in Richmond at 26 and my second at 28. I know the anxiety of wondering whether you can actually afford to buy. The answer for most people in Richmond, Henrico, Glen Allen, Short Pump, Chesterfield, and Hanover is yes, if you know which programs exist and how to stack them together.
This guide breaks down every first-time buyer program available in the Richmond, Virginia metro area as of spring 2026.
Virginia Housing Down Payment Assistance: The Program Most Buyers Miss
Virginia Housing (formerly VHDA) runs the largest down payment assistance program in the state. Here is what it offers:
- Down Payment Assistance Grant: Up to 2-2.5% of your purchase price as a grant you never have to repay. On a $350,000 home in Glen Allen, that is $7,000 to $8,750 in free money toward your down payment.
- Closing Cost Assistance: Virginia Housing also offers closing cost assistance that can be combined with the down payment grant.
- Below-Market Interest Rates: Virginia Housing offers mortgage rates that are typically 0.25% to 0.50% below conventional rates.
Who Qualifies?
You must be a first-time buyer (haven’t owned a home in the past 3 years), meet income limits (varies by county, but in Henrico County the limit is approximately $117,300 for a household of two), and purchase a home within the price limit for your area. You also need a minimum credit score of 620.
One thing most people get wrong: you do not have to be low income to qualify. I have helped buyers earning $90,000 to $110,000 access Virginia Housing assistance in Chesterfield and Henrico. The income limits are higher than people expect.
FHA Loans: 3.5% Down With Flexible Credit
FHA loans remain the most popular option for first-time buyers in Richmond. The basics:
- Down Payment: 3.5% with a credit score of 580 or higher. On a $350,000 home, that is $12,250.
- Credit Requirements: More flexible than conventional loans. Scores as low as 580 qualify for the 3.5% down option.
- Mortgage Insurance: Required for the life of the loan (unless you refinance later into a conventional loan).
FHA loans work well in Richmond’s market because they allow seller concessions of up to 6% of the purchase price. That means you can negotiate with the seller to cover your closing costs. In the current Richmond, Virginia real estate market, sellers are more willing to offer concessions than they were in 2022 or 2023.
Conventional 97 and HomeReady Loans
If your credit score is 680 or higher, conventional loans with just 3% down are available. The Fannie Mae HomeReady program is particularly useful for buyers in Richmond because:
- Down payment as low as 3%
- Mortgage insurance is lower than FHA
- You can cancel mortgage insurance once you reach 20% equity (FHA does not allow this)
- Income from roommates or family members living with you can count toward qualification
For a first-time buyer purchasing a $380,000 home in Short Pump, the difference between FHA mortgage insurance and conventional PMI can save you $150 to $200 per month. Over five years, that adds up to $9,000 to $12,000.
VA Loans: Zero Down for Military and Veterans
Richmond has a significant military and veteran population, especially with Fort Barfoot (formerly Fort Pickett) and Joint Base Langley-Eustis within driving distance. If you qualify for a VA loan:
- Zero down payment required
- No mortgage insurance
- Competitive interest rates, typically 0.25% to 0.50% lower than conventional
- More flexible credit and debt-to-income requirements
I have helped several military families purchase homes in Hanover and Chesterfield using VA loans. The savings are substantial. On a $400,000 home, a VA buyer saves roughly $16,000 in down payment and $200 per month in mortgage insurance compared to an FHA buyer.
USDA Loans: Zero Down in Select Richmond-Area Communities
Parts of Hanover County and outer Chesterfield County qualify for USDA Rural Development loans. These offer:
- Zero down payment
- Below-market interest rates
- Lower mortgage insurance than FHA
The catch is the property must be in a USDA-eligible area. Most of inner Richmond, Henrico, and Glen Allen do not qualify. But if you are open to Mechanicsville, Ashland, or parts of Midlothian, USDA is worth exploring.
How to Stack Programs for Maximum Savings
Here is what I do with my first-time buyer clients in Richmond. We stack programs together to minimize out-of-pocket costs:
Example: A buyer purchasing a $375,000 home in Glen Allen, Virginia
- Virginia Housing mortgage with below-market rate: saves approximately $45/month vs. conventional rate
- Virginia Housing down payment grant (2.5%): $9,375 toward down payment
- Seller concession toward closing costs (3%): $11,250
- Total buyer out-of-pocket at closing: approximately $3,500 to $5,000
That is how a first-time buyer earning $85,000 per year purchases a home in one of Richmond’s best neighborhoods with less than $5,000 cash.
Case Study: How the Park Family Bought Their First Home in Henrico
The Parks came to me in early 2025. Both teachers, combined household income of $92,000. They had $8,000 saved and assumed they could not afford to buy in the Richmond area.
Here is what we did:
- Got them pre-approved through Virginia Housing with a rate 0.35% below market
- Secured the 2.5% down payment grant: $8,750 on their $350,000 purchase
- Negotiated $10,500 in seller concessions to cover closing costs
- Found a well-maintained 3-bedroom in Henrico with excellent schools
Total cash they brought to closing: $3,200. Their monthly payment including taxes and insurance: $2,340. They had been paying $1,950 in rent for a smaller apartment.
For an extra $390 per month, they own a home, build equity, and their kids are in better schools. That is the math that matters.
Common Mistakes First-Time Buyers Make in Richmond
- Not getting pre-approved before touring homes. You will fall in love with something you cannot afford. Get the numbers first.
- Ignoring down payment assistance. Thousands of dollars are available. Most buyers do not apply because they do not know these programs exist.
- Choosing a lender who does not know Virginia Housing programs. Work with a lender experienced in these programs. Not all lenders offer Virginia Housing products.
- Waiving the home inspection. Never do this. Even in a competitive market. The inspection protects you from expensive surprises.
- Not budgeting for property taxes. Property taxes in Henrico, Chesterfield, and Hanover vary significantly. A home in Henrico County at $350,000 will have different taxes than the same-priced home in Chesterfield. Ask your agent to calculate the total monthly cost, not just the mortgage payment.
Frequently Asked Questions
How much money do I need to buy my first home in Richmond, VA?
With down payment assistance programs through Virginia Housing, many first-time buyers in Richmond purchase homes with $3,000 to $8,000 out of pocket. The exact amount depends on purchase price, which programs you qualify for, and how much you negotiate in seller concessions. It is significantly less than the 20% down payment most people assume is required.
What credit score do I need to buy a home in Richmond?
FHA loans require a minimum 580 credit score for 3.5% down. Virginia Housing programs require 620. Conventional loans with 3% down typically require 680 or higher. If your score is below 580, a good lender can help you create a plan to improve it within 3 to 6 months.
Are there income limits for first-time buyer programs in Richmond?
Virginia Housing has income limits that vary by county and household size. In Henrico County, the limit for a household of two is approximately $117,300. In the City of Richmond, limits may be lower. These limits are higher than most people expect. Buyers earning $80,000 to $110,000 frequently qualify.
Should I buy in Henrico, Chesterfield, or Glen Allen as a first-time buyer?
Each area has advantages. Henrico offers the best overall value with strong schools and central location. Glen Allen (part of Henrico) has excellent new construction options with builder incentives. Chesterfield offers more space for the money and strong school districts in the Midlothian corridor. Your decision should be based on commute, school preferences, and budget.
Can I use down payment assistance with new construction in Glen Allen?
Yes. Virginia Housing down payment assistance can be used with new construction homes. Combined with builder incentives (which can reach $15,000 to $25,000 in Glen Allen communities), a first-time buyer can reduce their total cost substantially. I have helped clients combine both for savings exceeding $30,000.
What is the best time of year to buy a first home in Richmond?
Late fall and winter (November through February) typically offer less competition and more negotiating power. Spring has more inventory but also more buyers competing for the same homes. For new construction, end-of-quarter months (March, June, September, December) often bring the best builder incentives because builders want to hit sales targets.
Ready to start your home search in Richmond, Virginia? Call Daniel Yoon at (804) 896-2694 or visit danielyoonrealty.com for a free consultation. I will help you identify which programs you qualify for and build a plan to get you into your first home.