Types of help
Each type affects your monthly payment and future costs differently, so read the terms closely.
- Grants that don't need to be repaid
- Forgivable second loans, which may be forgiven if you stay in the home for a set time
- Deferred second loans, which you repay when you sell, refinance or pay off the first mortgage
- Low-rate second mortgages, repaid monthly alongside your first loan
Who usually qualifies
Rules depend on the program, but many share common features:
- Household income limits, often based on your area
- Sales price limits
- A minimum credit score and a loan from an approved lender
- A first-time homebuyer requirement for some programs, with exceptions
- A homebuyer education class
CapCenter and Virginia Housing
CapCenter partners with Virginia Housing to offer assistance for qualified buyers in Virginia. Eligibility is set by Virginia Housing.
- Grants of up to 2.5% of the purchase price that don't need to be repaid, for qualified first-time buyers. Grant amounts depend on the type of Virginia Housing loan.
- A second mortgage, closed at the same time as your first, that can finance up to 5% for eligible buyers. It's a 30-year fixed-rate loan, and it's available to first-time and repeat buyers.
- Income and sales price limits apply, and both vary by region.
- A free homebuyer education class is required, offered in person or online, in English or Spanish.
Things to know
Grants don't need to be repaid, but federal recapture tax may apply in some cases if you sell within nine years, your home rises in value and your income rises above allowable limits. The first-time buyer requirement for grants may be waived in certain federally targeted areas. Programs can change, so check current terms.
Using it with ZERO Closing Costs
Assistance can often work alongside CapCenter's ZERO Closing Costs (restrictions apply). Virginia Housing also offers loan cost assistance grants for VA loans and some other loans, which can go toward costs ZERO Closing Costs doesn't cover, like prepaid interest or escrow deposits.
How to start
Other help may come from local governments, nonprofits or employers. Your loan consultant can point you to options in your area.
- Check whether you count as a first-time buyer. Usually, that means no one on the loan has owned a home in the past three years.
- Look up income and price limits for your area
- Take the homebuyer education class early
- Get pre-approved and ask which programs fit
