Buying a home in today’s market can feel especially challenging for first-time buyers—even for the people who keep our communities running every day. Teachers, nurses, first responders, military members, and other essential professionals often have stable careers, but saving for a down payment and closing costs can still be a major barrier to homeownership.
That’s exactly why Virginia Housing introduced the Community Heroes Grant—a true $10,000 grant that helps eligible first-time homebuyers cover down payment and closing costs, with no repayment required. When paired with the right loan and a lender who understands how to layer assistance programs correctly, this grant can dramatically reduce the cash needed to buy a home.
At CapCenter, we work closely with Virginia Housing programs every day. In this guide, we’ll break down how the Community Heroes Grant works, who qualifies, how it can be combined with other assistance programs, and how CapCenter helps eligible buyers maximize their savings with our ZERO Closing Cost mortgage options.
What Is the Virginia Housing Community Heroes Grant?
The Community Heroes Grant is a $10,000 housing grant offered through Virginia Housing to support first-time homebuyers who work in—or are retired from—specific community-serving professions.
This is not a loan. It is not a second mortgage. And it never has to be paid back.
The grant can be used toward:
• Down payment costs
• Closing costs
• A combination of both, depending on the structure of the loan
Because housing affordability is often limited by upfront cash requirements rather than monthly payments alone, this grant is designed to remove one of the biggest obstacles to buying a home.
The Community Heroes Grant must be paired with a Virginia Housing mortgage program, which CapCenter is fully approved to originate. Eligible loan types include conventional, FHA, and VA loans.
Who Qualifies as a “Community Hero” in Virginia?
Virginia Housing defines Community Heroes broadly, recognizing that it takes more than one profession to support a community. The program is designed to include both frontline and behind-the-scenes roles.
Eligible professions include:
Educators and school personnel, such as teachers, administrators, school nurses, bus drivers, cafeteria workers, janitorial staff, and childcare workers.
Healthcare workers, including nurses, CNAs, lab technicians, social workers, and other professionals providing medical or patient-support services in licensed or accredited healthcare settings.
First responders and public safety professionals, including law enforcement officers, firefighters, EMTs, emergency dispatchers, and administrative staff within public safety agencies.
Military service members, including active-duty military, veterans, National Guard members, reservists, and Coast Guard personnel.
Retirees from any of the qualifying professions above are also eligible, which makes this program particularly powerful for buyers transitioning into retirement or downsizing later in life
Importantly, if there is more than one borrower on the loan, only one borrower needs to meet the Community Hero definition.
First-Time Homebuyer Requirements (and Common Misconceptions)
To qualify for the Community Heroes Grant, borrowers must meet Virginia Housing’s definition of a first-time homebuyer. This does not always mean you’ve never owned a home before.
In many cases, buyers are still considered first-time homebuyers if they:
• Have not owned a primary residence in the past three years
• Are purchasing in certain targeted areas (where first-time buyer rules may be relaxed)
Virginia Housing also applies sales price limits and loan amount limits, which vary by location and household size. These limits are updated regularly and must be reviewed during the loan pre-approval process.
This is one area where working with an experienced Virginia Housing lender matters. At CapCenter, we confirm eligibility early—before you make an offer—so there are no surprises later in the process.
Heroes Grant Income Limits: What You Need to Know
Income limits are often the most confusing part of grant programs, and the Community Heroes Grant is no exception. The key takeaway is this: income limits depend on how the grant is layered with other assistance programs.
In general:
• Standard Virginia Housing bond income limits apply when using the Community Heroes Grant by itself.
• If the loan also includes a Down Payment Assistance (DPA) Grant or Closing Cost Assistance (CCA) Grant, the lower grant income limits apply.
• Higher income limits may be available if the property is located in a targeted area and no additional DPA or CCA grants are used
Because income limits vary by region, household size, and program combination, it’s not something most buyers can accurately determine on their own. CapCenter’s loan officers walk through these limits with you upfront and structure the loan in a way that preserves eligibility whenever possible.
How the Community Heroes Grant Actually Works at Closing
From a buyer’s perspective, the Community Heroes Grant is refreshingly simple.
The grant:
• Is always $10,000 (it cannot be reduced)
• Is a true grant, not recorded as a lien or second mortgage
• Cannot result in cash back at closing (except documented earnest money or prepaid costs)
• Must be applied toward allowable purchase costs
If there is excess assistance after closing costs are covered, the excess is typically applied to reduce the first mortgage balance.
This structure ensures the funds are used exactly as intended: to help buyers get into a home, not to create future repayment obligations.
Layering Virginia Housing Grants: Where the Real Savings Happen
One of the most powerful aspects of the Community Heroes Grant is that it can be layered with other Virginia Housing assistance programs.
Eligible combinations may include:
• The Community Heroes Grant ($10,000)
• A Virginia Housing Down Payment Assistance (DPA) Grant
• A Virginia Housing Closing Cost Assistance (CCA) Grant
• Certain non-Virginia Housing assistance programs, when permitted by loan guidelines
For example, Virginia Housing provides scenarios where a buyer using both a DPA Grant and the Community Heroes Grant receives $16,000 in combined assistance, dramatically reducing the amount of cash needed to close
This is where lender expertise becomes critical. Not all lenders understand how to layer programs correctly, and mistakes can result in delayed closings or lost grant eligibility. CapCenter’s team structures these loans every day and coordinates directly with Virginia Housing to ensure compliance.
What Loans Can Be Used with the Community Heroes Grant?
The Community Heroes Grant must be paired with a Virginia Housing mortgage program, but buyers still have flexibility when it comes to the type of loan they use.
Eligible first mortgages include Virginia Housing:
• Conventional mortgage programs
This flexibility allows Community Heroes to choose a loan that best fits their financial situation—whether that means a low down payment option, a VA loan for eligible service members and veterans, or a conventional loan with competitive terms.
At CapCenter, we walk buyers through each Virginia Housing mortgage option side by side, explaining how grant funds, monthly payments, and long-term costs all work together. The goal isn’t just to qualify—it’s to structure the loan in a way that makes homeownership sustainable and comfortable over time.
How CapCenter Helps Community Heroes Save Even More
The Community Heroes Grant is powerful on its own—but it’s even more impactful when paired with CapCenter’s broader approach to savings.
CapCenter is best known for our ZERO Closing Cost mortgage options, which eliminate traditional lender closing costs by covering them through a slightly adjusted rate. For eligible buyers, this can mean thousands of dollars in additional savings on top of grant funds.
When structured correctly:
• Grant funds can cover down payment and allowable costs
• CapCenter covers the closing costs, saving you thousands.
• Buyers bring significantly less cash to closing than with a traditional loan.
Our team can show you every scenario, explain the trade-offs clearly, and let you choose the structure that makes the most sense for your situation.
That transparency is why so many first-time buyers trust CapCenter with one of the biggest decisions they’ll ever make.
The Certification Process: What Buyers Need to Do
To use the Community Heroes Grant, borrowers must complete a Community Heroes Certification prior to closing.
This certification:
• Is executed by all borrowers (even if only one is the Community Hero)
• Confirms employment or retirement status in an eligible profession
• Is supported by standard employment or income documentation
CapCenter handles this process behind the scenes, coordinating with Virginia Housing and ensuring all documentation is completed correctly and on time. From the buyer’s perspective, it’s a straightforward step that doesn’t add complexity to the experience.
Common Questions About the Community Heroes Grant
Do both borrowers need to be Community Heroes?
No. Only one borrower on the loan must meet the Community Hero definition.
Does the grant need to be repaid later?
No. The Community Heroes Grant is a true grant and is never repaid.
Can retirees really qualify?
Yes. Retirees from eligible professions are explicitly allowed under the program.
Can this be used outside of major metro areas?
Yes. The program is available statewide, subject to Virginia Housing loan limits and income requirements.
Can this be combined with non-Virginia Housing assistance?
In some cases, yes—if the assistance meets GSE, insurer, or guarantor requirements.
Why Work with CapCenter for Virginia Housing Grants?
Not all lenders offer Virginia Housing loans. Fewer still have deep experience layering multiple assistance programs correctly.
CapCenter stands out because:
• We are deeply experienced with Virginia Housing Loans.
• We proactively identify grant eligibility early in the process
• We explain options clearly, without pressure
• We pair grants with long-term mortgage strategies, not short-term gimmicks
For Community Heroes, that means fewer surprises, smoother closings, and a financing plan that actually supports your future—not just the transaction.
Is the Community Heroes Grant Right for You?
If you’re a first-time homebuyer in Virginia and you work—or worked—in an eligible profession, the Community Heroes Grant could be one of the most valuable tools available to you.
The best next step is a conversation—not an application, not a commitment, just a clear review of your options.
At CapCenter, we’ll help you:
• Confirm eligibility
• Explore all available Virginia Housing programs
• Compare ZERO Closing Cost and traditional loan options
• Build a strategy that gets you into a home with confidence
We believe the people who serve our communities deserve a homebuying process that works just as hard for them, give us a call today!
