Homeownership Grants

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Down Payment and Closing Cost Assistance Program

The Virginia Department of Housing and Community Development (DHCD) is a state government agency that provides federal and state funding to nonprofit housing organizations around the state that provide assistance to first-time homebuyer in Virginia.  The Petersburg Redevelopment and Housing Authority (PRHA) serves as one of the nonprofit housing organizations that provide assistance for DHCD.  PRHA services properties located in:  Chesterfield, Petersburg, Colonial Heights, Dinwiddie, Hopewell, Prince George, Emporia, Greensville, Sussex and Surry.

The Virginia Down Payment and Closing Cost Assistance program (DPA) provides grants to lower-income, first-time homebuyers for the purchase of their primary residence.  The funding is made available and intended to provide grants to those households that cannot typically qualify for conventional mortgage products.  The funding is targeted to those households with incomes not exceeding eighty percent (80%) of the area median income (AMI), established by the U.S. Department of Housing and Urban Development (HUD), and adjusted by family size. 

The down payment assistance is provided in the form of a grant with a mandatory “affordability period” for the applicant to continue to occupy the house as their primary residence.  An income eligible homebuyer may receive up to 10 percent of the purchase price of a home to go toward the down payment, plus up to $2,500 to pay for the cost of closing; e.g. attorney’s fee, title insurance, and taxes if absolutely necessary.

Click a link below to view DHCD’s Program Guidelines.

pdfDPA Program Guidelines 

To apply for DPA through PRHA, please complete an application and provide the information listed below with the completed application.  Applications will not be accepted without all Required Documentation listed below.

Required Documentation:

  1. Completed and signed Application
  2. Copy of Purchase Contract
  3. Mortgage loan application from Lender
  4. Pre Approval Letter from Lender
  5. Good Faith Estimate from Lender
  6. Copies of 3 months of most recent bank statements for all bank accounts
  7. Monthly household budget to include monthly income, utilities, mortgage payment etc.

xlsxDPA Spending Plan 

Program Eligibility:

  1. First Time Home Buyer
  2. Must provide 1% of Sales Price from your personal funds toward purchase of the home or a minimum contribution of $500.
  3. Must attend HUD-certified Homebuyer Education class sponsored by VHDA. (Contact phone 1-888-643-2696  https://www.vhda.com/Homebuyers/HomeownershipEdu/Pages/HomeownershipEdu.aspx#.Wn2-0K6nGM8)
  4. Income must be below 80% Area Median Income per family size as determined by the U.S. Department of Housing and Urban Development (see table below). 
Income Guidelines 
80% of Area Median Income based on Family Size

















  1. Must use a VHDA approved Lender
  2. Must occupy the property as their primary residence.
  3. Participants must not have access to cash or liquid assets sufficient to meet the 10% of sales price down payment requirement. Participants with cash assets of 10% or more of the sales price are NOT eligible for the program.
  4. Debt to income ratio cannot exceed 43% and Housing ratio cannot exceed 33%.
  5. Participants must sign a homebuyer agreement and execute a restricted deed of covenant and a promissory note for the amount of the DPA assistance for the affordability period.  Participants must understand that there will be a lien on the property for the required affordability period.
  6. The initial purchase price or after-rehabilitation value of homeownership units assisted with HOME funds cannot exceed 95 percent of the area median purchase price for single family housing, as determined by HUD.  Click the link below to determine the HOME maximum purchase price.
  7. The property must be located in one of the following localities:  Chesterfield, Petersburg, Colonial Heights, Dinwiddie, Hopewell, Prince George, Emporia, Greensville, Sussex and Surry.

If you have questions regarding our Down Payment Assistance program please contact:
LaTysha Carpenter at (804) 733-2200