Virginia Housing Grant: Buy a Home with Zero Down

The Virginia Housing secondary mortgage grant lets qualified first-time buyers in Roanoke cover their down payment and closing costs with a second loan, so they bring little or no extra cash to closing. Backed by the state's housing finance authority, it layers behind your primary mortgage and means you don't have to empty your savings to buy a home. For buyers with stable income but thin savings, it can be the difference between renting another year and owning now.

Virginia Housing (formerly the Virginia Housing Development Authority, or VHDA) offers this financing to expand homeownership across the commonwealth. The money is structured as a repayable second loan that sits behind your first mortgage, and it is a strong fit for buyers who qualify for a loan but struggle to gather a down payment plus closing costs at once.

How the Virginia Housing Secondary Mortgage Works

A secondary mortgage is a second loan recorded behind your primary mortgage, and Virginia Housing uses this structure to cover the costs most buyers pay in cash. The first mortgage pays for the home itself, while the secondary mortgage steps in to cover the down payment and closing costs that would otherwise come out of pocket. That is why the program is often described as a way to buy with zero money down.

Who Qualifies for the Virginia Housing Secondary Mortgage

Not everyone can use this financing, but the bar is within reach for most working Virginians. To qualify, you must be a first-time homebuyer — meaning you have not owned and occupied a primary residence during the previous three years (chrisjordan). You also need a qualifying primary residence, a household income within the program's limits, and completion of an approved homebuyer education course (chrisjordan).

Your income must fall within Virginia Housing's geographic limits, which vary by area. For the Roanoke/Salem/Vinton region — grouped under All Other Areas of Virginia — the household income limit is $90,000 for households of two or fewer people and $103,000 for three or more, with a sales price limit of $500,000, effective August 1, 2026 (Virginia Housing). The Plus Second Mortgage uses the same income and sales price limits as your first mortgage, so a strong application for the primary loan typically opens the door to the second one as well (Virginia Housing).

Who This Benefits

This loan is built for the buyer who has a steady paycheck but has never been able to pile up a large lump sum — the person who pays rent on time every month and could handle a mortgage payment, but sees the down payment as an impossible hurdle. The secondary mortgage removes that hurdle, letting stable income, rather than a fat savings account, do the work of getting you to closing (LendingTree).

The structure is designed for buyers who want to keep their emergency fund intact and avoid draining every dollar to closing. With the Plus Second Mortgage covering the down payment — and, for well-qualified buyers, extending into closing costs — the money you would have spent upfront stays in your bank account for the repairs, surprises, and day-to-day costs every new homeowner faces. That cushion is often the difference between a comfortable first year and a financially strained one.

Good credit strengthens your position. Buyers with a credit score of 680 or higher may qualify for a larger second loan — up to 5% of the purchase price — which covers the down payment and can extend into closing costs (LendingTree). Buyers with more moderate scores can still qualify for a smaller amount that covers a 3% conventional or 3.5% FHA down payment without pulling cash from savings. Because the second loan is repayable rather than a true grant, it adds a second monthly payment, so it fits best when the alternative is waiting years to save the full amount (chrisjordan).

How to Get Started at ALCOVA Mortgage

Ami Patel, a loan officer at ALCOVA Mortgage in Roanoke, helps first-time buyers determine whether the Virginia Housing secondary mortgage fits their numbers. She can confirm your income eligibility against the current limits, estimate what the second loan would add to your monthly payment, and map the full application from pre-approval to closing.

Because this financing must be arranged through a Virginia Housing-approved lender, the first step is a conversation — not a form. Contact Ami Patel at ALCOVA Mortgage to see whether the zero-down path is yours.