Hey there! Navigating the journey to homeownership can feel overwhelming, but Richmond offers several programs to make it more accessible for first-time buyers like you. Let’s explore some of these opportunities:

City of Richmond Employee Homebuyer Assistance Program

If you’re a full-time employee of the City of Richmond, this program provides down payment assistance to help you purchase your first home. To qualify, you must:

• Be a full-time City of Richmond employee.
• Be a first-time homebuyer (or not have owned a home in the last three years).
• Have 12 months of continuous full-time permanent employment.
• Have a performance appraisal in good standing.

Income limits apply, and the maximum sales price/loan limit is $500,000.

Richmond Redevelopment & Housing Authority (RRHA) Homeownership Programs

RRHA offers initiatives aimed at assisting low- to moderate-income families in achieving homeownership. Notably:

ComeHome Initiative

Launched in 2023, this program is available to eligible RRHA residents, including families in public housing and those receiving housing vouchers. Benefits include:

• Underwriting that considers consistent on-time rent payment history instead of traditional credit scores.
• Down payment and closing cost assistance.
• Below-market interest rates.
• Mortgage insurance relief.

Participants are required to complete homeownership education and budgeting counseling.

Neighborhood Homeownership Initiative

Since 2007, RRHA has been working with nonprofit partners to redevelop single-family houses throughout various Richmond neighborhoods. These renovated homes are sold to buyers with household incomes less than 80% of the Area Median Income (AMI).

Virginia Statewide Programs

Beyond city-specific initiatives, Virginia offers programs to assist first-time homebuyers:

HOMEownership Down Payment and Closing Cost Assistance Program (DPA)

This program provides flexible gap financing for first-time homebuyers at or below 80% of the AMI. Assistance is provided as a grant with a mandatory affordability period during which the home must remain the buyer’s primary residence.

Virginia Housing Down Payment Assistance Grant

This grant offers funds to reduce the time needed to save for a down payment. It’s a true grant, meaning it doesn’t require repayment, and can be paired with other non-Virginia Housing assistance. Eligibility includes being a first-time homebuyer or a repeat buyer purchasing in Areas of Economic Opportunity, among other criteria.

Pros of These Programs

• Financial Assistance: Receive grants or low-interest loans to cover down payments and closing costs.
• Educational Support: Mandatory homebuyer education courses prepare you for the responsibilities of homeownership.
• Flexible Underwriting: Some programs consider alternative credit histories, such as consistent rent payments, making it easier to qualify.

Cons to Consider

• Eligibility Restrictions: Income limits and employment requirements may exclude some potential buyers.
• Affordability Periods: Certain programs require you to maintain the home as your primary residence for a set period.
• Limited Availability: Some programs may have limited funding or be available only to specific groups, such as city employees or public housing residents.

Program Details

• Availability: Richmond, Virginia
• Funding Type: Grant and Down Payment Assistance

Sources

• City of Richmond Official Website
• Richmond Redevelopment & Housing Authority
• Virginia Housing