Great news for first-time homebuyers looking to purchase a home in Norfolk, Virginia! The Norfolk Redevelopment and Housing Authority (NRHA) offers up to $40,000 in down payment assistance and closing cost assistance for eligible buyers.
If you have been on the fence of buying a home, local grant programs make homeownership far more accessible. The NRHA offers five primary programs designed to empower homebuyers in our local Norfolk communities.
Primary Down Payment Assistance Programs
HOME Program:
The HOME Investment Partnership Program (HOME) is designed to expand the supply of affordable housing to low-to-moderate income households buying in Norfolk. HOME offers up to $40,000 in down payment assistance to qualifying first-time homebuyers.
Key Requirements:
- Must be a first-time homebuyer (or have not owned a home within the last three years).
- Have a household income at or below 80% of the Area Median Income (AMI) Limit.
- Must purchase a home anywhere in the city limits of Norfolk, VA.
Homeward Norfolk:
The Homeward Norfolk Program provides up to $40,000 in down payment and closing cost assistance for moderate-income buyers targeting specific revitalization areas.
Key Requirements:
- Must be a first-time homebuyer (or have not owned a home within the last three year).
- Must have a household income between 80% and 120% of the Area Median Income (AMI) Limit.
- Must be purchasing a home in one of three targeted Norfolk neighborhoods:
- Ingleside
- Monticello Village
- Oakdale Farms
General Eligibility Requirements for NRHA Assistance
To receive down payment or closing cost assistance through the NRHA, buyers and properties must meet the following general standards:
- Property Type: Must be a single-family home, townhouse or condo.
- Property Price: Property must not exceed $340,000 for new construction and $278,000 for resale.
- Occupancy: The home must serve as your primary residence.
- Inspection: Property must pass NRHA’s HOME Inspection.
- Savings Requirement: You must have a minimum of $3,000 in personal savings.
- Lender Approval: You must qualify for a mortgage with a participating lender
- 15-Year Forgiveness Period: You must occupy the property as your primary residence for the full 15-year forgivable period.
- Personal Contribution: Buyers must contribute at least 1% of the home’s purchase price toward the transaction.
- Prior Approval Required: You must be approved for the grant BEFORE entering into a purchase contract.
Note: Additional documentation and eligibility requirements may apply. Consult with your mortgage loan officer to confirm your eligibility and to see if you qualify.
Frequently Asked Questions (FAQ)
Do I need a home inspection?
Yes, a third-party independent home inspection is required and must be paid out of pocket by the buyer.
How long does the grant approval process take?
The NRHA approval process can take up to 30 days once all required documents are submitted. Starting early with your lender is key to keeping your timeline on track.
How much of the grant can go toward closing costs?
Up to $5,000 of the total grant can be applied directly toward eligible closing costs.
What are the Area Median Income (AMI) Limits?
Income limits are calculated using the total income of all household members (even those not listed on the mortgage loan).
| Household Size | Income Limit (80% AMI) |
| 1 Person | $56,450 |
| 2 People | $64,450 |
| 3 People | $72,000 |
| 4 People | $80,550 |
| 5 People | $87,000 |
Can I stack grants?
Yes, the HOME Program and Homeward Norfolk can be stacked with Virginia Housing Grants, products, and SPARC when available.
Additional NRHA & Virginia Housing Programs:
Virginia Individual Development Accounts (VIDA):
VIDA provides financial education alongside a 2:1 matched savings program for working families buying their first home in Virginia.
- Earn $2 for every $1 saved in a designated VIDA account.
- Matching funds are limited to $4,000 per participant with a max of two participants per household.
- Participants gain access to dedicated financial counselors and homebuyer education courses.
The Homebuyers Club:
The Homebuyers Club is a 16-month educational program designed to prepare future buyers for the financial transition from renting to owning. Key topics include:
- Pre-Qualifying for a Mortgage
- Navigating Local Loans and Grants
- Avoiding Predatory Lending Practices
- Understanding Home Inspections and Insurance Policy Needs
- And so Much More!
SPARC (Sponsoring Partnerships and Revitalizing Communities)
SPARC is a Virginia Housing program offering eligible first-time buyers a 1% mortgage interest rate reduction on a 30-year fixed loan.
- Eligibility: Must be a first-time homebuyer receiving down payment/closing cost assistance through the NRHA HomeNet Homeownership Center.
Ready to Purchase a Home in Norfolk, VA?
At Southern Trust Mortgage, we are committed to helping you achieve your homeownership goals. Our local mortgage team has extensive experience navigating Norfolk’s specialized grant programs, state assistance options, and competitive loan solutions.
Contact us today to review your goals, check your eligibility, and get pre-approved!
For more information on the NRHA and their homeownership programs please visit: https://nrha.us/housing/homeownership/
