Down payment assistance in Hanover County, VA: what's available and where to start

Hanover is a different story from Richmond and Henrico. As far as we could find, the county doesn't run its own down payment program, and the regional land trust doesn't build here. That doesn't mean there's no help. It means the help comes from different places: a nonprofit's state-funded program, USDA's rural home loans, a local Habitat affiliate and the state's own programs.

Here's what's available to Hanover buyers, who it's for, and how to start.

The short version#

Program	Run by	Mainly for	How you start
Down payment and closing cost assistance (state HOME funds)	HOME of VA (nonprofit)	First-time buyers at or below 80% of area median income	Online application, then HOME's course and a counselor
USDA Direct home loans	U.S. Department of Agriculture	Low- and very-low-income buyers in eligible rural areas	Check the address, then the local USDA office
Habitat homes	Hanover and King William Habitat for Humanity	Local households in housing that isn't working for them	Applications reopen in early 2027
State programs	Virginia DHCD and Virginia Housing	First-time buyers within income limits	A local provider or an approved lender
Free counseling	Commonwealth Catholic Charities and others	Anyone working on credit, debt or savings	An intake form or a call

To see which programs may match a particular Hanover home, run the free down payment help check. Every program here is also in the Hanover program guide.

What "80% of area median income" means in Hanover#

Hanover is part of the Richmond area, so it uses the same area median income (AMI) figures as the city and Henrico. HOME of VA's 2025 table puts 80% of AMI at $63,600 for one person, $72,650 for two, $81,750 for three and $90,800 for four. Some programs go higher and each counts income its own way, so check with the one you're applying to.

HOME of VA: the main down payment program for Hanover#

HOME of VA (Housing Opportunities Made Equal of Virginia) runs local programs for Richmond, Henrico and Chesterfield. It also runs a program paid for with state HOME funds, and that's the one that covers Hanover, along with Goochland, Powhatan, Colonial Heights, Hopewell and Petersburg. You don't have to live in Hanover now to use it for a home there.

Who it's for, per HOME's brochure:

• first-time buyers
• at least $40,000 a year in combined household income, under the 80% AMI limit
• no derogatory credit in the last 12 months
• at least two years past any bankruptcy discharge

What you get:

• Down payment and closing cost help based on your need. HOME says each program's maximum is set yearly by its funder and ranges from $7,500 to $20,000.
• Usually forgivable. Typically you don't pay it back. If you sell, refinance or stop living in the home before the affordability period ends, you repay some or all of it. That period is usually five years, and can be 10 or 15 for larger amounts.
• Your own share. Most funders want at least $1,000, or 1% of the price, from you.

How it works: apply online, which takes up to about 10 business days. Then take HOME's homebuyer education course (required even if you've taken one elsewhere), send your documents, and meet your counselor. HOME says it takes at least 45 days after that meeting to get the money, so start well before you shop. See HOME of VA's homeownership page.

USDA home loans: Hanover's rural advantage#

Hanover has something most of the Richmond area doesn't: a lot of land that qualifies for USDA's rural home loan programs. When we checked USDA's eligibility map, addresses in Ashland and Montpelier came back eligible, and an address on Route 360 in Mechanicsville didn't. Eligibility follows the map, not the ZIP code, so check the exact address before you count on it.

USDA has two programs:

• Direct loans are made by USDA itself, for low- and very-low-income households who can't get a loan elsewhere on reasonable terms. They come with payment assistance that lowers your monthly payment based on your income. If you sell or move out, some of that assistance may have to be repaid, and these loans take longer to close.
• Guaranteed loans go through regular lenders and cover moderate incomes in the same eligible areas.

Start with USDA's eligibility map, then talk to the USDA Rural Development office (for a Direct loan) or a lender that offers USDA loans (for Guaranteed).

Hanover and King William Habitat for Humanity#

Hanover's Habitat affiliate builds homes for local households living in housing that's overcrowded, unaffordable or substandard. You need to have lived or worked in Hanover or King William for at least a year, have income within HUD's guidelines (Habitat lists $45,400 to $90,800 for a household of four), have no outstanding collections or judgments, and be able to qualify for a mortgage. You also commit to at least 200 hours of sweat equity.

Timing: Habitat says its 2025 application period is closed and it plans to reopen in early 2027. You can sign up on its site to be emailed when it does. Applying costs $25, non-refundable. See Habitat's homeownership page.

State programs#

• Virginia DHCD funds two down payment programs through local nonprofit providers: one for first-time buyers at or below 80% of AMI (up to $40,000, deferred) and a pilot for those at or below 60% (a forgivable second mortgage of $20,000 to $50,000). Funding is set each year, so ask a provider what's available. See DHCD's down payment assistance page.
• Virginia Housing, the state's housing finance agency, offers grants, a second mortgage, the SPARC rate reduction and a free homebuyer course, all through approved lenders. For current terms and limits, see Virginia Housing's homebuyer pages.
• VIDA matches what you save toward a down payment for Virginia residents at or below 80% of AMI who plan to buy within 4 to 24 months. SCDHC, a Richmond nonprofit, lists a match of $10 for every $1 you save, up to $10,000. See SCDHC's Homeownership Center.

If you're not ready yet#

If your credit, debt or savings need work first, start with free counseling. Commonwealth Catholic Charities offers one-on-one housing and financial counseling, in person in Richmond and virtually elsewhere in Virginia. Hanover's Habitat affiliate also links to credit counseling and financial education resources. For what counseling covers and how to get the most from it, see free credit and homebuyer counseling in Richmond.

The order to do things in#

1. See what may fit. Run the down payment help check on a home or area you're considering.
2. Check USDA eligibility for any rural address you like, before you fall for it.
3. Apply to HOME of VA early. Its education and counseling come first, and the money takes at least 45 days after your first counselor meeting.
4. Pick a lender who offers the programs you want. Not every lender does USDA or works with every assistance program. You're free to choose any lender.
5. Get assistance approved before you sign, and name the program in your contract so the timeline accounts for it.

Program details change often and funding can run out. Everything here comes from each program's own website and published materials, and from USDA's eligibility map, as of the date below. Confirm with the program before you rely on it. Martin Kurylowski and Real Broker, LLC are not lenders or administrators of any assistance program.