Homeownership Loan Programs

Three loan assistance programs help moderate-income, first-time homebuyers purchase a home in Loudoun County: the Down Payment/Closing Cost Assistance (DPCC) program, the Public Employee Homeownership Grant Program (PEG) and the Sponsoring Partnerships and Revitalizing Communities (SPARC) program.

Down Payment / Closing Cost Assistance Program (DPCC)

  • First-time homebuyers purchasing a home either through the Affordable Dwelling Unit (ADU) program or purchasing an existing market rate home can borrow up to 10% of the sales price or $25,000, whichever is less, at 5% interest. 
  • This loan (used for the down payment and closing costs) is in the form of a second trust, payable over a 30-year period.
  • Funding is limited and available on a first-come, first-served basis. 
  • Applicants must currently live and/or work in Loudoun County for a minimum of six months. 
  • Gross annual household incomes must fall within 30% to 70% of the Area Median Income. The current eligible income range is $42,700 to $99,650 regardless of family size.
  • View more information for lenders and real estate professionals about the DPCC program.

Application Process

  1. Review the DPCC Application Packet (PDF) and if needed Form 4506-T (Request for Transcript of Tax Return).
  2. Submit your online application.
  3. Make photocopies of all requested documents on the Program Checklist in the packet.
  4. Print your application and submit to the Department of Housing and Community Development at the address:
    P.O. Box 7000
    Leesburg, VA 20177

Public Employee Homeownership Grant Program (PEG)

  • This program offers a grant of a secured loan to full or part-time employees (minimum 20 hours per week) of the Loudoun County Government, Courts and Constitutional Officers, and Loudoun County Public Schools.
  • Loans are forgivable at 20% of the loan amount annually over a five-year period providing the employee does not leave employment, sell the home, or no longer occupies the residence.
  • The grant amount is $10,000 for the purchase of a home located within Loudoun County.
  • Funding is limited and available on a first-come, first-served basis. Gross annual household incomes must fall within 30% to 70% of the Area Median Income. The current eligible income range is $42,700 to $99,650 regardless of family size.
  • View more information for lenders and real estate professionals about the PEG program.

PEG Application Process

  1. Review the PEG Application Packet (PDF) and if needed Form 4506-T (Request for Transcript of Tax Return).
  2. Submit your online application.
  3. Make photocopies of all requested documents on the Program Checklist in the packet.
  4. Print your application and submit to
    Loudoun County Department of Housing and Community Development
    P.O. Box 7000
    Leesburg, VA 20177

Low-Interest Rate Mortgage Program: SPARC

Loudoun County has recently been awarded an $10 million allocation provided by Virginia Housing to help first-time homebuyers. The allocation of funding through Virginia Housing's Sponsoring Partnerships and Revitalizing Communities (SPARC) program will provide lower interest rates on homeownership loans in the county.

Eligibility

To qualify for the program, the prospective homebuyer must meet the following criteria:

  • Have an annual household income between 70%-100% of the Area Median Income (AMI) for household size of four. Currently, incomes must fall between $99,650 to $142,300.
  • Be a first-time homebuyer, which is defined as someone having had no ownership interest in real property in the past three years.
  • Currently live and/or work in Loudoun County for a minimum of six months.
  • Purchasing a new or existing home for $665,000 or less, located in Loudoun County.
  • Receive a mortgage loan from a Virginia Housing-approved lender participating in the VHDA mortgage loan program.
  • Meet all Virginia Housing requirements for eligibility.

View more information for lenders about the SPARC program.

How to Apply

Prospective applicants must:

  • Attend any Virginia Housing-approved free Homebuyer Class to obtain certification;
  • Contact a Virginia Housing-approved lender to determine if the SPARC program is right for you.

For More Information

Email the Department of Housing & Community Development