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 $37,800 through $88,200 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)
  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 Family Services at the address:
    P.O. Box 7400
    Leesburg, VA 20177

Public Employee Homeownership Grant Program (PEG)

  • This program offers a grant of a secured loan to full or part-time employees 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 $37,800 through $88,200 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).
  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 Family Services
    P.O. Box 7400
    Leesburg, VA 20177

Low-Interest Rate Mortgage Program: SPARC

Loudoun County has recently been awarded an $8 million allocation provided by the Virginia Housing Development Authority (VHDA) to help first-time homebuyers. The allocation of funding through the VHDA’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 $88,200 and $126,000.
  • 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 $525,000 or less, located in Loudoun County.
  • Receive a mortgage loan from a VHDA-approved lender participating in the VHDA mortgage loan program.
  • Meet all VHDA requirement for eligibility.

View more information for lenders about the SPARC program.

How to Apply

Prospective applicants must:

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

Education Website for First-Time Homebuyers

For More Information

Hannah Choi
Housing Finance Specialist
Loudoun County Department of Family Services
Shenandoah Building
102 Heritage Way NE, Suite 103
P.O. Box 7400
Leesburg, VA 20177

Email Hannah Choi