Stacking Homebuyer Programs in Henrico

What if your down payment could come from more than one place? If you are buying in Henrico County, you may be able to layer state, county, and nonprofit assistance to cut your cash to close. You want clear answers on what you can combine, what you cannot, and how to time it all. In this guide, you will learn the key programs that serve Henrico buyers, the stacking rules that matter, and the exact steps to take. Let’s dive in.

What stacking means in Henrico

Stacking means combining more than one homebuyer assistance program to reduce your out-of-pocket costs. In Henrico, the main players are Virginia Housing at the state level, Henrico’s own assistance and employer program, and regional nonprofit programs that use federal funds. Start by confirming what is available through Henrico’s housing assistance partners and which programs fit your situation.

The core programs you can combine

Henrico EHPAP for county employees

Henrico’s Employee Home Purchase Assistance Program offers homebuyer education plus up to $25,000 as an interest-free forgivable loan for down payment and closing costs. Forgiveness depends on continued full-time employment with Henrico and owner occupancy for five years. Review eligibility, timing, and counseling requirements on the official EHPAP page before you write an offer. Learn more on the county’s Employee Home Purchase Assistance Program page.

Henrico and regional HOME/CDBG assistance

Henrico partners with nonprofits to deliver income-based down payment and closing cost help for first-time buyers purchasing in the county. Similar HOME-funded programs run regionally through nonprofits that serve the Richmond–Henrico area. Amounts and availability vary, and sales price, income, and asset caps apply. See Henrico’s housing assistance programs and Richmond’s HOME-funded down payment assistance overview for details.

Virginia Housing options

Virginia Housing provides the framework most Henrico buyers use for stacking.

• DPA Grant. A true grant that usually covers a small percentage of the purchase price when paired with an eligible Virginia Housing first mortgage. See Virginia Housing home loans for current options.
• Closing Cost Assistance Grant. Designed for VA or USDA loans to cover closing costs and certain fees.
• Plus Second Mortgage. A subordinate loan that can cover the entire down payment, often around 3 to 5 percent of the purchase price, and may include some closing costs for qualified borrowers. Note that this is a loan, not a grant.
• MCC status. Virginia Housing’s Mortgage Credit Certificate program is suspended, so do not plan on stacking an MCC right now.

Stacking rules that matter

• Virginia Housing DPA can often pair with non-Virginia Housing assistance. In many cases you can combine a local forgivable second, such as EHPAP or a HOME-funded loan, with the Virginia Housing DPA. Your lender must approve the structure and verify all caps and covenants.
• Virginia Housing Plus Second does not pair with Virginia Housing grants. You typically choose the Plus Second or the DPA or Closing Cost Assistance, not both.
• Lender approval controls the final stack. Subordinate liens, forgiveness terms, and total financing must meet underwriting rules for the first mortgage.
• Availability is limited. Many grants and local funds are first come, first served, so confirm reservations early and do not assume funds until you have written commitments.

How to stack step by step

1. Confirm your best loan path. If a Virginia Housing loan is likely, connect with an approved Virginia Housing lender before you shop. This controls which grants and seconds you can use.
2. If you are a Henrico County or Henrico Schools employee, start EHPAP early. EHPAP includes required education and has timing rules, including counseling before entering a purchase agreement.
3. Apply to local nonprofit programs right away. HOME and similar funds can take weeks to approve and may require a reservation. If you need help identifying providers, use 211 Virginia to search nonprofit homeownership help.
4. Ask your lender to run a stacking check. Confirm which combination is allowed, how liens will be recorded, and exactly how funds can be used. Get written confirmation from the lender and program administrators.
5. Complete required education. Many programs require HUD-certified homebuyer education and a certificate prior to closing. Virginia Housing provides education resources on its home loans page.
6. Coordinate closing details. Make sure your lender and settlement company have wire instructions, lien documents, and disbursement timing for every program.

Real-world stacking examples

Scenario A: County employee maximizing help

Potential stack: EHPAP forgivable loan up to $25,000 plus Virginia Housing DPA plus an eligible Virginia Housing first mortgage. The lender must approve lien priority and confirm that both programs’ limits are met. Start EHPAP counseling before you sign a contract.

Scenario B: Buyer with very limited cash

Potential stack: Virginia Housing first mortgage plus the Virginia Housing Plus Second Mortgage to cover the down payment. You cannot add Virginia Housing grants to this, though your lender can check if a local forgivable second is allowed under underwriting rules.

Scenario C: Low to moderate income buyer using HOME funds

Potential stack: A local HOME-funded forgivable second plus the Virginia Housing DPA, paired with an eligible Virginia Housing first mortgage. Confirm HOME covenants, forgiveness schedule, and any sales price and income caps early.

Timing, paperwork, and closing

Expect duplicate paperwork for each program. You will likely provide income and asset documentation, homebuyer education certificates, and employer verification if using EHPAP. Program funds often flow through your settlement agent, so disbursement instructions must be in place before closing. Some funds are released after closing, so your lender and settlement company need to plan for the exact timing.

Common roadblocks to avoid

• Missing timing rules. Some programs require counseling or pre-approval before you sign a purchase agreement.
• Asset or sales price caps. Exceeding caps can disqualify you from a local forgivable second or grant.
• Lien terms that the lender will not accept. If underwriting cannot accept a subordinate lien’s terms, the stack may fail.
• Funding uncertainty. Grants are limited. Confirm reservations early and plan backups.

Your next move

Stacking can reduce your cash to close and open doors in Henrico, but it takes planning and coordination. If you want help mapping your options, connecting with the right lender, and timing your applications, reach out to Dan Tulli. Dan can guide you through the local landscape so you move forward with confidence.

FAQs

Can I combine Virginia Housing DPA with Henrico’s EHPAP?

• Often yes, as long as you meet both programs’ rules and your lender approves the combined structure.

Can I use Virginia Housing DPA with the Plus Second Mortgage?

• No, you typically must choose one Virginia Housing subordinate option, either the DPA grant or the Plus Second loan.

Are HOME or CDBG-funded local programs stackable with Virginia Housing?

• In many cases yes, but HUD rules and local covenants apply, so get early approval from both the program administrator and your lender.

Do I need a specific lender to access these combinations?

• Yes, Virginia Housing products require a participating Virginia Housing lender, and some local programs also work with specific lenders.

Are these funds guaranteed once I apply?

• No, most programs depend on funding availability and reservations, so do not rely on funds until you have written commitments.

Is more help coming for Henrico buyers?

• Henrico announced a $60 million housing trust initiative that may influence future programs, though specifics and timing will vary by program.