For buyers struggling with the upfront cost of purchasing a home, the City of Fredericksburg Direct Homeownership Assistance Program may help bridge the gap. The program provides qualifying low- and moderate-income households with $1,000 to $10,000 in assistance toward eligible closing costs and/or up to 50% of the required down payment. The home must be a primary residence located within 22401, the City of Fredericksburg.
What REALTORS® should know
Eligible households generally must have income at or below 80% of the area median income, based on household size. Applicants also need to have begun the financing process with a lender and provide documentation showing the costs associated with purchasing the property.
Assistance is provided as a forgivable loan secured by the property. The loan is forgiven over five years at 20% per year as long as the buyer continues to occupy the home and meets program requirements.
Why this matters for your buyers
A buyer may have enough income to manage a monthly mortgage payment but still struggle to assemble the cash needed for a down payment and closing costs. That is where knowing about programs like this can make a difference. If you are working with a buyer considering a home in Fredericksburg, encourage them to speak with their lender and the City early in the process to determine whether they qualify and how the assistance can work with their financing.
Important: Funding, income limits and eligibility requirements can change. REALTORS® and buyers should verify current program availability and requirements directly with the City before relying on assistance as part of a transaction.
Learn more and access the application through the City of Fredericksburg Housing Programs page.