First-Time Homebuyer Programs in West Virginia

The down payment on a new home is often the biggest hurdle for first-time homebuyers. In West Virginia, with an average home value of $167,571, you would need a down payment of $33,514 to avoid buying private mortgage insurance.

Fortunately, there are first-time homebuyer programs available in West Virginia to help you achieve homeownership. There are also mortgages that allow first-time homebuyers to put less down on a home, but these usually have income requirements and require mortgage insurance. MoneyGeek explores several state-specific and government-backed first-time homebuyer programs for people from different financial backgrounds.

West Virginia provides grants and loans to help first-time homebuyers cover both down payments and closing costs. Below, we compiled the first-time homebuyer programs offered by West Virginia Housing Development Fund (WVHDF) to help you find the best option for your particular needs and situation.

The Homeownership Program from WVHDF provides affordable 30-year, fixed-rate mortgages aimed primarily at first-time homebuyers. The program offers financing up to 100% of the home’s purchase price, with additional down payment and closing cost assistance. Eligible properties include single-family homes, townhomes, approved condos and double-wide manufactured homes on permanent foundations.

The Low Down Home Loan program offers up to $8,000 in down payment and closing cost assistance for qualified homebuyers. Available exclusively with the Homeownership Program and through WVHDF participating lenders, the assistance is structured as a second loan, supporting borrowers with a loan-to-value ratio at or above 80%. Eligible properties include single-family homes, townhomes, approved condos and double-wide manufactured homes on permanent foundations within West Virginia.

Aside from statewide first-time homebuyer programs in West Virginia, city-specific programs are also available to help you pursue homeownership in a city of your choosing. Check out the table below for some of the cities in West Virginia that provide first-time homebuyer programs for potential residents.

West Virginia offers zero-down-payment loan programs that enable homebuyers to purchase a home without putting money down. USDA and VA loans are two examples of government-backed loans that require no down payment.

USDA loans, issued by the U.S. Department of Agriculture through its Rural Development Guaranteed Housing Loan program, are designed to assist homebuyers in rural areas.

USDA loans offer several benefits, including low interest rates and zero down payments. They are intended to make homeownership more accessible for those who might not qualify for conventional financing. The program also provides flexible credit guidelines to help more families achieve homeownership.

To qualify for a USDA loan, certain conditions must be met. The property must be 2,000 square feet or below and located in a USDA-eligible rural area with a population of less than 35,000 people. Income limits also apply, which vary depending on the location. For instance, in Lewis County, West Virginia, the income limit for a four-person, low-income household is $55,200, while in Marion County, West Virginia, it is $65,100.

VA loans are a type of mortgage issued by the U.S. Department of Veterans Affairs and are designed to help veterans, active-duty service members and eligible surviving spouses become homeowners.

VA loans offer several advantages, including the absence of a down payment requirement. They also do not require private mortgage insurance (PMI), which can save borrowers a significant amount of money over the life of the loan. As of November 2024, the APR for a 15-year fixed-rate VA loan in West Virginia is 6.26%, while the APR for a 30-year fixed-rate VA loan is also 6.26%.

To be eligible for a VA loan, you must meet specific requirements related to your length of service or service commitment, duty status and character of service. You must also meet certain income limits depending on where you live and provide a valid certificate of eligibility (COE).

First-time homebuyers in West Virginia can take advantage of low-down-payment loan programs that allow them to finance their home with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA loans and conventional loans are the two most common types of mortgages. FHA loans require a minimum down payment of 3.5%, making them accessible for buyers with limited savings. Conventional loans can require as low as a 3% down payment for first-time homebuyers but generally have stricter credit score and debt-to-income ratio requirements than FHA loans.

Interest rates are another important factor to consider. As of November 2024, the current APR for a 15-year fixed-rate conforming loan in West Virginia is 6.09%. In comparison, a 15-year fixed-rate FHA loan has a higher APR of 7.45%. APRs on FHA loans can be higher because there tend to be more fees and extra costs associated with borrowing money on government-backed loans.

Use our FHA vs. conventional loan calculator to help you compare FHA and conventional mortgage programs and find the best option for you.

We've answered common questions about first-time homebuyer programs in West Virginia to help you find the best option and move closer to owning a home.

Explore additional MoneyGeek resources for first-time homebuyers in West Virginia to help you with the homebuying process.