West Virginia First-Time Home Buyer: 2023 Programs and Grants

What to know about buying a house in West Virginia

If you’re a West Virginia first-time home buyer, you have an advantage in some ways. The cost of living is relatively lower than the national average, as are home prices. Even better, West Virginia provides home-buyer education classes, special mortgages, and down payment assistance programs that can offer cash assistance to qualified buyers. Are you ready to begin?

In this article (Skip to ...)

• WV home buyer overview
• Home loan options
• WV home buyer programs
• First-time buyer grants
• Buying in West Virginia’s cities
• Resources
• WV mortgage rates

West Virginia home buyer overview

The median home listing price in West Virginia was $291,800 in March 2023. That was a 6.9% increase in real estate prices year-over-year that month, according to Redfin. Still, you may find buying a home challenging as a West Virginia first-time home buyer. This is where down payment and closing cost assistance programs will come in handy.

West Virginia home buyer stats

Down payment amounts are based on the state's most recently available average home sale price. “Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620.

If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the US Department of Agriculture), you may not need any down payment at all.

First-time home buyer loans in West Virginia

If you’re a West Virginia first–time home buyer with a 20% down payment, you can get a conventional loan with a low interest rate and no private mortgage insurance (PMI).

Of course, few first–time buyers have saved enough for 20% down. But the good news is that you don’t need that much. Not by a long shot. Borrowers can often get into a new home with as little as 3% or even 0% down using one of these low–down–payment mortgage programs:

• Conventional 97: From Freddie Mac or Fannie Mae. 3% down payment and 620 minimum FICO score. You can usually stop paying private mortgage insurance after a few years once you reach 20% home equity
• FHA loan: Backed by the Federal Housing Administration. 3.5% down and a 580 minimum credit score. But you’re on the hook for mortgage insurance premiums (MIP) until you refinance to a different type of mortgage, move, or pay off your loan
• VA loan: Only for veterans and active-duty service members. Zero down payment is required. Minimum credit score varies by lender but often 620. No ongoing mortgage insurance after closing. These are arguably the best mortgages available, so apply if you’re eligible
• USDA loan: For those on moderate or low incomes buying in designated rural areas. Zero down payment required. Credit score requirements vary by lender but often 640. Low mortgage insurance rates
• WVHDF loans: Qualifying first-time home buyers have access to below-market rates and down payment assistance. More information below

Note that government loan programs (including FHA, VA, and USDA home loans) require you to buy a primary residence. That means you can’t use these loans for a vacation home or investment property.

In addition, most programs let you use gifted money or down payment assistance (DPA) to cover your down payment and closing costs. Depending on your mortgage loan, you could get into your new house with minimal cash out of pocket.

If you’re unsure which program to choose for your first mortgage, your lender can help you find the right match based on your finances and home buying goals.

West Virginia first-time home buyer programs

The West Virginia Housing Development Fund (WVHDF) offers first-time buyers in the Mountain State two paths to homeownership. You can use either of these loan programs to purchase a single-family home, a townhome, a manufactured home, or units in approved condominiums called planned unit developments (PUDs).

WVHDF Homeownership Program

The WVHDF Homeownership Program offers a range of 30-year, fixed-rate mortgages based on government-backed FHA, VA, USDA loans as well as conventional loans. These loans are meant to offer low rates and affordable down payments for West Virginia first-time home buyers.

When we checked the mortgage rates published on the WVHDF website and compared them with those on offer generally in the state, the fund’s rates were indeed very competitive. So you might be in line for an excellent deal.

To qualify for West Virginia’s Homeownership Program, you must be at or below household income limits that vary by county and household size. Check those limits to see if you’re eligible. You must also take a home-buyer education course to enter the program.

There will also be other eligibility criteria, including home purchase price limits and a credit score threshold. But those aren’t specified on the website. So call 1 (800) 933-8511 to get your questions answered.

WVHDF Movin’ Up Program

While not solely for first-time home buyers, the Movin’ Up Program is another 30-year, fixed-rate mortgage for homeowners who “have outgrown their current residence or just want to make a change.” But first-timers are also welcome to apply.

Interest rates for the Movin’ Up Program are not as competitive as West Virginia’s other home buyer assistance program. However, because it is geared toward middle-income households, Movin’ Up may be ideal for first-time home buyers who do not meet the income limits of the WVHDF Homebuyer Program or homeowners interested in mortgage refinancing. Furthermore, qualifying buyers can still take advantage of down payment and closing cost assistance.

WV first-time home buyer grants

Like its assistance with buying a home, WVHDF gives first-time buyers two options for help with the down payment. Each program provides help based on the size of your down payment.

WVHDF Homeownership Program DPA

The WVHDF down payment assistance program does not offer grants or forgivable loans. Instead, it provides a second mortgage, which has to be repaid over 15 years in parallel with your primary mortgage. However, that second mortgage comes with a highly advantageous rate. At the time we visited the website, it was just 2%, though it may have risen by the time you read this.

Under this homeownership program, you can borrow loan amounts up to $7,500 if your down payment is 10% or less of the home purchase price. But, if your down payment is more than 10%, you can borrow up to $10,000.

• $7,500 for loans with loan-to-value ratios greater than or equal to 90% of the purchase price.
• $10,000 for loans with loan-to-value ratios less than 90% of the purchase price

Again, call 1 (800) 933-8511 or (304) 391-8738 for more information.

WVHDF Movin’ Up Program DPA

Much like the down payment assistance it offers first-time home buyers, WVHDF’s Movin’ Up DPA is a 15-year second mortgage loan that complements a Movin’ Up home loan. Qualifying borrowers can get up to $8,000 with down payments of 10% or more, or $5,000 for those with less than 10% down.

• $5,000 for loans with loan-to-value ratios greater than or equal to 90% of the purchase price
• $8,000 for loans with loan-to-value ratios less than 90% of the purchase price

Contact a WVHDF-approved lender to check your eligibility for either program.

Buying a home in West Virginia’s major cities

You might be in luck if you’re a West Virginia first-time home buyer in one of the state’s three largest cities. Charleston and Huntington have lower home prices than the state’s average. While home prices in Morgantown are rapidly rising, they are steadily declining in Charleston. This could be good news for first-time buyers eager to get their feet on the property ladder. Also, buyers in Charleston may be eligible for the best program in the state to help with a down payment.

Charleston first-time home buyers

The median list price of homes in Charleston was $186,300 in April 2023. That was an increase of 6.4% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $5,589 for 3% down payment
• $37,260 for 20% down payment

The City of Charleston has its own down payment assistance program called the Home Blend loan, and it looks more generous than the WVHDF’s offering.

The maximum loan available is $27,000 in combined down payment and closing cost assistance. But not all borrowers will qualify for that much. That loan is a silent and forgivable second mortgage. So you don’t pay any interest and don’t make monthly payments. Better yet, the loan is forgiven at the end of 10 years.

However, note a critical condition: “Clients must occupy the property during the term of this loan. If the property is sold or the occupant moves prior to the 10-year expiration, the remaining loan balance will become due and payable to the City of Charleston.”

Huntington first-time home buyers

The median list price of homes in Huntington was $149,900 in April 2023. That was an increase of 7.5% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $4,497 for 3% down payment
• $29,980 for 20% down payment

Unfortunately, we could find no trace of a down payment assistance program on the City of Huntington’s website. You can, of course, apply under the WVHDF’s program. Or talk to your Realtor or loan officer about alternative local programs.

Morgantown first-time home buyers

The median list price of homes in Morgantown was $317,500 in April 2023. That was an increase of 13.6% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $9,525 for 3% down payment
• $63,500 for 20% down payment

We couldn’t find any recent mentions of down payment assistance on Morgantown’s website. You can check to see if there’s a current program by calling City Hall at (304) 284-7405. Otherwise, look to the WVHDF’s program or ask your real estate agent and loan officer about other options.

Where to find home buying help in West Virginia

In addition to our choices, the U.S. Department of Housing and Urban Development (HUD) lists statewide, regional, and local home buyer resources in West Virginia.

Statewide and regional WV first-time home buyer programs

• West Virginia Housing Development Fund: Affordable mortgage financing for individuals and families of most incomes
• City of Charleston: HOME Blend home buyer assistance
• Habitat for Humanity: Through volunteer labor, builds and rehabilitates houses for families in need
• U.S. Department of Agriculture Rural Housing: Home buyer assistance programs in rural communities

WV first-time home buyer programs by City/Town

• Charleston
• Huntington
• Martinsburg
• Parkersburg

What are today’s mortgage rates in West Virginia?

You can see today’s live mortgage rates in West Virginia here. Experiment with a mortgage calculator to see how down payment, interest rates, homeowners insurance, and property taxes affect your monthly mortgage payment.

When you’re ready to start the home-buying process, get personalized rate quotes from at least three mortgage lenders. And, instead of simply looking at advertised rates online, apply for preapproval and compare the interest rates and fees offered. That is the only way to ensure you get the best deal on your new home loan.

¹Source: Redfin.com West Virginia Housing Market Report

²Source: Experian.com study of 2022 and 2021 data

³Based on a review of the state's available DPA grants at the time this was written