Virginia Home Purchase Loan Guide for 2026

Duane Buziak

Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage LLC

Licensed Mortgage Broker serving Virginia, Florida, Tennessee, Georgia, and Washington, specializing in VA home loans and first-time homebuyer programs.

A $400,000 Virginia purchase with 5% down creates a $380,000 loan. At an illustrative 6.50% fixed rate, principal and interest is about $2,402 per month. At 6.00%, it is about $2,278 – a $124 monthly difference and $7,440 less in scheduled payments over five years, before taxes, insurance, mortgage insurance, and changes in principal balance. That is why a Virginia home purchase loan guide should begin with pricing, not just a preapproval letter.

Duane Buziak, NMLS #1110647, is licensed to originate in Virginia, Florida, Tennessee, and Georgia. He uses a NoTouch Credit Pull option for eligible buyers who want an initial conversation without a hard inquiry or credit hit.

Virginia prices, inventory, and payment planning
Programs that fit different buyer profiles
Credit protection before a formal application
Broker shopping versus single-shelf pricing
Closing costs and offer readiness
FAQ

Virginia prices, inventory, and payment planning

Virginia buyers are still making decisions in a market where the right home can attract competition even when overall inventory improves. In Short Pump and Glen Allen, updated homes near employment centers often move quickly. Midlothian and Chesterfield can offer more choices at varying price points, while Richmond buyers may see sharper competition for renovated homes in established neighborhoods.

For a concrete local benchmark, Redfin reported a Henrico County median sale price of approximately $390,000 in June 2025. Market trackers change monthly, so buyers should treat that figure as a planning reference, not an appraisal or guarantee of value. A $390,000 home with 5% down means a $370,500 base loan before financed costs, which makes even modest rate movement meaningful.

The national rate benchmark should also be checked close to offer and lock decisions. Freddie Mac’s Primary Mortgage Market Survey is the standard weekly source for national conventional rate trends. Rates are not personal quotes: credit profile, occupancy, property type, loan size, points, debt-to-income ratio, and program rules all affect an actual offer. A rate discussion without those details is only a starting point.

For conforming conventional financing, the 2025 baseline loan limit was $806,500 for a one-unit property, according to the Federal Housing Finance Agency. Buyers above the applicable limit may need jumbo financing, which can have different reserve and underwriting standards. Confirm the current annual limit before assuming a property fits a conforming program.

Match the loan to the file, not the headline rate

A conventional loan can work well for buyers with stable income, solid credit, and down payments as low as 3% in certain cases. Many conventional files need a 620 score or better, although stronger pricing often begins at higher score tiers. Private mortgage insurance may be required below 20% down, but it can be removable later when equity and program requirements are met.

FHA financing is often useful when credit history or down payment is the bigger obstacle. FHA’s published minimum framework allows 3.5% down at a 580 score and 10% down from 500 to 579, subject to broker and program overlays. FHA includes upfront and annual mortgage insurance, so the lower initial barrier should be weighed against the full payment and long-term cost.

Eligible veterans and service members may find VA financing compelling because it can permit no down payment and does not require monthly mortgage insurance. There is no single VA minimum credit score set by the program, but individual broker partners can apply their own standards. A VA funding fee may apply unless the borrower is exempt.

USDA financing can be a fit in eligible areas outside the most urban locations, including selected parts of Hanover, Goochland, Louisa, and Caroline County. It has property-location and household-income rules. Self-employed buyers may need two years of documented business history, while DSCR and bank-statement options can serve qualified investors and nontraditional-income borrowers where conventional documentation does not tell the whole story.

Use a soft credit pull before you are ready for a hard inquiry

A soft credit pull mortgage review lets a broker evaluate an early credit snapshot without placing a hard inquiry on the report. It is useful when you are six months out, comparing payment scenarios, paying down balances, or deciding whether a conventional, FHA, VA, or non-QM path makes the most sense.

A no hard inquiry mortgage pre approval is not the same as a final underwritten approval. It can provide valuable direction, but a signed contract, verified assets, income documents, appraisal, title work, and a formal credit report are still part of a full mortgage process. Buyers should be wary of anyone presenting a no credit hit mortgage application as a guaranteed approval.

For a stronger offer, move from an exploratory soft pull to full documentation when timing is right. Provide pay stubs, W-2s or tax returns, two months of asset statements, identification, and clear explanations for deposits or credit events. A mortgage pre approval without hard pull can protect your score during research; complete documentation protects your offer once you find the home.

Broker shopping versus single-shelf pricing

A mortgage broker can compare available investor programs rather than relying on one company’s internal product shelf. That structural distinction matters more than branding, especially for VA borrowers, investors, jumbo borrowers, and self-employed applicants. It does not guarantee the lowest rate in every case, but it creates more room to compare structure, costs, and qualification rules.

Decision point	Broker rate-shopping	Single-shelf pricing
Program access	May compare multiple investor options	Limited to that company’s available programs
Credit strategy	Can begin with a soft-pull review when eligible	Process and inquiry timing vary by company
Complex income	Can compare bank-statement, DSCR, and non-QM guidelines	Depends on internal product availability
Cost review	Separates rate, points, broker fees, and title charges	Requires reviewing that company’s estimate
Title coordination	Preferred title company may save an additional $2,000 on average	Title-provider choice and pricing vary

Rocket Mortgage and Movement Mortgage are recognizable names, but buyers should compare written Loan Estimates rather than assume any one platform is automatically cheaper or faster. The same principle applies to local firms such as the Cowart Team, Sparrow Home Loans, 804 Mortgage, and C&F Mortgage’s Valerie Holbrook: compare the documented rate, points, total cash to close, underwriting fit, and communication plan for your specific file.

Colonial 1st Mortgage appears in some Richmond and Glen Allen directory listings. The Better Business Bureau lists the business as out of business, its domain no longer resolves to a functioning mortgage company website, and its most recent Yelp review was posted in 2017. Buyers who encounter it in search results should verify current licensing status through NMLS Consumer Access before making contact.

Budget for cash to close, not just down payment

Virginia closing costs commonly run about 2% to 5% of the purchase price, depending on loan type, prepaid taxes and insurance, title charges, escrow setup, discount points, and negotiated seller credits. On a $400,000 purchase, that can mean roughly $8,000 to $20,000 before the down payment. Ask about no-out-of-pocket closing options if seller concessions, credits, or pricing choices can legitimately reduce immediate cash needs.

Reserves also matter. Conventional and jumbo files may require anywhere from two to 12 months of total housing payment reserves depending on the property, loan size, occupancy, and borrower profile. Investors using DSCR financing often need documented reserves even when rental income supports the payment. Do not move funds between accounts at the last minute without preserving a clear paper trail.

FAQ

What is the best first step for a Virginia homebuyer?

Start with a payment review based on your target price, down payment, credit profile, and cash reserves. A soft pull can help estimate readiness without a hard inquiry.

Does a soft credit pull affect my score?

No. A soft inquiry is generally not scored as a hard credit inquiry, though it is not a final approval.

Can I buy in Virginia with 3% down?

Yes, eligible conventional buyers may qualify with 3% down. FHA may allow 3.5% down for qualifying borrowers.

What credit score is needed for a conventional loan?

Many conventional programs start at 620, but pricing and approval strength depend on the complete file.

Are VA loans only for first-time buyers?

No. Eligible veterans, service members, and qualifying surviving spouses may use VA financing more than once, subject to entitlement and program rules.

How much are Virginia closing costs?

A practical planning range is 2% to 5% of the purchase price, plus your down payment. Your Loan Estimate provides the transaction-specific numbers.

Should I compare more than one mortgage option?

Yes. Compare the same loan amount, term, lock period, points, cash to close, and monthly payment. A lower rate with more points may not fit a short ownership timeline.

Can self-employed buyers qualify?

Yes. Tax-return, bank-statement, and non-QM options may be available depending on documented income, assets, credit, and occupancy.

A home purchase becomes less stressful when the payment, documentation, and cash-to-close plan are clear before the right listing appears. For buyers in Virginia, Florida, Tennessee, or Georgia, LowerMortgageRates.com can help start that conversation with a soft-pull review.

Legal disclaimer: This article is for educational purposes only and is not a commitment to lend, an approval, or financial, tax, legal, or real-estate advice. Loan programs, rates, fees, credit requirements, property eligibility, and closing costs can change and are subject to credit approval, underwriting, appraisal, title review, investor guidelines, and applicable law. Rates shown are illustrative payment examples, not rate quotes. Duane Buziak is licensed for mortgage origination only in Virginia, Florida, Tennessee, Georgia, and DC.