A $350,000 purchase with 3.5% down starts with a $337,750 FHA base loan. After financing the 1.75% upfront mortgage insurance premium, the loan amount is $343,661. At an illustrative 6.50% fixed rate, principal and interest is about $2,172 per month. At 6.875%, it is about $2,258 – a difference of $86 monthly, or $5,160 over five years before considering the roughly $1,100 higher remaining balance at the higher rate. That is why the search for the best FHA lenders Virginia buyers see online should really be a search for competitive pricing, clean underwriting, and a broker who can compare eligible options without a credit hit.
By Duane Buziak, NMLS #1110647, licensed in Virginia, Florida, Tennessee, and Georgia.
Table of Contents
- What makes an FHA broker competitive
- Virginia FHA numbers that affect approval
- Broker rate-shopping versus single-shelf pricing
- How to compare FHA quotes correctly
- Local market considerations
- FAQ
What Makes an FHA Broker Competitive
“Best” is not a rate advertised without context. It is the combination of the note rate, lender credits or points, mortgage insurance, underwriting fit, closing speed, and whether the payment fits your real budget. FHA loans are insured through the U.S. Department of Housing and Urban Development and are often useful for buyers who have strong income but a shorter credit history, a modest down payment, or higher debt than a conventional loan permits.
A good FHA broker starts with the full scenario instead of forcing every borrower into one pricing shelf. That matters when comparing a first-time buyer in Richmond, a move-up household in Midlothian, and a buyer competing for a home in Short Pump. Their credit, debt-to-income ratio, assets, gift funds, and property type may create different pricing and approval paths.
Start with a soft credit pull mortgage review when you are still planning. A no hard inquiry mortgage pre approval discussion can show estimated credit ranges, payment options, and likely documentation needs without immediately creating a hard inquiry. A mortgage pre approval without hard pull is not a final approval – a full application and underwriting will still require verified credit, income, assets, appraisal, and property review – but it is a practical way to shop before committing.
For a current national market reference, use Freddie Mac’s Primary Mortgage Market Survey and FRED’s 30-Year Fixed Rate Mortgage Average. Those figures are national conventional benchmarks, not FHA quotes or guaranteed borrower terms. FHA pricing changes with credit score, occupancy, loan size, discount points, and market movement on the day a loan is locked.
Virginia FHA Numbers That Affect Approval
FHA generally permits 3.5% down with a 580 or higher credit score. Scores from 500 through 579 may require 10% down, subject to broker and investor overlays. The governing program rules are in the HUD Single Family Housing Policy Handbook. A 580 score is a program threshold, not a promise that every file will be approved or receive the same price.
For 2025, the national baseline FHA one-unit limit was $524,225, while the Federal Housing Finance Agency set the baseline conforming loan limit at $806,500. County limits can differ, so the property address matters before assuming a purchase price fits FHA financing.
On reserves, a standard one- or two-unit FHA purchase commonly does not require reserves beyond funds needed to close, although a file with marginal qualifying factors may be reviewed more carefully. FHA purchases of three- or four-unit properties generally require three months of principal, interest, taxes, and insurance reserves. Self-employed buyers should expect a closer review of tax returns, business deposits, and any declining income trend.
Closing costs often land around 2% to 5% of the purchase price, depending on title, transfer taxes, prepaid taxes and insurance, escrow setup, points, and seller concessions. On a $350,000 home, that is roughly $7,000 to $17,500 before any negotiated credits. Ask about our no-out-of-pocket closing options if cash-to-close is the concern. In any title-cost comparison, remember that our preferred title company may save an additional $2,000 on average. On that same $350,000 purchase, a $2,000 title-cost reduction lowers a $12,000 estimated cash-to-close figure to $10,000.
Broker Rate-Shopping Versus Single-Shelf Pricing
A broker is not automatically cheaper on every loan, and a single-shelf company is not automatically wrong. The useful question is whether the structure gives your file enough relevant options and whether the quote is transparent.
| Comparison point | Broker rate-shopping | Single-shelf pricing |
|---|---|---|
| Available programs | Can review eligible options across participating wholesale sources. | Limited to that company’s available product shelf. |
| FHA pricing review | Can compare rate, points, credits, and mortgage insurance structures. | Quote reflects one company’s current pricing structure. |
| Complex income files | May match self-employed, bank-statement, or non-QM scenarios to fit. | Guidelines and overlays are set internally. |
| Credit protection early on | A soft pull mortgage broker conversation may be available before full credit authorization. | Process and inquiry timing vary by company. |
| Title-cost planning | Preferred title company may save an additional $2,000 on average. | Title options and charges should be reviewed carefully. |
Do not compare one quote’s rate against another quote’s payment alone. Ask whether both quotes use the same loan amount, lock period, points, lender credit, FHA mortgage insurance assumptions, and estimated closing date. A lower rate with two points may cost more upfront than a slightly higher rate with a lender credit. It depends on how long you expect to own the home and how much cash you want to bring to closing.
How to Compare FHA Quotes Correctly
Request a Loan Estimate after you select a direction, then compare page two charges line by line. Focus on the rate, total loan costs, lender credits, cash to close, and the “In 5 years” section. The Consumer Financial Protection Bureau’s Loan Estimate explainer shows why the document is more useful than a headline rate.
A no credit hit mortgage application conversation should also cover the items that can change the answer later: overtime or bonus history, recent job changes, student-loan payments, child support obligations, gift funds, bankruptcy timing, and appraisal risk. A quick prequalification is helpful; a fully documented preapproval is stronger when a seller is choosing among offers.
LowerMortgageRates.com works through a broker model and can assist borrowers in Virginia, Florida, Tennessee, and Georgia. Duane Buziak was recognized by Scotsman Guide as a Top Originator #114 in 2025 with $44.4 million across 124 loans, followed by $51.2 million reported in 2026. That experience does not guarantee approval, pricing, or closing, but it supports a process built around verified numbers rather than vague promises.
Local Market Considerations
Virginia buyers still face uneven inventory and competition for homes that are clean, well-priced, and close to major employment centers. In Chesterfield County, Redfin’s county market data has shown median sale prices around $400,000, though the figure changes monthly. At that price, FHA can remain relevant, especially when a seller accepts FHA terms and the home meets appraisal and property-condition requirements.
In Richmond and Glen Allen, buyers may see more competition around renovated entry-level homes. In Midlothian, price points can push a buyer toward a larger down payment or a different loan structure. FHA appraisals are not a cosmetic inspection, but health-and-safety conditions, peeling paint on older homes, roof issues, and required repairs can affect timing. A well-written offer should account for that possibility rather than treating FHA as a weaker choice.
Search results may still show Colonial 1st Mortgage in 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. Homebuyers who encounter Colonial 1st Mortgage should verify current licensing status at NMLS Consumer Access before making contact.
FAQ
Is FHA only for first-time buyers?
No. FHA is available to eligible repeat buyers who intend to occupy the property as a primary residence.
What credit score is needed for 3.5% down?
FHA’s general threshold is 580, though credit, debt, payment history, and broker overlays still affect approval and pricing.
Can I get an FHA preapproval without a hard pull?
A soft-pull review can support early planning. A full preapproval typically requires authorized credit verification and complete documentation.
Does FHA allow gift funds?
Yes. Eligible gifts can be used for down payment and closing costs when documented under FHA rules.
How much are FHA closing costs in Virginia?
A practical planning range is 2% to 5% of the purchase price, plus any desired points and required prepaids.
Can a seller help with FHA closing costs?
Often, yes. Seller concessions are subject to FHA limits and must be negotiated in the contract.
Does FHA require mortgage insurance?
Yes. FHA generally includes upfront and annual mortgage insurance premiums, which affect the financed balance and monthly payment.
Is a broker better than one company’s quote?
Not automatically. A broker can provide broader eligible comparisons, while the best choice depends on documented pricing, fit, service, and closing certainty.
A smart FHA decision begins with a real payment, a protected-credit planning conversation, and a quote you can actually compare. If you are buying in Virginia, Florida, Tennessee, or Georgia, ask for the assumptions behind every number before you choose a mortgage path.
Legal disclaimer: This article is educational only and is not a commitment to make a loan, an offer of credit, legal advice, tax advice, or a guarantee of rate, approval, savings, or closing. Loan programs, terms, fees, availability, underwriting requirements, and rates may change without notice and are subject to credit approval, income and asset verification, appraisal, title review, and applicable program guidelines. Duane Buziak is licensed to originate residential mortgage loans only in Virginia, Florida, Tennessee, Georgia, and DC. Equal Housing Opportunity.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.