Home Loans in Virginia

Key Takeaways

• Minimum credit score for most Virginia home loans: 620+ (FHA allows as low as 580). VA and USDA loans have flexible credit guidelines (lenders often look for ~620).
• Typical down payment: Conventional loans 3%–5% (as low as 3% for first-time buyers, FHA 3.5% (with 580+ credit), VA and USDA 0% (no down payment required).
• Average 30-year fixed mortgage rate in Virginia: ~6.22% as of late 2025 (15-year fixed ~5.50%). Rates have moderated from recent highs, giving buyers a chance to refinance if rates drop later.
• Median home price: ~$375,000 in Richmond, ~$405,000 in Virginia Beach, and ~$700,000 in Arlington (higher in Northern Virginia’s DC suburbs). Prices are rising modestly, not skyrocketing.
• Debt-to-Income (DTI) ratio: Typically ≤45% for most loans (some programs allow slightly higher with strong compensating factors).
• Virginia Housing (formerly VHDA): The state housing finance agency provides affordable loans, down payment assistance grants, and mortgage tax credits for eligible first-time buyers. Truss Financial Group is an approved Virginia Housing partner and can help you access these programs.
• Property tax rate: ~0.80% of assessed home value on average, which is below the national average (~1.0%). Virginia’s relatively low property taxes help keep monthly housing costs manageable.
• Closing timeline: Usually 30–45 days from contract to closing. Getting pre-approved and having documents ready can ensure a smooth 1–2 month closing period.
• Loan programs offered by Truss Financial Group: Conventional, FHA, VA, USDA, Jumbo, Virginia Housing (state programs), and Bank Statement loans (for self-employed borrowers). This full suite of options means we can tailor financing for your situation, including first-time buyer programs and alternatives for those who are self-employed.

Areas We Serve: Richmond, Virginia Beach, Norfolk, Arlington, Alexandria, Chesapeake, Roanoke, Lynchburg, Charlottesville, and surrounding Virginia communities.

How Do Home Loans Work in Virginia?

In Virginia, the home loan process follows the same basic steps as in other states, with a few local options to assist buyers. The journey typically begins with preapproval, where a lender evaluates your income, assets, and credit to determine how much you can afford. With a preapproval letter in hand, you can house-hunt confidently.

Once you have an accepted offer on a property, the loan moves into underwriting – this is when the lender’s team verifies all your financial details and orders an appraisal to confirm the home’s value.

Finally comes closing, where you sign the paperwork and get the keys. The table below outlines the key steps and typical timeline for a Virginia home purchase:

How long does it take to buy a home in Virginia?

Most loans close within 30–45 days after the purchase contract is signed. This can vary – VA and USDA loans might be on the longer end, whereas a well-prepared conventional loan could close in about 30 days. Working closely with your lender (and promptly providing any requested documents) helps keep things on track.

What Are the Requirements to Buy a Home in Virginia?

Prospective homebuyers in Virginia should meet certain baseline requirements to qualify for a mortgage. While exact criteria differ by loan program, here are the typical standards:

Can self-employed borrowers qualify?

Yes. Truss Financial Group offers alternative documentation loans (like Bank Statement programs) for self-employed buyers. Instead of W-2s, these loans use 12–24 months of bank statements or verified asset deposits to document your income.

In other words, even if your tax returns show low net income due to business write-offs, we can often qualify you based on actual cash flow. Self-employed borrowers should also have a solid credit profile and typically need at least 10–20% down for these portfolio loan options.

What Home Loan Options Does Truss Financial Group Offer in Virginia?

Truss Financial Group provides a wide range of home loan programs to meet the needs of Virginia buyers. Here’s an overview of the main loan types and their key features:

Note: Truss can also assist with refinance loans (rate-term refinances to lower your rate or payment, and cash-out refinances to tap home equity). We serve all of Virginia, so whether you’re in the heart of NOVA or down in Hampton Roads, you have access to these loan products.

Buying a House in Virginia: What to Expect

Virginia offers diverse housing options – from rural properties in the Shenandoah Valley, to suburban homes in Fairfax, to beachside houses in Virginia Beach. Home prices vary widely by region.

For example, the median sale price is about $375,000 in Richmond, $405,000 in Virginia Beach, and around $700,000 in Arlington (Northern VA). Below is an illustration of what a home purchase might look like in different Virginia markets, including a 10% down payment and estimated monthly mortgage payment:

Assumes a 6.22% interest rate on a 30-year fixed mortgage. Estimated payments include principal and interest only.

As shown above, a larger down payment reduces your loan amount and monthly payment. In practice, many Virginia buyers (especially first-timers) put down between 0% and 5%, depending on the loan program. Keep in mind that property taxes and insurance will be added to your monthly payment as well (more on those below).

What are average closing costs in Virginia?

Buyers should budget roughly 2%–5% of the purchase price for closing costs in Virginia. For example, on a $300,000 home, that’s about $6,000–$15,000 in closing fees. These costs include things like lender origination fees, title insurance, transfer taxes, and escrow/prepaid items.

The range varies based on your location (different counties/cities have different taxes) and lender (some lenders charge more fees than others). Seller concessions or Virginia Housing grants can sometimes offset these costs.

What Credit Score Is Needed to Buy a House in Virginia?

Credit score requirements depend on the type of loan. Generally, here’s what you’ll need for various mortgage programs in Virginia:

• Conventional Loan: 620+ (minimum for most conforming conventional loans; a 740+ score will get the best rates).
• FHA Loan: 580+ (for 3.5% down payment eligibility. Scores 500–579 might be approved with 10% down, but many lenders set their own higher minimum).
• VA / USDA Loan: Flexible. The VA does not impose a minimum FICO score, and USDA also doesn’t have a hard minimum, but most lenders require around a 620 for VA and ~640 for USDA to approve these loans.
• Virginia Housing Programs: 640+ (Virginia Housing, formerly VHDA, typically requires at least 640 for its conventional programs, and 620 for FHA/VA loans. Additionally, applicants must meet income and home price limits and complete a homebuyer education class.)

Pro Tip: If your credit is in the fair range (say, low 600s), you can still become a homeowner. Truss Financial Group works with FHA and Virginia Housing programs that are designed to help buyers with moderate credit scores qualify.

For instance, FHA’s 580 threshold and Virginia Housing’s flexible underwriting can open the door for borrowers who don’t have perfect credit. We can also offer guidance on credit improvement and even pair you with down payment assistance to strengthen your overall file.

How Much Money Do You Need to Buy a House in Virginia?

Aside from the mortgage itself, buying a home comes with several upfront and ongoing costs. Here’s a breakdown of the typical expenses and how they stack up in Virginia:

When budgeting, also consider moving expenses, any immediate repairs or furnishings, and the fact that you’ll need an earnest money deposit (perhaps $1,000–$5,000) when you make an offer (this becomes part of your down payment at closing). Overall, one advantage of buying in Virginia is that ongoing costs like taxes and insurance tend to be moderate compared to many other states.

What Are the Current Mortgage Rates in Virginia?

Mortgage rates change daily and can vary by lender, but Virginia’s rates generally track the national averages closely. As of early November 2025, average interest rates for popular loan terms are approximately:

Rates quoted are averages and assume a primary residence with excellent credit. APR includes lender fees/points.

To put these numbers in perspective, a 30-year fixed rate around 6.2% is much lower than the double-digit rates Virginia homebuyers faced in the 1980s, but higher than the 3–4% rates seen in 2020–2021. In late 2025, the Federal Reserve’s efforts to tame inflation have brought rates off their peak highs and affordability is slowly improving. Many experts expect rates to decline modestly by the end of 2025 (perhaps into the 5% range), which means buyers who purchase now could have an opportunity to refinance into a lower rate in the future.

How do Truss Financial Group’s rates compare in Virginia?

Truss offers highly competitive rates, often at or below national averages, because we work with a variety of wholesale lending partners. We also customize our loan programs to your needs – for example, we might secure a below-market rate through a Virginia Housing program or use lender credits to offset closing costs. Our goal is to get you the best overall loan value, not just a low rate but also low fees. You can request a personalized rate quote anytime to see how we compare.

What First-Time Home Buyer Programs Are Available in Virginia?

First-time buyers in Virginia have access to special programs through Virginia Housing (formerly Virginia Housing Development Authority, VHDA). Truss Financial Group partners with Virginia Housing to help eligible buyers tap into these resources. Here are the primary programs to know:

• Down Payment Assistance (DPA) Grant:

Provides up to 2.0%–2.5% of the home’s purchase price as a grant. This money can cover your down payment (and in some cases closing costs). The best part – it’s a true grant, so it never has to be repaid. To qualify, you must be a first-time buyer (or buying in a targeted area), meet income and sales price limits, and use a Virginia Housing loan.

Key Benefit: Lowers the upfront cash needed. Essentially, you could buy a house with as little as 1% of your own funds (for conventional) or even $0 in some cases, thanks to the grant covering the rest of the minimum down payment.

• Mortgage Credit Certificate (MCC):

Provides an annual federal tax credit for a portion of your mortgage interest. An MCC can give you a dollar-for-dollar tax credit each year, worth up to $2,000 per year off your federal taxes. This program was aimed at first-time buyers to increase affordability. (Note: As of 2023, Virginia Housing has paused new MCCs due to federal funding, but existing certificate holders can still claim the credit. Future availability of MCCs will depend on legislation.)

Key Benefit: Puts money back in your pocket at tax time – effectively reducing your cost of owning a home by up to $166 per month via lower taxes.

• Plus Second Mortgage (Plus DPA Loan):

A 0% interest, deferred second loan to cover down payment. Virginia Housing’s “Plus Second” program allows eligible buyers to finance 3%–5% of the purchase price as a second mortgage. This second loan has no monthly payments and 0% interest; it is repaid only when you sell or refinance the home. It’s often used in combination with a Virginia Housing first mortgage. For instance, on a $300,000 home, a 3% Plus Second ($9,000) could cover the entire FHA down payment, letting you buy with no money down out-of-pocket.

Key Benefit: No down payment required. The Plus Second mortgage effectively acts as an interest-free loan for your down payment, significantly lowering the cash barrier to homeownership.

Virginia Housing programs require that you occupy the home as a primary residence and fall within certain income limits (which vary by region and household size). Who qualifies for Virginia Housing assistance? Generally, an eligible buyer is a first-time homebuyer with a decent credit history (typically 640+ FICO) and income below the program’s limit, purchasing a home under the sales price cap, and planning to live in the home as their primary residence.

You’ll also need to complete a homebuyer education course. Truss Financial Group will walk you through these requirements and help confirm your eligibility. If you do qualify, these programs can be game-changers – allowing you to buy sooner and with much less cash than you might have thought.

How Much Do You Need for a Down Payment in Virginia?

One of the biggest myths in homebuying is that you need 20% down. In reality, Virginia buyers can often put down far less. Here are the minimum down payments for common loan types:

• Conventional Loan: 3% down for first-time buyers and eligible low-to-moderate income buyers. Repeat buyers usually need 5% down or more. (Putting 20% down will avoid PMI, but it’s not required.)
• FHA Loan: 3.5% down. This applies as long as your credit score is 580 or above. (If credit is 500–579, a 10% down payment is required by FHA.)
• VA Loan: 0% down. No down payment is needed for qualified Veterans, active-duty service members, and some surviving spouses – one of the most significant benefits of a VA loan.
• USDA Loan: 0% down. No down payment for homes in USDA-eligible rural areas. USDA loans are designed for moderate-income buyers outside major urban zones.
• Virginia Housing (VHDA) Loan: 0%–3% down. Virginia Housing offers both 0% down options (with Plus Second mortgages as discussed) and 3% down conventional loans. Many VHDA borrowers use the DPA grant or second mortgage to bring their effective down payment to zero.

As you can see, you might not need much or any down payment to buy a home in Virginia. For example, if you’re a first-time buyer using a Virginia Housing conventional loan, you could put 3% down, or even combine a 2.5% DPA grant with 1% of your own funds. Veterans and USDA-qualified buyers can finance 100% of the purchase.

Keep in mind, though, that even with zero down you’ll need to cover closing costs (unless those too are covered by grants or seller credits). It’s always wise to have some savings cushion when purchasing a home, but the notion that you must save tens of thousands for a down payment is happily outdated for many Virginia buyers.

Is It a Good Time to Buy a House in Virginia?

Yes – Virginia’s strong job market, growing economy, and cooling home price appreciation create a favorable environment for buyers in 2025. While every individual’s situation is different, several trends are tilting the scales toward buying:

Virginia’s economy is robust – unemployment is low and incomes are rising. The state added jobs over the past year, and the outlook remains positive. A strong job market gives buyers confidence in their income stability.

Meanwhile, home price gains have moderated to a healthy pace (instead of double-digit jumps), and some buyers who paused their searches are finding opportunities with the slightly better inventory.

Of course, it’s important to assess your personal readiness: do you have steady income, a plan to stay put for a few years, and a financial cushion for homeownership? If so, current conditions indicate it’s a promising time to invest in a home in Virginia.

Real estate is a long-term play; and Virginia’s combination of economic strength and housing demand (driven by factors like government and tech jobs, military presence, and quality of life) make it a solid bet for long-term appreciation.

Apply for Your Virginia Home Loan – Ready to Get Started?

Buying a home is a big step, but you don’t have to navigate it alone. Truss Financial Group is here to guide you through the process from start to finish. We’ll help you compare loan programs, get prequalified for the right amount, and even connect you with Virginia Housing (VHDA) programs if you’re eligible. Our goal is to make your Virginia home purchase as smooth and affordable as possible.

Contact Truss Financial Group today to discuss your options or begin a loan application. Whether you’re looking to buy your first home or your next home, we’re excited to help you achieve your goals in the Old Dominion!

Frequently Asked Questions

What are the main mortgage requirements in Virginia?

The key requirements are credit score, income stability, and manageable debt. In general, you’ll need a credit score of around 620 or higher for most loans (580 for FHA). You should have a stable source of income (lenders like to see 2+ years of employment or consistent earnings in the same field. And your debt-to-income ratio should ideally be below ~45%. Additionally, you’ll need some savings for a down payment (unless using a zero-down program) and closing costs, as well as documentation like pay stubs and tax returns. If you meet these basic criteria, you have a great chance of getting approved for a home loan in VA.

What is Virginia Housing (VHDA) and how does Truss Financial Group work with it?

Virginia Housing is the state’s housing finance agency (formerly known as VHDA). It provides special loan programs for homebuyers such as down payment grants, tax credit certificates, and affordable 30-year fixed mortgages. Virginia Housing’s mission is to make homeownership more accessible for Virginians, particularly first-time buyers and those with moderate incomes. Truss Financial Group is an approved Virginia Housing lender, which means we can offer all of their programs directly to our clients. We’ll help you determine if you qualify (based on income, purchase price, etc.) and handle the application process for the Virginia Housing loans and grants.

Are USDA home loans available in Virginia?

Yes. USDA Rural Development home loans are available across many parts of Virginia. In fact, a large portion of the state is considered “rural” or suburban enough to be USDA-eligible. This includes areas like Winchester, Culpeper, parts of Gloucester County, and many counties outside the immediate DC/Richmond city centers. USDA loans are zero-down mortgages for eligible buyers in these areas, primarily aimed at moderate-income households.

How do property taxes in Virginia compare to other states?

Virginia’s property taxes are relatively low. The average effective property tax rate is about 0.77%–0.80% of the home’s value. This is lower than the U.S. average (around 1.0%–1.1%). For example, a $300,000 house in Virginia might have annual property taxes of roughly $2,400 (though it varies by locality), whereas the same $300k house in New Jersey could be double that. Lower property taxes mean Virginia homeowners generally enjoy more affordable monthly housing payments than buyers in many high-tax states.

Can Truss Financial Group help with refinancing in Virginia?

Absolutely. We don’t just handle purchase loans, we also specialize in refinancing for Virginia homeowners. Whether you want to lower your interest rate, shorten your loan term (e.g., from 30 years to 15 years), or take cash out from your home’s equity for improvements or other needs, Truss can assist.