First-Time Home Buyer Loan Programs in Virginia (2027)
Most first-time buyers in Virginia use one of five loan types: FHA (3.5% down with a 580+ score), VA (no down payment for eligible veterans and service members), USDA (no down payment in eligible rural areas), a 3%-down conventional loan, or one of those loans made through Virginia Housing, the state housing finance agency. The loan decides which grant you can add; see our Virginia down payment assistance guide. Figures were checked October 29, 2026. The 2027 loan limits are not out yet, so the 2026 HUD and FHFA limits for Hampton Roads are shown.
Key takeaways at a glance
- FHA, VA, USDA and 3%-down conventional are the main low-down-payment loans. Most do not require first-time buyer status.
- 2026 Hampton Roads limits: $757,850 (FHA, one unit) and $832,750 (conforming). VA has no limit with full entitlement.
- Virginia Housing makes FHA, VA, USDA and conventional loans; its bond loans pair with its grants, one option per purchase.
- The Mortgage Credit Certificate (MCC) is suspended.
| Program | Min Down | Min Credit | Mortgage Insurance | Max Seller Concession |
|---|---|---|---|---|
| VA | $0 | None set by VA (lender sets) | None; one-time funding fee (2.15% first use, under 5% down) | Closing costs unlimited, plus up to 4% in concessions |
| USDA | $0 | None set by USDA (lender sets) | 1% upfront + 0.35% annual fee (FY2027) | 6% |
| FHA | 3.5% | 580 (or 500/10%) | 1.75% upfront + 0.55% annual, life of loan under 10% down | 6% |
| Conventional 97 | 3% | Set by lender and underwriting system | PMI, ends automatically at 78% of original value | 3% |
| Virginia Housing | 0–3.5% | 620 (FHA/VA/USDA), 640 (conventional) | Same as underlying loan type | Same as underlying loan type |
In this guide
FHA loan
FHA loans need 3.5% down with a credit score of 580 or higher, or 10% down with 500 to 579, and are open to repeat buyers. Mortgage insurance is a 1.75% upfront premium (it can be financed) plus 0.55% a year on a 30-year loan of up to $726,200 with 3.5% down, for the life of the loan; with 10% or more down it ends after 11 years. On a $325,000 home that is about $5,488 upfront and $144 a month in year one. Sellers can pay up to 6% of the price toward closing costs, prepaids and points.
The 2026 one-unit FHA limit is $757,850 across the Virginia Beach-Chesapeake-Norfolk metro area, which covers every Hampton Roads city plus James City, York, Gloucester, Isle of Wight, Mathews and Surry counties. From January 1, 2027, FHA lenders can also use FICO 10T and VantageScore 4.0 scores, with the same 500 and 580 thresholds. See our FHA loan guide.
VA loan
Eligible veterans, service members and surviving spouses can buy with no down payment when the price does not exceed the appraised value, with no monthly mortgage insurance. With full entitlement there is no VA loan limit, and VA sets no minimum credit score (lenders do). The cost is a one-time funding fee: 2.15% on first use with under 5% down ($6,988 on a $325,000 loan), 3.3% on later use, and 1.5% or 1.25% with 5% or 10% down. It can be financed, and buyers receiving VA disability compensation are exempt. Sellers can pay all normal closing costs plus concessions of up to 4% of reasonable value. See our VA loan guide for Hampton Roads and VA funding fee breakdown.
Conventional 97, HomeReady and Home Possible
Fannie Mae and Freddie Mac allow 3% down through four routes:
- Fannie Mae standard 97% LTV and Freddie Mac HomeOne: at least one borrower must be a first-time buyer (no home owned in 3 years). No income limit.
- Fannie Mae HomeReady and Freddie Mac Home Possible: income at or below 80% of area median, repeat buyers allowed, reduced mortgage insurance. HomeReady adds a $2,500 credit for very low-income first-time buyers.
If every borrower is a first-time buyer, one must take homeownership education. PMI can be cancelled on request at 80% of the original value and ends automatically at 78%, the main long-run edge over FHA. With under 10% down, seller concessions are capped at 3%. Fannie Mae dropped its fixed 620 minimum score for Desktop Underwriter files created from November 16, 2025, but lenders keep their own minimums (Virginia Housing conventional: 640). The 2026 conforming limit in Hampton Roads is $832,750. See our conventional loan guide.
USDA loan
USDA guaranteed loans need no down payment on a primary residence in an eligible rural area, for households earning no more than 115% of area median income, first-time or not. Eligibility is set address by address on USDA's map, so check a home before you offer. For fiscal year 2027 (October 1, 2026 to September 30, 2027) the fees are 1% upfront and 0.35% a year. USDA sets no minimum score, so lenders do (Virginia Housing: 620), and sellers can contribute up to 6%. See our USDA loan guide.
Virginia Housing loans
Virginia Housing makes FHA, VA, USDA and conventional first mortgages through approved lenders, in two versions (limits effective August 1, 2026):
- Bond loans require first-time buyer status (unless you buy in an Area of Economic Opportunity), Hampton Roads household income of no more than $121,000 for one or two people or $141,000 for three or more, and a price of $575,000 or less. Only bond loans pair with the grants, and they can be subject to a federal recapture tax when you sell; ask your lender for the disclosure.
- Non-bond loans are open to repeat buyers too, with qualifying income up to $175,000 and no Virginia Housing price limit.
Minimum scores are 620 for FHA, VA and USDA and 640 for conventional. First-time buyers must take homebuyer education; Virginia Housing's course is free and the certificate lasts two years. For the DPA Grant, Closing Cost Assistance Grant, Plus Second Mortgage and city programs, see our guide to down payment assistance in Hampton Roads.
How loans and assistance fit together
Cash to close is the down payment plus closing costs, minus any grant and seller credit. On a $325,000 home:
- Virginia Housing FHA bond loan + DPA Grant: 3.5% down is $11,375; the 2.5% grant covers $8,125 and you bring $3,250 plus closing costs (sellers can help up to 6%).
- Virginia Housing conventional bond loan + DPA Grant: 3% down is $9,750; the 2% grant covers $6,500 and you bring $3,250 (seller concessions capped at 3%).
- VA loan: no down payment. The seller can pay closing costs, and on a Virginia Housing VA bond loan the Closing Cost Assistance Grant adds up to $6,500.
Virginia Housing's two grants and Plus Second cannot be combined, but one can pair with an approved city program. Seller help is negotiated, so have your agent and lender run the numbers before you offer. For the full timeline, see our first-time home buyer guide for Hampton Roads.
Frequently Asked Questions
What is the best loan for a first-time home buyer in Virginia?
VA if you are eligible. FHA if your score is below what conventional lenders accept. A 3%-down conventional loan if your credit is strong, since PMI can be removed later. USDA if the address and your income qualify. Then ask whether the Virginia Housing version of that loan adds a grant.
Do I have to be a first-time buyer?
Only for Fannie Mae's standard 97% LTV loan and Freddie Mac HomeOne (at least one borrower) and Virginia Housing bond loans and grants. First-time generally means no home owned in the last 3 years.
What credit score do I need?
580 for FHA with 3.5% down (500 with 10% down). VA and USDA set no minimum, so lenders do. Virginia Housing requires 620, or 640 for conventional. More in what credit score you need to buy a house.
What are the 2027 loan limits?
Not published as of October 29, 2026. FHFA usually announces conforming limits in late November, and HUD then publishes FHA limits. The 2026 one-unit figures in Hampton Roads are $832,750 (conforming) and $757,850 (FHA).
Is the Mortgage Credit Certificate still available?
No. Virginia Housing has suspended its MCC program. Existing MCC holders still claim the credit on IRS Form 8396.
How do I apply for a Virginia Housing loan?
Through a Virginia Housing-approved lender; not every lender is, so ask. Take the homebuyer course early, get preapproved, then shop within the limits. Our Hampton Roads lender list is a starting point.
Have a question about your home purchase?
Talk to a Hampton Roads buyer's agent or loan officer who can walk through your specific situation - no pressure, no obligation.
Sources & further reading
- Virginia Housing: first-time buyer programs
- Virginia Housing: home loans (FHA, VA, USDA, conventional)
- Virginia Housing: income and sales price / loan limits
- HUD: FHA mortgage limits lookup
- HUD: FHA minimum credit score
- HUD: Mortgagee Letter 2026-11 (alternative credit scores from 2027)
- VA: Home Loan Programs
- VA: Funding fee and closing costs
- USDA: Single Family Housing Guaranteed Loan Program
- USDA Rural Development: FY2027 guarantee fees (Sept. 16, 2026)
- FHFA: 2026 conforming loan limits
- Fannie Mae: HomeReady
- Fannie Mae: 97% LTV options FAQ
- Freddie Mac: Home Possible
- Freddie Mac: HomeOne
- CFPB: When PMI can be removed
- HUD: Buying a home
- CFPB: Mortgage loan options
Loan rules and limits checked on official HUD, VA, USDA, FHFA, Fannie Mae, Freddie Mac, CFPB and Virginia Housing sources on October 29, 2026. 2027 conforming and FHA limits were not yet published. Confirm current details with your lender before relying on any figure.
About the Author
Tom & Dariya Milan are a husband-and-wife team of licensed Virginia real estate agents serving Hampton Roads since 2005. Tom handles listing strategy, pricing and negotiation; Dariya handles buyers, contract-to-close and relocations. Their closings and reviews, pulled from the MLS, are on the About page. Brokered by LPT Realty. Call (757) 777-7577 or email tom@vahome.com.
About the Hampton Roads Real Estate Market
Hampton Roads is one of the most dynamic real estate markets on the East Coast, anchored by the largest naval complex in the world at Naval Station Norfolk and home to roughly 120,000 active-duty, reserve, and civilian Department of Defense personnel. The region spans seven cities — Virginia Beach, Norfolk, Chesapeake, Suffolk, Portsmouth, Hampton, and Newport News — plus the Peninsula communities of Williamsburg, Yorktown, and Poquoson, with each market carrying its own personality, school district, and price profile.
Buying or selling here means thinking about more than just a house. Tidewater geography means flood zones, hurricane preparation, and waterfront premiums matter. Military presence means BAH affordability, PCS season inventory crunches (May through August), and VA loan eligibility are top of mind for a meaningful share of every neighborhood. School quality varies block by block, especially across the seven independent city school divisions, and is often the deciding factor for relocating families.
Why Buyers and Sellers Choose VaHome
Tom & Dariya Milan, Realtors focus on the Hampton Roads region with deep expertise in military relocation, VA financing, and the trade-offs that local buyers actually face. From listing strategy that gets your home in front of the right relocating buyer to buyer representation that respects your BAH cap and PCS timeline, the team treats every transaction as a long-term relationship. The site is built to make decisions clearer: BAH-aware search, drive-time mapping to every major installation, neighborhood guides written by people who live here, and a calculator that shows real monthly cost — taxes, insurance, HOA, and PMI included — instead of a teaser headline number. Brokered by LPT Realty.
Plan Your Next Move
Whether you are buying your first home with a VA loan, moving up while your kids transition between school districts, or selling a Hampton Roads property to relocate to your next duty station, the resources on this site are organized around the questions you are actually asking. Browse listings filtered by base proximity, paygrade-aware BAH cap, and commute time. Read neighborhood guides for Virginia Beach, Norfolk, Chesapeake, Suffolk, Hampton, Newport News, Williamsburg, and the Peninsula communities. Use the mortgage calculator to compare conventional, FHA, VA, USDA, and jumbo loan scenarios side by side. When you are ready to talk, the contact form goes directly to a specialist who knows the area, the lenders, and the timing.