Current FHA guidelines, updated from one source.
This snapshot carries the FHA purchase parameters: the minimum required investment, the decision score that opens maximum financing, the upfront and annual mortgage insurance, and the manual qualifying ratios, each read from Lendmire’s guideline source.
Up to 96.5% loan-to-value on a purchase
HUD sets the minimum required investment at 3.5% of the lesser of the price and the appraised value, which puts the purchase loan at up to 96.5% loan-to-value; the entire investment may come from an acceptable gift.
Decision score for maximum financing
A decision score of 580 or higher is eligible for maximum financing; HUD’s rules allow lower scores at reduced leverage, but the wholesale programs Lendmire places FHA loans with start at 580, so that is the working floor.
Plus 0.50%–0.55% a year on most thirty-year loans
Two premiums insure the loan: an upfront premium of 1.75% of the base loan, usually financed, and an annual premium of 0.50%–0.55% on most thirty-year loans, paid monthly and lasting eleven years when the loan starts at or below ninety percent leverage, otherwise for the term.
Housing and total debt, manual reference
Housing and total debt ratios of 31/43 need no compensating factors; higher ratios are approvable with the factors in the ladder below, and files scored by HUD’s automated system follow the system’s finding rather than the manual table.
| Decision score | Housing / total | Compensating factors |
|---|---|---|
| 500–579 or no credit score | 31% / 43% | not applicable — ratios may not exceed 31/43 (energy efficient homes 33/45) |
| 580 and above | 31% / 43% | no compensating factors required (energy efficient homes 33/45) |
| 580 and above | 37% / 47% | one of: verified and documented cash reserves; minimal increase in housing payment; residual income |
| 580 and above | 40% / 40% | no discretionary debt |
| 580 and above | 40% / 50% | two of: verified cash reserves; minimal increase in housing payment; significant additional income not reflected in effective income; residual income |
| Base loan | Leverage | Annual premium | Duration |
|---|---|---|---|
| Standard base loan amounts | at or below 90% LTV | 0.50% | 11 years |
| Standard base loan amounts | above 90% to 95% LTV | 0.50% | mortgage term |
| Standard base loan amounts | above 95% LTV | 0.55% | mortgage term |
| Larger base loan amounts | at or below 90% LTV | 0.70% | 11 years |
| Larger base loan amounts | above 90% to 95% LTV | 0.70% | mortgage term |
| Larger base loan amounts | above 95% LTV | 0.75% | mortgage term |
Refinances: rate-and-term to 97.75% loan-to-value on a home occupied for the past year; cash-out to 80% after twelve months of ownership and occupancy; streamline refinances of an existing FHA loan without an appraisal. Sellers and other interested parties may contribute up to 6% of the price toward closing costs; the entire minimum investment may be a gift.
Current FHA snapshot · updated October 1, 2026 · owner-occupied principal residences, one to four units · county loan limits apply — ask a Lendmire loan officer for the limit where you are buying · FHA loans are assumable · Lendmire is not affiliated with FHA or HUD.
Informational only; not a commitment to lend, an approval, or a quote. Every figure on this page is a program parameter read from Lendmire’s guideline source, built on HUD’s handbook, and may change without notice; eligibility, the loan amount, the premiums, and the ratios depend on the credit profile, the appraisal, the property, the county limit, and full underwriting. A licensed loan officer provides the terms for a specific loan in writing. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of FHA, HUD, or the federal government. Lendmire, LLC, NMLS #2371349. Equal Housing Opportunity.
What an FHA loan is — and how the file is qualified.
An FHA file in Virginia is built from four pieces: the minimum required investment, the decision score, the mortgage insurance, and the qualifying ratios. Each has a rule, and each rule has a reason, which the cards below explain.
For the program overview, see Lendmire’s FHA loan program; for help with the minimum investment, the down payment assistance program.
The minimum required investment
HUD requires the buyer to invest a set share of the lesser of the price and the appraised value; the loan covers the rest. On a Virginia purchase the investment can be the buyer’s own savings, a gift from a family member or another acceptable donor, or approved secondary financing, and closing costs are separate from it.
The decision score sets the leverage
The decision score is the lowest of the borrowers’ middle scores. At the maximum-financing threshold and above, a Virginia buyer reaches the full purchase leverage; HUD allows lower scores at reduced leverage, but the wholesale programs behind these pages start at the threshold, so that is the practical floor.
Two premiums: upfront and annual
The annual premium is where FHA and conventional diverge most: private mortgage insurance on a conventional loan cancels as equity grows, while the FHA annual premium on a full-leverage thirty-year loan lasts for the term. A Virginia buyer who expects to refinance out of FHA later treats the premium as a bridge.
Qualifying ratios and compensating factors
FHA measures the housing payment and the total debt against effective income. The manual reference ratios need no compensating factors; documented cash reserves, a minimal increase in the housing payment, residual income, or significant income not counted as effective income stretch them tier by tier, as the ladder in the snapshot shows.
This is the same arithmetic the lender runs on a Virginia file. The moving parts are the price, which the appraisal may lower, the down payment, which can be a gift, and the rate, which the lender sets at lock; the premium schedule does not move.
Where Virginia’s first-time and moderate-income buyers shop — and how FHA fits.
Affordability in Virginia is a statewide picture made of local ones: values, ownership, and incomes differ from one market to the next, and each shapes the FHA files written there. The figures below come from the U.S. Census Bureau.
Statewide figures provide general market context, not an appraisal or an income calculation. A high median value means a larger minimum investment and a larger premium in dollars; a modest median value means a file that clears the county limit easily. Neither changes the program’s percentages, only what they amount to.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Virginia’s FHA buyers shop — market by market.
Six Virginia markets, each with its own price picture and its own guide. The minimum investment, the decision score, and the premium schedule do not change from one to the next; the prices, the county limits, and the typical files do.
Virginia Beach
Virginia Beach holds one of the largest pools of owner households among Lendmire’s Virginia markets — roughly 117,165, about 65% of households — a metropolitan market where FHA financing is the everyday route into a first home. Census context: median value near $382,500, median household income near $92,968, population near 456K.
Chesapeake
Roughly 69,615 Chesapeake households own their homes (74% of the total), which makes it a metropolitan market where FHA purchases close across a wide range of prices and property types. Census context: median value near $378,400, median household income near $95,373, population near 253K.
Arlington
In Arlington, owner households number near 46,221, about 41% of households, and the metropolitan market there produces a steady flow of FHA purchases and refinances. Census context: median value near $895,000, median household income near $142,114, population near 236K.
Richmond
Roughly 45,407 Richmond households own their homes (44% of the total), which makes it a metropolitan market where FHA purchases close across a wide range of prices and property types. Census context: median value near $353,000, median household income near $64,587, population near 229K.
Norfolk
In Norfolk, owner households number near 44,000, about 46% of households, and the metropolitan market there produces a steady flow of FHA purchases and refinances. Census context: median value near $289,900, median household income near $66,109, population near 234K.
Newport News
In Newport News, owner households number near 36,655, about 48% of households, and the metropolitan market there produces a steady flow of FHA purchases and refinances. Census context: median value near $260,600, median household income near $69,634, population near 184K.
From the largest Virginia market to the smallest, an FHA loan is qualified the same way: price, investment, decision score, ratios, appraisal, and occupancy. The county limit sets the ceiling on the loan amount everywhere in the county, and it is confirmed for each file.
Four ways Virginia buyers put an FHA loan to work.
Virginia borrowers use FHA for a handful of reasons that repeat: the first purchase with a small investment, the purchase on a recovering credit profile, the refinance of an existing FHA loan, and the cash-out refinance on a home with equity.
Buy a first home with the minimum investment
For a first purchase in Virginia, FHA pairs a small investment with a forgiving score and a ratio ladder that stretches with compensating factors; the file closes on the appraisal, the income, and the decision score.
Buy a condominium in an approved project
An FHA condominium file in Virginia adds one step to the house file: the project review. Approved projects and single-unit approvals both work, dues count in the ratios, and the minimum investment and premiums are unchanged.
Take cash out of a home with equity
Cash-out on FHA is a full refinance of the first mortgage at the program’s cash-out leverage after a year of ownership and occupancy. A Virginia owner weighs it against a home equity line, which keeps the existing first mortgage in place.
Buy a small multi-unit home and live in one unit
A duplex, triplex, or fourplex in Virginia is an FHA purchase when the buyer occupies one unit. The investment is the same small share of the price, and the rental income from the other units is documented toward the ratios under HUD’s multi-unit rules.
Estimate the FHA payment on a Virginia price before requesting a quote.
Use this to see what a Virginia FHA purchase costs each month at the program’s leverage: it applies the upfront premium to the base loan, the annual premium for the term and leverage, and the escrows, then measures the ratios against any income you enter. The rate is the weekly Freddie Mac average, editable, and not a quote.
Virginia FHA payment estimate
Seeded from Virginia’s median value at the program minimum; every field is editable and the result updates as you type.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $385,000 price near Virginia’s median owner-occupied home value (kept where an FHA loan is realistic in most counties), the FHA minimum investment as the down payment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Virginia (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; county loan limits are not checked here. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of FHA, HUD, or the federal government.
Same buyer, three very different closings.
The same buyer can often close three ways, and the structures differ more than the headlines suggest: FHA with its insurance schedule, a conventional loan with private mortgage insurance that cancels, or a VA loan for an eligible borrower with no mortgage insurance at all.
FHA, conventional with mortgage insurance, or VA.
FHA fits the Virginia buyer whose profile a conventional file would turn away or price heavily: the leverage is high, the score threshold is low, and the premiums do not rise with a weaker score. The cost is insurance that stays for the term at full leverage.
Where FHA charges by schedule, conventional charges by score. A Virginia buyer with strong credit and a small down payment may find the private premium smaller and the payment lower; a buyer with a modest score will not. See Lendmire’s conventional loan program.
A Virginia buyer with VA eligibility rarely needs FHA: the VA loan carries no down payment and no monthly insurance, and the funding fee is the only program cost. FHA is the fallback where entitlement is used up or the property does not fit. See Lendmire’s VA loan program.
Choose by profile: a modest score and a small down payment point to FHA; a strong score points to conventional; VA eligibility points to VA. A Virginia loan officer runs all three on the same numbers before recommending one.
What to prepare for a Virginia scenario review.
An FHA file is documented more fully than a streamline refinance; the items below are what a Virginia scenario review typically draws on.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the credit profile, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
A few local and structural details change the size of a Virginia FHA loan, or whether the file is eligible at all. The ones that come up most often are below.
Use these checks to keep the Virginia file clean and fundable.
The checklist is short because the program is specific: the score, the premiums, and the property decide most Virginia files before income is even reviewed.
- Confirm the score: the threshold in the snapshot opens maximum financing and the ratio ladder.
- Know the premium: at full leverage the annual premium runs for the term of a thirty-year loan.
- Structure the contract: contributions above the limit reduce the price for loan-sizing.
The decision score decides the leverage
Two borrowers, two sets of scores, one decision score: the lowest of the middle scores. A Virginia couple with one weak file is read on that file, which is why the score is confirmed from the lender’s report before anything is sized or any offer is written.
How long the annual premium runs
The duration of the annual premium is set by the leverage at origination, not by the equity that follows. A Virginia buyer who puts down ten percent or more sees the premium end after eleven years; at the minimum investment it stays for the term on a thirty-year loan.
Seller contributions and the minimum investment
Two sources, two rules: the minimum investment comes from the buyer or a gift, never the seller; closing costs can come from the seller up to the limit. Structured that way, a Virginia purchase can close with cash to close near the investment alone.
Ratios, compensating factors, and effective income
Files scored by HUD’s automated system follow the system’s finding, which commonly allows higher ratios than the manual table; a Virginia file that the system refers to manual underwriting is read against the ladder instead.
Two- to four-unit homes and rental income
The multi-unit Virginia purchase is an FHA specialty, with two things to plan: the buyer must occupy one unit, and the rental income from the others is documented and counted the way HUD allows, which is less than the full rent.
From a Virginia pre-approval to keys in hand.
The Virginia process is a standard mortgage process with FHA’s checks layered on: the decision score, the property standards, the project approval where it applies, and the premium schedule. Here is what happens at each step and what the buyer does.
Pre-approval
Start with the decision score, the income, and the down payment. A Lendmire loan officer confirms the leverage, the ratios, and the county limit, runs the FHA structure against conventional and VA on the same numbers, and provides the terms in writing.
Contract and appraisal
The appraisal is the FHA step that surprises buyers most: it reports on condition as well as value. Required repairs are negotiated with the seller, and a low value raises the investment; the Virginia contract is adjusted or the file moves on.
Underwriting
Underwriting on a Virginia FHA file reads the whole picture: the decision score, the housing payment history, the seasoning of any derogatory event, the gift documentation, and the compensating factors that support the ratios. Conditions are issued, documented, and cleared before the approval is final.
Closing
The Virginia closing applies the program’s structure: the financed upfront premium, the monthly annual premium, and the escrow account. The buyer moves in within two months and keeps the home as a principal residence for at least a year.
A brokerage that matches the program to the buyer.
A brokerage sees several wholesale programs and all three government and agency routes; a single lender sees its own. For a Virginia buyer that difference shows up in which program is recommended, because Lendmire runs them side by side and says which one costs less.
Three programs, one set of numbers
A single-program lender recommends its program; a brokerage recommends the one that fits. For a Virginia buyer with a modest score that is usually FHA, with a strong score often conventional, with eligibility almost always VA.
The premium explained before the offer
No Virginia buyer should learn at the closing table that the premium lasts for the term. The loan officer walks through the upfront premium, the annual premium, and the duration for the leverage chosen, and shows the conventional alternative on the same numbers.
Licensed, consumer-purpose, in writing
The parameters on this page are HUD’s and the wholesale overlays’; the terms for a specific Virginia loan come from a licensed loan officer, in writing, after the review. Lendmire is a broker, never the lender, and not affiliated with the federal government.
Trusted by first-time buyers & families alike.
Virginia FHA loan FAQs
What an FHA loan is, how much it takes to buy, what score it needs, what the mortgage insurance costs, and how the county limit works, answered for Virginia buyers.
What is an FHA loan, and who is it for?
FHA is HUD’s insurance program for home loans, not a lender. A Virginia buyer applies through a lender or broker, the lender follows HUD’s rules, and HUD insures the loan. The program is built for first purchases and recovering credit, and it also refinances existing FHA loans.
How much do I need to put down on an FHA loan in Virginia?
The investment is the program’s minimum, applied to the lesser of price and appraised value. Putting down more lowers the premium’s duration: a loan that starts at or below ninety percent leverage sees the annual premium end after eleven years.
What credit score do I need for an FHA loan?
A decision score at or above the snapshot’s threshold reaches the full purchase leverage. The score is the lender’s, not an app’s, and the file is read as a whole: housing payment history and seasoning after any credit event matter as much as the number.
How does FHA mortgage insurance work, and how long do I pay it?
Two premiums: an upfront premium, a share of the base loan that is usually financed into the total, and an annual premium charged monthly, set by HUD’s schedule for the term, the leverage, and the loan size. On a thirty-year loan at full leverage the annual premium runs for the term; it ends after eleven years only when the loan started at or below ninety percent loan-to-value.
What is the FHA loan limit in Virginia?
The limit is set by county and revised each year, so ask a loan officer for the current figure where you are buying. It caps the loan, not the price: a Virginia buyer above the limit brings the difference as a larger investment or moves to a conventional loan.
What happens after my Virginia offer is accepted?
Appraisal, underwriting, conditions, closing. The appraisal values the home and checks HUD’s property standards; underwriting reads the whole file; closing adds the upfront premium to the loan and starts the annual premium with the first payment.
Do I have to live in the home to use an FHA loan?
FHA insures owner-occupied homes only. Occupancy is documented at closing and expected to last at least a year; a non-occupying co-borrower is allowed, but someone on the loan has to live in the Virginia home.
How does an FHA refinance work?
The streamline is the simplest: no appraisal, limited credit review, a net tangible benefit, and the existing loan’s payment history as the test. Rate-and-term and cash-out refinances take an appraisal and full underwriting.
What debt-to-income ratio does FHA allow?
It depends on the underwriting path and the compensating factors. The snapshot ladder shows the manual tiers; a Virginia file scored by HUD’s system follows the system’s finding. Enter income in the calculator to see where a scenario lands against the reference pair.
Is an FHA loan assumable?
FHA loans are assumable with lender approval of the new borrower. The feature costs nothing at origination and can matter years later when the home is sold.
Buy in Virginia with the minimum investment and a clear view of the premiums.
A Virginia FHA purchase begins with a conversation about the score, the investment, and the price. Lendmire compares the programs and puts the one that fits in writing.
This guide covers Virginia — for the program overview, see Lendmire’s FHA loan program.
All Virginia city guides (6): Arlington · Chesapeake · Newport News · Norfolk · Richmond · Virginia Beach
Related programs: Down Payment Assistance · FHA 203(k) Rehab Loans · Conventional Loans