On a $400,000 Virginia home, a buyer putting 5% down borrows $380,000. At 6.75% on a 30-year fixed conventional loan, principal and interest is about $2,465 per month. At 7.00%, it rises to about $2,528 – a $63 monthly difference and roughly $3,780 over five years before considering the faster principal reduction at the lower rate. If the broker fee were 0.30% of the loan amount, that is $1,140. Add the average $2,000 savings available through our preferred title company, and the dollars are no longer abstract. A conventional mortgage Virginia buyers choose should be evaluated as a complete cost picture, not just a headline rate.
By Duane Buziak, NMLS #1110647
For buyers from Short Pump and Glen Allen to Chesterfield, Fredericksburg, Charlottesville, Virginia Beach, and Roanoke, conventional financing remains one of the most flexible paths to ownership. It can fit a first-time buyer with 3% down, a move-up household using sale proceeds, or a well-qualified investor purchasing a second home. The right answer depends on credit, down payment, property type, income documentation, and how long you expect to keep the home.
Table of Contents
- What a conventional mortgage means in Virginia
- Virginia prices, limits, and local market conditions
- Worked costs and down payment choices
- Broker access versus a single-shelf option
- Credit protection and soft-pull prequalification
- When FHA, VA, Non-QM, or DSCR may fit better
- Frequently asked questions
What Is a Conventional Mortgage in Virginia?
A conventional mortgage is a home loan that is not insured by the FHA, VA, or USDA. Most conforming conventional loans meet Fannie Mae or Freddie Mac guidelines. In 2025, the standard conforming loan limit in most Virginia counties is $806,500 for a one-unit property, while designated high-cost counties can reach $1,209,750. Loans above the applicable limit are generally jumbo financing and are underwritten differently.
Conventional financing can be used for a primary residence, second home, or investment property. Buyers may qualify with as little as 3% down on certain primary-residence programs, although 5%, 10%, and 20% down structures can change mortgage insurance, pricing, reserves, and approval strength. A 20% down payment usually removes monthly private mortgage insurance, but it is not automatically the best move if it drains reserves needed for repairs, relocation, or a competitive offer.
Virginia Prices Make Loan Structure Matter
Virginia is not one mortgage market. According to Redfin market data reported in 2025, Henrico County’s median sale price was approximately $405,000, Chesterfield County was near $415,000, and Richmond was around $385,000. In Northern Virginia, Fairfax County pricing was substantially higher, with median sale prices near $700,000. Those differences affect whether a buyer stays within the conforming limit, how much cash is needed for a percentage down payment, and whether a seller will favor a stronger financing profile.
Competition also varies by location and price band. Well-priced homes in Midlothian, Ashland, Williamsburg, and parts of Hampton Roads can still draw multiple offers, while some higher-price properties may spend longer on the market. Inventory and list-price strategy change monthly, which is why a prequalification should be refreshed before writing an offer rather than relying on numbers pulled months earlier.
Virginia’s statewide conforming baseline gives many buyers room to finance homes well above the statewide median without entering jumbo territory. Still, a $650,000 purchase in Prince William County with 10% down produces a $585,000 loan, while the same percentage down on a $900,000 purchase produces an $810,000 loan – slightly above the standard 2025 conforming limit in most counties. A modest down payment adjustment may keep the second transaction conforming, but the cash trade-off must be measured carefully.
Conventional Mortgage Virginia Down Payment and Cost Choices
Credit score is a major pricing lever. A 620 FICO score is often the practical floor for many conventional options, but approval does not mean best pricing. Borrowers at 680, 700, 720, and 740-plus may see meaningfully different pricing and mortgage insurance choices. A buyer with a 760 score, stable W-2 income, and 10% down may receive substantially better terms than a buyer at 640 with the same down payment.
Closing costs commonly fall around 2% to 5% of the purchase price, depending on prepaid taxes, insurance, title charges, discount points, appraisal needs, and local recording costs. On that $400,000 example, a 3% estimate is $12,000. That is separate from the $20,000 down payment at 5%. Ask about our no-out-of-pocket closing options when a seller credit, pricing credit, or other permitted structure may help preserve cash.
For borrowers putting less than 20% down, private mortgage insurance is another line item. On the $380,000 example, monthly mortgage insurance might be approximately $165 depending on credit profile and coverage requirements. It is not permanent in every case. Conventional mortgage insurance may be canceled when eligibility requirements are met, and automatic termination rules can apply later. The timeline depends on the original value, payment history, loan type, and servicer requirements.
Why a Broker Can Change the Comparison
| Decision factor | Mortgage broker model | Single-shelf mortgage company model |
|---|---|---|
| Market access | Can compare eligible programs and pricing across available wholesale partners. | Uses that company’s available program shelf and pricing structure. |
| Typical FICO floors | May offer multiple conventional, FHA, VA, Non-QM, and investor guideline paths. | Credit overlays and available products vary by company. |
| Program breadth | Can evaluate conventional, FHA, VA, USDA, jumbo, bank statement, DSCR, construction, and 203k options. | Program availability depends on the company’s own menu. |
| Pricing flexibility | Allows comparison of rate, points, credits, mortgage insurance, and closing-cost structure. | Terms are limited to available internal options. |
| Title-cost opportunity | Our preferred title company can save an additional $2,000 on average. | Title-provider choices and quoted fees should be compared carefully. |
A broker cannot promise every borrower the lowest rate in every scenario, and no ethical professional should suggest otherwise. Rates move daily and approval findings matter. The value is having a disciplined comparison: same loan amount, same occupancy, same lock period, same points or credits, and the same estimated cash to close. That is how a borrower sees whether an apparent rate advantage is real.
Protect Your Credit Before You Shop Seriously
A soft credit pull mortgage review gives a useful starting point without a hard inquiry. Old Dominion Mortgages offers NoTouch Credit Pull prequalification so buyers can review estimated scores, liabilities, and buying power before deciding whether to proceed with a full application. For many buyers, that is the practical answer to searches for a no hard inquiry mortgage pre approval, mortgage pre approval without hard pull, soft pull mortgage broker, or no credit hit mortgage application.
A soft pull is not a final approval. Once you choose a property and move into formal underwriting, a full credit report and documentation may be required. The benefit is timing: you can identify score issues, debt-to-income concerns, or a cash-to-close gap before making an offer or collecting multiple hard inquiries without a plan.
When Conventional Is Not the Best Fit
Conventional is strong, but it is not automatic. A veteran with entitlement may find a VA loan more attractive because it can allow no down payment and does not require monthly mortgage insurance. A buyer with a lower score or higher debt ratio may compare FHA financing, particularly when the down payment is limited. A self-employed borrower with substantial business write-offs may need bank statement or other Non-QM financing. An investor qualifying primarily from rental cash flow may benefit from a DSCR loan rather than conventional debt-to-income underwriting.
The smartest conversation starts with the property, income, assets, credit, and goal – not with forcing every borrower into one loan type. A conventional mortgage may be the best fit today and not the best fit on the next purchase.
Frequently Asked Questions
What credit score is needed for a conventional mortgage in Virginia?
Many conventional programs begin around 620 FICO, but stronger scores often improve pricing and mortgage insurance options. A 680-plus score generally gives a buyer more flexibility than the minimum threshold.
Can I buy a Virginia home with 3% down?
Yes, eligible primary-residence buyers may qualify for select conventional 3% down programs. Income, property type, credit, and automated underwriting findings determine eligibility.
How much are conventional closing costs?
A practical estimate is 2% to 5% of the purchase price, including third-party charges and prepaids. On a $400,000 home, that can mean roughly $8,000 to $20,000 before any seller credit or approved pricing credit.
Does a soft credit pull affect my score?
No. A soft credit pull mortgage review does not create a hard inquiry on your credit report. A formal application and underwriting review may later require a hard pull.
Can private mortgage insurance be removed?
Often, yes. Conventional mortgage insurance can be canceled or terminated when the loan reaches applicable equity and payment-history requirements. Your servicer can confirm the exact rules for your loan.
What is the 2025 conventional loan limit in Virginia?
The standard one-unit conforming limit is $806,500 in most Virginia counties for 2025. High-cost county limits may be higher.
Should I choose FHA or conventional financing?
It depends on credit, down payment, debt ratio, and long-term plans. FHA can be more forgiving in some profiles, while conventional can become less expensive as credit and equity improve.
Can investors use conventional financing?
Yes. Conventional financing can work for qualifying investment-property buyers, although down payment, reserve, rate, and mortgage insurance rules are typically stricter than for a primary residence. DSCR financing may be worth comparing when rent is the key qualification factor.
Start With Numbers You Can Use
Before touring another home, get the payment, cash-to-close estimate, and approval path into one clear conversation. That gives you room to negotiate confidently in Richmond, Hanover, Albemarle, Stafford, or anywhere else in Virginia without guessing what the financing will support.
Legal disclaimer: This article is for educational purposes only and is not a commitment to extend credit, a loan approval, a rate quote, or financial, legal, or tax advice. Loan programs, rates, fees, underwriting requirements, conforming limits, mortgage insurance, and property eligibility can change. All financing is subject to credit approval, income and asset documentation, appraisal, title review, and applicable program guidelines. 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.
