FHA lets you buy with 3.5 percent down if your credit score is 580 or higher, and 10 percent down if it is 500 to 579. HUD’s housing counselor study guide and its Mortgagee Letter 2026-11 both say so. For 2026, HUD’s one-unit FHA loan limit runs from a floor of $541,287 to a ceiling of $1,249,125. This guide gives you the numbers a Richmond-area buyer needs before talking to a lender.
It is written for buyers in the City of Richmond, Henrico, Chesterfield, Hanover, Powhatan and Goochland. FHA rules come from HUD, so they are the same in all six.
The FHA numbers on one page
| Item | Number | Source |
|---|---|---|
| Minimum down payment | 3.5% (credit score 580+) | HUD Housing Counselors Module 2.2, 2026 |
| Down payment, score 500 to 579 | 10% (90% maximum loan-to-value) | HUD Mortgagee Letter 2026-11, Oct. 8, 2026 |
| Score below 500 | Not eligible | HUD Mortgagee Letter 2026-11 |
| Upfront mortgage insurance | 1.75% of the loan | HUD Housing Counselors Module 2.2, 2026 |
| Yearly mortgage insurance | 0.50% to 0.75% (loans over 15 years) | HUD Housing Counselors Module 2.2, 2026 |
| 2026 one-unit loan limit | $541,287 floor, $1,249,125 ceiling | HUD announcement, Dec. 11, 2025 |
HUD’s counselor guide also shows one example at 0.95 percent a year without explaining the gap from its 0.50 to 0.75 range. Your lender’s quote is the number that counts. Ask for the rate and for how many years it lasts.
How the 2026 loan limit works
HUD announced the 2026 limits on Dec. 11, 2025. They apply to FHA case numbers assigned on or after Jan. 1, 2026, per HUD’s 2026 loan limits announcement. The $541,287 floor applies in low-cost areas. High-cost areas get a limit between the floor and the $1,249,125 ceiling, based on local median prices.
We did not read a HUD page giving the exact limit for Richmond-area localities, so we are not stating one. The floor is the lowest one-unit limit HUD sets. Look up your county on HUD’s FHA mortgage limits lookup by choosing Virginia, your county and the 2026 limit year.
The limit applies to the base loan, not the price. At 3.5 percent down the base loan is 96.5 percent of the price. A buyer shopping near the top of a limit should ask the lender to run the exact loan amount first.
Down payment and credit score, in dollars
HUD’s counselor guide says the 3.5 percent can come from your own funds, a gift, or a mix of both. The table below is plain arithmetic on three sample prices. It is not a Richmond market figure. Upfront insurance is 1.75 percent of the base loan.
| Price | 3.5% down | Base loan | Upfront insurance | 10% down | Base loan | Upfront insurance |
|---|---|---|---|---|---|---|
| $300,000 | $10,500 | $289,500 | $5,066.25 | $30,000 | $270,000 | $4,725 |
| $400,000 | $14,000 | $386,000 | $6,755 | $40,000 | $360,000 | $6,300 |
| $500,000 | $17,500 | $482,500 | $8,443.75 | $50,000 | $450,000 | $7,875 |
The 10 percent column applies only to scores of 500 to 579. Down payment is not the whole cash need. Closing costs come on top, and the sibling guide on seller credits and closing limits by loan type explains how a seller can help with them.
With more than one borrower, HUD’s Mortgagee Letter 2026-11 says the lender takes a score from each borrower and uses the lowest. A co-borrower with a weak score can pull the whole file into the 10 percent tier. Lenders can also set cutoffs above HUD’s. The lender comparison table in HUD’s counselor guide lists FHA at “600+”, which does not match its own 580 tier. Ask lenders for their own minimum.
Mortgage insurance: the cost that is not on the listing
FHA charges two premiums. The upfront one is 1.75 percent of the loan, and HUD’s counselor guide says you can pay it at closing or finance it. HUD’s guide gives an example: $1,688.75 on a $96,500 mortgage. The yearly premium is spread across 12 monthly payments.
Financing the upfront premium raises your loan balance and your interest. Paying it in cash raises what you bring to closing. Run both with your lender. Our mortgage calculator gives a payment estimate before you do.
Get your FHA numbers checked before you tour
A lender can confirm your credit tier, your base loan amount against the 2026 limit and your premium quote in one conversation. Our preferred lenders can walk you through FHA options. Then your agent can set your search to the price you can actually close on.
Appraisal and condition: what FHA checks and what it does not
An FHA appraisal estimates value for the lender. HUD’s home inspection notice says it does not replace a home inspection. It also says FHA does not inspect homes and does not guarantee the value or condition of your new home. If problems turn up after closing, FHA cannot pay for repairs or buy the home back.
FHA wants a property that is safe, sound and secure. HUD published a draft of changes to its minimum property requirements in 2026. The draft says appraisers act as the lender’s on-site check and must list needed repairs. It is a draft, so ask your lender which version applies to your case number.
What this means for you:
- Hire your own inspector. The appraisal will not find what an inspector finds.
- Expect repair lists on older homes. A listed repair can delay closing or reopen price talks.
- Put inspection and repair deadlines in your contract, and read them with your agent.
When FHA is the wrong tool
Five questions to put to a lender
Bring these to the first call. Each one ties back to a number above.
- Which credit tier am I in, 580 or higher or 500 to 579, and what is your own minimum score?
- What is my base loan amount at 3.5 percent down, and how does it compare with my county’s 2026 limit?
- What yearly premium rate will I pay, and for how many years?
- Should I finance the 1.75 percent upfront premium or pay it at closing, and what does each do to my monthly payment?
- If a repair is required after the appraisal, what are the options and deadlines?
Get the answers in writing, on a loan estimate, so you can compare lenders on the same terms.
Next steps for a Richmond-area FHA buyer
Get your credit tier and loan amount from a lender first. Then browse listings you can close on from our property search, including areas such as Midlothian, Short Pump and Church Hill. Before you tour with an agent, read what Virginia buyers should know about the buyer representation agreement.
Start with your FHA numbers
Check your credit tier, loan amount and premium with a lender, then search with that number in hand.
This is general information, not legal or financial advice. For legal questions about your contract or loan, ask a Virginia real estate attorney.
Frequently asked questions
Can a gift pay my FHA down payment?
HUD’s Housing Counselors Module 2.2 (2026) says the 3.5 percent can be borrower funds, a gift, or a combination. Your lender will have its own paperwork rules for gifts, so ask before the money moves.
Does FHA work for a duplex or fourplex?
HUD publishes 2026 limits for one- to four-unit homes. The floor-to-ceiling ranges are $693,050 to $1,599,375 for two units, $837,700 to $1,933,200 for three, and $1,041,125 to $2,402,625 for four, per HUD’s Dec. 11, 2025 announcement.
Do I have to pay the upfront mortgage insurance in cash?
No. HUD’s counselor guide says the 1.75 percent upfront premium can be paid at closing or financed into the loan. Financing it raises your loan balance.
Are FHA credit score rules changing?
HUD’s Mortgagee Letter 2026-11, dated Oct. 8, 2026, lets lenders use FICO 10T and VantageScore 4.0 alongside Classic FICO for case numbers assigned on or after Jan. 1, 2027. The same letter says the existing minimum score thresholds stay unchanged.
Why is the FHA loan limit floor $541,287?
HUD says the floor is tied to the national conforming loan limit set by the Federal Housing Finance Agency. For one-unit homes the ceiling is 150 percent of that conforming limit. HUD recalculates the limits each year.
Does FHA need a tri-merge credit report?
Yes. Mortgagee Letter 2026-11 says FHA will continue to require a tri-merge credit report, which pulls a score from all three credit bureaus.
Is my county’s FHA limit the same as the floor?
Not always. Low-cost areas get the floor. High-cost areas get a limit between the floor and the ceiling based on local median prices, per HUD. Use HUD’s lookup tool with your county and the 2026 limit year to see yours.
