Down Payment Options in Richmond VA: VA, FHA and Conventional Minimums Side by Side
Worked dollar examples for VA, FHA, and conventional loans, using a $375,000 example home.
On a $375,000 example home, you could need anywhere from $0 to $75,000 down depending on your loan type: $0 with a VA loan for eligible veterans and active military, $11,250 (3%) with certain conventional first-time buyer programs, $13,125 (3.5%) with an FHA loan, or $75,000 (20%) if you want to avoid private mortgage insurance (PMI) entirely on a conventional loan. Many first-time buyers put down far less than 20%, and PMI on a low-down-payment loan often costs less per month than people assume. For market context, the median single-family sales price was $460,000 across the Richmond metro area and $450,000 in the city of Richmond, according to Central Virginia Regional MLS single-family data for July 2026. This guide from the Mission Realty Team breaks down every major down payment option side by side with worked dollar figures, closing cost estimates, and the tradeoffs of putting down more versus less. Loan program details, mortgage insurance costs and loan limits change, so confirm current terms with a lender before relying on any figure here.
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Direct answer: There is no single required down payment to buy a house in Richmond VA – it ranges from $0 to 20%+ depending on loan type, and the “20% down” rule most people have heard of is a myth for the majority of buyers. On a $375,000 home, that’s a difference between $0 and $75,000 in upfront cash, which is exactly why understanding your real options matters before you assume you can’t afford to buy yet.
The Mission Realty Team works with buyers across every one of these scenarios regularly, and the most common misconception we hear is “I need 20% down or I can’t buy a house.” In reality, plenty of buyers – especially first-time buyers – put down far less than that, using FHA, conventional low-down-payment programs, or VA financing. We do not publish a share-of-buyers figure, because we have no verified local data on down payment size. The right choice depends on your military service history, credit profile, available cash, and how you weigh a lower upfront cost against a higher monthly payment.
Below, we walk through all four major down payment paths using a consistent $375,000 example home, so you can compare dollar amounts rather than just percentages side by side. That price is an illustration, not a market figure: the median single-family sales price across the Richmond metro area was $460,000, according to Central Virginia Regional MLS single-family data for July 2026.
$0 Down: VA Loans for Veterans and Active Military
On a $375,000 home, an eligible veteran, active-duty service member, or qualifying surviving spouse using a VA loan can put down $0 and finance the full purchase price. VA loans also don’t require monthly mortgage insurance, which is a major ongoing savings compared to FHA or low-down-payment conventional loans.
Upfront cost example: $0 down payment, though buyers still typically pay closing costs (roughly $9,000-$15,000 on a $375,000 home) unless the seller agrees to cover some or all of them, or those costs are rolled into the loan via a VA funding fee financing option.
VA funding fee: Most first-time VA loan users pay a funding fee of about 2.15% of the loan amount ($8,062 on $375,000) if putting down 0%, though this fee is typically financed into the loan rather than paid in cash, and veterans with a service-connected disability rating are often exempt entirely.
Monthly payment impact: With nothing down you finance the full $375,000, so the monthly payment is the highest of the scenarios here, though no PMI is added to it. We do not publish a payment figure, because it depends on the rate you are quoted plus your taxes and insurance – ask a lender for a current quote.
3% Down: Conventional Loans for First-Time Buyers
On a $375,000 home, a 3% down payment comes to $11,250 in cash, financing the remaining $363,750. This option is available through Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs, both aimed specifically at first-time and moderate-income buyers, and both allow this minimum down payment on a conventional loan.
Upfront cost example: $11,250 down payment plus estimated closing costs of $9,000-$15,000, for a total upfront cash need of roughly $20,000-$26,000 before any seller credits or down payment assistance.
PMI cost: At 3% down, expect PMI on the $363,750 loan. PMI generally runs 0.5% to 1.5% of the loan amount per year, roughly $180 to $450 a month on this loan size depending on your credit score, and it continues until you reach 20% equity through payments and appreciation, at which point you can request removal.
Monthly payment impact: Your total monthly payment covers principal, interest, taxes, insurance and PMI on the $363,750 loan. The interest portion moves with current rates, so ask a lender for a current quote rather than relying on a published estimate.
3.5% Down: FHA Loans
On a $375,000 home, 3.5% down comes to $13,125 in cash, financing the remaining $361,875. FHA loans are government-backed and generally more forgiving on credit score than conventional loans, making them popular with first-time buyers whose credit is still being built.
Upfront cost example: $13,125 down payment plus closing costs of $9,000-$15,000, for total upfront cash of roughly $22,000-$28,000 before credits or assistance.
Mortgage insurance premium (MIP): FHA loans require an upfront MIP of 1.75% of the loan amount ($6,333, usually financed into the loan) plus an annual MIP of roughly 0.55%, or about $166/month on this loan amount. Unlike conventional PMI, FHA’s annual MIP typically stays for the life of the loan unless you refinance out of FHA later.
Monthly payment impact: Your total monthly payment is calculated on the $361,875 base loan, before the upfront MIP is financed in, plus the annual MIP. Because the interest portion depends on current rates, ask a lender for a current quote.
20% Down: Avoiding PMI Entirely
On a $375,000 home, 20% down comes to $75,000 in cash, financing the remaining $300,000. This is the amount required to avoid private mortgage insurance entirely on a conventional loan, and it results in the lowest possible monthly payment of the four scenarios covered here.
Upfront cost example: $75,000 down payment plus closing costs of $9,000-$15,000, for total upfront cash of roughly $84,000-$90,000.
PMI cost: $0/month, since PMI is never required at 20% down or above on a conventional loan.
Monthly payment impact: Your monthly payment is calculated on a $300,000 loan with no mortgage insurance, which makes it the lowest of the four scenarios. How much lower depends on the rate you are quoted, so ask a lender to price the scenarios side by side.
What Private Mortgage Insurance (PMI) Actually Costs
PMI on a conventional loan typically runs 0.5%-1.5% of the loan amount annually, split into monthly payments, with the exact rate depending on your credit score, down payment amount, and loan term. On a $363,750 loan, the 3% down scenario here, that works out to roughly $180 to $450 a month across that range. Where you land inside it depends on your credit profile and the mortgage insurer, so ask a lender to quote it.
Importantly, conventional PMI isn’t permanent. Once you reach 20% equity – through a combination of payments and home appreciation – you can request PMI removal, and lenders are required to automatically cancel it once you hit 78% loan-to-value based on the original amortization schedule. Where values are rising, buyers often reach 20% equity faster than they expect, though we have no verified local appreciation rate to quote and appreciation is never guaranteed.
Down Payment Assistance Programs in Virginia
Virginia Housing (the state’s housing finance authority) offers several down payment assistance programs that can reduce or eliminate the upfront cash burden for eligible first-time buyers, including grants that don’t require repayment and low-interest second mortgages that cover part of the down payment or closing costs.
These programs generally come with income limits and purchase price caps that vary by locality, and they’re frequently paired with FHA or conventional first mortgages. A qualifying buyer can reduce their out-of-pocket cash need meaningfully, but the amount depends entirely on the program, the locality and the buyer eligibility, so ask a lender to price the specific program you qualify for.
| Loan Type | Down Payment % | Cash Down on $375,000 Example | Monthly Mortgage Insurance | Relative Monthly Cost |
|---|---|---|---|---|
| VA Loan | 0% | $0 | $0 | Highest loan balance, but no mortgage insurance – ask a lender for a quote |
| Conventional (HomeReady/Home Possible) | 3% | $11,250 | Roughly $180-$450 (0.5%-1.5% of the loan per year) | High – large loan plus PMI – ask a lender for a quote |
| FHA | 3.5% | $13,125 | ~$166 (annual MIP) | High – large loan plus MIP, which usually lasts the life of the loan – ask a lender for a quote |
| Conventional Standard | 10% | $37,500 | Lower than at 3% down; varies with credit | Moderate – smaller loan and lower PMI – ask a lender for a quote |
| Conventional, No PMI | 20% | $75,000 | $0 | Lowest – smallest loan and no PMI – ask a lender for a quote |
*Down payment and cash figures above are arithmetic on a $375,000 example purchase price, not a market estimate. Monthly payments depend on current mortgage rates, your credit profile, property taxes and insurance, so we do not publish payment estimates – ask a lender for a current quote. Program minimums, mortgage insurance rates and loan limits change, so confirm current terms with a lender. The Mission Realty Team can connect you with a local lender for an exact, personalized quote.
Frequently Asked Questions About Down Payments in Richmond VA
Do I really need 20% down to buy a house in Virginia?
No, 20% down is not required for most loan types – it’s only required to avoid PMI on a conventional loan. FHA loans require just 3.5% down, certain conventional programs allow 3% down, and VA loans allow eligible veterans and active military to buy with $0 down. The “20% rule” is a common myth that keeps many qualified buyers from starting the homebuying process sooner than necessary. The Mission Realty Team regularly helps buyers understand which option truly fits their situation.
What is the minimum down payment for an FHA loan?
The minimum down payment for an FHA loan is 3.5% of the purchase price, provided your credit score is 580 or above. On a $375,000 home, that comes to $13,125 in cash. Borrowers with credit scores between 500-579 may still qualify for FHA financing but typically need 10% down instead. FHA loans also require both an upfront and annual mortgage insurance premium (MIP), which differs from conventional PMI in that it often doesn’t cancel automatically.
Can I buy a house with $0 down in Richmond VA?
Yes, eligible veterans, active-duty service members, and qualifying surviving spouses can buy with $0 down through a VA loan, which also doesn’t require monthly mortgage insurance. USDA loans can also offer $0 down financing in certain rural and suburban areas outside Richmond’s urban core, subject to income and location eligibility. Closing costs still typically apply in both cases unless covered by the seller or financed into the loan. The Mission Realty Team can help determine which $0-down option, if any, fits your eligibility.
How much is 3% down on a $375,000 house?
3% down on a $375,000 house is $11,250 in cash, financing the remaining $363,750 through the mortgage. This down payment level is available through Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs, both designed for first-time and moderate-income buyers. Buyers using this option should also budget for closing costs of roughly $9,000-$15,000 separately from the down payment. Private mortgage insurance also applies at this down payment level, generally running 0.5% to 1.5% of the loan amount per year, roughly $180 to $450 a month on a loan this size.
What is private mortgage insurance and how much does it cost?
Private mortgage insurance (PMI) is a monthly fee required on conventional loans with less than 20% down, protecting the lender if you default on the loan. On a $363,750 loan, which is 3% down on a $375,000 example home, PMI generally runs 0.5% to 1.5% of the loan amount per year, roughly $180 to $450 a month depending on your credit score and loan details. PMI can be removed once you reach 20% equity in the home, either through payments, appreciation, or both. It is not the same as homeowners insurance, which covers property damage and is required regardless of down payment size.
Is it better to put more money down or invest the difference?
It depends on your financial goals, risk tolerance, and the interest rate on your mortgage versus expected investment returns elsewhere. Putting more down reduces your monthly payment and eliminates PMI at 20%, but ties up cash that could otherwise be invested or kept as an emergency reserve. Many financial advisors suggest keeping some liquidity rather than maximizing your down payment, especially when borrowing costs are high. The Mission Realty Team can walk through both scenarios with real numbers specific to your target home price.
What credit score do I need for a low down payment loan?
FHA loans allow credit scores as low as 580 with 3.5% down, or 500-579 with 10% down. Conventional loans with 3% down through HomeReady or Home Possible typically require a minimum score around 620, though better rates and PMI costs come with scores above 680-700. VA loans don’t have a government-mandated minimum, but most lenders look for at least 580-620 in practice. Higher credit scores generally reduce both your interest rate and your monthly mortgage insurance cost significantly.
Are there down payment assistance programs in Virginia?
Yes, Virginia Housing offers several down payment assistance programs for eligible first-time buyers, including grants that don’t require repayment and low-interest second mortgages covering part of the down payment or closing costs. These programs typically come with income limits and purchase price caps that vary by locality within the Richmond metro. They’re usually paired with an FHA or conventional first mortgage rather than used alone. The Mission Realty Team works with lenders who specialize in these programs and can help determine eligibility.
How much are closing costs on top of the down payment?
Closing costs in Virginia typically run 2-4% of the purchase price, so on a $375,000 home, expect roughly $9,000-$15,000 in closing costs separate from your down payment. These costs cover items like the loan origination fee, appraisal, title insurance, recording fees, and Virginia’s grantor’s tax. Buyers can sometimes negotiate for the seller to cover part of these costs, especially in a more balanced market. The Mission Realty Team provides a detailed closing cost estimate specific to each offer so there are no last-minute surprises.
Can I use a gift from family for my down payment?
Yes, both FHA and conventional loans generally allow down payments to be covered partially or fully by gift funds from family members, provided the gift is properly documented with a gift letter and paper trail showing the funds transferred are not a loan. VA loans also allow gift funds under similar documentation requirements. Lenders will typically require bank statements showing the gift funds landing in your account before closing. The Mission Realty Team can point you toward lenders experienced in processing gift fund down payments smoothly.
Does putting more down help me win a competitive offer in Richmond?
A larger down payment can strengthen an offer somewhat by signaling financial stability to a seller, but it typically matters less than a strong pre-approval, a clean contingency structure, and a competitive price. Sellers in Richmond’s current market are generally more focused on financing certainty and closing timeline than the specific down payment percentage. VA and FHA offers are sometimes perceived as riskier by sellers due to appraisal requirements, though this gap has narrowed significantly in recent years. The Mission Realty Team can help craft an offer that competes well regardless of your down payment size.
What happens if I can’t afford 20% down – am I stuck renting?
No. Plenty of buyers purchase with far less than 20% down, using FHA, VA, or low-down-payment conventional programs instead; we do not publish a share-of-buyers figure, because we have no verified local data on it. Waiting to save a full 20% often costs more in the long run through rising home prices and rent payments than the added cost of PMI would. The right move depends on your specific financial picture, but for most buyers, buying sooner with a smaller down payment beats waiting years to hit 20%. The Mission Realty Team can help you run the actual numbers rather than relying on general assumptions.
How does the down payment affect my monthly mortgage payment?
A larger down payment reduces both your loan balance and, once you reach 20%, eliminates mortgage insurance, which together lower your monthly payment compared to a minimum down payment scenario on the same home. How much lower depends on current mortgage rates, so ask a lender to quote the 3% and 20% scenarios side by side rather than relying on a published figure. However, a smaller down payment gets you into a home sooner and preserves cash for repairs, moving costs, or emergencies. The Mission Realty Team can model your exact payment across multiple down payment scenarios before you commit to an offer.
Not Sure Which Down Payment Option Fits You?
The Mission Realty Team works with trusted local lenders who can walk you through VA, FHA, conventional, and down payment assistance options side by side using your actual numbers. Reach out today to find out exactly how much cash you’d need to buy in Richmond, Henrico, or Chesterfield right now.
