FHA loans in Virginia

Virginia is known for its scenic variety – from the Blue Ridge Mountains to Chesapeake Bay – and a strong economy anchored by government, tech, and military employers. But high home prices in certain areas can make buying difficult, especially if you have a lower credit score or limited savings for a down payment.

That’s where an FHA loan in Virginia can help. FHA loans are popular for their combination of low down payment requirements and credit flexibility.

Rocket Mortgage offers FHA loans that make it easier to achieve homeownership in Virginia, whether you’re a first-time buyer or looking to refinance.

What are FHA loans?

FHA loans are government-backed mortgages for borrowers that offer low down payments, low closing costs, and easy credit qualification. FHA loans in Virginia are insured by the Federal Housing Administration, which means the agency reimburses lenders if the borrower defaults. This backing helps lenders offer FHA loans to borrowers who may not qualify for a conventional loan.

How do FHA loans work?

FHA loans have specific rules that help make them more accessible than many conventional options. FHA loan requirements in Virginia include steady income, a minimum credit score, a minimum down payment, property requirements, and a maximum loan amount that varies by county. FHA loan rates are competitive and often lower than for other loan types.

FHA loan limits are set each year by the Department of Housing and Urban Development, and vary by county within each state, including Virginia.

A Virginia FHA loan can be used to buy various property unit types from single-family homes to multifamily properties with up to 4 units, including houses, condominiums, townhouses, and mobile or manufactured homes.

Properties must meet FHA guidelines, and borrowers must pay an up-front and an annual mortgage insurance premium (MIP). This insurance protects the lender if the borrower defaults and is part of what allows lenders to approve buyers with lower credit scores or smaller down payments.

Anyone who meets the requirements and agrees to live in the home they're buying as their primary residence can qualify for an FHA loan.

FHA loans can also be used to refinance.¹ Refinancing might help you lower your interest rate, reduce your monthly payment, or switch from an adjustable-rate to a fixed-rate mortgage.

Virginia has one of the highest veteran populations in the U.S. Because of that, it's worth noting that VA and FHA loans can sometimes be refinanced into one another, depending on eligibility. It's also possible to refinance from an FHA loan into a conventional loan once you build enough equity.

FHA refinancing options include:

• FHA Streamline Refinance. Requires less documentation and may not need an appraisal.²
• FHA 203(k) Rehab Loan. Allows financing for home renovations and repairs (not currently offered by Rocket Mortgage).
• FHA Rate-and-Term or Cash-Out Refinance. Provides flexibility to adjust loan terms or tap home equity.

For veterans and service members, additional refinance programs may be available through VA loan options.³

How 2026 FHA loan limits work in Virginia

FHA loan limits change every year, and Virginia's limits vary by county based on local housing prices. Areas with higher home values qualify for higher limits, while lower-cost counties stay closer to the national floor.

The limits are based on median home prices in each county, up to 150% of the national conforming loan limit. Exceptions are made for homes in Alaska, Hawaii, Guam, and the U.S. Virgin Islands due to the higher construction costs.

For 2026, the FHA loan limits for a one-unit home range from $541,287 in low-cost areas to $1,249,125 in high-cost counties.

Here are the FHA loan limits by county in Virginia for buying 1- to 4-unit homes.  

Use the HUD lookup tool to confirm your county’s current limit, then speak with a loan officer to see what you can qualify for.

FHA loan requirements

Requirements for FHA loans can vary by lender and by program, so the guidelines below reflect what you can generally expect through Rocket Mortgage. It’s always best to check with your lender to confirm the exact qualifications for your situation.

The chart below outlines what you’ll usually need to qualify for an FHA mortgage in Virginia, including the minimum down payment, credit score, debt-to-income ratio, income, appraisal, and inspection, and more.

FHA loan down payment assistance programs in Virginia

If saving for the up-front costs of buying a home feels out of reach, down payment assistance programs can help. These programs may offer grants, second mortgages, or deferred loans that reduce the amount you need up front to buy a home in Virginia.

Rocket Mortgage offers FHA loans that can be paired with eligible DPA programs. Most require completion of a home buyer education course before approval. Each program has its own requirements, so it’s important to confirm current income limits and eligibility guidelines before applying.

Down Payment Assistance Grant

The Virginia Housing Down Payment Assistance Grant is a grant, meaning it never needs to be repaid. It can be combined with other non-Virginia Housing assistance programs, and eligible borrowers may qualify with as little as 1% down. The minimum credit score is 620, and income limits are based on regional guidelines listed on the Virginia Housing Home Loans page.

Plus Second Mortgage

The Virginia Housing Plus Second Mortgage program combines a Virginia Housing FHA loan with a second mortgage to cover the down payment and closing costs. This option can provide 100% financing for income-qualified borrowers, helping eliminate the need for a traditional down payment. The minimum credit score is 620, and the maximum income varies by area median income.

HOMEownership Down Payment Assistance Program

The HOMEownership Down Payment Assistance Program, administered by the Virginia Department of Housing and Community Development, offers deferred, forgivable financing for first-time home buyers. It provides up to 10% – 15% of the sales price, with a maximum of $40,000 in assistance. The minimum credit score requirement is 620, and the maximum income is limited to 80% of the area median income.

Pros and cons of buying a home in Virginia with an FHA loan

FHA loans in Virginia can make homeownership possible for buyers whose credit might make it challenging to qualify for a conventional loan. As with any significant financial decision, there are pros and cons of FHA loans.

Pros

• Low credit requirements: You can qualify for an FHA loan with a credit score as low as 500, which is much lower than what’s required for conventional loans.
• Access to tech and federal job hubs: FHA loans help first-time buyers in Northern Virginia – including Arlington, Fairfax, and Alexandria – afford homes near high-paying federal and tech jobs, where conventional loan down payments can be a significant barrier.
• Use loans alongside state assistance: FHA loans for eligible borrowers can be paired with Virginia Housing grants or down payment assistance programs, which are available in many counties statewide.

Cons

While FHA loans are accessible and can open doors to homeownership, there are trade-offs to consider.

• FHA appraisal issues in flood zones: Coastal and riverfront properties in Virginia often require expensive flood insurance, which FHA appraisals can complicate, especially in the Eastern Shore or Hampton Roads.
• Limited access to state assistance in rural areas: In some rural counties, homes that qualify for FHA loans may not be eligible for local Virginia Housing down payment or closing cost programs.
• Historic preservation limits: Many Northern Virginia and Richmond homes fall under local historic preservation guidelines, which can make FHA-required repairs or renovations more challenging.

FAQ

Here are answers to common questions about buying a home with an FHA loan in Virginia.

Is it better to get a VA loan or an FHA loan?

It depends. VA loans are available only to active-duty military personnel, veterans, and their surviving spouses, so not everyone is eligible. If you are eligible, VA loans require no down payment and no mortgage insurance. FHA loans are available to more people, but do require a down payment and MIP.

What are the income requirements for an FHA loan in Virginia?

FHA loans have no specific income requirements. Lenders assess your ability to repay based on your verified income, existing debt, credit history, and overall financial stability.

Why would you get denied an FHA loan in Virginia?

Common reasons for denial include insufficient credit history, unverified or unstable income, or a property that doesn’t meet FHA safety or appraisal standards. A high debt-to-income ratio also may prevent approval.

What are today’s FHA mortgage rates?

Rates for FHA loans change daily based on market conditions and your financial profile. To see current rates from Rocket Mortgage, check out our FHA loan rates page.

The bottom line: Using an FHA loan to buy a home in Virginia

Buying a home in Virginia can be expensive, but FHA loans help make it possible. With down payments as low as 3.5% and flexible credit score requirements, these loans give many buyers a path to homeownership even in high-cost markets.

If you’re ready to explore FHA loans in Virginia, visit Rocket Mortgage to learn more and start your application.

¹Refinancing may increase finance charges over the life of the loan.

²The FHA Streamline program may have stricter requirements in some states. In order to qualify for the FHA Streamline program, an immediate .5% minimum reduction in interest and mortgage insurance premium is required. Some states may require an appraisal.

³Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

⁴To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

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