The FHA loanword specify for a single-family home in Virginia is now between $ 420,680 and $ 970,800, depending on the county. The lower limit applies to less expensive rural areas, while buyers looking for homes in the area in the northerly part of the state near Washington, D.C may qualify for higher limits .
Virginia FHA loan limits by county
How are FHA loan limits determined?
The U.S. Department of Housing and Urban Development ( HUD ) sets limits every year on how much of a dwelling ’ s cost the FHA is willing to insure in every county in the U.S. These limits are based on the conform loan limits that come with conventional mortgages.
FHA loans have both a “ floor ” and a “ ceiling. ” The floor is the largest mortgage the agency will insure in most of the U.S. ; it ’ sulfur calculated as 65 % of the adjust loan limit. The ceiling applies only to high-cost areas and is calculated as 150 % of the limit. In most of the nation, the FHA loan limit will fall somewhere between the floor and the ceiling, depending on housing prices and construction costs in that area. home prices grew 18 % from 2021 to 2022, sol limits for both conforming and FHA loans went up deoxyadenosine monophosphate well .
How to qualify for an FHA loan in Virginia
FHA loans are normally more forgive than conventional loans when it comes to accredit scores and down payment amounts, so they offer a luck to buy a home faster and with less money. still, there are specific FHA loan requirements. If this is your first prison term buying a home, you might qualify for tied more aid with one of Virginia ’ s first-time homebuyer programs. They offer courses to help with the borrow procedure adenine well as fiscal resources like first-time homebuyer tax credits and down payment aid .
To qualify for an FHA loan, you ’ ll have to borrow under the lend limit where you live and besides meet the follow requirements :
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- A credit score of 500 or higher. In order to take out an FHA loan, borrowers need to have a credit score of at least 500. With a conventional mortgage, the minimum score is 620.
- A downpayment of 3.5% or more. If your credit score is at least 580, you may qualify for a 3.5% down payment. With a lower credit score, 500 to 579, you’ll need to come up with a 10% down payment.
- Mortgage insurance. Most FHA loans require borrowers to pay both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). The UFMIP is 1.75% of the total loan amount and can be rolled into the mortgage. The MIP ranges from 0.45% to 1.05% of the loan and is spread out between 12 monthly installments that you’ll generally owe for the life of the mortgage.
- A debt-to-income (DTI) ratio of 43% or less. In most cases, FHA loan borrowers can’t have a DTI that exceeds 43%, although some lenders allow for exceptions.
- Home must be a primary residence. Borrowers are required to use the home as their primary residence for at least 12 months after purchase. You can’t use an FHA loan to buy a second home or investment property, unless it’s a multifamily property and you plan to live in one of the units.
- An FHA home appraisal. The FHA has its own guidelines for appraising a home, regardless of the home’s purchase price or the down payment amount.
Buying a multifamily property with an FHA loan
It ’ s possible to buy a single-family home with an FHA lend adenine well as a multifamily house with two to four units vitamin a long as you live in one of the units for at least 12 months after purchase. Expect the like down payment requirements, with qualify buyers eligible to put barely 3.5 % down. An extra benefit : If your plans include living in one of the units for one year, you may be able to use your ask rent to help you qualify for the lend .
FHA lenders in Virginia
If you ’ re looking for an FHA lend in Virginia, here are seven highly rated lenders. Click on their names to read a full review .