Comparing VA, Conventional and FHA Financing Across Virginia Markets
Updated October 2026
A $600,000 purchase in Richmond and a $950,000 purchase in Arlington call for different financing comparisons, even when the buyers have identical incomes. Dogwood & Dormer starts with location, military eligibility, available cash and the full monthly payment—not simply the advertised interest rate.
Match the mortgage to the Virginia market
The 2026 baseline conforming loan limit is $832,750 in Richmond, Hampton Roads and Roanoke. In designated high-cost Northern Virginia markets, including Arlington, Alexandria, Fairfax and Loudoun, the ceiling reaches $1,249,125. These limits apply to the loan amount for a one-unit property, not its purchase price. Check the property's county or independent city through FHFA Loan Limits.
The 2026 FHA floor is $541,287, but higher local FHA limits apply in some expensive markets. A buyer should not treat the statewide floor as Northern Virginia's maximum.
| Financing | Principal advantage | Cost to examine |
|---|---|---|
| VA | No required down payment for eligible borrowers with sufficient entitlement | Funding fee unless exempt |
| Conventional | Flexible property options and cancellable borrower-paid mortgage insurance | Credit-sensitive pricing and PMI |
| FHA | Accessible credit and down-payment structure | Upfront and annual mortgage insurance |
VA loans do not carry monthly mortgage insurance. For eligible borrowers with full entitlement, VA does not impose a county loan limit, although lender approval and appraisal requirements still apply.
Compare assistance and cash requirements
Virginia Housing's assistance menu includes down-payment grants commonly structured at 2%–2.5% and Plus Second Mortgage assistance of 3%–5%, subject to the applicable product. Grant assistance generally does not require repayment when program conditions are met; a second mortgage creates a separate obligation.
Ask Virginia Housing (VHDA) which Down Payment Assistance Grant, Closing Cost Assistance Grant and Mortgage Credit Certificate options are currently available and compatible with the selected mortgage. Do not assume every benefit can be combined or that MCC funding is continuously available.
Put the alternatives on one worksheet
Compare the same purchase price, closing date, points and lock period. Include property taxes, insurance, association dues and any assistance-loan payment. A lower down payment can preserve savings while increasing monthly costs.
Use the monthly payment calculator to model carrying costs, then the closing cost estimator to compare cash needed at settlement. Eligible military households should also review funding-fee exemptions through Department of Veterans Affairs Home Loans before choosing a conventional or FHA alternative.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.