The most persistent myth in homebuying is that you need 20% down. You don't. Virginia sets no state minimum down payment for a home purchase; the minimums come from lenders and loan programs. Twenty percent matters for one reason on conventional loans: put down less, and the lender usually requires private mortgage insurance, or PMI. For Fairfax buyers deciding how much to save before touring homes, knowing the real minimums can move your timeline up by months, not years.
Here is how the main loan types compare. FHA loans, insured by the Federal Housing Administration, can go as low as 3.5% of the purchase price, according to HUD. If you are an eligible service member or veteran, a VA-backed purchase loan often requires no down payment at all, as long as the sales price is not higher than the home's appraised value, per VA.gov. And some conventional programs for first-time buyers allow as little as 3% down, per the FDIC's guide to Fannie Mae's 97% LTV financing. Around Reston, where well-priced homes move fast, buyers who know these minimums walk into their lender conversation with a real plan.
Lower down payments come with a cost to weigh: mortgage insurance. On conventional loans under 20% down, PMI protects the lender (not you) and is usually required, and FHA loans carry their own mortgage insurance premiums. Virginia also offers its own help: Virginia Housing's Down Payment Assistance Grant gives qualified first-time buyers funds for the down payment that never have to be repaid, and its Plus Second Mortgage can eliminate the need for a down payment entirely. Woodbridge buyers working with a Virginia Housing approved lender often discover options they did not know existed.
So how much should you put down? Talk to a lender early and compare a few scenarios. The right number balances your monthly payment, the cash you keep in reserve after closing, and your timeline. Ask each lender what their minimum is based on, what mortgage insurance will cost each month, and whether you can drop PMI later as you build equity. A smaller down payment that lets you buy the right home sooner often beats waiting years to hit an arbitrary number.
FAQ
Do I need 20% down to buy a house in Virginia?
No. Virginia sets no state minimum down payment. Twenty percent is the conventional-loan threshold for avoiding private mortgage insurance, not a requirement to buy. FHA loans can start at 3.5%, some conventional first-time buyer programs allow 3% down, and VA loans require no down payment for eligible borrowers.
What is private mortgage insurance, and when do I pay it?
If your conventional down payment is under 20%, your lender usually requires PMI. It protects the lender against loss if you default; it does not protect you. FHA loans have their own version, called mortgage insurance premiums. On conventional loans, you can typically request PMI cancellation once you build enough equity, so ask your lender about their rules.
Can I get help with my down payment in Virginia?
Virginia Housing offers a Down Payment Assistance Grant to qualified first-time buyers. It is a gift, not a loan, so you never repay it. Virginia Housing also offers a Plus Second Mortgage that can eliminate the need for a down payment. Talk to a Virginia Housing approved lender to see what you qualify for.
Does a bigger down payment make my offer stronger?
It can. A larger down payment signals financial strength to the seller and gives you more room if the appraisal comes in low. But a well-structured offer with a smaller down payment and a strong pre-approval letter still wins homes every week. Ask your agent what sellers in your price range weigh most.