# FHA loan requirements in Virginia: who it's for and what it costs

Source: https://nobullshitloans.com/loans/fha/
By Tyler Rood, Loan Officer, NMLS ID # 2064776, Edge Home Finance, LLC (NMLS ID # 891464). Updated 2026-11-09.

## The short answer

To get an FHA loan in Virginia, you need a credit score of 580 or higher for the 3.5% minimum down payment (500 to 579 with at least 10% down), a home you'll live in, and a loan within the 2026 one-unit limit, $707,250 across the Richmond area. Mortgage insurance runs 1.75% upfront plus 0.50% to 0.55% a year on a typical 30-year loan, for the loan's life with under 10% down. FHA allows more debt-to-income room than conventional.

FHA is the loan I reach for when the goal is getting you to the closing table with the credit, debts and savings you have today. It takes lower scores and higher debt ratios than conventional, and you pay for that in mortgage insurance. Here are the FHA loan requirements in Virginia as of November 2026, what the loan really costs, and how to get out of it later. (If you searched "FHA loan requirements VA" meaning Virginia, you're in the right place; the VA loan for veterans is a separate program.)

## FHA loan requirements in Virginia at a glance


**FHA loans in Virginia, 2026**

- Credit score: 580+ (for the minimum down payment; 500 to 579 needs 10% down; under 500 not eligible)
- Down payment: 3.5% (with 580 or higher; gifts can cover it, seller credits can't)
- Loan limit: $707,250 (one unit, every Richmond-area locality)
- Upfront mortgage insurance: 1.75% (of the base loan, usually added to the loan)
- Annual mortgage insurance: 0.50% to 0.55% (a year on a typical 30-year loan)
- Seller credits: Up to 6% (of the price, toward costs, never the down payment)
- Occupancy: Primary home (a home you will live in)
- Debt-to-income: More room (than conventional allows)
- Property and condos: FHA standards (health and safety; a condo building or unit needs approval too)


## What credit score do you need for an FHA loan?

HUD's lines are simple. A score of 580 or higher qualifies for maximum financing, which means the 3.5% minimum down payment. From 500 to 579, the loan is capped at 90% of the value, so you put at least 10% down. Below 500, FHA isn't available. HUD restated those thresholds in October 2026, when it said FHA will accept two newer credit score models alongside the classic one for case numbers assigned on or after January 1, 2027. The minimums don't change.

Why 10% down at 500? Skin in the game. With 10% of your own money in the house, you'll do everything in your power not to default, because you can't afford to lose it.

The program floor and the price are two different things, though. This is what I see on rate sheets, by middle score:

| Middle score | FHA program rule | What I see in my pricing |
|---|---|---|
| Under 500 | Not eligible | No FHA option yet; we work on the credit first |
| 500 to 579 | Eligible at 10% down | Lendable, but priced hard, and not every lender will do it |
| 580 to 599 | 3.5% down | Still priced hard, and assistance grants usually want a higher score |
| 600 to 659 | 3.5% down | A big step better once you're out of the 500s |
| 660 to 679 | 3.5% down | Another step better |
| 680 and up | 3.5% down | I price conventional beside it from here |

Those are tendencies from my rate sheets, not rules, and they move. The point is that a score in the 500s or low 600s is still lendable; it just costs more, and every tier up saves you money. Credit can be fixed over time.

## FHA down payment requirements

The minimum down payment on FHA is 3.5% of the price, which HUD calls the minimum required investment: $10,500 on a $300,000 home and $14,000 on a $400,000 home. With a score from 500 to 579, it's 10%.

The 3.5% can come from your savings or from a gift. FHA accepts gifts from a family member, an employer or labor union, a charity, a government homeownership program, or a close friend with a documented interest in you. You and the donor both sign and date the gift letter, and cash the donor kept at home doesn't count. The paper trail lenders need is on my [gift funds page](https://nobullshitloans.com/buy/gift-funds/).

What can't cover the 3.5% is a seller credit. The seller can pay up to 6% of the price toward your closing costs, prepaids and points, just not the down payment. A credit from the lender for taking a slightly higher rate doesn't count toward that 6%. So the closing costs can come from your cash, from the rate, or from the seller, and usually from some mix of the three.

Because a government homeownership program is an approved gift source, down payment assistance can help cover the 3.5% too. Virginia Housing's grants and second mortgages have their own income and price limits, and they're on my [Virginia first-time buyer programs page](https://nobullshitloans.com/virginia/first-time-buyer-programs/).

## FHA mortgage insurance: what it costs in 2026

FHA's version of PMI is called MIP, the mortgage insurance premium: same idea, a few letters flipped around. It comes in two pieces, and neither one depends on your credit score.

- **The upfront premium:** 1.75% of the base loan, usually added to the loan.
- **The annual premium:** a percentage of the loan, paid monthly, set by your down payment and your loan term. It's recomputed each year on the lower balance.

| Down payment | Term over 15 years | Term of 15 years or less | How long it lasts |
|---|---|---|---|
| Under 5% (over 95% loan-to-value) | 0.55% | 0.40% | Life of the loan |
| 5% to under 10% | 0.50% | 0.40% | Life of the loan |
| 10% or more (90% loan-to-value or less) | 0.50% | 0.15% | 11 years |

Those rates apply to base loans up to $726,200, which covers every one-unit FHA loan in the Richmond area, since the limit here is $707,250. Here's what that looks like on a typical purchase.

**Worked example: FHA on a $350,000 home with 3.5% down**
- Price: $350,000
- minus Down payment (3.5%): $12,250
- equals: Base loan: $337,750
- plus Upfront premium (1.75%), added to the loan: $5,911
- equals: Loan amount: $343,661
- Principal and interest: $2,172
- plus Annual premium (0.55% a year): $155
- equals: Monthly, before taxes and homeowners insurance: $2,327
Note: The annual premium shrinks a little each year as the balance falls.
_Hypothetical, rounded. Example rate of 6.5%, 30-year fixed. Not a quote._


The federal rules that let you cancel PMI at 80% and 78% of the original value don't apply to FHA. With less than 10% down, the only ways out of the annual premium are a refinance or a sale. How PMI and MIP compare, and how removal works on each, is on my [mortgage insurance page](https://nobullshitloans.com/buy/mortgage-insurance/).

**Watch out**
Look hard at the 10% line. I've seen buyers come in just under 10% down, a few hundred dollars short. On a $350,000 home, 9.9% down is $350 short of 10%, and it keeps the annual premium for the life of the loan instead of 11 years: about $14,900 more over a full 30-year term at the 6.5% example rate. If you're close, aim a little above 10% and have me check the exact loan-to-value before you sign.


## FHA loan limits for Richmond, Virginia in 2026

Every Richmond-area locality has the same 2026 FHA limits: Richmond city; Chesterfield, Henrico, Hanover, Powhatan, Goochland, New Kent, Prince George and Dinwiddie counties; and the cities of Petersburg, Colonial Heights and Hopewell. HUD sets the one-unit limit at 115% of the area's median sale price of $615,000.

| Units | 2026 FHA limit, Richmond area |
|---|---|
| One | $707,250 |
| Two | $905,400 |
| Three | $1,094,450 |
| Four | $1,360,100 |

Nationally, the 2026 one-unit limit runs from a floor of $541,287 to a ceiling of $1,249,125, so outside the Richmond area check the county. The 2027 FHA limits had not been announced as of early November 2026; they usually follow in December. Above the limit, you're looking at conventional, which goes to the 2026 conforming limit of $832,750 for one unit here.

## Debt-to-income: where FHA gives you room

FHA allows a higher debt-to-income ratio than conventional, and that's one of the big benefits of FHA. Student loans, a car payment and a couple of credit cards can squeeze you out of conventional and still fit on FHA.

The catch is the automated approval. FHA files run through automated underwriting, and the answer comes back as an "Accept" or a "Refer." A Refer isn't a denial. It means the file gets underwritten by hand, under firmer ratio limits. If you get one, your next question should be, "Tyler, what could I do to not have a manual?" The usual levers:

- Move up a credit tier.
- Add verified reserves, such as a retirement account.
- Pay down or pay off a debt that's being counted.
- Take off a co-borrower whose credit is dragging the file down.

Junk in equals junk out. The system only knows what the application tells it, so the file has to be accurate before any of those levers help.

## What happens if your FHA loan is suspended in underwriting

A suspension means the underwriter needs more before making a decision. It's not a denial, but it is a warning, and there's often more than one concern in it. This is how I work one:

1. Sort the concerns by severity, so the one that could sink the file gets handled first.
2. Treat each concern as its own problem. Winning the argument on your income doesn't clear a debt ratio problem, and fixing the ratio doesn't explain a missing debt.
3. Confirm the real situation with you before answering anything, especially on debts.
4. Tie every answer to the actual guideline, HUD's FHA handbook (4000.1), not to an opinion.
5. Argue it against myself first: what will the underwriter say back, and where is our case weak?
6. Write to the underwriter respectfully. That underwriter is a person.
7. Send you a clear list of the documents I need, and get the lender's answers in writing.


Most suspensions are solvable, but not by one good letter. The bigger picture of conditions and conditional approval is on my [underwriting page](https://nobullshitloans.com/buy/underwriting/).

## Can you count rent from the home you're leaving?

Sometimes, and FHA's rule is stricter than most people expect. Under HUD's handbook, FHA has several conditions for counting rent from a home you're moving out of, including a move of more than 100 miles, a lease of at least a year with proof of the deposit or first month's rent, and an appraisal showing the market rent and at least 25% equity. When the rent does count, FHA takes 75% of the lower of the appraiser's market rent or the lease rent and subtracts the old home's full payment. A positive result is added to your income, and a negative one counts as a debt.

Ask for the current conditions before you plan around it, because if the rent can't count, you qualify carrying both payments on your income alone. That's why I run a plan like this past the underwriter before you're under contract. Whether to keep the old house as a rental at all is on my [rent out your house page](https://nobullshitloans.com/wealth/rent-out-your-house/).

## Can someone take over your FHA loan?

Yes. FHA loans are assumable, and so are VA loans. A buyer who takes over your loan keeps your rate and balance, which is worth a lot when that rate is far below current rates.

It's not automatic. The buyer gets a full credit review by an FHA underwriter, to the same standard as a new loan, has to live in the home, and has to cover the gap between the price and your loan balance, usually in cash. FHA caps the servicer's processing fee at $1,800. In my experience the assumption department can also hold the buyer to its own minimum score, won't bend on a technicality, and takes 90 to 120 days, so the first step is asking the servicer for its requirements in writing. If you're the seller, get a written release of liability as part of the assumption. A notice that the borrower changed doesn't take you off the note.

## FHA condos: the building has to be approved too

On a condo, FHA approves the building, not just you. The project can already be on HUD's approved list, the lender can take it through a full project review, or a single unit can be approved on its own. Single-unit approval has its own tests, including at least half the units owner-occupied, a cap on how many FHA loans the project already carries, and no more than 15% of units behind on their association bills. In my files it has also been off the table while the developer still controls the HOA, which is common in new construction with phases still being built. That leaves the full review, and most of its paperwork has to come from the developer and the HOA.

In one of my files, it took about two months just to get the package to HUD, with about $1,500 of review costs already spent. What I've learned:

- Start the condo questionnaire first. It's the slowest piece.
- Put the HOA's full legal name on the application.
- Ask when the developer hands the HOA to the owners. If that date is close, single-unit approval may open up and beat the full review.
- Plan a longer rate lock than you would for a house.
- If the file has to move, the approval belongs to the project, and the FHA case number and appraisal can transfer to another FHA lender.

What makes a condo project lendable at all is on my [condo page](https://nobullshitloans.com/loans/condo/).

## When to refinance out of an FHA loan

There are two refinance moves, and they solve different problems. If rates drop, an FHA streamline refinance can lower your rate with no appraisal, as long as at least 210 days and six payments have passed and your rate plus the annual premium drops at least half a point on a fixed-to-fixed refinance; the details are on my [FHA streamline page](https://nobullshitloans.com/refinance/fha-streamline/). To end the mortgage insurance itself, you refinance into a conventional loan once you have at least 20% equity, and in my pricing it gets noticeably better again near 25%.

For a buyer who put about 10% down, my usual plan is to streamline if the rate drops, let the value build, and look at conventional again in a couple of years. Two details matter when you decide. The upfront premium is gone once you leave FHA, since HUD credits part of it back only on a refinance into another FHA loan within three years. And if you put 10% or more down, the annual premium ends after 11 years on its own. The math on when conventional overtakes FHA is on my [FHA vs conventional page](https://nobullshitloans.com/loans/fha-vs-conventional/).


**When each way out of FHA opens up** Streamline if rates drop, move to conventional once the equity is there, and with 10% or more down the annual premium ends on its own.

1. After 210 days: The FHA streamline window opens. With at least six payments made, a streamline can lower your rate with no appraisal if your rate plus the annual premium drops at least half a point on a fixed-to-fixed refinance.
2. A couple of years: Look at conventional again. My usual plan for a buyer who put about 10% down. A conventional refinance at 20% equity or more ends the mortgage insurance, and in my pricing it gets noticeably better near 25%.
3. Up to year 3: The upfront premium credit. HUD credits part of the upfront premium back only on a refinance into another FHA loan within three years. Leave FHA and it's gone.
4. After 11 years: The annual premium ends on its own. Only if you put 10% or more down. With less, the only ways out are a refinance or a sale.


FHA isn't the bad-credit loan, and it isn't a trap. It's a door, priced for the people it lets in. Know what the insurance costs, know your way out, and it does its job.

## Frequently asked questions

### Can I only use an FHA loan once?

No. FHA isn't a once-in-a-lifetime loan, and there's no set waiting period between FHA loans. The limit is that FHA generally insures one home you live in per borrower at a time, and the exceptions are narrow, so if you already have an FHA loan we check them before you plan around a second one. If you've never had an FHA loan, this doesn't touch you.

### Does the FHA 100-mile rule apply if my current home is conventional?

The 100-mile condition is part of FHA's rule for counting rent from the home you're leaving, so it applies to your new FHA loan whatever loan the old house has. What doesn't apply is FHA's one-loan-at-a-time limit, because your current home isn't FHA. So keeping a conventional house and buying the next one with FHA can work, as long as you qualify with both payments or meet the rent conditions.

### Will FHA accept a house with a bad septic system?

No. Anything tied to health and safety, FHA will not lend on until it's fixed, and that includes a failing septic system or a bad well. Order the home inspection and any septic inspection first and the appraisal last, so a problem shows up while you still have options. FHA did relax its well distance requirements for existing homes in July 2026, but a system that fails still has to be repaired.

### Can I get an FHA loan if I haven't filed my taxes?

Not with old years unfiled. It's a government-backed loan, so you have to be current with the government, which also means no delinquent federal debt. In my files the current year can be on extension, but the older years have to be filed, so file before you find the house; I'm not a CPA, so a tax professional handles the filing.

### Can I use bank statements instead of tax returns to qualify for FHA?

No. FHA counts income from pay stubs, W-2s and tax returns. Loans that qualify you on bank deposits are a separate, non-government product with higher rates, and I use one only when FHA or conventional can't work.

## Sources

- [HUD Handbook 4000.1 (Update 18), FHA credit, minimum investment, gift, seller contribution, assumption and condo rules](https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf)
- [HUD Mortgagee Letter 2023-05, FHA annual and upfront mortgage insurance premiums](https://archives.hud.gov/news/2024/2023-05hsgml.pdf)
- [HUD Mortgagee Letter 2026-11, FHA credit score requirements](https://www.hud.gov/sites/default/files/hudclips/documents/2026-11hsgml.pdf)
- [HUD No. 25-145, FHA loan limits for 2026](https://www.hud.gov/news/hud-no-25-145)
- [HUD, FHA forward mortgage limits for 2026 (data file)](https://apps.hud.gov/pub/chums/cy2026-forward-limits.txt)

## Disclosures

Individual Originator: Tyler Rood, Loan Officer, NMLS ID # 2064776 (www.nmlsconsumeraccess.org). Licensed in NC, PA, TX and VA.
Edge Home Finance, LLC | NMLS ID # 891464 | www.nmlsconsumeraccess.org. Licensed in all U.S. states & D.C., EXCEPT New York. Edge Home Finance, LLC is a mortgage broker, not a direct lender or creditor. Virginia Broker License MC-7006. North Carolina Mortgage Broker License B-201539. Pennsylvania Mortgage Broker License 81041. Texas: Mortgage Company License, Department of Savings and Mortgage Lending.
Numbers on this page are illustrations, not offers. Any rate shown on this site is an example. Rates may change or may not be available at the time of loan commitment or lock-in.
Edge Home Finance, LLC is a private mortgage broker and is not affiliated with, endorsed by, or acting on behalf of or at the direction of the U.S. Department of Veterans Affairs (VA), the Federal Housing Administration (FHA), the Department of Housing and Urban Development (HUD), or any other government agency.
We do business in accordance with the Fair Housing Act and the Equal Credit Opportunity Act.