Virginia Mortgage and Refinance Rates
On Thursday, June 01, 2023, the national average 30-year fixed mortgage APR is 7.10%. The national average 30-year fixed refinance APR is 7.14%, according to Bankrate's latest survey of the nation's largest mortgage lenders.
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About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.
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Current mortgage rates in Virginia
While mortgage rates have leveled off some since jumping in 2022, today’s higher rate environment still makes housing affordability a challenge for Virginia homebuyers, and refinances less desirable for homeowners. While mortgage rates are difficult to predict, many housing economists expect them to remain well above their historical lows for the foreseeable future.
As of Thursday, June 1, 2023, current interest rates in Virginia are 7.16% for a 30-year fixed mortgage and 6.46% for a 15-year fixed mortgage.
Refinance rates in Virginia
Virginia borrowers who saw their home equity rise during the pandemic might be interested in refinancing their mortgage as a way to tap those funds. Check out Bankrate’s guide to cash-out refinancing to learn more.
How to find the best mortgage rate in Virginia for you
Step 1: Strengthen your credit score
Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.
Step 2: Determine your budget
To find the right mortgage, you’ll need a good handle on how much house you can afford. That’s because a lender could qualify you for more mortgage than you need, or one that would max out your budget and leave no room for unexpected expenses.
Step 3: Know your mortgage options
There are a few different types of mortgages. Many lenders offer conventional loans that require as little as 3 percent down. FHA loans also have a low down payment threshold, while VA loans (for veterans) and USDA loans (for borrowers in rural areas) have no down payment requirement. If you’re in the market for a jumbo loan, check Virginia’s county-by-county loan limits.
Step 4: Compare rates and terms from several lenders
Don’t settle on the first lender you talk to — rate-shop with at least three different banks or mortgage companies. You can look to your bank or other banks, credit unions, online lenders and local independents to ensure you’re getting the best deal on rates, fees and terms.
Step 5: Get preapproved for a mortgage
As you comparison-shop, keep in mind that getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Mortgage options in Virginia
If you’re looking to get a mortgage in Virginia, there are several options:
- Virginia conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
- Virginia FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
- Virginia VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers.
First-time homebuyer programs in Virginia
Virginia Housing offers many programs to assist homebuyers. The agency provides affordable mortgages for first-time and repeat homebuyers, as well as education programs, down payment and closing cost assistance, including:
- Down Payment Assistance grant: The Down Payment Assistance (DPA) grant provides funds to qualified first-time homebuyers. The maximum down payment grant is between 2 percent to 2.5 percent of the home’s purchase price. Because the funds are provided in the form of a grant, the money does not have to be paid back. To be eligible, you must be a first-time homebuyer. The money must also be used in conjunction with a Virginia Housing loan. There are also income limits for all household members.
- Closing Cost Assistance grant: Virginia’s Closing Cost Assistance (CCA) grant is designed to reduce out-of-pocket expenses for homebuyers who are using either a VA loan or a Rural Housing Service (RHS) loan. The maximum grant is 2 percent of the home’s purchase price and the money can be applied to your closing costs. As a grant, the money does not have to be paid back. You must be a first-time homebuyer to be eligible and the grant must be used with an RHS or VA loan from Virginia Housing. There are also income limits to qualify.
- Virginia Housing Conventional: Virginia Housing offers a 30-year, fixed-rate conventional loan program for first-time and repeat buyers. The program requires less cash at closing than with an FHA loan. This loan can be used for both a purchase and a cash-out refinance. It also allows for flexible down payment sources such as gifts, Virginia Housing down payment assistance grants or the Virginia Housing Plus Second Mortgage. The program allows for a down payment of 3 percent or as low as 1 percent when using the down payment assistance grant. (When using the Plus Second program, there might be no down payment required at all.) Applicants must have a credit score of at least 640 and the maximum debt-to-income ratio is 45 percent.
- Virginia Housing Conventional With No Mortgage Insurance: Nearly identical to the Virginia Housing Conventional program, the main difference is that applicants are not required to buy mortgage insurance. In addition, the minimum credit score requirement for this program is slightly higher at 660.
- Virginia Housing Plus Second Mortgage: This program eliminates the down payment required for qualified first-time homebuyers. The program works by pairing an eligible Virginia Housing first mortgage with the Housing Plus Second Mortgage that is used to cover the down payment. The maximum second mortgage amount is 3 percent to 5 percent of the purchase price. The program provides a 30-year, fixed-rate loan and covers the entire down payment. To qualify, you must have a credit score of 680 or higher. There are also income limits for qualification.
- Mortgage Credit Certificate: This program provides homebuyers with a dollar-for-dollar tax credit against your federal income tax bill, in an amount equal to 10 percent of your annual mortgage interest. To qualify, you must be a first-time buyer who has not owned a home in the past three years. (If you’re buying a home in a target neighborhood, you might not need to meet this requirement.) There are also household income and home price requirements.
- Virginia Housing Loan Combo: The Virginia Housing Loan Combo allows homebuyers to pair a mortgage with other assistance, like a down payment grant, tax credit and first-time homebuyer classes.