Virginia Mortgage and Refinance Rates
As of Friday, July 30, 2021, current rates in Virginia are 3.00% for a 30-year fixed, 2.30% for a 15-year fixed, and 2.88% for a 5/1 adjustable-rate mortgage (ARM).
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Virginia mortgage overview
By Dhara Singh
Virginia homes are generally in high demand, which means home prices in the Commonwealth tend to be relatively insulated from economic shocks. With a diverse economy and the federal government as a major employer, there are typically plenty of buyers eager to pay top dollar for a home in Virginia.
Virginia home prices have continued an upward trend, and already-low housing inventory has declined further. The median home price in Virginia as of April 2020 was $310,000, up 5.3 percent from a year earlier, according to Virginia Realtors.
First-time homebuyer programs in Virginia
Virginia Housing has many programs to assist homebuyers. The agency was formerly called the Virginia Housing Development Authority, or VHDA, and many references on its website use that name. The agency provides affordable mortgages for first-time and repeat homebuyers, as well as down payment and closing cost assistance.
Homebuyer Programs: Virginia Housing offers a range of options for affordable 30-year fixed-rate mortgages, such as conventional, FHA, VA and USDA loans. To make a mortgage even more affordable, homebuyers can use a Virginia Housing Loan Combo to pair a mortgage with other assistance, like a down payment grant or a tax credit.
Down Payment Assistance Grant: This program helps Virginians become homeowners by providing grants for down payments. The maximum grant is 2 percent to 2.5 percent of the purchase price, and the amount does not have to be repaid.
To qualify, you’ll need a minimum credit score of 620 for an FHA loan, 660 for a Fannie Mae No Mortgage Insurance loan and 640 for a Fannie Mae Reduced Mortgage Insurance loan. The maximum debt-to-income ratio is 45 percent. Buyers must also meet household income limits.
Closing Cost Assistance Grant: If you’re a first-time buyer using either a Rural Housing Service (RHS) loan or a VA loan to purchase a home in Virginia, you can apply for a closing cost grant of 2 percent of the purchase price. This money can be used for closing costs, RHS guarantee or VA funding fee, and the amount does not have to be repaid. You must meet household income limits and have a sales contract in place to receive the grant.
Virginia Housing Plus Second Mortgage: This program helps you meet the down payment requirement on a Virginia Housing mortgage through a second mortgage covering the entire amount. The 30-year fixed-rate loan amounts to 3 percent to 5 percent of the purchase price, depending on your credit score and the type of mortgage.
If your credit score is 680 or higher, you can also include part of your closing costs in the second mortgage. You must meet household income limits to qualify. At closing, you need to be able to show you have 1 percent of the purchase price available.
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. However, if you’re buying a home in a target neighborhood, you may not need to be a first-time buyer. There are also household income and home price requirements.
Virginia mortgage refinancing
Virginia Housing does not offer a refinancing program at this time. Past programs, such as the VHDA Rapid Refi, have been discontinued.
Use Bankrate’s mortgage refinance calculator to see how much you can save by lowering your rate.