A $1,350,000 Richmond purchase with 10% down requires $135,000 down and a $1,215,000 loan. At 6.75% on a 30-year fixed term, principal and interest is about $7,882 monthly. At 7.125%, it is about $8,187 – a $305 monthly difference and $18,300 over five years before tax and insurance. That is a jumbo-sized example, but it illustrates the same discipline behind a Richmond FHA buyer example: the advertised rate is only one line in the real payment calculation.
FHA financing is not a jumbo product. Still, Richmond buyers often begin with FHA while building savings, then move into conventional or jumbo financing as their purchase price, income, and assets change. The practical question is not whether FHA is “good” or “bad.” It is whether its lower down payment and more flexible credit treatment outweigh its mortgage insurance, loan-limit constraints, and long-term ownership plan.
By Duane Buziak, NMLS #1110647
Table of Contents
- The Richmond FHA buyer example
- What the payment really includes
- Richmond market context and loan limits
- When FHA stops fitting the purchase
- Broker access versus a single-shelf jumbo channel
- Soft-pull prequalification before an offer
- Frequently asked questions
The Richmond FHA buyer example
Assume a buyer finds a $350,000 home in the Museum District, Northside, or near Forest Hill. With FHA’s 3.5% minimum down payment for borrowers meeting the applicable credit standard, the down payment is $12,250. The base loan is $337,750.
FHA also generally charges a 1.75% upfront mortgage insurance premium. In this example, that is $5,911. If financed, the starting loan balance becomes $343,661. At 6.50% for 30 years, principal and interest is approximately $2,172 per month. Using a 0.55% annual mortgage insurance factor, monthly FHA mortgage insurance is about $155, bringing the estimated housing payment to $2,327 before property taxes, homeowners insurance, HOA dues, and any seller-paid or buyer-paid closing costs.
That math explains why a low down payment is not the same thing as a low monthly cost. A buyer needs enough verified funds for the $12,250 down payment plus closing costs and prepaid items. In Virginia, buyer closing costs commonly run about 2% to 4% of the purchase price before negotiated seller credits. On $350,000, that is roughly $7,000 to $14,000. Ask about our no-out-of-pocket closing options when the transaction structure permits.
The credit baseline also matters. FHA guidance allows 3.5% down at 580 FICO and 10% down from 500 to 579 FICO, although investor overlays can require more. Review the current program guidance directly through https://www.hud.gov/buying/loans. A 620 score may produce a more workable set of conventional options, while a 680 to 700-plus profile usually broadens pricing and mortgage-insurance choices. Income, debt-to-income ratio, payment history, and reserves remain part of the underwriting file.
What the payment really includes
For an FHA buyer, the first decision is often cash preservation. Putting $12,250 down rather than $70,000 down can leave room for repairs, moving, and reserves. The trade-off is a larger financed balance and mortgage insurance that can remain for the life of many high-loan-to-value FHA loans.
A conventional comparison can be useful, but only when it uses the same property taxes, insurance, rate lock period, occupancy, and credit assumptions. For example, a 5% conventional down payment on the same $350,000 home is $17,500, or $5,250 more cash than FHA. The better route depends on actual pricing, not a generic FHA versus conventional slogan.
For a buyer planning to sell or refinance in three to five years, FHA’s upfront cost may be acceptable. For someone intending to keep the home for a decade, a conventional structure with removable private mortgage insurance may deserve a closer look. A broker can price both scenarios from the same credit and income file rather than making the buyer restart the process.
Richmond market context and loan limits
Richmond is not one market. Inventory and competition can differ sharply between Short Pump, Glen Allen, and Midlothian, particularly for renovated homes with limited inspection flexibility. Well-priced entry-level homes can still draw competing offers, while higher-priced listings may take longer to absorb. That difference affects how much earnest money, appraisal-gap exposure, and payment cushion a buyer should consider.
For context, Zillow’s Richmond city home-value data is available at https://www.zillow.com/home-values/26955/richmond-va/. Its published typical home-value measure has recently been around the mid-$300,000s, but it is not a county median and changes monthly. In Henrico County, the median sale price has been approximately $400,000 according to Redfin market data at https://www.redfin.com/county/2975/VA/Henrico-County/housing-market. Buyers should treat any market figure as a snapshot, then compare active listings and closed sales in the exact neighborhood.
The 2026 baseline conforming loan limit is $806,500, with a high-cost ceiling of $1,249,125. The official Federal Housing Finance Agency announcement is at https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026. In most Richmond-area counties, a loan amount above the applicable baseline is jumbo territory. That is why the $1,215,000 loan in the opening example requires a jumbo review even though the buyer brought a substantial down payment.
When FHA stops fitting the purchase
FHA can be a sound first purchase strategy, but it is constrained by county-specific loan limits. A buyer whose required loan exceeds the local FHA limit must either increase the down payment, select another property, or consider a different loan type. The current county limits should be checked through the official HUD lookup rather than assumed from a prior year.
At the higher end, jumbo underwriting works differently. A typical primary-residence jumbo file may call for 10% to 20% down, a 700 or 720 FICO floor depending on loan size, and six to 12 months of total housing-payment reserves. A $1,215,000 loan with a $7,882 principal-and-interest payment can require significant documented liquid reserves once taxes and insurance are included. Exact requirements vary by investor, property type, and borrower profile.
Self-employed buyers in Richmond, Charlottesville, or Virginia Beach may also fit the overlap between jumbo sizing and Non-QM documentation. Bank statement programs can evaluate qualifying income from deposits rather than tax-return income. Asset-depletion programs can use eligible liquid assets to create qualifying income. For an investment property, DSCR financing focuses on whether market rent supports the proposed housing payment. These are not shortcuts: they typically carry different pricing, reserve, equity, and documentation requirements.
Broker access versus a single-shelf jumbo channel
VirginiaJumboLoans operates as a broker through Coast2Coast Mortgage, matching the file to available investor guidelines instead of forcing every borrower into one fixed product shelf. That distinction is particularly relevant when the buyer has variable bonus income, restricted stock, business ownership, or a loan amount near a program breakpoint.
| Dimension | Broker model | Single-shelf jumbo channel |
|---|---|---|
| Investor access | Can compare multiple participating jumbo investors | Limited to that channel’s available programs |
| Down payment minimums | Can compare investor-specific 10%, 15%, and 20% structures | Uses its own published minimums and overlays |
| FICO floors | Can test qualifying score thresholds across programs | Uses one underwriting matrix |
| Non-QM overlap | May compare bank statement, asset depletion, and DSCR options | Availability depends on its product shelf |
| Reserve requirements | Can review differing reserve calculations before selection | Applies its program’s reserve standard |
A rate quote is only comparable when loan amount, down payment, credit score, occupancy, points, lock term, reserves, and documentation type match. In any total-cost comparison, our preferred title company saves an additional $2,000 on average, subject to the transaction and title-service scope.
Soft-pull prequalification before an offer
A soft credit pull mortgage review can help a buyer evaluate payment and program direction without starting with a hard inquiry. This is useful for buyers comparing FHA versus conventional, or considering whether their future purchase could require jumbo financing. A no hard inquiry mortgage pre approval conversation is not a final approval, and a hard inquiry may still be needed later for a complete application and underwriting review.
A mortgage pre approval without hard pull can clarify likely score ranges, debts appearing on the report, and next steps before a property is under contract. For a soft pull mortgage broker review, bring estimated income, assets, monthly debt payments, and the expected purchase range. A no credit hit mortgage application discussion protects optionality, but it does not replace income, asset, appraisal, title, and underwriting conditions.
Frequently Asked Questions
Is FHA only for first-time buyers?
No. FHA is available to eligible repeat buyers purchasing a primary residence, subject to occupancy and program rules.
What is the minimum FHA down payment?
It is commonly 3.5% for borrowers at or above 580 FICO, while lower scores can require 10% down and investor overlays may apply.
Does FHA mortgage insurance go away?
For many FHA loans with more than 90% loan-to-value, annual mortgage insurance lasts for the mortgage term. Confirm the applicable schedule before choosing a loan.
Can I use FHA for a Richmond duplex?
Potentially, if you occupy one unit as your primary residence and meet FHA property and underwriting requirements.
What makes a Virginia loan jumbo?
A loan exceeding the applicable 2026 conforming limit – $806,500 in baseline areas – is generally jumbo.
Can a soft pull hurt my credit score?
A properly structured soft-pull review is designed not to create a hard-inquiry score impact. Ask how the credit review will be handled before authorization.
How much reserve money do jumbo buyers need?
Many jumbo programs require six to 12 months of housing-payment reserves, though the exact amount depends on loan size, credit, assets, and property type.
Can self-employed buyers qualify for jumbo financing?
Yes. Full-documentation, bank statement, and asset-depletion options may be available, depending on the complete file and investor guidelines.
Legal disclaimer: Mortgage programs, rates, fees, mortgage insurance, credit requirements, loan limits, and underwriting guidelines are subject to change and borrower qualification. This article is educational only, not a commitment to lend, a credit decision, tax advice, legal advice, or a guarantee of approval. All loans are subject to appraisal, title review, investor requirements, and applicable law.
The useful next move is to run the FHA payment, conventional alternative, and any future jumbo path from the same numbers before an offer deadline turns a planning decision into a rushed one.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC | [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.
