Do first-time buyers need 20% down in Virginia?

No. FHA, VA, USDA where the property qualifies, and low down payment conventional loans such as HomeReady and Home Possible can reduce or remove the down payment. Closing costs are separate, and a seller credit may help with those. What you qualify for depends on your file. Ask your loan officer.

What credit score do I need for a first-time buyer loan?

There is no single score. Each program publishes a minimum, and lenders add their own requirements on top. HUD and Fannie Mae are the sources for those program minimums, and they change, so I will not quote a number as a promise. Pre-qualification shows where you stand. Ask your loan officer.

Can the seller pay my closing costs?

Often yes, through a seller credit up to the limit for that loan type. HUD's handbook, VA's funding fee and closing costs page, and Fannie Mae's interested party contribution rules set the caps, and the caps change. The credit has to be negotiated in the contract. Talk with your agent and your loan officer before you write the offer.

Can I use a VA loan as a first-time buyer?

Yes, if you are VA-eligible. Being a first-time buyer is not a VA requirement. The VA loans guide on this page covers eligibility, the funding fee, and condos.

All guides

First-time home buyer loans in Virginia: low and no down payment options

Reviewed by Kyle Kiss, Mortgage Loan Officer, NMLS 1820789. Licensed in VA, MD, WV. Last reviewed October 21, 2026.

No. You do not need 20% down to buy your first home in Virginia. FHA, VA, USDA where the property qualifies, and low down payment conventional loans such as HomeReady and Home Possible can all be paths, and closing costs are separate from the down payment.

Do you need 20% down to buy your first home in Virginia?

Who counts as a first-time buyer depends on the program. FHA, VA, USDA, Fannie Mae, and Freddie Mac do not share one definition, so use the definition for the program you are using rather than one rule for every loan. VA does not require you to be a first-time buyer. Closing costs are separate from the down payment, and a seller credit may help with those costs. Ask your loan officer which definition applies to your file.

FHA, VA, and USDA: the government-backed paths

FHA loans are insured by the Federal Housing Administration. HUD sets the minimum cash investment and requires mortgage insurance, which protects the lender and can be charged monthly, up front, or both. The amounts change. The FHA handbook is the source for the down payment, mortgage insurance, and seller credits, so I will not quote a figure here.

If you are eligible, a VA loan can mean no down payment when your entitlement covers the price, and there is no monthly private mortgage insurance. You need a Certificate of Eligibility. A funding fee may apply unless you are exempt, and the percentage depends on your down payment and whether you have used the benefit before. VA publishes the table. The VA loans guide covers the first-time buyer questions I hear most.

USDA loans can cover the purchase price when the household and the property qualify. Property eligibility is on a map, not a county shortcut. Much of Northern Virginia will not qualify, but check the USDA eligibility map for the address instead of guessing.

Low down payment conventional: HomeReady and Home Possible

HomeReady, from Fannie Mae, and Home Possible, from Freddie Mac, are conventional loans with low down payment options for buyers whose income falls within a limit tied to area median income. Those limits change by address. Use the Fannie Mae area median income lookup and the Freddie Mac Home Possible lookup instead of a number from an article. For some buyers a conventional loan costs less over time than an FHA loan because the mortgage insurance works differently. That depends on your credit, your down payment, and how long you keep the loan. Ask your loan officer to compare them on your file.

Using seller credits for closing costs

A seller credit, also called an interested party contribution, is money the seller agrees to pay toward your closing costs. Each loan type caps that credit differently, and the caps change. HUD's handbook, VA's funding fee and closing costs page, and Fannie Mae's interested party contribution rules are the citations. I will not state a percentage here. The credit has to be written into the purchase contract, so talk with your agent and your loan officer before you make the offer.

What to do first

Get pre-qualified so you shop in a price range that fits the file. Check the property type early. Condos need project approval for FHA and for VA, and FHA approval does not mean VA approval. Search the FHA condo list and the VA condo report before you offer. A homebuyer education course can help you compare programs. Ask whether the program you are using asks for one.

Virginia Housing runs state programs through its own approved lenders.

Virginia also has a first-time homebuyer savings account, which is a state tax feature and does not depend on the lender. Virginia Tax explains how it works.

FAQ

Do first-time buyers need 20% down in Virginia?
No. FHA, VA, USDA where the property qualifies, and low down payment conventional loans such as HomeReady and Home Possible can reduce or remove the down payment. Closing costs are separate, and a seller credit may help with those. What you qualify for depends on your file. Ask your loan officer.
What credit score do I need for a first-time buyer loan?
There is no single score. Each program publishes a minimum, and lenders add their own requirements on top. HUD and Fannie Mae are the sources for those program minimums, and they change, so I will not quote a number as a promise. Pre-qualification shows where you stand. Ask your loan officer.
Can the seller pay my closing costs?
Often yes, through a seller credit up to the limit for that loan type. HUD's handbook, VA's funding fee and closing costs page, and Fannie Mae's interested party contribution rules set the caps, and the caps change. The credit has to be negotiated in the contract. Talk with your agent and your loan officer before you write the offer.
Can I use a VA loan as a first-time buyer?
Yes, if you are VA-eligible. Being a first-time buyer is not a VA requirement. The VA loans guide on this page covers eligibility, the funding fee, and condos.

Sources

Related: First-time homebuyer page

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