Purchasing a home is an exciting milestone in life. However, it also comes with financial complexities, especially regarding mortgage options If you’re a first-time homebuyer in Virginia, Federal Housing Administration (FHA) loans present an accessible financing solution. However, to qualify, your chosen home must fall within FHA lending limits dictated by the county
As of 2023, FHA loan limits in Virginia range from $435,000 to $1,087,000 depending on the location and number of housing units. Understanding these maximum insurable amounts is crucial when applying for an FHA mortgage. This comprehensive guide examines Virginia’s FHA loan limits to simplify the homebuying process
Overview of FHA Loan Limits
First, let’s look at how the FHA establishes lending limits nationwide. The maximum insurable loan amount varies based on a few factors:
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County – Loan limits differ across counties and metro areas based on housing costs. Regions with higher home values have higher ceilings.
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Number of units – You can borrow more for a 2-4 unit dwelling than a single-family home.
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Loan type – Limits are higher for refinances than purchases.
Each year, the FHA calculates limits as percentages of conforming loan levels set by the Federal Housing Finance Agency (FHFA). For 2023, the baseline floor is 65% of the conforming limit while the ceiling is 150%.
FHA Loan Limits for Single-Family Homes
Now, let’s examine the 2023 FHA loan limits specifically for single-family residences in Virginia counties:
| County | Limit |
|---|---|
| Fairfax County | $1,087,000 |
| Arlington County | $1,087,000 |
| Alexandria City | $1,087,000 |
| Loudoun County | $1,087,000 |
| Prince William County | $1,087,000 |
| Stafford County | $1,087,000 |
| Spotsylvania County | $1,087,000 |
| Albemarle County | $647,200 |
| Augusta County | $435,000 |
| Chesterfield County | $726,500 |
As you can see, limits scale based on median home values. Northern Virginia counties with pricier real estate markets have ceilings of $1,087,000. Conversely, rural counties have lower thresholds like Augusta at $435,000.
It’s essential to verify your preferred home is within these amounts before applying for an FHA loan. The good news is you can use FHA loan limit lookup tools to check any specific address.
Multifamily FHA Loan Limits
Beyond single-family dwellings, FHA also insures mortgages for 2-4 unit properties. Here are the 2023 multifamily limits for Virginia:
| Number of Units | Low-Cost Counties | High-Cost Counties |
|---|---|---|
| 2 | $561,850 | $1,382,750 |
| 3 | $680,650 | $1,673,550 |
| 4 | $844,625 | $2,082,525 |
As expected, you can borrow higher amounts for a duplex, triplex, or fourplex. However, you still must adhere to the limit dictated by the property’s county.
Qualifying for an FHA Loan in Virginia
While FHA loans offer flexible qualifying guidelines, you must meet certain criteria regarding your credit, income, and down payment. Here’s a quick overview of key requirements:
- Credit Score – At least 500 but 580+ recommended
- Down Payment – 3.5% of purchase price
- Debt-to-Income Ratio – Under 43%
- Employment – Stable income for last 2 years
- Property Type – Primary residence
Provided you satisfy these parameters, an FHA loan allows you to buy a home with minimal cash reserves. Just verify the sales price falls within your county’s loan limits first.
Finding an FHA Lender in Virginia
Many lenders offer FHA mortgages, but I recommend starting your search with these top-rated providers:
- LoanDepot – Wide variety of loan products
- Guild Mortgage – Local branch locations statewide
- Caliber Home Loans – Streamlined online process
- Fairway Independent Mortgage – Competitive interest rates
Be sure to shop around and compare quotes from multiple lenders. This helps ensure you secure the best FHA mortgage terms.
The Bottom Line
Hopefully this overview clarifies FHA loan limits in Virginia, which vary based on county, property type, and number of units. These maximum insurable amounts are critical to understand before applying for an FHA mortgage and buying a home. Be sure to utilize the resources provided to lookup the limit for your chosen property’s specific location. With this knowledge in hand, you can confidently navigate VA’s homebuying process.
FHA Streamline Refinance in Virginia
Refinancing your FHA loan can be a great idea if you can use it to get a lower interest rate. FHA Streamline Refinance is designed to let you lower your monthly mortgage payments. It switches your original interest rate to a new one calculated using current market rates.
Refinancing your FHA loan is simple.
- Requires less documentation
- No appraisal required
- No need to document income
- No employment requirement
They can also be used to change an FHA Adjustable-Rate Mortgage to a fixed-rate mortgage.
FHA 203(k) Loans
FHA 203(k) loans help borrowers who are looking to purchase a house that needs repairs. Investing in upgrades and renovations can be costly. FHA 203(k) loans, also known as a rehab loan, are designed to finance the costs of house renovations and repairs. They are not limited to the purchase of a new home. They can also be used by a homeowner to upgrade their current property.
FHA 203(k) Limited Loan
- Good for homes that need renovations (not major structural repairs)
- Can finance mortgage payments during home repairs
- Accepts lower credit scores
- Can be used for energy efficient upgrades
FHA 203(k) Standard Loan
- Can cover more costly renovations like structural repairs
- Can be used by a homeowner to increase accessibility for persons with disabilities
- Can also cover mortgage payments during home repairs
- Can be used to add value to your existing home
How to apply for FHA loan in Virginia
Each individual loan is different. To apply for an FHA loan in Virginia, contact one of our New American Funding branches in Virginia. The company’s loan officers will be happy to answer your questions about our products and help you complete the loan application process for an FHA loan.
You should already have a budget in mind when you contact your mortgage lender. Once you’ve found a lender, you can begin to collect the documents you need to apply for an FHA loan. You will need to provide your specific mortgage lender with certain information for approval.
This includes personal identifying information and proof of income. Examples include signed tax returns from the last two years, W-2’s or 1099’s also from the last two years, and a copy of your Social Security card. You will also want to gather any information regarding your current debts as well as extra income you receive.
You can use New American Fundings Virginia Mortgage Calculator to calculate your estimated mortgage costs.
FHA Announces 2024 Loan Limits
FAQ
How much FHA loan do I qualify for?
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Credit Score
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Maximum Loan Amount
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Minimum Down Payment
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580+
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96.5% of home value
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3.5% of purchase price
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500 – 579
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90% of home value
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10% of purchase price
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Is there a minimum amount for a FHA loan?
When it comes to income limitations and requirements for FHA home loans, there is no minimum or maximum.
Is a FHA loan the same as a VA loan?
Subsidized loans through the Federal Housing Authority help lower-income borrowers buy homes. FHA loans work a lot like VA loans. We’ll focus on the differences: Credit Score: While a VA loan requires a median of 620, FHA borrowers could get into a home even with a median credit score as low as 500. Down Payments: An FHA loan requires a down payment. The payment varies from 3.5% to 10% depending on creditworthiness.
Is FHA considered a conventional or conforming loan?
The FHA, VA and USDA mortgage programs are not conventional loans because they do receive backing from the federal government. Depending on its size, a conventional loan can either be conforming or jumbo. “Conforming” means that it falls within the size limits for the county where the home is being purchased.