How To Qualify For An FHA Loan In Virginia

The Federal Housing Administration (FHA) is making it easier for people with less-than-perfect credit to qualify for a mortgage through the FHA home loan program

It is a savior for a lot of people. You can acquire an FHA loan in Virginia with a credit rating as low as 500.

In Virginia, FHA loan ceilings for single-family homes range from $498,257 to $1,149,825 depending on the county. 

Before you apply, here’s everything you should know about FHA loans and How to qualify for an FHA loan in Virginia

How Are FHA Loan Limits Determined?

Each year, the FHA establishes an upper limit to the loan amount that it will insure in a certain area. These restrictions are typically lower than the amount you could borrow with a conforming loan.

FHA loan limitations are based on a percentage of the Federal Housing Finance Agency’s (FHFA) conforming loan limits. High-cost-of-living locations receive a “ceiling,” or upper loan limit, whereas low-cost-of-living areas receive a “floor,” or lower loan limit. 

In 2024, the loan ceiling for high-cost-of-living locations is 150% of the national conforming loan limit, or $1,149,825. The floor for low-cost areas on the other hand is $498,257, which amounts to 65% of the national conforming loan limit.

FHA loan restrictions vary by county and kind of property. 

For example, a single-family home in Richmond City has a loan limit of $631,350, whereas a four-family home can be insured for up to $1,214,150. 

In a less expensive county, residences of the same size would be limited to $498,257 and $958,350, respectively. 

How To Qualify For An FHA Loan In Virginia

While FHA loans are easier to qualify for than other types of house loans, there are still some requirements. 

You do not need excellent credit or the ability to make a substantial down payment, but lenders will consider your credit score, income, and other variables.

Here’s  How to qualify for an FHA loan in Virginia:

Credit Score

FHA loans demand a credit score of at least 580, although higher scores result in a cheaper down payment. 

If your score is 580 or higher, you can qualify for a 3.5% down payment, compared to 10% for scores between 500 and 579. 

Credit History

The FHA loan approval process is dependent on your credit history. Your credit history should show that you are financially responsible.

FHA lenders often allow no more than one 30-day late payment in the previous 12 months.

Applicants also should not have been in foreclosure within the last three years. You should also not have filed for bankruptcy recently.

Loan-To-Value Ratio Limits

The loan-to-value ratio (LTV) is an important factor for you to qualify for an FHA loan. It compares the loan amount you want with the home’s market value. Lenders use LTV to assess the risk associated with a loan.

To qualify for an FHA loan, your LTV must be 96.5% or lower, which implies you must make at least a 3.5% down payment. .

Closing Costs

In addition to the down payment, applicants must pay closing charges. FHA loan lenders and third-party transaction participants, such as title agencies or HOAs, levy these fees for loan origination, underwriting, and other services.

Closing expenses vary by lender. It typically ranges between 2% and 5% of the loan amount. It’s vital to budget for these closing costs early, because they’re separate from the down payment. .

Debt-To-Income Ratio

You should have a debt-to-income ratio (DTI) of 43% or lower. This means your monthly loan payments cannot exceed 43% of your gross monthly income.

To qualify for an FHA loan, you must have a consistent source of income and work. The lender will request proof of employment, so be prepared to offer it. 

Mortgage Insurance Premiums

Two types of FHA mortgage insurance are required. This reduces the lender’s risk of lending you money, and it will be included upfront when you conclude the loan (1.75% of the loan amount) as well as in your total monthly payment to the lender.


FHA loan is a great choice if you have less-than-perfect credit. It has different loan limits for each county and easier qualifications. 

Make sure to check your credit score, and have a good credit history. You have to know and be ready with the requirements to help you through the process.Now you know  How to qualify for an FHA loan in Virginia. Get your FHA loan successfully by meeting the above mentioned criteria.