Virginia Mortgage and Refinance Rates

Current mortgage rates in Virginia

As of Wednesday, July 10, 2024, current interest rates in Virginia are 6.94% for a 30-year fixed mortgage and 6.47% for a 15-year fixed mortgage.

The median home sales price in the state was up 6.5 percent year-over-year as of April 2024, according to Virginia Realtors, the state’s Realtor group. Those gains, plus today’s higher mortgage rate environment, continue to make housing affordability a challenge.

Refinance rates in Virginia

Since the COVID-19 pandemic, mortgage refinance rates have more than doubled. This makes knowing when to refinance a hard decision for many Virginian homeowners. Due to rising home values, many Virginia homeowners have much more tappable equity now. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

Virginia mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Virginia.

National mortgage rates by loan type

Mortgage statistics for Virginia

With an estimated population of 8.7 million in 2023, Virginia’s housing markets and values vary widely, from the suburbs in the north to the coastal vibe of Virginia Beach to the mountainous region of Blacksburg. Here are some more statistics about mortgages and the housing market in the state:

• Median home sales price, April 2024: $416,548
• Housing inventory, April 2024:18.1% higher YoY
• Median days on the market, April 2024: 7
• Total home sales, April 2024: 14.1% higher YoY
• Homeownership rate, Q4 2023: 68.3% 

Sources: U.S. Census Bureau, Virginia Realtors

Mortgage options in Virginia

If you’re looking to get a mortgage in Virginia, there are several options:

• Virginia conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
• Virginia FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580. 
• Virginia VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay an upfront funding fee, which ranges from 1.25 percent to 2.15 percent for the first use.
• Virginia USDA loans: If you’re buying a rural property in Virginia, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.

First-time homebuyer programs in Virginia

Virginia Housing, the state’s housing finance authority, can help connect you to a first-time homebuyer loan. The agency provides affordable mortgages for first-time and repeat homebuyers, as well as education programs, down payment and closing cost assistance, including:

• Down Payment Assistance grant: The Down Payment Assistance (DPA) grant provides funds to qualified first-time homebuyers. The maximum down payment grant is between 2 percent to 2.5 percent of the home’s purchase price. Because the funds are provided in the form of a grant, the money does not have to be paid back. To be eligible, you must be a first-time homebuyer. The money must also be used in conjunction with a Virginia Housing loan. There are also income limits for all household members.
• Closing Cost Assistance grant: Virginia’s Closing Cost Assistance (CCA) grant is designed to reduce out-of-pocket expenses for homebuyers who are using either a VA loan or a USDA loan. The maximum grant is 2 percent of the home’s purchase price and the money can be applied to your closing costs. As a grant, the money does not have to be paid back. You must be a first-time homebuyer to be eligible and the grant must be used with a USDA or VA loan from Virginia Housing. There are also income limits to qualify.
• Virginia Housing Conventional: Virginia Housing offers a 30-year, fixed-rate conventional loan program for first-time and repeat buyers. The program requires less cash at closing than with an FHA loan. This loan can be used for both a purchase and a cash-out refinance. It also allows for flexible down payment sources such as gifts, Virginia Housing down payment assistance grants or the Virginia Housing Plus Second Mortgage. The program allows for a down payment of 3 percent or as low as 1 percent when using the down payment assistance grant. (When using the Plus Second program, there might be no down payment required at all.) Applicants must have a credit score of at least 640 and the maximum debt-to-income ratio (DTI ratio) is 50 percent.
• Virginia Housing Conventional With No Mortgage Insurance: Nearly identical to the Virginia Housing Conventional program, the main difference with this program is that applicants are not required to buy mortgage insurance. In addition, the minimum credit score requirement for this program is slightly higher at 660.
• Virginia Housing Plus Second Mortgage: This program eliminates the down payment required for qualified first-time homebuyers. The program works by pairing an eligible Virginia Housing first mortgage with the Housing Plus Second Mortgage that is used to cover the down payment. The maximum second mortgage amount is 3 percent to 5 percent of the purchase price. The program provides a 30-year, fixed-rate loan and covers the entire down payment. To qualify, you must have a credit score of 680 or higher. There are also income limits for qualification.

How to find the best mortgage rate in Virginia

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks, credit unions or mortgage companies or all three to get the best deal.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards