Virginia Mortgage and Refinance Rates

Current mortgage rates in Virginia

As of Tuesday, May 14, 2024, current interest rates in Virginia are 7.29% for a 30-year fixed mortgage and 6.60% for a 15-year fixed mortgage.

The median home sale price in the state was up 6.6 percent year-over-year as of December 2023, 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

While mortgage refinance rates have more than doubled since the pandemic, 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.

Learn more: Why and how to do a cash-out refinance

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.

Learn more: Latest mortgage rate forecast

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, Dec. 2023: $382,725
• Housing inventory, Dec. 2023: 0.8% 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 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) premiums, 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 a funding fee, which ranges from 1.25 percent to 2.15 percent.

Learn more: Types of home loans

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 45 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.
• Mortgage credit certificate (MCC): This program provides homebuyers with a dollar-for-dollar tax credit against your federal income tax bill, in an amount equal to 10 percent of your annual mortgage interest, up to $2,000. To qualify, you must be a first-time buyer who has not owned a home in the past three years. (If you’re buying a home in a target neighborhood, you might not need to meet this requirement.) There are also household income and home price requirements.

Learn more: Virginia first-time homebuyer assistance programs

How to find the best mortgage rate in Virginia for you

• 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 or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Learn more: How to get a mortgage

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

Edited by: Suzanne De Vita, Senior Editor, Home Lending

I’ve covered the housing market, mortgages and real estate for the past 12 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.

Read more from Suzanne De Vita