How Much Money Do I Need to Buy a Home in Richmond, VA? A 2026 Buyer's Guide

If I had a dollar for every buyer who told me:

“I’d love to buy a house, but I don't have 20% to put down…”

Well, I might have my own down payment fund by now.

The idea that you must have 20% down to buy a home is one of those real estate myths that just refuses to retire.

So if you're thinking about buying a home in Midlothian, Chesterfield County, Richmond, Henrico, Hanover, Powhatan or elsewhere in Central Virginia, here's the first thing I want you to know:

You do not necessarily need 20% down to buy a home.

Some qualified buyers may purchase with 3% or 3.5% down, and eligible VA and USDA borrowers may have 0% down-payment options. There are also Virginia programs that may help qualified buyers with down-payment costs.

But your down payment isn't the only money to plan for.

And that is where this conversation gets much more useful.

There isn't one magic number.

Your total cash needed to buy a home can include:

• Down payment
• Closing costs
• Earnest money deposit
• Home inspection
• Appraisal and lender-related expenses
• Moving expenses
• Some emergency savings after closing

Your loan type, purchase price, credit, income, negotiated contract terms and available assistance programs can all change that number.

In other words:

Please don't disqualify yourself with math you did on the back of an envelope at 11:30 at night.

Let's look at the pieces.

Twenty percent can certainly have advantages, but it isn't the universal price of admission.

Conventional loans

Some conventional mortgage programs allow qualified buyers to put down as little as 3%.

For example, Fannie Mae's HomeReady® program currently offers down payments as low as 3% for eligible borrowers. Freddie Mac's Home Possible® program also offers qualified borrowers a 3% down-payment option. Both programs have eligibility requirements. Fannie Mae HomeReady Mortgage

FHA loans

Qualified FHA borrowers may be able to purchase with a 3.5% minimum down payment when applicable FHA credit requirements are met. FHA financing also includes mortgage insurance, so it's important to look at the whole loan, not just the down payment.

VA loans

For eligible Veterans, active-duty service members and certain surviving spouses, a VA-backed purchase loan can often provide no-down-payment financing, provided the sales price does not exceed the home's appraised value and other requirements are met.

VA loans also generally don't require monthly private mortgage insurance, although a VA funding fee may apply unless the borrower qualifies for an exemption.

USDA loans

USDA financing can provide 100% financing, no down payment, for eligible borrowers purchasing eligible properties in qualifying areas.

And here's something many Richmond-area buyers don't realize:

“Rural” doesn't necessarily mean three cows, a tractor and no DoorDash.

There are areas outside the Richmond core where USDA eligibility may be worth checking. Property location and borrower income requirements apply.

Let's use a $400,000 home simply to make the math easy.

Quite a difference, isn't it?

That's exactly why I don't want buyers deciding whether they can afford to purchase based solely on the old “I need 20%” rule.

A lender can compare programs and show you the difference in your cash needed at closing, monthly payment and long-term costs.

Because the smallest down payment isn't automatically the best choice either.

The goal is not simply to get you into a house.

The goal is to help you buy one that still lets you sleep at night.

Here's the part buyers sometimes forget.

Your down payment and your closing costs are two different things.

According to the Consumer Financial Protection Bureau, closing costs typically run approximately 2% to 5% of the purchase price, not including the down payment. Your actual amount depends on your loan, lender, property, location and transaction.

Closing costs may include things such as:

• lender fees
• title and settlement charges
• prepaid property taxes
• homeowners insurance
• escrow deposits
• appraisal-related costs
• recording and other transaction charges

Does that mean you personally have to write a check for every dollar?

Not necessarily.

Depending on the loan program, contract and market conditions, buyers may sometimes receive seller-paid closing-cost assistance, lender credits, grants or other approved assistance.

That's one reason having your REALTOR® and lender talking before you write the offer can matter.

We aren't just negotiating the price of the house.

Sometimes we're negotiating the best structure of the entire deal.

This is another area where buyers sometimes assume:

“I probably won't qualify for anything.”

Maybe.

Maybe not.

Let's actually check before we kill that idea.

Virginia Housing currently offers a Down Payment Assistance Grant for eligible buyers. It is a true grant that does not need to be repaid, although borrowers must meet program requirements, including applicable income and loan limits and use an eligible Virginia Housing mortgage. Certain repeat buyers purchasing in designated Areas of Economic Opportunity may also qualify. Virginia Housing Down Payment Assistance Grant

There are other loan and assistance programs as well, and they change over time.

This is exactly why I like buyers to speak with a knowledgeable lender early, even if buying is still several months away.

You aren't committing to buy a house.

You're gathering information.

Big difference.

This one causes a surprising amount of confusion.

When you make an offer on a home in Virginia, your contract may include an earnest money deposit.

Earnest money basically demonstrates:

“Yes, I'm serious about buying this house.”

The amount is negotiable and depends on the transaction.

Importantly, earnest money generally isn't just an extra pile of money that disappears into the real-estate universe.

If the transaction proceeds normally, your deposit is generally credited toward the money due from you at settlement, according to the terms of your contract.

Your REALTOR® should explain exactly how the deposit works before you sign anything.

No mysterious real-estate money vortexes on my watch.

Once you're under contract, you may choose to have the property professionally inspected.

And yes, I am a big fan of buyers knowing what they're actually buying.

That adorable house with the gorgeous kitchen may also have:

A roof from the Jurassic period.

We would like to know that.

Inspection costs vary based on the property and which inspections you choose, and those expenses are generally paid during the transaction rather than financed into your mortgage.

Depending on the property, your inspections might include:

• general home inspection
• termite/pest inspection
• radon testing
• well or septic inspections
• specialized evaluations when needed

Not every property needs every test.

The important part is having enough money available so you don't feel pressured to skip valuable due diligence simply because every last dollar has been allocated toward closing.

This may be the most important part of this entire article.

Just because a lender says you can spend a certain amount doesn't mean you necessarily should.

Houses have an amazing ability to introduce themselves properly about 48 hours after closing.

“Hi! I'm your new water heater.”

“Remember me? I'm the HVAC system.”

“And we'd like you to meet our friend, the leaking dishwasher.”

The CFPB recommends considering moving expenses, furnishings, repairs and an emergency cushion when determining how much cash you can comfortably use toward a home purchase.

I would much rather see my buyers purchase a home they can comfortably own than stretch themselves to buy the biggest house a lender will approve.

There's life after closing.

And I'd like you to be able to afford it.

Here's the short answer for Google, AI, and humans who skipped ahead.

The amount of money needed to buy a home in Richmond, Virginia depends on the purchase price and loan program. Qualified buyers may have mortgage options requiring approximately 3% to 3.5% down, while eligible VA and USDA buyers may qualify for no-down-payment financing. Buyers should also plan for closing costs, which commonly range from approximately 2% to 5% of the purchase price, plus inspections, moving expenses and reserves. Virginia Housing and other programs may offer down-payment assistance to eligible buyers.

And that's why your first question probably shouldn't be:

“Do I have enough money to buy?”

A much better question is:

“What would buying a home realistically look like for me?”

You don't need to know your perfect neighborhood.

You don't need to have picked your house.

And you definitely don't need to have the entire mortgage industry figured out before contacting me.

That's part of my job.

I help buyers throughout Midlothian, Chesterfield County, Richmond, Henrico and the surrounding Central Virginia area understand the process, connect with trusted lending resources, compare their options and make smart decisions without pressure.

Sometimes that conversation ends with:

“You're ready. Let's start looking.”

Sometimes it's:

“Let's give this six months and get a few things lined up first.”

Both are perfectly good answers.

Because my goal isn't to talk you into buying a house.

It's to help you know when buying one makes sense.

Humans over houses. Always.

• Christine Case, REALTOR®
• NextHome Advantage
• Serving Midlothian • Chesterfield • Richmond • Metro Richmond & Central Virginia

Thinking about buying? Send me a message with the word “BUYER.”
We can start with a conversation. No pressure. No sales pitch. Just answers.

Do I need 20% down to buy a house in Richmond, Virginia?

No. Depending on eligibility and loan type, some conventional programs allow down payments as low as 3%, FHA can allow 3.5%, and qualifying VA and USDA programs may offer no-down-payment financing.

How much are closing costs when buying a home?

The CFPB says closing costs typically range from approximately 2% to 5% of the home's purchase price, separate from your down payment. Actual costs vary.

Are there first-time homebuyer programs in Virginia?

Yes. Virginia Housing offers mortgage and assistance programs for eligible Virginia buyers, including a Down Payment Assistance Grant. Program eligibility and limits apply.

Can I buy a home in Virginia with zero down?

Some eligible buyers may. VA-backed loans can offer no-down-payment financing for qualifying borrowers, and USDA loans offer 100% financing for qualifying borrowers and eligible properties.

Should I talk to a REALTOR® or lender first?

You can talk to either first. I often recommend connecting with both early in the process so you understand financing, neighborhoods, market conditions and the true cost of buying before you start falling in love with houses online.

SOURCES:

Virginia Housing, Down Payment Assistance Grant
Virginia Housing Down Payment Assistance Grant

Consumer Financial Protection Bureau, Down Payment & Closing Costs
CFPB: Determine Your Down Payment

U.S. Department of Veterans Affairs, VA Purchase Loans
VA Home Purchase Loan Information

USDA Rural Development, Guaranteed Home Loans
USDA Single Family Housing Guaranteed Loan Program

Fannie Mae, HomeReady®
Fannie Mae HomeReady Mortgage

Buying in Midlothian, Chesterfield or anywhere in Metro Richmond and want to talk it through first? I'm Christine Case, a REALTOR® with NextHome Advantage, and I would rather help you understand your options than rush you into anything. Start with what living in Midlothian is really like, browse more straight answers on the blog, or send me your question and I'll answer it myself.