Learn More About Mortgages
Finding the right mortgage can be tricky, especially since there are so many options out there. Not sure what type of loan might be right for you? Here are some of the most common mortgages used by Southside Virginia home buyers.
Common Southside Virginia Mortgage Options
Conventional loan
- Often used by buyers with good credit, low debt, and moderate to high income.
- Typically requires a 10% – 20% down payment.
- Private mortgage insurance (PMI) may be required for down payments below 20%.
- Often has strict credit and income qualification requirements.
VA loan
- Available to most active, retired, and veteran military personnel and their spouses.
- Offered by private lenders like banks or credit unions but backed by the VA.
- Down payments as low as 0%.
- Private mortgage insurance (PMI) not required, but a one-time funding fee may apply.
FHA loan
- Often used by low- to moderate-income buyers with lower or moderate credit scores.
- Down payments as low as 3.5%.
- Private mortgage insurance (PMI) required.
- Lower income and credit qualification requirements, but may have higher interest rates.
USDA loan
- Often used by low- to moderate-income buyers with lower or moderate credit scores.
- As low as 0% down.
- Private mortgage insurance (PMI) required.
- Available to buyers in designated rural areas (which is most of Southside Virginia!) Check the availability map for more details.
Balloon mortgage
- Payments are based on a 30-year term, but the loan itself is only 5 or 7 years long.
- At the end of the short loan term, you must pay off the loan, refinance, or sell the home.
- Often used by commercial buyers, but may be used by residential buyers.
Virginia Housing Homebuyer Programs
- Virginia Housing offers a variety of affordable loan options for buyers in Virginia.
- Some require no down payment, others offer lower credit requirements, and others offer tax credits for buyers.
- All loans have maximum income and sales price limits.
Lender-specialty loans
- May be available to first-time buyers, lower-income buyers, or other target groups.
- May offer lower interest payments, reduced rates, or lower qualification requirements.
- Shop around and ask lenders if they have any special programs that might apply to you!
Land loan
- Used to purchase raw, unimproved, or improved land.
- Different types of land require different types of loans and have different requirements for credit and income.
- Buyers typically are required to have excellent credit, high income, and low debt.
- Interest rates tend to be higher than with standard mortgages, and a larger down payment is often required.
Ready to Calculate Your Monthly Payments?
With our mortgage calculator, you can estimate your monthly mortgage payments at various home price points, interest rates, down payments, insurance and tax costs, and more. Find a payment that fits comfortably into your budget!