Virginia Conventional Loans 2026
Conventional mortgages are the most popular choice for Virginia homebuyers with strong credit. With conforming limits up to $1,249,125 in Northern Virginia and removable PMI, conventional loans offer flexibility and long-term value across the Commonwealth.
Understanding Conventional Loans in Virginia
Conventional mortgages—loans not backed by the federal government—are the most commonly used financing option in Virginia. Backed by Fannie Mae and Freddie Mac, these conforming loans offer competitive rates, flexible terms, and the unique advantage of PMI removal once you build 20% equity.
Virginia's diverse housing markets make conventional loans particularly attractive. In high-cost Northern Virginia, conforming loan limits reach $1,249,125, allowing buyers in Arlington, Fairfax, and Loudoun counties to finance million-dollar properties without jumping to jumbo loan requirements. Meanwhile, the standard limit of $832,750 covers the vast majority of homes in Richmond, Virginia Beach, and throughout the Commonwealth.
For Virginia buyers with good credit (740+), conventional loans typically offer the best available rates. Even with less-than-perfect credit, programs like Fannie Mae's HomeReady and Freddie Mac's Home Possible provide 3% down payment options with reduced mortgage insurance costs—and these programs work seamlessly with VHDA down payment assistance.
Virginia Conventional Loan Options
Standard Conventional
5-20%+ down • 620+ credit
- Best rates with 740+ score
- 20% down = No PMI
- No income limits
HomeReady (Fannie Mae)
3% down • 620+ credit
- Income limits apply
- Reduced MI rates
- Boarder income allowed
Home Possible (Freddie Mac)
3% down • 620+ credit
- Income limits by area
- Sweat equity allowed
- No first-time buyer req
Conventional 97
3% down • 620+ credit
- First-time buyers only
- Standard MI rates
- No income limits
2026 Virginia Conforming Loan Limits
| County/City | Conforming Limit | Classification |
|---|---|---|
| Arlington County | $1,249,125 | High-Cost |
| Fairfax County | $1,249,125 | High-Cost |
| Loudoun County | $1,249,125 | High-Cost |
| Prince William County | $1,249,125 | High-Cost |
| Alexandria City | $1,249,125 | High-Cost |
| Falls Church City | $1,249,125 | High-Cost |
| Virginia Beach | $832,750 | Standard |
| Richmond City | $832,750 | Standard |
| Henrico County | $832,750 | Standard |
| Roanoke City | $832,750 | Standard |
Verified as of July 2026 (FHFA/HUD)
VHDA Down Payment Assistance for Conventional Loans
Virginia Housing Development Authority (VHDA) programs work with conventional loans to reduce your upfront costs:
VHDA DPA Grant
- 2-2.5% of purchase price
- Forgivable after 3 years
- Works with HomeReady/Home Possible
- Income limits by county
VHDA Closing Cost Assistance
- Up to $6,000 toward closing costs
- Combine with DPA grant
- First-time & repeat buyers
- Low interest rate second lien
Private Mortgage Insurance (PMI) in Virginia
If you put less than 20% down on a conventional loan, you'll pay PMI. Unlike FHA mortgage insurance, conventional PMI can be removed once you build equity:
PMI Cost
0.5-1.5% of loan amount annually, depending on credit score and LTV
Request Removal
Cancel PMI when you reach 20% equity based on original or current value
Auto Termination
PMI automatically drops at 22% equity based on original schedule
Conventional Loans by Virginia Region
Northern Virginia
High home prices mean the $1,249,125 conforming limit is essential. Tech workers and federal employees in Arlington, Fairfax, and Loudoun often bring 10-20% down to reduce PMI costs. Strong credit profiles (740+) earn the best rates.
Central Virginia / Richmond
With median prices around $380,000, Richmond-area buyers have plenty of room under the $832,750 limit. First-time buyers often combine 3% down conventional with VHDA assistance for minimal out-of-pocket costs.
Hampton Roads
Military families not using VA loans often choose conventional financing. Virginia Beach and Chesapeake properties typically fall well under conforming limits, and rapid appreciation helps reach 20% equity quickly.
Southwest Virginia
Lower prices in Roanoke, Blacksburg, and Lynchburg mean conventional loans are accessible to many buyers. With homes in the $250,000-$350,000 range, even modest down payments create significant equity.
Virginia Conventional Loan FAQs
What is the conforming loan limit in Virginia for 2026?
The 2026 conforming loan limit in Virginia is $832,750 for most counties. High-cost Northern Virginia areas (Arlington, Fairfax, Loudoun, Prince William, Alexandria) have limits up to $1,249,125.
Can I combine VHDA down payment assistance with conventional loans?
Yes! VHDA offers down payment assistance grants of 2-2.5% of the purchase price that work with conventional loans. The Fannie Mae HomeReady and Freddie Mac Home Possible programs are also compatible with VHDA assistance.
When can I remove PMI on a Virginia conventional loan?
PMI can be removed once you reach 20% equity in your home. You can request removal at 20% equity or it's automatically terminated at 22% equity. Virginia's appreciating markets often allow PMI removal within 2-3 years of purchase.
What credit score do I need for a conventional loan in Virginia?
Conventional loans in Virginia typically require a 620 minimum credit score, though 740+ scores get the best rates. Some 3% down programs accept 620+ scores with income limits or first-time buyer status.
What's the minimum down payment for a conventional loan in Virginia?
Conventional loans in Virginia require as little as 3% down for first-time buyers (Fannie Mae HomeReady, Freddie Mac Home Possible) or 5% for other qualified borrowers. Putting 20% down eliminates PMI entirely.
Emmett Clark
NMLS #233747 | 20+ Years Experience
"Conventional loans offer Virginia buyers the best rates and most flexibility—especially when you can put 20% down or plan to build equity quickly. I help clients throughout the Commonwealth find the right conventional product, whether that's a 3% down first-time buyer loan in Richmond or a high-balance loan in McLean."
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