Virginia is one of the most economically and militarily significant states in the country — home to the Pentagon, the world’s largest naval station, the nation’s largest military contractor ecosystem, and the DC Metro area’s extraordinary real estate market. Whether you’re buying in Northern Virginia’s high-cost corridor, purchasing near Naval Station Norfolk in Hampton Roads, relocating for a federal contractor role in Fairfax, buying near Marine Corps Base Quantico, or establishing roots in Richmond, Charlottesville, or the Shenandoah Valley, understanding your home loan options is the foundation of every smart purchase decision.
Virginia’s mortgage landscape splits into two very different markets. Northern Virginia — Arlington, Alexandria, Fairfax, Loudoun, and Prince William counties — carries the $1,249,125 national high-cost ceiling for both conforming and FHA loans. Hampton Roads, Richmond, and most of the rest of Virginia follow the $832,750 national baseline. Virginia Housing (formerly VHDA) administers a robust statewide DPA program including a true non-repayable grant and below-market mortgage products. And Virginia’s military community — the second-largest in the country — benefits from a state income tax structure that already excludes up to $40,000 of military retirement pay, with legislation pending to make all military retirement income tax-free.
$1,249,125 in Northern Virginia (DC Metro); $832,750 in Hampton Roads, Richmond, and most of the state.
$1,249,125 in Northern Virginia’s high-cost counties; $541,287 in most other counties.
Zero down for eligible veterans near Naval Station Norfolk, Fort Belvoir, Marine Corps Base Quantico, Joint Base Langley-Eustis, the Pentagon, and Virginia’s 19+ installations. Up to $40,000 military retirement pay deduction; full exemption legislation pending.
Above $1,249,125 in Northern Virginia; above $832,750 in Hampton Roads and the rest of the state.
Lower your rate, shorten your term, or access your home’s equity.
Virginia Housing’s DPA Grant (2–2.5% non-repayable), Plus Second Mortgage (up to 5%), SPARC (1% rate reduction), MCC, and DHCD programs up to $50,000.
Northern Virginia’s DC Metro counties — Arlington, Alexandria, Fairfax, Loudoun, and Prince William — carry the $1,249,125 national high-cost ceiling, giving buyers in one of the nation’s most
competitive markets full conforming access at significantly elevated loan amounts. Hampton Roads, Richmond, and most of the rest of the state follow the $832,750 national baseline.
FHA Loans serve first-time buyers across Hampton Roads, Richmond, the Virginia Peninsula, and communities throughout the state. Northern Virginia’s high-cost counties carry the $1,249,125 FHA ceiling — giving FHA buyers in Arlington and Fairfax access at full conforming levels. Most other Virginia counties follow the $541,287 FHA floor.
Virginia is the second-largest military state in the country, with over 130,000 active-duty service members and 19+ major installations. Naval Station Norfolk is the world’s largest naval station. Fort Belvoir employs more people than the Pentagon itself. Joint Base Langley-Eustis houses approximately one-quarter of all F-22 Raptors in the Air Force. Virginia allows all military retirees to subtract up to $40,000 of retirement pay from state taxable income, with legislation pending to remove the cap entirely.
Northern Virginia’s McLean, Great Falls, Vienna, and Reston
neighborhoods; Loudoun and Fauquier counties’ horse country; and Richmond’s River Road and Windsor Farms neighborhoods regularly require Jumbo financing above their respective conforming ceilings.
Northern Virginia homeowners who purchased before the sustained DC Metro appreciation cycles often hold significant equity. Hampton Roads homeowners benefit from the region’s military-anchored stability. The Bookspan Baker Team provides a full break-even analysis for every refinance.
Virginia Housing’s DPA Grant (2–2.5%, non-repayable), Plus Second Mortgage (up to 5%), and SPARC (1% rate reduction) programs give first-time buyers meaningful financial tools. DHCD’s pilot DPA provides up to $50,000 as a 15-year forgivable second mortgage. Local programs add layers in Alexandria, Loudoun, Virginia Beach, Norfolk, and other localities.
For Virginia seniors with equity in long-held DC Metro or Hampton Roads homes, federal contractors and self-employed professionals with non-W2 income, and investors targeting Virginia Beach STRs or Blue Ridge retreat properties, specialty programs often fit better than standard financing.
$1,249,125 — the national high-cost ceiling — in Arlington,
Alexandria, Fairfax County, Loudoun County, Prince William County, Falls Church, and surrounding DC Metro jurisdictions.
$832,750 — the national baseline — in Virginia Beach, Norfolk, Chesapeake, Newport News, Hampton, Portsmouth, Richmond, and most non-DC-Metro Virginia counties.
Yes. Virginia Housing’s DPA Grant provides 2–2.5% of the purchase price as a true non-repayable grant. The Plus Second Mortgage covers up to 5%. The SPARC program provides a 1% below-market interest rate reduction. DHCD programs provide up to $50,000 as a 15-year forgivable second mortgage. Local programs add more.
Virginia allows all military retirees to subtract up to $40,000 of retirement pay from state taxable income (no age requirement, as of 2025). Virginia HB 2700 proposes to remove the cap entirely starting in 2026. Verify current legislative status with your tax advisor.
FHA: 580+ for 3.5% down. Virginia Housing DPA programs: 640 minimum. Conventional: 620+. Jumbo: 700+.
