Suppose a buyer uses a VA loan on a $375,000 Richmond townhouse with nothing down. At an illustrative 6.25% rate on a 30-year fixed loan, with the VA funding fee financed, the monthly payment comes to about $2,994 including taxes, insurance and $150 in HOA dues. That figure is for illustration only and is not a quote. A townhouse mortgage broker in Richmond, VA, compares hundreds of wholesale lenders across FHA, VA, Conventional and Jumbo programs and matches your loan to the property, whether it is a fee-simple townhome or one in an HOA-governed community. As both a broker and a lender, Duane Buziak can place the loan with a wholesale partner or fund it in-house.
The program you pick, the ownership structure of the townhouse and the HOA dues together set your payment more than the list price alone. This guide covers how the process works, the eligibility rules for each program, a side-by-side payment example, a comparison table, the pitfalls specific to attached homes and the questions to ask any lender, followed by a full FAQ. Written by Duane Buziak, NMLS #1110647.
- What a townhouse mortgage broker in Richmond does
- Townhome loan eligibility by program
- Worked example: monthly payment on a Richmond townhouse
- FHA vs. VA vs. Conventional side by side
- Pitfalls to check before making an offer
- Choosing a townhouse mortgage broker
- Where to start
- Townhouse mortgage FAQ
What a Townhouse Mortgage Broker in Richmond Does for a Townhome Purchase
Duane Buziak works as both a mortgage broker and a lender. For a townhome purchase, that means he can send your file to one of hundreds of wholesale lenders when a partner’s guidelines or pricing fit your situation, or fund the loan himself when that is the cleaner route. You deal with one licensed professional who is responsible for matching the program to the property.
The townhome workflow, step by step
- Pre-approval with a NoTouch Credit Pull. A soft-pull review lets you see where you stand before a hard inquiry is made.
- Program match. FHA, VA, Conventional or Jumbo is chosen based on your credit, income, savings and military status.
- Property review. Once you have a target home, the ownership structure and HOA documents are checked against lender rules.
- Rate lock. The rate is locked once the numbers, including HOA dues, work.
- Underwriting. The appraisal, title and HOA documents are reviewed, and any conditions are cleared.
- Closing. You receive the Closing Disclosure and sign.
Why ownership structure matters
A fee-simple townhouse means you own the structure and the land beneath it. A condo-form townhome means you own the unit and share ownership of common elements. An HOA (homeowners association) can govern either type and collects dues for shared costs such as common areas, exterior maintenance or reserves. Lenders look at the legal structure, not the architecture. A condo-form townhome is generally treated like a condominium and may need project review, meaning the lender or the program (Fannie Mae, FHA or VA) checks the community’s finances, owner-occupancy and insurance.
Richmond buyers shopping for townhomes tend to be first-time buyers, veterans and military families, and move-up buyers who want a yard-light, low-maintenance home inside the city. Price data changes monthly, so check the current city-wide median on Virginia REALTORS or the Richmond city page on Zillow before you set a budget. The examples in this guide use a round $375,000 price point for illustration, not as a market quote.
Townhome Loan Eligibility: Credit, DTI, Down Payment and Mortgage Insurance by Program
The figures below are as of 2026. Rules and rates change, so confirm them at the source or with Duane before you rely on them.
FHA. The minimum down payment is 3.5% with a credit score of 580 or higher, and borrowers with scores from 500 to 579 may qualify with 10% down. FHA charges an upfront mortgage insurance premium (MIP) of 1.75% of the base loan amount, usually financed, plus an annual MIP paid monthly. For most 30-year loans the annual rate is 0.50% to 0.55%, depending on loan size and down payment. With less than 10% down, MIP generally lasts the life of the loan. HUD publishes the rules at hud.gov.
VA. Eligible veterans, service members and some surviving spouses can buy with no down payment, no monthly mortgage insurance, and no county loan-limit cap when they have full entitlement. The VA funding fee is a one-time charge. For a first-use, no-down-payment purchase it is 2.15%, and it drops with a down payment of 5% or 10%. Veterans receiving VA disability compensation and certain others are exempt. Details are at va.gov.
Conventional. Down payment options start at 3% on certain programs and 5% on standard ones, and 3% down is not limited to first-time buyers. Private mortgage insurance (PMI) can be requested for removal once the balance reaches 80% of the original value, and it ends automatically at 78% if you are current. The 2026 conforming loan limit for a single-unit home is $832,750 (see FHFA.gov). Jumbo financing applies only above that limit.
DTI. Debt-to-income ratio is your monthly debts divided by gross monthly income. Allowable limits vary by program and by the strength of the rest of your file, and automated underwriting makes the final call. HOA dues count in your housing expense, which many buyers overlook.
Project rules. Fee-simple townhomes generally avoid condo project approval. Townhome communities with an HOA can still trigger a review, depending on how the community is legally structured. Current Fannie Mae and HUD project standards change, so Duane confirms them for each property rather than assuming.
Worked Example: Monthly Payment on a Richmond Townhouse Under FHA, VA and Conventional
Assume a $375,000 townhouse, a 30-year fixed loan, and an illustrative 6.25% rate on every program. This is for illustration only and is not a quote. Check the weekly average at Freddie Mac’s PMMS for current market context. Other assumptions: property tax at roughly 1.20% of price ($375 a month), homeowners insurance at $110 a month, and HOA dues at $150 a month.
- FHA, 3.5% down: Cash down is $13,125. The base loan is $361,875, plus a financed upfront MIP of $6,333, for a total loan of $368,208. Principal and interest are about $2,267, annual MIP adds about $166 a month, and the total payment is about $3,068.
- VA, 0% down: Cash down is $0. The loan of $375,000 plus a financed 2.15% funding fee of $8,063 totals $383,063. Principal and interest are about $2,359, with no monthly mortgage insurance, and the total payment is about $2,994.
- Conventional, 5% down: Cash down is $18,750 and the loan is $356,250. Principal and interest are about $2,194. PMI at an assumed 0.60% for strong credit adds about $178, and the total payment is about $3,007.
The deltas matter. VA needs $13,125 less cash up front than FHA and $18,750 less than Conventional, and it has the lowest payment here. Conventional costs the most cash but has the only mortgage insurance that can disappear. At these assumptions PMI would run roughly ten years, about $21,000 in total if it were never removed early. FHA’s annual MIP continues for the loan’s life with under 10% down.
The $150 HOA payment counts toward DTI in every scenario. At a 43% DTI limit, it takes about $350 a month of gross income to carry those dues, which can lower your purchase price ceiling. Your rate, down payment and mortgage insurance move the payment most, and HOA dues come next. Where seller or lender credits apply, no-out-of-pocket closing options may be possible, depending on the program and the contract.
FHA vs. VA vs. Conventional for a Townhouse: Side-by-Side Comparison
| Feature | FHA Loan | VA Loan | Conventional Loan |
|---|---|---|---|
| Minimum down payment | 3.5% with a 580+ score | 0% for eligible borrowers | 3% to 5%, depending on the option |
| Credit guidance | 580+ for 3.5% down; 500 to 579 needs 10% down | No VA-set minimum; lender overlays vary | Typically stronger credit earns better pricing |
| Mortgage insurance | Upfront MIP plus annual MIP | No monthly MI; one-time funding fee unless exempt | PMI, removable at 80% LTV |
| DTI flexibility | Often flexible with strong compensating factors | Residual income is also reviewed | Depends on automated underwriting findings |
| HOA and project considerations | Condo-form communities need HUD project eligibility | Condo-form projects need VA approval; fee-simple is generally simpler | Project standards from Fannie Mae or Freddie Mac apply to condo-form |
| Best-fit buyer | Lower savings or credit still being rebuilt | Veterans and military families with entitlement | Solid credit and savings, wanting PMI to end |
Dare to Compare
Duane Buziak invites you to compare. Get a written Loan Estimate from him, then request one from any other lender for the same townhome, loan amount and lock period. Line up the rate, points, lender fees, mortgage insurance and cash to close. A lower rate that carries higher fees is not necessarily cheaper, and the Loan Estimate is built so you can see that. The CFPB’s home-buying tools explain how to read one.
RichmondHomeLoans vs. other online lenders, and vs. other local lenders
RichmondHomeLoans vs. other online lenders comes down to process, not slogans. Ask each one how they handle HOA review, whether a soft-pull pre-approval is available, and who you will speak with when conditions arise. RichmondHomeLoans vs. other local lenders is the same exercise: ask which programs they offer, whether they can shop beyond their own products, and when you will receive a written Loan Estimate. Compare the Loan Estimates line by line, and let the numbers decide.
Townhouse Loan Pitfalls Richmond Buyers Should Check Before Making an Offer
Assuming a townhouse is a condo, or the reverse. Fee-simple ownership and condo-form ownership trigger different lender rules. The title work and HOA documents show which one you are buying. Ask your agent for them early, and tell Duane the property address before you write the offer so the structure can be confirmed.
Skipping the HOA’s financial health. When a community is under project review, lenders look at reserves, pending litigation, special assessments and the share of owner-occupied units. A community with thin reserves or a large planned assessment can slow or stop a loan, even if your file is strong.
Appraisal quirks on attached homes. Appraisers need comparable sales, and attached homes can have fewer close matches. VA appraisals must meet Minimum Property Requirements (MPRs), and FHA appraisals apply HUD standards covering safety, soundness and condition. Peeling paint, a failing roof or missing handrails can create repair conditions.
Asking about HOA dues too late. Dues that surface after you are under contract can push DTI over a limit, which is a bad moment to learn it. If dues change after pre-approval, the numbers may need to be rerun before you lock.
A 30 to 45 day contract-to-close checklist
- Days 1 to 3: send the contract to your loan team, lock the rate if the numbers work, and order the appraisal.
- Days 3 to 10: request the HOA documents, budget and any questionnaire, and schedule the home inspection.
- Days 10 to 20: complete the appraisal, order title work, and bind homeowners insurance.
- Days 20 to 35: clear underwriting conditions and respond promptly to document requests.
- Final week: review the Closing Disclosure, confirm cash to close, and do the final walk-through.
Choosing a Townhouse Mortgage Broker in Richmond: Questions to Ask and How to Start
Whichever lender you consider, ask these five questions:
- Which loan programs can you offer for a townhome: FHA, VA, Conventional and Jumbo?
- How do you handle HOA and project review, and what do you check first?
- Can I get pre-approved with a soft credit pull?
- How quickly will I receive a written Loan Estimate?
- Can I verify your license on NMLS Consumer Access?
Duane Buziak has more than 15 years of experience and NMLS #1110647. He was named a Scotsman Guide Top Originator for 2025 and 2026 and VA Broker of the Year for 2024 to 2025. Those are credentials you can check, and they come second to how clearly he explains your options and your numbers.
The Right Program and a Clear Read of the Townhome Set Your Payment
Once you know the program and whether the townhome is fee-simple or condo-form with an HOA, the payment becomes predictable. A VA, FHA or Conventional loan can each be the right fit, and the property’s structure decides which rules apply. Start with a NoTouch Credit Pull pre-approval so you know your range before you tour homes.
Whether you’re a veteran ready to use your hard-earned benefits or a homebuyer exploring your financing options, your path to homeownership starts with expert guidance you can trust. Connect with Duane today for a personalized consultation and discover the mortgage solution tailored to your unique goals in the Stafford County and Richmond area. You can also call Richmond Home Loans by Duane Buziak at (804) 212-8663.
Townhouse Mortgage Questions Answered
Who is a townhouse mortgage broker in Richmond, VA?
A townhouse mortgage broker in Richmond is a licensed professional who matches your townhome purchase with the right loan program across many lenders. Duane Buziak is both a broker and a lender, so he can use hundreds of wholesale lenders or fund in-house.
Do townhouses need condo approval to get a mortgage?
Not always: fee-simple townhomes generally avoid condo project approval, while condo-form townhomes usually require it. An HOA alone does not decide this, so the legal ownership structure is checked for each property.