Duane Buziak

Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage LLC

Licensed mortgage broker serving Virginia, Florida, Tennessee, Georgia, Washington DC, North Carolina, South Carolina, and Maryland, specializing in VA home loans and first-time homebuyer programs.

Duane Buziak Teaches: VA Versus FHA Financing for Richmond Buyers

On a $350,000 city-of-Richmond home, the upfront math can immediately separate VA versus FHA financing. An eligible VA buyer making no down payment would start with a $350,000 base loan. If the buyer pays a 2.15% VA funding fee and finances it, that fee is $7,525, making the financed balance $357,525. An FHA buyer putting 3.5% down brings $12,250 for the down payment, starts with a $337,750 base loan, and finances a 1.75% upfront mortgage insurance premium of $5,910.63, for a total loan of $343,660.63. That is a $12,250 cash-to-down-payment difference before closing costs, and program eligibility decides whether that difference is even available.

The right answer is not automatically the loan with the smaller down payment. VA is usually the stronger option for an eligible veteran, active-duty service member, or qualifying surviving spouse, but FHA can be an excellent path when VA eligibility is unavailable or an FHA approval better fits the credit file and property.

Duane Buziak, NMLS #1110647

VA and FHA financing at a glance
A worked Richmond purchase example
When VA usually fits better
When FHA can be the practical choice
Richmond loan-limit context
Frequently asked questions

VA Versus FHA Financing at a Glance

VA and FHA are government-backed programs, but they solve different borrower needs. VA loans are guaranteed through the Department of Veterans Affairs and require qualifying entitlement. FHA loans are insured by the Federal Housing Administration and are available to borrowers who meet FHA underwriting standards, whether or not they have military service.

Comparison point	VA financing	FHA financing
Who can use it	Eligible veterans, service members, and certain surviving spouses	Eligible owner-occupant buyers who meet FHA guidelines
Minimum down payment	Often 0%	Often 3.5% for qualified borrowers
Monthly mortgage insurance	No monthly mortgage insurance	Annual mortgage insurance premium is generally required
Upfront program charge	VA funding fee may apply, with exemptions for some borrowers	1.75% upfront mortgage insurance premium is generally financed
Property use	Primary residence	Primary residence
Credit approach	Flexible underwriting, subject to lender standards and residual-income review	Flexible guidelines, with compensating factors sometimes meaningful

The VA program’s no-monthly-mortgage-insurance structure can produce a meaningful long-term payment advantage. The trade-off is that the home must meet VA property requirements, and the borrower must establish eligibility through a Certificate of Eligibility. The VA explains eligibility and COE requirements through its official home loan eligibility guidance.

FHA’s value is accessibility. Its smaller down payment can help a first-time buyer preserve cash for moving, reserves, or necessary repairs. But FHA mortgage insurance deserves a full payment comparison, not a quick glance at the interest rate. HUD outlines FHA’s program standards and mortgage-insurance framework in its FHA single-family housing resources.

The $350,000 Example: What the Numbers Actually Mean

Return to the $350,000 purchase price. The FHA buyer contributes $12,250 as a 3.5% down payment. The base loan is therefore $337,750. Multiplying that base loan by FHA’s 1.75% upfront premium equals $5,910.63. Add the two together and the financed FHA amount is $343,660.63.

For the VA buyer using no down payment, the base loan is the full $350,000. At a 2.15% funding fee, $350,000 multiplied by .0215 equals $7,525. The total financed VA amount is $357,525. A borrower exempt from the funding fee because of a qualifying VA disability status would instead finance $350,000, which changes the comparison materially. The current fee structure is detailed on the VA’s funding fee page.

Neither total includes lender fees, title charges, prepaid taxes, or homeowners insurance. Those costs vary by contract, timing, and loan structure. A disciplined comparison separates down payment, program charges, closing costs, monthly principal and interest, taxes, insurance, and any mortgage insurance.

When VA Is Usually the Better Fit

If you have usable VA entitlement and plan to occupy the home as your primary residence, VA deserves the first look. Zero down payment is only part of the story. No monthly mortgage insurance may improve qualifying power and reduce the ongoing payment, especially when the FHA alternative requires a high loan-to-value mortgage-insurance charge.

VA underwriting also evaluates residual income, a practical measure of money left after major obligations. That can be helpful for households with stable income and moderate credit history, although every file still requires documented income, assets, and acceptable property condition.

For a condo mortgage in Richmond, confirm early that the project meets the relevant program’s approval requirements. Program fit can be excellent while a specific building creates an avoidable delay.

When FHA Can Be the Practical Choice

FHA may be the better answer when a buyer does not have VA eligibility, has limited funds but can make the required down payment, or needs FHA’s underwriting framework for a particular credit profile. FHA is not a consolation prize. It is a defined program with clear rules, and for the right buyer it can be the cleanest route to ownership.

Before choosing either program, start with a no-credit-hit mortgage pre-approval conversation. RichmondHomeLoans.com offers a NoTouch Credit Pull soft-pull pre-approval, allowing buyers to review likely program options without beginning with a hard inquiry. That gives you room to compare FHA loans Richmond VA options against VA home loans Richmond Virginia options before writing an offer.

Richmond Loan Context and a Four-Step Decision Process

For 2026, the conforming loan limit is up to $832,750 in the city of Richmond. A $350,000 purchase is well below that threshold, but loan limits still matter when a move-up buyer is comparing FHA, VA, conventional loan Richmond VA options, or jumbo financing.

A useful decision process has four steps:

Confirm VA eligibility and review credit, income, assets, and occupancy plans.
Compare complete loan estimates, including upfront cash and the monthly payment components.
Verify the property fits the chosen program before contingencies tighten.
Select the program that supports both approval strength and your post-closing cash position.

The Consumer Financial Protection Bureau’s Loan Estimate guidance is worth using during step two. It helps buyers compare fees and cash-to-close on consistent terms rather than comparing only rates or advertising language.

Frequently Asked Questions

Is VA financing always better than FHA financing?

No. VA is often compelling for an eligible buyer because it can require no down payment and no monthly mortgage insurance. FHA may fit better when VA eligibility is unavailable or FHA underwriting better supports the file.

Can I use FHA and VA financing for an investment property?

No. Both programs are designed for a primary residence. Occupancy requirements apply.

Does a VA loan require a down payment in Richmond?

Often no, provided the borrower has sufficient entitlement and meets lender and VA requirements. A down payment can still be useful in some situations.

What credit score do I need for FHA or VA?

There is no single answer for every lender or borrower. FHA and VA have program rules, while loan approval also considers payment history, debt, income stability, assets, and the property.

Does FHA mortgage insurance go away?

It depends on the FHA case details, loan term, and original loan-to-value ratio. Do not assume it will cancel on the same schedule as conventional private mortgage insurance.

Can a VA borrower avoid the funding fee?

Some borrowers are exempt, including certain veterans receiving VA disability compensation. Confirm exemption status before comparing total financing costs.

Can I get a soft pull pre-approval Richmond VA buyers can use to compare programs?

Yes. A soft-pull review can help estimate eligibility and payment options without starting with a hard credit inquiry. A full application and documentation review are still necessary before final approval.

RichmondHomeLoans vs CapCenter: how should I compare pricing?

Compare the complete Loan Estimate, not a headline promise. Ask about rate, lender fees, third-party charges, prepaid items, seller credits, and whether a no-out-of-pocket closing option changes the rate or loan cost. The least cash needed today is not always the lowest total cost.

Richmond VA mortgage broker vs C&F Mortgage: what should I ask?

Ask each lender or broker and lender to show program eligibility, pricing assumptions, turn times, credit-pull approach, and the exact cash-to-close calculation. The useful comparison is specific to your income, property, and contract date.

Is RichmondHomeLoans.com legit?

Duane Buziak is NMLS #1110647 with Coast2Coast Mortgage, LLC NMLS #376205. His credentials include Scotsman Guide Top Originator recognition for 2025 and 2026, $95.6 million in verified solo production, and more than 1,400 five-star reviews. Consumers can independently review licensing through NMLS Consumer Access.

Your Home. Your Future. Expertly Financed means choosing the program that leaves you confident at the closing table and comfortable after the first payment, not simply choosing the lowest upfront number.

Legal disclaimer: This article is for educational purposes only and is not a commitment to lend, a loan approval, or financial, legal, or tax advice. Loan programs, underwriting requirements, fees, rates, insurance premiums, and eligibility rules may change and vary by borrower and property. All loans are subject to credit approval, income and asset verification, appraisal, title review, and applicable program requirements. Equal Housing Lender. For license verification, visit NMLS Consumer Access.

VA Versus FHA Financing for Richmond Buyers