by Daniel Yoon | eXp Realty | Richmond, Virginia
VA loans are the single best mortgage product available in the United States, and if you qualify, buying a home in the Richmond, Virginia area with zero down payment is not just possible, it is the smart financial move. No down payment, no mortgage insurance, and lower interest rates than conventional loans. I have helped multiple military families purchase homes in Hanover, Chesterfield, Henrico, and Glen Allen using VA loans, and the savings compared to other loan types are significant.
This guide covers everything a veteran or active-duty service member needs to know about using a VA loan to buy a home in the Richmond metro area in 2026.
VA Loan Basics: Why It Is the Best Deal in Real Estate
The VA loan program, guaranteed by the U.S. Department of Veterans Affairs, offers benefits that no other loan product matches:
- Zero down payment: Buy a home with no money down and no VA loan limit if you have full entitlement (the $832,750 2026 county limit only matters if part of your entitlement is tied up in another VA loan)
- No private mortgage insurance (PMI): Conventional loans with less than 20% down require PMI, costing $150 to $300 per month. VA loans never charge PMI.
- Lower interest rates: VA rates typically run 0.25% to 0.50% below conventional rates. On a $400,000 loan, that saves you roughly $65 to $130 per month.
- More flexible credit requirements: No official minimum credit score (though most lenders want 580 to 620)
- No prepayment penalties: Pay off your loan early without fees
- Seller can pay closing costs: The seller can pay your normal closing costs and also contribute up to 4% of the home’s value in additional concessions (such as your funding fee or prepaid items)
The Real Dollar Savings: VA Loan vs. Conventional vs. FHA
Here is what a $400,000 home purchase looks like with each loan type in the Richmond, Virginia market:
VA Loan: $0 down payment, $0 PMI, rate at 6.0%. Monthly payment (principal and interest): $2,398. Cash needed at closing: $3,000 to $6,000 (closing costs only, and seller can cover these).
Conventional (5% down): $20,000 down payment, $180/month PMI, rate at 6.5%. Monthly payment: $2,581. Cash needed: $28,000 to $32,000.
FHA (3.5% down): $14,000 down payment, about $180/month MIP, rate at 6.25%. Monthly payment: about $2,598 (with the 1.75% upfront MIP financed). Cash needed: $22,000 to $26,000.
The VA buyer saves $14,000 to $20,000 upfront and roughly $180 to $200 per month compared to conventional and FHA buyers (a bit less if the VA funding fee is rolled into the loan). Over five years, that is roughly $10,800 to $12,000 in monthly savings alone.
Who Qualifies for a VA Loan in Virginia?
- Veterans: For service since August 2, 1990, generally 24 continuous months of active duty (or the full period you were called to active duty, at least 90 days); earlier eras require 90 days of wartime or 181 days of peacetime service
- Active-duty service members: After 90 days of service
- National Guard and Reserve members: After 6 years of service (or 90 days of active duty)
- Surviving spouses: Of veterans who died in service or from a service-connected disability (generally un-remarried, or remarried on or after age 57)
You will need your Certificate of Eligibility (COE), which your lender can pull electronically in minutes. If you are unsure whether you qualify, a VA-experienced lender can check your status quickly.
VA Loan and New Construction in Richmond
This is where VA loans get even better in the Richmond market. New construction builders in Glen Allen, Hanover, and Chesterfield accept VA loans, and you can combine VA financing with builder incentives.
Example: A military family buying a $420,000 new construction home in Mechanicsville (Hanover County):
- VA loan: $0 down payment
- Builder incentive: $18,000 toward closing costs and a rate buydown (normal closing costs and buydown points do not count toward VA’s 4% concession cap)
- Any remaining builder concessions, up to 4% ($16,800), can cover items like the funding fee or prepaid taxes and insurance
- Total cash out of pocket: potentially $0 to $2,000
I have structured deals like this for multiple military families. The key is knowing how to combine the VA loan benefits with builder incentives and seller concessions. Most buyers and even some agents do not realize you can stack all three.
The VA Funding Fee
VA loans charge a one-time funding fee instead of monthly mortgage insurance. For first-time VA buyers with zero down, the fee is 2.15% of the loan amount ($8,600 on a $400,000 loan). This can be rolled into the loan, so you do not pay it out of pocket.
Important exemptions: Veterans receiving (or eligible for) VA disability compensation, active-duty Purple Heart recipients, and surviving spouses receiving Dependency and Indemnity Compensation are exempt from the funding fee entirely. If you qualify for an exemption, you save thousands.
Common VA Loan Myths
Myth: Sellers do not want VA loan offers
This was somewhat true in the 2021-2022 bidding war frenzy. In the 2026 Richmond market, sellers are happy to accept VA offers because the market has normalized. VA appraisals and inspections are standard, and the closing timeline is comparable to conventional loans.
Myth: VA loans take forever to close
VA loans close in 30 to 45 days, the same as conventional loans. With an experienced VA lender, 30-day closings are routine.
Myth: You can only use a VA loan once
You can use your VA loan benefit multiple times. If you sell a home purchased with a VA loan and pay off the mortgage, your entitlement is fully restored. You can also have two VA loans simultaneously in certain situations.
Best Areas in Richmond for Military Families
- Hanover County (Mechanicsville): Quick access to I-295 and I-95; Fort Pickett (Blackstone) is roughly 90 minutes away. Top schools at Atlee High School. New construction with strong incentives. Home prices $340,000 to $450,000.
- Chesterfield County: Good access to Fort Lee via I-95. Best value per square foot in the metro. Home prices $300,000 to $450,000.
- Glen Allen: Strong schools, new construction, central location. Home prices $350,000 to $520,000.
- Eastern Henrico: Most affordable option near Richmond. Home prices $180,000 to $325,000. Good for budget-conscious buyers building equity.
Frequently Asked Questions
Can I buy a home in Richmond VA with a VA loan and no money down?
Yes. VA loans allow zero down payment with no loan limit for buyers with full entitlement. Buyers with partial entitlement are measured against the 2026 county limit of $832,750. Combined with seller concessions and builder incentives, many VA buyers close with less than $2,000 out of pocket.
What credit score do I need for a VA loan?
The VA does not set a minimum credit score, but most lenders in the Richmond area require 580 to 620. Some specialty VA lenders work with scores as low as 500. Higher scores get better interest rates.
Can I use a VA loan to buy new construction?
Yes. Most builders in Glen Allen, Hanover, and Chesterfield accept VA loans. You can combine VA financing with builder incentives for maximum savings. Make sure to register your agent on your first visit to the builder.
How long does it take to close on a VA loan in Richmond?
30 to 45 days from accepted offer, comparable to conventional loans. The VA appraisal typically takes 7 to 10 business days. An experienced VA lender can keep the process on track.
Do I have to live in the home I buy with a VA loan?
Yes. VA loans require owner occupancy. You must intend to live in the home as your primary residence. You cannot use a VA loan to purchase an investment property, though you can rent out a previous VA-financed home if you move to a new primary residence.
Are you a veteran or active-duty looking to buy in Richmond? Call Daniel Yoon at (804) 896-2694. I work with VA-experienced lenders and know how to combine VA benefits with builder incentives to get you the best possible deal.