A VA loan is not the right fit for every veteran in Henrico County. Entitlement may already be tied up in another property, a seller in Short Pump or Glen Allen may balk at the VA appraisal process, or the price may sit above what the buyer wants to finance through the VA. Veterans are never required to use VA financing, and several other programs fit the same buyers. Duane Buziak, a mortgage broker at 4860 Cox Rd in Glen Allen who has helped families find their new homes since 2014, explains below how seven of them work and who each one suits.
Written by Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205
1. Use an FHA Loan When Credit or Savings Are Thin
FHA loans are insured by the federal government, so wholesale sources will approve scores and savings levels that conventional underwriting often will not. Under HUD’s FHA handbook, a score of 580 or higher qualifies for 3.5% down, and scores from 500 to 579 generally need 10% down. Individual sources may set stricter minimums. The trade is mortgage insurance: an upfront premium plus a monthly one.
For example, imagine a veteran with a 600 score buying a $380,000 townhome near Lakeside. Down payment at 3.5% is $13,300, leaving a base loan of $366,700. Add the 1.75% upfront premium ($6,417), financed into the loan, and the balance is about $373,117. At an illustrative 6.5%, principal and interest is roughly $2,358, plus about $168 a month in annual MIP (as of 2026; confirm current premium rates).
- Confirm which score tier you fall into and what down payment it requires.
- Make sure the property can meet FHA appraisal standards. Condition issues matter more here than on a conventional file.
- Get a soft-pull pre-qualification so your score is untouched.
- Ask for a conventional quote on the same scenario and compare the total monthly payment.
The common mistake is assuming FHA is always the costlier route. FHA’s insurance is priced almost flat across scores, while conventional PMI is priced by score, so at 740 and above conventional is often cheaper. Measure the full monthly payment including MIP against the conventional quote for the identical price and down payment.
2. Choose a Conventional Loan With 3-5% Down and Cancellable PMI
Start with the numbers. On a $450,000 home with 5% down ($22,500), the loan is $427,500. At an illustrative 6.5%, principal and interest is about $2,702. An FHA loan on the same home with 3.5% down runs about $2,793 in principal and interest once the financed upfront premium is included, plus roughly $199 a month in MIP (as of 2026). Conventional PMI will add to the first figure, but the amount depends on your score, so it must be quoted, not guessed.
Why the gap matters: private mortgage insurance (PMI) on a conventional loan can be removed, while FHA’s MIP on a loan with under 10% down generally lasts for the life of the loan. Under the Homeowners Protection Act you can request cancellation once your balance reaches 80% of the original value, and it ends automatically at 78%, as explained by the CFPB.
To put it into practice:
- Check eligibility for Fannie Mae’s HomeReady or Freddie Mac’s Home Possible, which allow 3% down but carry income limits tied to area median income.
- Have PMI priced at 3%, 5%, and 10% down so you can see where the cost drops.
- Ask directly when PMI is expected to be cancellable and what the process requires.
The misconception to drop is that conventional financing demands 20% down. It does not. That figure is where PMI is never required, not where the loan becomes available. Track two numbers: the monthly payment and the year PMI is projected to end.
3. Check USDA Eligibility Before Ruling It Out
The most common USDA error runs in both directions: assuming all of Henrico is ineligible, or assuming it all qualifies. Eligibility is decided address by address. USDA’s guaranteed program allows 0% down, but only for properties in mapped areas and for households under income limits (generally 115% of area median, so verify current figures).
Suppose a buyer eyeing a property on the edge of the county enters the exact address into the USDA eligibility map and finds it eligible, while a comparable Short Pump address is not. The suburban core is more likely to fall outside the map, so the edges deserve the test, not an assumption either way.
Steps that keep this efficient:
- Enter the specific property address on the USDA map before you write an offer.
- Confirm household income against the limit for your household size, counting all adults in the home.
- Compare USDA’s guarantee fees (an upfront fee and a small annual fee, as of 2026) with FHA premiums and conventional PMI on the same price.
Because the loan can cover the full price, the real win is cash. Measure two things: whether the address is eligible (yes or no), and the cash needed at closing compared with FHA and conventional. If the answer is no, you have lost five minutes, not a deal.
4. Finance High-Balance or Jumbo Purchases in Short Pump and Innsbrook
Segment A: higher-priced purchases. Two terms get confused. A high-balance loan is a conforming loan above the baseline limit in designated high-cost counties. A jumbo loan is any loan above the conforming limit that applies to the property’s county. FHFA set the 2026 baseline at $832,750, with a high-cost ceiling of $1,249,125; confirm the figure for Henrico on the FHFA limits table. Henrico is not a high-cost county, so for most buyers anything above the baseline is jumbo.
For example, imagine a retired officer buying a $950,000 home in Wyndham. With 10% down ($95,000), the loan is $855,000, above the baseline, so jumbo pricing applies. At an illustrative 6.5%, principal and interest is about $5,404. Put 20% down ($190,000) and the loan drops to $760,000, which is conforming, with principal and interest near $4,804. Actual jumbo pricing, reserve rules, and down payment minimums vary by source.
- Verify the current Henrico limit on the FHFA table.
- Assemble asset statements and reserve documentation early. Jumbo files usually require more of both.
- Request quotes across wholesale sources for the same scenario, at several down payment levels.
The mistake is treating the loan amount as destiny. Moving the down payment across the limit line can change the program, and the pricing, entirely. Measure rate and points across at least three scenarios, along with the reserves each one requires.
5. Pair a Purchase With Virginia Housing Down Payment Help
State housing finance agencies exist to reduce the cash a buyer must bring to closing, and Virginia Housing runs the programs for the Commonwealth. Assistance is paired with a qualifying first mortgage, so it works alongside FHA or conventional financing. Rules differ by program, and they change.
For example, imagine a first-time buyer near Deep Run Park who needs $18,000 to close on a $350,000 home. If a state program covers $9,000 of that, the cash required from savings is cut in half. The figures are illustrative; actual amounts and terms depend on the program in effect when you apply.
Before you commit:
- Confirm current income and purchase price limits for Henrico County.
- Check whether first-time-buyer status is required and how the program defines it. Veterans sometimes qualify under special provisions, so ask.
- Complete any homebuyer education course, which is often required before closing.
- Choose one assistance program and build the loan around it, rather than layering several.
The costly mistake is timing. Buyers who sign a contract first and ask about assistance second can find the reservation, course, or lender-eligibility steps do not fit the closing date. Involve your broker before you make an offer. The number that proves it works is simple: cash to close with assistance versus without it.
6. Go Conventional Now to Save Your VA Entitlement for Later
Entitlement is the amount of loan the VA guarantees for you. Using it on one purchase can limit what is available for the next, and the benefit is valuable, particularly on a later, larger purchase. A conventional loan does not use entitlement at all.
For example, imagine a veteran buying in Glen Allen who puts 10% down on a conventional loan. They skip the VA funding fee, which for a first-use loan with no down payment is 2.15% (about $9,675 on $450,000, as of 2026, and waived for veterans receiving VA disability compensation). They also keep the full entitlement for a later purchase. The trade is that conventional financing may bring PMI and a different rate.
- Request your Certificate of Eligibility through VA.gov to see your entitlement as the VA records it.
- Review the VA’s rules on restoring entitlement, which depend on whether the earlier loan was repaid and the property sold.
- Get a conventional quote and a VA quote for the same home, then compare monthly payment and total cost.
The mistake is guessing. Some veterans assume entitlement is gone for good, while others assume it comes back automatically. Neither is safe without checking the certificate. Measure the entitlement you actually have remaining and the lifetime cost difference between the two paths, including mortgage insurance and any fee.
7. Compare Programs Side by Side With a Soft-Pull Pre-Qualification
A soft credit pull lets a broker see your credit profile without leaving an inquiry that affects your score. A hard pull is the formal inquiry made at full application. Because Duane Buziak works with hundreds of wholesale lenders, a single soft-pull pre-qualification can price several programs at once.
Suppose one $450,000 scenario is run through three programs at an illustrative 6.5%, using the same credit tier:
- FHA, 3.5% down: about $15,750 down, roughly $2,793 principal and interest plus about $199 MIP, near $2,992 a month.
- Conventional, 5% down: $22,500 down, about $2,702 principal and interest, with PMI added once quoted.
- USDA, 0% down: about $2,873 principal and interest with the 1% fee financed, plus roughly $133 in the annual fee, near $3,006 a month (as of 2026; rates and fees move).
To run your own comparison, request the NoTouch Credit Pull from Duane Buziak and give every program the same price, down payment, and credit tier. Then compare rate, points, and monthly cost. You can also look up a parcel’s assessed value and tax details through Henrico County’s real estate assessment office to sanity-check taxes in the payment.
The common mistake is comparing quotes built on different points, down payments, or lock periods. A lower rate bought with extra points is not a lower cost. Measure the apples-to-apples monthly payment and the cash to close for each program.
Where to Start: Soft-Pull First, Then Match the Program to Your Address
Begin with the soft-pull pre-qualification in item 7, since it costs your credit nothing and frames every other decision. Test FHA and conventional next (items 1 and 2), because they fit the most buyers. Bring in the rest only when your situation calls for them: check USDA when the address sits near the edge of the county, look at jumbo pricing when the loan crosses the conforming limit, and review entitlement preservation when you want the VA benefit available for a later purchase.
Your dream home in Henrico County is closer than you think. Discover exactly what you can afford with our credit-safe pre-qualification process that protects your score while unlocking your options. Get pre-qualified today and take the first step toward homeownership with a local mortgage expert who understands your community. Call Henrico Mortgage by Duane Buziak at 804-212-8663.