First-Time Home Buyer Guide for Virginia — Everything You Need to Know

Buying your first home in Virginia is one of the biggest financial decisions you'll make, and it deserves time, not a rush. When we work together, you get a real conversation about whether you should buy now or wait six months, which Northern Virginia city actually fits your budget, and which loan program saves you the most money over ten years.

I'm Talithia Morris, a Northern Virginia real estate agent at eXp Realty who guides first-time buyers through Woodbridge, Stafford, Fredericksburg, and Alexandria. Call or text (703) 344-6762 for a free 30-minute consult.

What's different about buying in Virginia

Virginia is largely a "buyer beware" state. The seller gives you a disclosure form published by the Virginia Real Estate Board, which says the seller makes no representations about the home's condition and advises you to do your own due diligence, including a home inspection. Beyond that form, the law requires only a short list of specific disclosures, such as known pending building or zoning violations. The burden is on you (and your inspector) to find problems, which is why the inspection matters so much. Your closing is run by a settlement agent — a Virginia-licensed attorney, a title company, or another provider the law allows — and as the buyer, you have the right to choose which one. Prices move every month, so ask me for current sales data. VA and FHA loans have no income caps. Virginia Housing programs do have income and sales price limits that vary by area, program, and household size, so check your eligibility before you count on them.

Step 1 — The honest budget conversation

Many first-time buyers I meet have already plugged numbers into an online mortgage calculator. That's a good start, but the calculator number is only part of the picture, and the amount a lender will approve isn't always the amount that feels comfortable month to month.

Here's what actually goes into the monthly cost of owning a Virginia home:

• Principal and interest — the calculator number
• Property taxes — 2026 base rates per $100 of assessed value (set with each locality's FY2027 budget): Prince William $0.865, Stafford $0.9675, Alexandria $1.135, Fairfax $1.12 — about 0.87%–1.14% a year, plus fire, service-district, or stormwater levies and fees in some areas
• Homeowners insurance — get quotes early; premiums vary by home, coverage, and insurer
• HOA dues — vary by community (some homes have none), so check the listing and HOA documents
• PMI on conventional loans with less than 20% down — the cost depends on your credit score, down payment, and loan
• Maintenance reserve — a common rule of thumb is to set aside about 1% of the home's value each year; your actual costs depend on the home's age and condition

Ask your lender for a Loan Estimate on a realistic price, add insurance quotes and any HOA dues, and plug the all-in monthly number into your budget before you fall in love with a house.

Step 2 — Pick your loan program

There are four real options for first-time Virginia buyers:

VA loan (active duty, veteran, military spouse, or surviving spouse): 0% down, no PMI, no upper loan cap with full entitlement. If you're eligible, it's worth comparing first. See the full deep-dive at How VA Loans Work for First-Time Home Buyers.

FHA loan: 3.5% down for buyers with credit scores 580+. Annual mortgage insurance lasts for the life of the loan if you put down less than 10%, or 11 years with 10% or more down (refinancing later can remove it). Forgiving on credit and DTI. Can be a good fit if you're rebuilding credit or carrying other debt, like student loans.

Conventional 97 loan: 3% down for first-time buyers (no home ownership in last 3 years). PMI is required, but under the federal Homeowners Protection Act you can ask your servicer in writing to cancel it once your balance reaches 80% of the home's original value, and it ends automatically when your balance is scheduled to reach 78% (as long as you're current on payments). Credit score and income requirements vary by lender, so ask yours what you qualify for.

Virginia Housing down payment and closing cost help: Virginia Housing offers two grants and a second mortgage, and they're alternatives — you use one, not a combination. The Down Payment Assistance Grant is a true grant you never repay, used with a Virginia Housing bond FHA or conventional loan. The Closing Cost Assistance Grant pairs with a Virginia Housing bond VA or USDA (RD) loan. Both grants are for first-time buyers, or repeat buyers purchasing in an Area of Economic Opportunity. The Plus Second Mortgage covers your down payment instead, and it's open to first-time and repeat buyers with a Virginia Housing FHA or conventional loan within income and sales price limits. Worth a 30-minute conversation with a Virginia Housing-approved lender: in the Washington–Arlington–Alexandria area the grant income limits are $148,000 for a household of 1–2 and $174,000 for 3 or more, counting all household members' income (limits effective Aug 1, 2026).

Step 3 — Pre-approval (NOT pre-qualification)

Pre-qualification is a non-binding estimate. Pre-approval is a real letter based on verified income (W-2s, pay stubs), assets (bank statements), credit (hard pull), and debt. Sellers in Northern Virginia generally give more weight to an offer backed by a full pre-approval, and in a competitive market it can help your offer stand out. Timing depends on your lender and how quickly you send your documents, so start early.

Step 4 — Pick your Northern Virginia city

The four Northern Virginia cities I serve have different price points, property tax rates, and commute options. Prices move every month, so ask me for current sales data on any of them.

• Woodbridge — Prince William County. Virginia Railway Express (VRE) stations and I-95 commuter routes.
• Stafford — Stafford County. VRE stations and I-95 commuter routes.
• Fredericksburg — City of Fredericksburg and surrounding counties. VRE and Amtrak service.
• Alexandria — City of Alexandria. Metrorail and VRE stations.

Step 5 — Touring and writing offers

When we tour homes, I take notes on what you react to. Your real preferences usually come into focus as we go. When we write an offer, price is only one of the negotiable terms. Others include earnest money deposit, closing date, financing contingency, inspection contingency, appraisal contingency, seller subsidy, personal items, and possession date. I model offers in a spreadsheet so you see net-of-everything before you sign.

Step 6 — Inspection and appraisal

The length of your inspection contingency is negotiated in your contract, so we set it when we write the offer. Most inspection reports list a mix of items. We sort them: material defects (negotiate repairs/credits), cosmetic (skip), maintenance items (ask for credits). Your lender orders the appraisal, and we track it against the dates in your contract. If it comes in below contract, there are several possible paths: the seller lowers the price, you bring extra cash, you and the seller split the difference or renegotiate other terms, or, if your contract has an appraisal contingency, you may be able to walk away. We prepare a comparable-sales packet in advance.

Step 7 — Closing in Virginia

In Virginia, a settlement agent you choose (an attorney or title company, for example) runs the closing. Your lender must give you the Closing Disclosure at least three business days before closing, so you can compare your final terms and costs to your Loan Estimate. How long it takes from ratified contract to keys depends on your loan, your lender, and the dates in your contract, so I'll map out the timeline for your deal once we're ratified.

Virginia-specific programs you should know about

• Virginia Housing Down Payment Assistance Grant — a true grant you never repay, for first-time buyers (or repeat buyers purchasing in an Area of Economic Opportunity) with a Virginia Housing bond FHA or conventional loan; your lender confirms the amount
• Virginia Housing Plus Second Mortgage — a 30-year fixed-rate second loan that covers your down payment (up to 5% of the purchase price, depending on your credit score and first mortgage) and, with a 680+ credit score, part of your closing costs; you do repay it, and it can't be combined with either grant
• Virginia Housing Closing Cost Assistance Grant — up to 2% of the purchase price for first-time buyers (or repeat buyers purchasing in an Area of Economic Opportunity) with a Virginia Housing bond VA or USDA (RD) loan; no repayment
• VA loan benefits — covered in detail at /va-home-loans-woodbridge-va

Buying in Prince William County? See my Prince William County first-time buyer guide.