Plenty of Richmond buyers still believe a 20% down payment is the price of entry. On a $380,000 Henrico home, that would be $76,000. Only two mortgage programs truly allow zero down: VA and USDA. The other routes get you to a zero out-of-pocket purchase by covering a small minimum down payment with assistance, a gift, or a negotiated credit. Zero down is also not zero cost. Funding fees, guarantee fees, and closing costs still exist, and FHA and standard conventional loans are not zero-down.
Which of the seven paths below fits depends on your service history, household income, and whether you are buying in Church Hill, The Fan, Chesterfield, Henrico, or Midlothian. Fees and limits are stated as of October 2026 and can change.
By Duane Buziak, NMLS #1110647
1. VA loan with 100% financing
Eligible veterans, service members, and some surviving spouses can borrow the full purchase price with no down payment and no monthly mortgage insurance. That absence of monthly insurance is why VA usually beats every other low-down option on payment size. The trade-off is the one-time VA funding fee, which can be financed or exempted for some borrowers.
Consider an illustration: a veteran buys a $380,000 Henrico home using the VA benefit for the first time with no down payment. As of October 2026, the first-use fee at zero down is 2.15%, so $8,170 (confirm on the VA funding fee page). Financed, the loan becomes $388,170. At a sample 6.25% rate over 30 years (not a quote), principal and interest is about $2,390 a month, compared with about $2,340 if the fee were waived. The financed fee costs roughly $50 a month.
- Request your Certificate of Eligibility through VA.gov.
- Run a soft pull so your credit score is not affected.
- Compare pricing across hundreds of options and confirm your entitlement.
- Make your offer on a VA-compliant contract.
The common mistake is assuming the fee is waived for everyone, or that a low score rules VA out. Veterans receiving VA disability compensation, Purple Heart recipients, and certain surviving spouses are generally exempt, but others are not. As for credit, VA sets no score floor itself. Investor overlays differ, and a broker with the right investors can work with scores down to 500 FICO on a case-by-case basis, with no guarantee of approval.
Measure total cash to close and the monthly payment with and without the financed fee.
2. VA entitlement planning for higher-priced homes
Entitlement is the amount of your benefit that VA can guarantee to the investor. With full entitlement, there is no VA loan cap for zero-down purchases. With remaining entitlement, because a prior VA loan is still active, county limits apply. Many buyers who see the $832,750 conforming limit for 2026 (set by FHFA) assume it caps their VA purchase. It does not, if their entitlement is full.
Here is an illustration for a $450,000 Midlothian purchase at 100% financing, first use. The 2.15% funding fee is $9,675, so the financed loan is $459,675. At a sample 6.25% over 30 years, principal and interest is about $2,830 a month, before taxes and insurance. If this were a subsequent use with no down payment, the fee rises to 3.3%, or $14,850, which changes the loan and the payment noticeably.
To plan it properly:
- Pull your entitlement details from the COE.
- Confirm whether any prior VA loan is still active or whether entitlement was restored after a sale or payoff.
- Model the price against the county limit and VA rules.
The common mistake is abandoning zero-down options because a house sits above the conforming limit, or assuming a prior VA loan automatically blocks a new one. Sometimes it does reduce your entitlement, and sometimes it does not.
Measure the loan amount against your available entitlement. If remaining entitlement applies, measure the down payment required on the portion your entitlement cannot cover.
3. USDA guaranteed loan in eligible outer-county areas
The USDA guaranteed program offers 100% financing to moderate-income households buying in designated rural areas. Eligibility depends on the property address and household income, not the zip code in general. Parts of outer Chesterfield and Henrico can qualify, but many suburban addresses do not.
Start with the map, not the listing. Imagine a household of four eyeing an outer Chesterfield address. They enter it on the USDA eligibility site and compare combined household income, not one applicant’s paycheck, to the limit for their household size. Limits are generally tied to 115% of area median income, so check the current figures.
- Check the address on the USDA map before you tour.
- Add up income for everyone who will live in the home.
- Pre-qualify with a soft pull.
- Compare guarantee fees against VA or conventional options.
As of the most recent published structure, the upfront guarantee fee is 1% and the annual fee is 0.35% of the loan balance. Verify both on the USDA program page. On a $300,000 loan, 1% is $3,000 (financeable) and 0.35% is about $1,050 a year, roughly $88 a month.
The common mistakes are falling for a home before checking its address and counting only the borrower’s income. Measure three things: eligibility (yes or no), annual fee cost, and the monthly payment against a VA or conventional alternative.
4. Stacking down payment assistance
Down payment assistance (DPA) comes as grants or deferred second loans that cover the minimum down payment on a first mortgage. It is not true zero down, because the first loan still needs its minimum, but it can leave you with no personal cash in the down payment. Virginia Housing is the main source of programs in the Richmond area, and terms change, so verify current details on its homebuyer page.
For example, imagine a buyer purchasing a $350,000 Church Hill rowhouse with a 3% minimum down payment of $10,500. Suppose assistance covers it as a deferred second loan. That second lien must be repaid when you sell, refinance, or pay off the first mortgage, and some programs have recapture rules. The terms in this example are hypothetical; confirm the real ones before you rely on them.
- Screen income and purchase-price limits for the program.
- Complete homebuyer education if it is required.
- Reserve funds early, since reservation windows can close.
- Confirm that your first mortgage product is approved for use with the DPA.
The most common mistakes are ignoring second-lien repayment and recapture terms, or missing a reservation deadline after the offer is accepted. A 0% deferred second sounds free, but it comes due when you sell.
Measure the cash left to close after assistance, and the total lifetime cost of the second lien, including any interest or forgiveness schedule.
5. Gift-funded conventional purchase
Conventional low-down programs, such as Fannie Mae’s HomeReady and Freddie Mac’s Home Possible, can go as low as 3% down. Many allow a gift from a relative to cover the entire minimum on a primary residence, so you use none of your own savings. Because mortgage insurance applies, this is near-zero rather than zero, and rules should be confirmed against current guidelines.
For example, imagine a buyer purchasing a $275,000 condo in The Fan, with a 3% minimum of $8,250. A parent gifts exactly that amount. Condo projects must meet program standards, so the building matters as much as the buyer.
- Get a signed gift letter stating the amount, the donor’s relationship, and that no repayment is expected.
- Trace the transfer from the donor’s account to yours.
- Confirm program gift rules before the money moves.
The classic mistake is depositing the gift as cash. Underwriters must source large deposits, and an undocumented one can delay approval or sink it. Do not move money first and paper it afterward.
Measure whether the full gift documentation is complete before the file goes to underwriting. Also compare the mortgage insurance cost with VA, which has none, and with other programs, because that monthly cost shapes the whole payment.
6. Seller concessions and broker-compensated pricing
This strategy does not erase closing costs. It shifts who pays them. Seller concessions come from the contract, and rate-for-credit pricing comes from the loan. Both reduce the cash you bring to the table. Program caps apply. Conventional loans with less than 10% down generally allow seller contributions of up to 3% of the price, and VA generally allows up to 4% in concessions, with customary costs treated separately. Confirm current limits for your program.
Take a Henrico illustration at $380,000 with a sample rate of 6.25%, where principal and interest on the full loan is about $2,340. Taking a credit of 1% ($3,800) in exchange for a 6.50% rate raises the payment to about $2,400, an increase of roughly $62 a month. Break-even is $3,800 divided by $62, or about 61 months. If you may sell or refinance before then, the credit may be worth taking. If you will stay ten years, the lower rate wins. These rates are illustrative, not quotes.
- Ask your Realtor to build the concession request into your offer.
- Confirm the program’s concession limit.
- Have Duane Buziak model the rate-versus-credit trade-offs side by side.
The common mistake is taking a higher rate for a credit without calculating the break-even point. Measure break-even months and the final cash to close.
7. Soft-pull program matching before you shop
This step comes first, whichever path you end up using. A soft credit pull lets you test which programs fit before anything touches your score. A hard inquiry, by contrast, is logged on your report. Shopping several providers in sequence can stack them up, and each one can cost points while you are still comparing.
For example, imagine a buyer who runs a no hard inquiry mortgage pre approval using NoTouch Credit Pull. The review shows VA works, a DPA program also fits, and USDA does not because the target address falls outside the map. The buyer picks VA, with DPA as a backup, all with no credit hit mortgage application effect from the initial review.
- Share your income and asset basics with Duane Buziak.
- Review the soft-pull results and the programs they open up.
- Choose a program.
- Request a preapproval letter to attach to offers.
The common mistake is applying with several providers before comparing programs, triggering multiple hard inquiries and still not knowing which path fits.
Measure how many programs you qualify for, and confirm the initial review had zero credit score impact. A buyer who qualifies for three programs negotiates from a stronger position than one who qualifies for one.
How the seven paths compare, and how an independent broker changes the picture
Use this side-by-side list to see where each path fits. Fees and rules are as of October 2026 and should be verified.
- VA 100% financing: Down payment: $0. Monthly mortgage insurance: none. Cost to watch: funding fee (2.15% first use at zero down, with exemptions). Best fit: veterans in Henrico, Chesterfield, or Midlothian.
- VA with entitlement planning: Down payment: $0 with full entitlement; possible down payment if remaining entitlement falls short. Cost to watch: the fee tier for subsequent use (3.3%). Best fit: pricier purchases in Midlothian or The Fan.
- USDA guaranteed: Down payment: $0. Cost to watch: 1% upfront and 0.35% annual fees. Best fit: moderate-income households at eligible outer-county addresses only.
- Down payment assistance: Out-of-pocket: can be $0. Cost to watch: second-lien repayment and recapture rules. Best fit: Church Hill rowhouse buyers within program limits.
- Gift-funded conventional: Out-of-pocket: $0 of your own savings with a documented gift. Cost to watch: mortgage insurance. Best fit: condo buyers in The Fan with family help.
- Seller concessions and credits: Reduces closing cash, not the down payment. Cost to watch: a higher rate if you take lender credits. Best fit: Henrico buyers with room in the contract.
- Soft-pull matching: Cost: none. Best fit: every buyer, as the first step.
Many online providers lead with closing-cost promises, but they typically price from a single source. Richmond Mortgages by Duane Buziak compares hundreds of options, so you see VA with scores down to 500 FICO on a case-by-case basis, plus Non-QM, DSCR, and Bank Statement programs for self-employed buyers and investors that a single-source provider often does not offer.
Questions Richmond buyers ask about zero down payment mortgage programs
Which programs truly allow zero down?
VA and USDA guaranteed loans are the two true zero-down programs. DPA, gifts, and concessions get you near zero out of pocket but start with a small minimum down payment.
Is an FHA loan zero down?
No. FHA generally requires 3.5% down for borrowers meeting its credit score minimum. That amount can come from a gift or assistance.
Can I get a Richmond mortgage pre approval without a hard pull?
Yes. Duane Buziak runs a mortgage pre approval without hard pull using NoTouch Credit Pull, so your score is not affected during the initial review.
What credit score do I need for a VA loan?
VA sets no minimum itself. Investors set their own, and some work with scores as low as 500 FICO case by case. Approval is never guaranteed.
Does zero down mean zero closing costs?
No. You still face closing costs and, depending on the program, a funding or guarantee fee. Ask about no-out-of-pocket closing options, which use seller credits or rate-based credits to cover them.
Is every Chesterfield or Henrico address USDA-eligible?
No. Eligibility is address-specific, and most suburban addresses are excluded. Check the property on the USDA eligibility map before you make an offer.
What is the 2026 conforming loan limit in Richmond?
The baseline 2026 limit is $832,750 per FHFA, and Richmond-area counties generally fall under it. Confirm your county on the FHFA site. It does not cap VA loans for borrowers with full entitlement.
Can a gift cover my whole down payment?
Often, yes. Many conventional low-down programs accept a documented gift for the full minimum on a primary residence, but you need a gift letter and a traceable transfer.
Start with the soft pull, then pick your path
Begin with the soft-pull program match, because it tells you which of the other six paths are open to you. If you are eligible for VA or USDA, pursue those first, since they are the only true zero-down options. Everyone else can layer DPA or a documented gift over a conventional or FHA minimum, then use seller concessions to reduce cash at closing. These paths combine well, so a Church Hill buyer might pair assistance with a concession while a Midlothian veteran uses VA alone.
Call Richmond Mortgages by Duane Buziak at 804-212-8663. Ready to secure your dream home with Richmond’s most trusted mortgage expert? Get your personalized rate comparison today with no credit impact and discover why hundreds of local families choose Duane Buziak for stress-free mortgage solutions backed by 24/7 support and the fastest close times in the area.