Here’s how much you have to save for a down payment in cities around Virginia

businessOne of the biggest concerns that prospective homeowners are confronted with along their financial journey is determining how much of a down payment that they will need. The most accurate answer is that it can depend on many different variables such as your credit scores, type of loan program you choose, overall price of home, etc. Although there are 0%-down loans available, a majority of home loans do require specific down payments that can range anywhere from 3.5% up to 20% of the final sale price of the home.

According to the online real estate database company Zillow, the average home price in cities around Virginia was $254,000 as of October 2018. Here’s what you’d have to save for a down payment based upon these figures:

  • 3% = $7620
  • 5% = $12,700
  • 10% = $25,400
  • 15% = $38,100
  • 20% = 50,800

Empire Today provided an even more in-depth look at just how much you should be saving for a down payment. If you plan to purchase a home in either of these Virginia cities by the age of 30, then you should start saving at least this much per month:

At 22 years old:

  • Richmond, VA: $522/month
  • Virginia Beach, VA: $469/month

At 25 years old:

  • Richmond, VA: $835/month
  • Virginia Beach, VA: $750/month

At 29 years old:

  • Richmond, VA: $4,175/month
  • Virginia Beach, VA: $3,750/month

So, you should save a total of $45,000 by the age of 30 if you want to purchase a home in Virginia Beach VA, or $50,100 for a home in Richmond, VA.

Types of Loans

Regardless of where you plan to purchase your home, your down payment amount will also be dependent upon what type of loan you qualify for. For instance, there are loans that are regulated and insured by the Federal Housing Administration that allow for down payments as low as 3.5%. Then, there are also some options offered by the Virginia Housing Development Authority that are aimed at assisting first-time homebuyers, veterans and even some repeat buyers. Here’re some of these programs:

  • Down Payment Assistance Grant (DPA) – Some if its features include 1% down payment, no repayment and a reduced monthly housing payment.
  • VA-$0 down payment required for eligible veterans along with 100% financing options.
  • FHA-Since it’s insured by the government, homebuyers can qualify for as low as 1% down with VHDA DPA Grant, otherwise it’s a 3.5% down payment.

Even though these programs are tempting because they can get you into homeownership sooner, the benefits of saving for a down payment shouldn’t be overlooked either. Saving 20% or more can translate to lower interest rates, monthly mortgage payments and closing costs.


UVA Basketball Fans!

uva basketball team of destiny
Team of Destiny: Inside Virginia Basketball’s Run to the 2019 National Championship, by Jerry Ratcliffe and Chris Graham, is available for $25. The book, with additional reporting by Zach Pereles, Scott Ratcliffe, and Scott German, will take you from the aftermath of the stunning first-round loss to UMBC in 2018 through to the thrilling overtime win over Texas Tech to win the 2019 national title, the first in school history.

Dick Vitale on Team of Destiny: “This is a hoops story you will LOVE! Jerry and Chris capture the sensational and dramatic championship journey by Tony Bennett and his tenacious Cavalier team. UVA was Awesome Baby and so is this book!”

Ralph Sampson on Team of Destiny: “Jerry and Chris have lived and seen it all, even before my time. I highly recommend this book to every basketball fan across the globe. This story translates to all who know defeat and how to overcome it!”

Feedback from buyers: “Got the Book in the Mail Saturday, and could not put it down! Great read and great photography as well! Love all of the books I’ve received, but hands down, this is my favorite!” – Russell

Buy here.

augusta free press news
augusta free press news
augusta free press news