FHA Loan | 804Mortgage

🏛️ FHA Loan · Richmond VA

FHA Loans in Richmond, Virginia. Low Down. Flexible Credit.

804Mortgage makes FHA loans simple for Richmond buyers. Low 3.5% down payment, flexible credit requirements, and a local team that has helped buyers get approved after being told "no" elsewhere.

✓ 3.5% Min Down Payment

✓ 580+ Credit Score

✓ First-Time Buyer Friendly

✓ NMLS #1904162

FHA Loan — Quick Facts

Is This Loan Right for You?

Min. Down Payment3.5%

Min. Credit Score580+

Loan Limit (2025)$524,225

Mortgage InsuranceRequired (life of loan)

Best ForFirst-time buyers

See If You Qualify →

FHA Loan — At a Glance

One of the most accessible mortgage products available — especially for first-time buyers and those rebuilding credit.

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Requirements

✓ 580+ credit score (3.5% down)
✓ 500–579 score (10% down)
✓ Steady employment history
✓ Primary residence only
✓ Loan under $524,225 (2025 limit)

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Best For

✓ First-time homebuyers
✓ Buyers with 580–680 credit scores
✓ Limited savings for down payment
✓ Those with past credit challenges
✓ Gift funds for down payment

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Not Ideal If...

✗ Buying a second home or investment
✗ Purchase price above $524,225
✗ Want to avoid lifetime MIP
✗ Strong credit — conventional may save more
✗ You are an eligible veteran (VA is better)

What Is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration — a government agency within the U.S. Department of Housing and Urban Development. Because the federal government backs the loan, lenders take on less risk, which means they can approve borrowers who might not qualify for conventional financing.

FHA loans are one of the most popular choices for first-time homebuyers in Richmond for a simple reason: they're accessible. A 580 credit score and 3.5% down payment is a realistic target for many buyers who are still building their financial profile — and FHA makes that possible.

The tradeoff is mortgage insurance. FHA loans require both an upfront mortgage insurance premium and an ongoing monthly premium, which adds to your payment. For most FHA borrowers who put less than 10% down, that insurance stays for the life of the loan — unlike conventional PMI, which can be removed at 20% equity.

804Mortgage has helped numerous Richmond buyers who were told "no" by other lenders get into homes using FHA financing. If you're not sure whether you'd qualify, give us a call — we'll give you a straight answer fast.

⚠️ Important: FHA Mortgage Insurance
FHA loans require mortgage insurance for the life of the loan if you put less than 10% down. On a $300,000 loan, annual MIP adds roughly $137/month to your payment.

If you can qualify for a conventional loan, we'll compare both options side by side so you can make the most informed decision.

FHA Loan Requirements

Min. Credit Score580 (3.5% down) / 500 (10% down)

Min. Down Payment3.5%

Upfront MIP1.75% of loan amount

Annual MIP0.55%–1.05% (paid monthly)

2025 Loan Limit (VA)$524,225

Max Debt-to-Income43–57% (with compensating factors)

Property UsePrimary residence only

How FHA Compares to Other Loan Types

Not sure if FHA is the right fit? Here's how it stacks up.

Feature	Conventional	FHA	VA	Jumbo
Min. Down Payment	3–5%	3.5%	0%	10–20%
Min. Credit Score	620	580	580–620	700+
Mortgage Insurance	Removable at 20%	Life of loan	✓ None	Removable at 20%
Loan Limit	$806,500	$524,225	No limit	Above $806,500
Gift Funds for Down	✓	✓	✓	Limited
Eligibility Restriction	None	None	Veterans / Military	None

How to Get an FHA Loan With 804Mortgage

Simple, fast, and transparent — even if you've been turned down before.

Apply or Call

Tell us your situation. We'll confirm your FHA eligibility and give you a clear picture of what you qualify for — no guessing.

Get Pre-Approved

Fast FHA pre-approval so you can shop with confidence and make competitive offers in Richmond's market.

Find Your Home

FHA requires an appraisal that meets minimum property standards. Our agents know which homes will pass and which won't.

Close

We handle your FHA loan from application to closing. Local team, clear communication, no surprises.

Getting an FHA Loan With Us?
Add Real Estate and Save Even More.

Our in-house real estate team gives you half the buyer-agent commission back at closing — apply it to your FHA closing costs or use it to cover your down payment gap. On a $350,000 home, that's $5,250 back.

See How Bundle & Save Works →

FHA Loan — Common Questions

What is an FHA loan and how does it work? +

An FHA loan is a mortgage insured by the Federal Housing Administration. The government backing means lenders can offer more flexible qualification requirements — lower credit scores, smaller down payments, and higher debt-to-income ratios than conventional loans. You pay for this flexibility through mortgage insurance premiums (MIP), both upfront and monthly.

Can I get an FHA loan with a 580 credit score in Virginia? +

Yes. A 580 credit score qualifies you for the standard FHA program with a 3.5% down payment. If your score is between 500–579, you can still qualify for FHA but will need 10% down. Below 500, FHA financing is not available. If your score is close to a threshold, we can advise on the fastest ways to improve it before applying.

How much is FHA mortgage insurance and can it be removed? +

FHA mortgage insurance has two components. An upfront MIP of 1.75% is added to your loan balance at closing. Annual MIP is roughly 0.55%–1.05% of the loan amount, divided into monthly payments. For most FHA borrowers who put less than 10% down, MIP stays for the life of the loan — it cannot be removed by reaching 20% equity like conventional PMI. If removing MIP is important to you, we can model a conventional loan comparison side by side.

Can I use gift money for my FHA down payment? +

Yes — FHA loans allow 100% of your down payment to come from gift funds from an immediate family member. The donor will need to sign a gift letter confirming the funds are a gift and not a loan. This makes FHA a strong option for buyers who are receiving financial help from family.

What is the FHA loan limit in Richmond VA for 2025? +

The 2025 FHA loan limit for most Richmond-area counties — including Henrico, Chesterfield, and Hanover — is $524,225 for a single-family home. This is lower than the conventional loan limit of $806,500, which means buyers looking at homes above $524,225 in areas like Short Pump will need to consider conventional financing instead.

Should I get an FHA loan or a conventional loan? +

It depends on your credit score, down payment, and how long you plan to stay in the home. If your score is below 680 and you have limited savings, FHA is often the better path. If your score is 700+ and you can put 5–10% down, conventional may cost you less over time because of the removable PMI. We'll run both scenarios with your actual numbers so you can decide with full information — not a sales pitch.