how much down payment do i need
If you've been Googling "how much do I need to buy a house," you're in very good company. Right now, down payment and affordability is the single biggest topic home buyers are searching — and for good reason.
National data just confirmed that the median down payment for a first-time buyer hit 10% in 2025, the highest level in over 30 years. At the same time, first-time buyers made up only 21% of all home purchases last year — an all-time low. People aren't staying out of the market because they don't want to own a home. They're staying out because they think they can't afford to get in.
Here's the truth: in Hampton Roads, you have more options than almost anywhere else in the country. Let me break them down.
"Most buyers I talk to think they need 20% down. The reality? There are paths to homeownership here with as little as zero down — if you know where to look."
The Good News: 2026 Is Opening the Door
After years of sky-high rates and frozen inventory, conditions are genuinely improving. The National Association of Realtors forecasts the 30-year fixed mortgage rate will average around 6% this year — down significantly from over 7% at the start of 2025. That one shift alone is projected to bring 5.5 million additional households into qualifying range nationally, including 1.6 million renters.
More homes are coming to market. Affordability is edging in the right direction. If you've been sitting on the sideline waiting for your "moment," this is the closest we've been to it in years.
What Does It Actually Cost to Buy in Hampton Roads?
Hampton Roads — which includes Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, and surrounding cities — tends to be more affordable than major coastal metros. That's a real advantage for buyers here. Depending on the city and loan type, your out-of-pocket costs to get into a home can look very different.
Here's a simplified look at common loan paths and what they typically require upfront:
VA Loan — 0% Down
If you've served in the U.S. military, this is almost always your best option. VA loans require no down payment, no private mortgage insurance (PMI), and often come with competitive interest rates. Hampton Roads is one of the strongest VA loan markets in the country given the concentration of military personnel and veterans in the region. If you qualify, there is very little reason not to use this benefit.
FHA Loan — 3.5% Down
FHA loans are a popular entry point for first-time buyers with credit scores of 580 or higher. On a $300,000 home, that's about $10,500 down — still a manageable number, especially when paired with down payment assistance programs that can cover part or all of it.
Conventional 97 — 3% Down
Conventional loans backed by Fannie Mae or Freddie Mac now allow as little as 3% down for qualifying first-time buyers. On a $300,000 purchase, that's $9,000 — and some down payment assistance programs in Virginia can help close that gap entirely.
VHDA Grant — Up to 2.5% Down Payment Assistance
The Virginia Housing Development Authority (VHDA) offers down payment assistance grants for eligible buyers — money that does not have to be repaid. This can be stacked with FHA or conventional loans to dramatically reduce what you need at closing. Income limits and purchase price caps apply, but many first-time buyers in Hampton Roads qualify.
FHLB Grant — Up to $15,000
The Federal Home Loan Bank of Atlanta offers grants through participating lenders — including up to $15,000 for eligible first-time buyers. These funds can be used for down payment or closing costs. Availability depends on your lender, but it's worth asking every lender you speak with whether they participate.
Local Down Payment Assistance (Norfolk, Chesapeake, Virginia Beach & Suffolk)
Several Hampton Roads cities run their own homebuyer assistance programs. Norfolk, Chesapeake, Virginia Beach, and Suffolk each have programs that may offer additional grants or forgivable loans on top of state programs. These are often first-come, first-served and have income requirements — so it pays to find out your eligibility early in the process.
So — What Do You Actually Need?
The real answer depends on which loan program you qualify for, what assistance you stack, and which city you're buying in. But here's a realistic picture for a first-time buyer purchasing a $280,000–$320,000 home in Hampton Roads:
With a VA loan, a veteran could potentially close with costs of just a few thousand dollars (primarily closing costs, which can sometimes be negotiated with the seller).
With FHA + VHDA assistance, a first-time buyer might need as little as $2,000–$5,000 out of pocket at closing.
With conventional financing and no assistance, you're typically looking at 3–5% down plus 2–3% in closing costs — meaning $15,000–$25,000 in cash to close.
"The buyers I see struggle most are the ones who waited until they had 20% saved — not realizing they could have been building equity for years with the programs already available to them."
The Biggest Mistake First-Time Buyers Make
Waiting. Not because they can't afford it — but because they believe a myth: that you need 20% down to buy a home. For most Hampton Roads buyers, especially veterans and those who qualify for VHDA or city programs, that's simply not true.
The cost of waiting is real. Every year you spend renting, you're building your landlord's equity instead of your own. In Hampton Roads, even a modest home bought today at 3% down will likely be worth more in five years than the full 20% you were waiting to save.
Your Next Step: Find Out Where You Stand
The best way to know what you actually need is to get a real picture of your readiness — your credit, your income, your savings, and which programs you qualify for. That's exactly what I help buyers do every day through a free buyer consultation.
Whether you're ready to start looking or just want to understand what the path looks like from where you are today, there's no pressure and no obligation — just a clear, honest conversation about what homeownership looks like for you in Hampton Roads.
Ready to Find Out What You Actually Need?
Let's talk through your specific situation together — no pressure, no obligation.
Book a Free ConsultationKerry Tanner serves buyers across Virginia Beach, Norfolk, Chesapeake, Portsmouth, and Suffolk. This post is for educational purposes and reflects general market information as of April 2026. Loan program details, income limits, and grant availability change frequently — always verify current terms with a licensed lender.
