Buying a home is one of the biggest financial decisions most people will ever make – and for many, the biggest question is:
“How much do I actually need for a down payment?”
You’ve probably heard that you need 20%. That’s the old-school rule, but here in 2025, the reality is quite different – especially in Virginia’s ever-changing real estate market. Whether you’re a first-time buyer in Virginia Beach, moving up in Norfolk, or downsizing in Chesapeake, let’s break it all down together.
First Things First: What is a Down Payment?
A down payment is the amount of money you pay upfront when buying a home. It’s a percentage of the total purchase price.
So if you’re buying a $400,000 home and you put down 10%, your down payment is $40,000.
The rest of the money comes from your mortgage lender, and you pay it off over time – typically over 15 to 30 years.
Do You Really Need 20%?
Nope! While 20% used to be the standard, that’s no longer the case for most buyers.
In fact, many buyers in Virginia put down far less than that.
Here’s what we’re seeing in 2025:
- First-time buyers often put down between 3% and 7%
- Repeat buyers typically put down 10% to 15%
- Cash buyers (yes, they still exist!) pay 100% upfront
The average down payment in Virginia is around 8% to 12%, depending on the location and type of loan.
So if 20% feels out of reach – don’t worry. You have options.
Down Payment Requirements by Loan Type
Let’s take a quick look at what some popular mortgage loans require:
1. Conventional Loans
These are the most common loans. You can usually put down as little as 3%, though putting down more (like 10% or 15%) can help lower your monthly payment.
2. FHA Loans
FHA loans are great for first-time buyers or those with lower credit scores. The minimum down payment is 3.5%.
3. VA Loans (Big in Virginia!)
If you’re a veteran, active-duty military, or part of the National Guard, you might qualify for a VA loan – which means no down payment at all. These loans are especially common in Hampton Roads due to the strong military presence.
4. USDA Loans
For certain rural or suburban areas in Virginia (yes, even outside parts of Chesapeake), you could qualify for a USDA loan, which also requires 0% down.
What Does That Look Like in Real Numbers?
Let’s use a few real-life examples based on average home prices in coastal Virginia:
- $300,000 home in Chesapeake
- 3% down = $9,000
- 10% down = $30,000
- 20% down = $60,000
- 3% down = $9,000
- $400,000 home in Virginia Beach
- 3.5% down (FHA) = $14,000
- 5% down = $20,000
- 15% down = $60,000
- 3.5% down (FHA) = $14,000
Of course, every buyer’s situation is different, but this gives you a ballpark idea of what you might need to save.
Why You Might Want to Put Down More
While low down payment options are great, there are some perks to putting down more money if you can:
- Lower monthly mortgage payments
- Less interest paid over time
- No Private Mortgage Insurance (PMI) if you put down 20% or more
- Stronger offers – especially in a competitive market like Norfolk or Virginia Beach
That said, don’t feel pressured to wait until you can save 20%. In many cases, it makes more sense to buy sooner with less down – especially if home prices are rising.
Don’t Forget About Other Costs
It’s easy to focus on just the down payment, but don’t forget about closing costs, which typically add another 2% to 5% of the home’s purchase price. These cover things like:
- Appraisals
- Title insurance
- Loan origination fees
- Home inspections
In Virginia, closing costs can range from $6,000 to $15,000, depending on the home’s price and location.
Good news though: Sometimes sellers will help cover your closing costs – especially if your offer is strong in other ways. That’s where having a good real estate agent (hey, that’s us!) really helps.
Down Payment Assistance in Virginia
Virginia offers several down payment assistance programs to help buyers bridge the gap.
Some options include:
- Virginia Housing (VHDA) Down Payment Assistance Grants
- City-specific programs in places like Norfolk and Virginia Beach
- Federal programs for first-time buyers or lower-income households
These programs can offer grants, forgivable loans, or second mortgages to help cover your down payment. In some cases, you could buy a home with almost nothing out of pocket.
We can help you explore all of these options and connect you with the right local lenders.
So… How Much Do You Need?
Here’s the honest answer: It depends on your goals, your finances, and the home you want.
In 2025, many Virginia buyers are getting into homes with as little as 3% to 5% down. That means if you’ve been putting off buying because you think you need a huge chunk of cash – you might be closer than you think.
Final Thoughts
Whether you’re just starting to think about buying or you’re ready to take the plunge, understanding how down payments work is a huge step.
And the best part? You don’t have to figure it out alone.
At Hutchison & Co, we work with trusted lenders, know the local market inside and out, and can guide you through every step of the process. From first showing to final signature – we’ve got your back.
Ready to find out what you can afford in 2025? Contact us today and let’s talk about your goals, your budget, and how we can help make homeownership a reality for you.
