If you’re shopping for your first home in Glen Allen, Short Pump, or anywhere in western Henrico County, the down payment question comes up fast — and the answer is rarely as simple as “save 20%.” The good news: in 2026, first-time buyers in this market have more options than ever, and many of them require far less cash upfront than you might expect.
Duane Buziak, Glen Allen’s Mortgage Broker of the Year 2025, walks through the seven strategies his clients use most — from zero-down VA and USDA paths to grant-assisted FHA loans and conventional options with as little as 3% down.
Before diving in, one important note: you can explore all of these options without a single hard credit inquiry. Glen Allen Mortgage’s NoTouch Credit Pull and no hard inquiry mortgage pre-approval process lets you compare real programs using your Vantage Score 4.0 — no credit hit, no guesswork. Whether you’re eyeing a townhome near Innsbrook or a single-family in Twin Hickory, the right down payment strategy depends on your loan type, your savings timeline, and how you want to structure your monthly payment. Let’s break it down.
By Duane Buziak, NMLS #1110647 | Glen Allen Mortgage Broker of the Year 2025
1. VA Loan — $0 Down for Eligible Veterans and Service Members
The Challenge It Solves
Saving a down payment while renting is genuinely hard — especially in a market where homes in the Twin Hickory and Wyndham corridors routinely list in the mid-$400,000s. For veterans and active-duty service members, the VA loan eliminates that barrier entirely, and most buyers don’t realize just how powerful this benefit is until they sit down and run the numbers side by side.
The Strategy Explained
Backed by the U.S. Department of Veterans Affairs, the VA loan requires no down payment and no private mortgage insurance. That combination alone can save a buyer thousands of dollars per year compared to a conventional or FHA loan at the same purchase price. As a broker with access to hundreds of wholesale lenders, Duane Buziak can layer competitive wholesale rates on top of the VA benefit — something a single retail channel typically cannot offer.
The VA funding fee for a first-time use, no disability exemption, is 2.15% of the loan amount. On a $420,000 purchase, that equals $9,030 financed into the loan, bringing the total loan amount to $429,030. Veterans with a service-connected disability rating may be exempt from this fee entirely — worth verifying before closing.
Implementation Steps
1. Obtain your Certificate of Eligibility (COE) through the VA eBenefits portal or ask Duane to pull it on your behalf — brokers can often retrieve it directly.
2. Start your mortgage pre-approval without hard pull using Glen Allen Mortgage’s NoTouch Credit Pull, which uses Vantage Score 4.0 to assess your profile with no credit hit.
3. Request a side-by-side payment comparison across VA, FHA, and conventional scenarios before selecting your program.
Pro Tips
VA loans can be used more than once — and surviving spouses of eligible service members may also qualify. If you’re not sure whether you have VA eligibility, the COE lookup takes minutes. Don’t assume you don’t qualify before checking.
2. USDA Rural Development — $0 Down in Eligible Henrico Zip Codes
The Challenge It Solves
Not every first-time buyer has VA eligibility, but some buyers in outer Glen Allen — particularly near the Goochland County line — may qualify for another zero-down path that rarely gets the attention it deserves. The USDA Single Family Housing Guaranteed Loan Program is one of the most underused options in this market, largely because buyers assume the word “rural” rules them out.
The Strategy Explained
The USDA Rural Development Guaranteed Loan Program offers $0 down for properties in designated eligible areas. Most of urban Glen Allen does not qualify, but outer corridors near the Goochland border may. Buyers must verify property eligibility at the USDA eligibility map before assuming this path is available — don’t skip this step.
When eligible, the USDA annual guarantee fee is often lower than FHA’s annual mortgage insurance premium, making it a cost-effective alternative for buyers who don’t have VA eligibility. Income limits apply and vary by household size — these are updated annually and must be confirmed for Henrico County before application.
Implementation Steps
1. Check the property address at the USDA eligibility map to confirm the home qualifies before investing time in this path.
2. Confirm your household income falls within current USDA limits for Henrico County, which vary based on household size.
3. Work with a participating broker who can run USDA, FHA, and conventional comparisons simultaneously — Duane Buziak’s soft credit pull mortgage process allows this comparison without affecting your credit score.
Pro Tips
USDA eligibility boundaries can shift with each census update. A property that qualified two years ago may not qualify today — and vice versa. Always verify at the official USDA map, not third-party sites.
3. FHA at 3.5% Down — The Flexible Credit Path
The Challenge It Solves
Credit scores in the 580–639 range often feel like a dead end in conventional mortgage conversations. They’re not. FHA loans are specifically designed for buyers who are creditworthy but haven’t yet reached the FICO thresholds that conventional programs prefer. For many Glen Allen first-time buyers, FHA is the most realistic starting point.
The Strategy Explained
Per HUD.gov, FHA requires a minimum 3.5% down payment for borrowers with a 580+ FICO score. On a $420,000 home, that’s $14,700 — a realistic savings target for most buyers on a structured timeline. Borrowers with scores between 500 and 579 may still qualify with 10% down.
FHA also opens the door to the 203(k) renovation loan, which is worth exploring if you’re considering a fixer-upper in Tuckahoe or Lakeside. The 203(k) wraps renovation costs into the mortgage, so you’re not financing improvements separately after closing.
One important planning note: FHA mortgage insurance premium (MIP) is typically required for the life of the loan when the down payment is under 10%. Understanding when to refinance out of FHA — once your equity and credit score support a conventional loan — is a key part of the long-term cost picture.
Implementation Steps
1. Verify your current FICO and Vantage Score 4.0 using Glen Allen Mortgage’s NoTouch Credit Pull — no hard inquiry, no credit impact.
2. Calculate your 3.5% target based on your expected purchase price range in western Henrico and build a savings timeline around it.
3. Ask Duane to model the full FHA cost picture — upfront MIP (1.75% of the loan amount, financed), annual MIP, and a projected refinance timeline once equity milestones are reached.
Pro Tips
On a $420,000 purchase with 3.5% down, the loan amount is $405,300. The upfront MIP of 1.75% adds $7,093 financed to that balance. Factor this into your total loan amount calculation — it affects your monthly payment from day one.
4. Conventional 3% Down — HomeReady and Home Possible Programs
The Challenge It Solves
Buyers with stronger credit profiles often assume they need 5% or 10% down for a conventional loan. That’s not the case. Fannie Mae and Freddie Mac both offer 3% down conventional programs specifically designed for first-time buyers — and they come with a long-term cost advantage that FHA can’t match.
The Strategy Explained
Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs allow first-time buyers to put as little as 3% down on a conventional loan, with income limits tied to area median income for Henrico County. The key long-term advantage: private mortgage insurance (PMI) on a conventional loan can be cancelled once your equity reaches 20%. FHA MIP, by contrast, typically stays for the life of the loan when the down payment is below 10%.
Buyers with FICO scores of 680 or higher often find that conventional 3% down outperforms FHA on total lifetime cost — even if the starting rate is similar. The 2026 conforming loan limit for Henrico County is $806,500, per FHFA.
Implementation Steps
1. Confirm your FICO score meets the 680+ threshold that typically unlocks the most favorable PMI pricing on conventional 3% down programs.
2. Verify your household income falls within the HomeReady or Home Possible income limits for Henrico County — these are tied to area median income and updated periodically.
3. Ask for a side-by-side comparison of conventional 3% down vs. FHA 3.5% down, modeled over a five- and ten-year horizon, including the point at which PMI cancels on the conventional path.
Pro Tips
On a $420,000 purchase with 5% down ($21,000), the loan amount is $399,000. PMI pricing varies by FICO score and lender — generally in the 0.5% to 0.85% annual range. A broker with access to hundreds of wholesale lenders can often surface PMI pricing that retail channels cannot.
5. Virginia Housing Down Payment Assistance — Real Grant Money for Glen Allen Buyers
The Challenge It Solves
Coming up with even 3% to 3.5% is a meaningful hurdle for buyers who are otherwise ready to own. Virginia Housing’s down payment assistance program addresses this directly — and unlike second-lien assistance structures, the DPA grant program does not require repayment when structured correctly. This is grant money, not a loan in disguise.
The Strategy Explained
Virginia Housing’s Down Payment Assistance Grant is available to eligible first-time buyers and pairs with Virginia Housing’s first mortgage products. Income limits and purchase price caps apply for Henrico County and are updated annually — verify current 2026 figures directly with Virginia Housing or through a participating originator before assuming eligibility.
Duane Buziak is a participating originator for Virginia Housing programs, which means he can layer the DPA grant directly onto an eligible first mortgage — FHA or conventional — within a single program structure. Important compliance note: no double-stacking of grants. These programs are designed to be used individually, not combined with other grant sources simultaneously.
Implementation Steps
1. Confirm eligibility for Virginia Housing’s first mortgage program — income limits, purchase price caps, and first-time buyer definition all apply.
2. Work with a participating originator like Duane Buziak to structure the DPA grant alongside the first mortgage in a compliant single-program structure.
3. Understand the full payment picture with and without the grant — sometimes a slightly different loan structure produces a better long-term outcome even with the grant factored in.
Pro Tips
Virginia Housing income and purchase price limits for Henrico County are locality-specific. Don’t rely on statewide figures — confirm the Henrico-specific thresholds for 2026 before building your budget around this program.
6. Gift Funds and Family Equity — Structuring Down Payment Gifts Correctly
The Challenge It Solves
Many Glen Allen first-time buyers receive financial help from family — parents, grandparents, or siblings gifting part or all of the down payment. The intent is straightforward, but the documentation requirements are not. Improperly documented gift funds are one of the most common reasons underwriting stalls in the final stretch, and it’s entirely avoidable with the right preparation upfront.
The Strategy Explained
Per CFPB guidance and Fannie Mae’s Selling Guide, gift fund documentation requirements vary by loan type and down payment percentage. FHA allows 100% of the down payment to come from gift funds. Conventional programs have specific rules depending on the down payment percentage — at lower down payment thresholds, the borrower may need to contribute a minimum amount from their own funds.
The documentation required includes a signed gift letter (stating the funds are a gift, not a loan, with no repayment expected), a paper trail showing the transfer from donor to recipient, and — in many cases — evidence that the donor had the funds available before the transfer. All three elements must be in the file before underwriting can clear the condition.
Refer to Fannie Mae’s Selling Guide (Section B3-4.3-04) for the specific conventional gift fund requirements, and verify current FHA gift fund rules at HUD.gov.
Implementation Steps
1. Identify the source of gift funds early — ideally 60 to 90 days before closing — so the paper trail is clean and seasoned in the account.
2. Prepare the gift letter using the required language: donor name, relationship, amount, property address, and a clear statement that no repayment is expected.
3. Document the transfer with bank statements from both the donor and recipient showing the funds moving and landing in the correct account.
Pro Tips
The earlier you disclose gift funds to your broker, the smoother the process. Surprises in underwriting — including undisclosed gift deposits — create delays. Bring it up at the pre-approval stage, not at the closing table.
7. Broker-Advantage Rate Shopping — How Comparing Lenders Shapes Your Down Payment Decision
The Challenge It Solves
Most first-time buyers approach the down payment question in isolation: “How much do I need to put down?” But the real question is more nuanced: “Which down payment amount, combined with which loan program and rate, produces the monthly payment and long-term cost that works for my situation?” A single retail lender can’t answer that question fully — they can only show you what they offer.
The Strategy Explained
As a broker with access to hundreds of wholesale lenders, Duane Buziak can surface scenarios that a single retail channel cannot. For example, a slightly higher down payment that eliminates PMI entirely may produce a lower monthly payment than a lower down payment at a higher rate — even though the upfront cost is greater. That kind of cross-scenario analysis requires access to multiple programs simultaneously.
The Dare to Compare process uses Glen Allen Mortgage’s NoTouch Credit Pull — a soft credit pull mortgage process using Vantage Score 4.0 — so buyers can compare real program scenarios side by side without a hard inquiry touching their credit report. This is a mortgage pre-approval without hard pull that gives you real numbers, not estimates.
Rate shopping, when done correctly through a broker, does not hurt your credit. The CFPB explains that multiple mortgage inquiries within a short window are typically treated as a single inquiry for scoring purposes — but using a soft-pull process from the start eliminates even that concern.
Implementation Steps
1. Start with Glen Allen Mortgage’s NoTouch Credit Pull to establish your baseline profile without any credit impact.
2. Request scenarios across at least three programs — VA or USDA if eligible, FHA, and conventional — with varying down payment amounts modeled for each.
3. Compare total cost of ownership over five and ten years, not just the monthly payment, before selecting your program.
Pro Tips
The comparison table below shows how Duane Buziak’s broker model differs from retail mortgage channels on the dimensions that matter most for first-time buyers in Glen Allen.
Down Payment Program Comparison — $420,000 Purchase Price (Western Henrico / Twin Hickory Corridor)
Program | Down Payment | Down Payment $ | Upfront Costs | Est. Monthly P&I | PMI / MIP | Key Eligibility
VA Loan: 0% down | $0 | 2.15% funding fee ($9,030 financed) | Based on $429,030 loan at current VA wholesale rate | None | VA-eligible veterans, active duty, surviving spouses
USDA Guaranteed: 0% down | $0 | 1% upfront guarantee fee (financed) | Based on $424,200 loan at current USDA rate | 0.35% annual guarantee fee | Property must be in USDA-eligible area; income limits apply
FHA 3.5% Down: 3.5% down | $14,700 | 1.75% upfront MIP ($7,093 financed) | Based on $405,300 + $7,093 = $412,393 loan | 0.55% annual MIP (verify at HUD.gov) | 580+ FICO; no income limit
Conventional 3% Down (HomeReady/Home Possible): 3% down | $12,600 | Standard closing costs | Based on $407,400 loan | 0.5%–0.85% PMI (cancellable at 20% equity) | 680+ FICO recommended; income limits apply
Conventional 5% Down: 5% down | $21,000 | Standard closing costs | Based on $399,000 loan | 0.5%–0.85% PMI (cancellable at 20% equity) | 620+ FICO; no income limit
Note: Monthly P&I figures depend on current wholesale rates at time of application. Ask Duane Buziak for a live scenario using your actual profile. All figures are illustrative based on a $420,000 purchase price. Upfront MIP and guarantee fee figures should be verified against current HUD and USDA schedules before application.
Broker vs. Retail Channel Comparison — Glen Allen First-Time Buyer Programs
Feature | Duane Buziak / Glen Allen Mortgage | Rocket Mortgage | Movement Mortgage | Alcova Mortgage | Courtney Ficken / First Home Mortgage
Down Payment Options Available: VA, USDA, FHA, Conventional 3%, HomeReady, Home Possible, Virginia Housing DPA | Conventional, FHA, VA (select programs) | Conventional, FHA, VA | Conventional, FHA, VA, select state programs | Conventional, FHA, VA, select state programs
Soft-Pull Pre-Approval (No Credit Hit): Yes — NoTouch Credit Pull, Vantage Score 4.0 | Not standard | Not standard | Not standard | Varies by originator
Wholesale Lender Access: Yes — hundreds of wholesale lenders | No — single retail channel | No — single retail channel | No — single retail channel | No — single retail channel
Local Glen Allen Expertise: Yes — Broker of the Year 2025, Innsbrook Business of the Year 2022 & 2024 | National/remote | Regional | Regional | Regional
Virginia Housing DPA Program Access: Yes — participating originator | Not confirmed | Not confirmed | Varies | Varies
Putting It All Together — Your Glen Allen Down Payment Action Plan
The right down payment strategy for your situation depends on three things: your loan eligibility, your current savings, and how you want to structure your long-term cost. Here’s how to prioritize:
Start with eligibility: If you have VA eligibility, run that scenario first. The combination of no down payment and no PMI is difficult to beat on a $420,000 home in Twin Hickory or Wyndham. If you’re in an outer Glen Allen corridor near Goochland, verify USDA eligibility before ruling it out.
Match your credit profile to the right program: Credit scores in the 580–639 range point toward FHA. Scores of 680 and above open the conventional 3% down path, which carries a meaningful long-term advantage once PMI cancels. Virginia Housing’s DPA grant can layer onto either path when you qualify.
Document gift funds early: If family is contributing to your down payment, start the documentation process now — not at the closing table. A clean paper trail prevents underwriting delays that can cost you a home in a competitive market.
Compare before you commit: No down payment decision should be made without seeing multiple scenarios side by side. Duane Buziak’s Dare to Compare process does exactly that — using a soft credit pull mortgage approach that protects your credit while delivering real program comparisons across hundreds of wholesale lenders.
Homes in western Henrico are selling in the mid-$400,000s to upper $500,000s range, according to Virginia REALTORS market data. The down payment you choose on a home in that range has a meaningful impact on your monthly payment, your long-term insurance costs, and your equity trajectory. Getting this decision right from the start is worth the extra hour of comparison shopping.
Get your free mortgage consultation today and discover why Glen Allen families trust Duane Buziak for personalized guidance and the fastest close times in the area — with no credit hit and access to hundreds of lenders at once.
