7 Ways to Buy With No Down Payment Mortgage Options in Glen Allen

Duane Buziak

Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage LLC

Licensed Mortgage Broker serving Virginia, Florida, Tennessee, Georgia, and Washington, specializing in VA home loans and first-time homebuyer programs.

By Duane Buziak, NMLS #1110647. Saving 3% to 20% is the biggest hurdle for many buyers in Glen Allen, Short Pump, and Henrico, whether you want a place near Crump Park or a townhome by West Broad Village. Several no down payment mortgage options exist, but they are not interchangeable. Some are true 100% financing, some lean on assistance programs, and some use a documented gift. Each one still carries costs, and “no down payment” never means “no costs.” Below are seven routes, who each fits, and what each really costs. You can test them with a soft credit pull mortgage review, so exploring does not touch your score. All rates and fees below are illustrations, so confirm current figures before you decide.

In this article

• 1. VA loan with zero down
• 2. USDA loan in eligible areas
• 3. Virginia Housing down payment assistance
• 4. FHA with a gifted down payment
• 5. Seller concessions and closing cost credits
• 6. Home equity or other assets for the down payment
• 7. Soft-pull pre-approval to match the right program
• Side-by-side comparison of the programs
• Ten questions Glen Allen buyers ask
• Where to start

1. VA loan with zero down

Start with the numbers, because they settle a common worry. Suppose a veteran buys a $400,000 home in Henrico and finances 100% of it. Assume a 30-year rate of 6.25%. That is an illustrative figure, so check current averages in the Freddie Mac Primary Mortgage Market Survey. The VA funding fee is a one-time charge for the guarantee. As of the VA’s current table, it is 2.15% for first use with zero down and 3.3% for subsequent use, and it is waived for borrowers receiving VA disability compensation and certain others (see the VA funding fee page).

Financing a 2.15% fee adds $8,600, so the loan is $408,600 and principal and interest comes to about $2,516 a month. An FHA loan on the same home at 3.5% down needs $14,000 cash, plus a financed 1.75% upfront premium of $6,755. That gives a $392,755 loan, about $2,418 in principal and interest, and roughly $177 a month in annual mortgage insurance, about $2,595 in all. The VA loan costs about $79 less per month and needs $0 down. The mechanism is the VA guarantee, which is why there is no monthly mortgage insurance and why zero down does not force a higher rate.

To put it into practice:

1. Request your Certificate of Eligibility through the VA portal, or ask Duane Buziak to pull it.
2. Complete a soft-pull pre-approval.
3. Shop for homes that meet VA property requirements.
4. Order the VA appraisal once you are under contract.

The common mistake is assuming the funding fee is waived for everyone, or waiting on the COE until after you have made offers. Measure total monthly payment against FHA and conventional quotes, plus total cash needed at closing.

2. USDA loan in eligible areas

The USDA guaranteed program offers 100% financing, but eligibility depends on the property address and household income, not just on you. USDA defines eligible areas by map, and much of the suburban core around Short Pump and West Broad Village is unlikely to qualify. Do not assume either way. Check the specific address.

Imagine a buyer looking at a home on the edge of Henrico who types the address into the USDA property eligibility tool and finds it eligible. The next step is comparing costs. As of recent USDA schedules, the guarantee fee is about 1% upfront (financeable) and 0.35% annually, which can be lower than FHA mortgage insurance. Confirm the current schedule before you rely on it.

Steps that work:

1. Run the address through the USDA eligibility map before you fall in love with a home.
2. Check the income limit for your household size.
3. Have Duane Buziak run USDA, FHA, and VA numbers side by side.

The mistake is assuming a Glen Allen or Short Pump address qualifies because it is “close to the country.” Eligibility can change from one street to the next. Measure two things: the eligibility result for each address you are considering, and the annual fee cost against the other programs.

3. Virginia Housing down payment assistance

Down payment assistance (DPA) is money from a housing finance agency that sits alongside your first mortgage and covers the down payment, closing costs, or both. Virginia Housing is the state agency, and its programs have income and purchase price limits, with homebuyer education typically required. Review current terms at virginiahousing.com, since limits and structures change.

For an illustration, suppose a first-time buyer in the Short Pump area purchases a $350,000 home. Assume, for the example only, that assistance comes as a $10,000 second loan at 3% over 10 years. The added payment is about $97 a month. That is not free money, but it replaces $10,000 in savings the buyer does not have. Actual terms may differ, including grant versus loan structures.

Practical steps:

1. Confirm your income and the home price against the current limits.
2. Complete the required homebuyer education.
3. Ask Duane Buziak to structure the first mortgage and the assistance together, since the two must be approved as a package.

The mistake is treating assistance as a gift. Read repayment, due-on-sale, and recapture terms before signing. Measure cash to close after assistance, the combined monthly payment of both loans, and any repayment obligation if you sell or refinance.

4. FHA with a gifted down payment

FHA lets qualifying borrowers put down 3.5% (see HUD’s FHA loan overview), and the entire amount can come from a documented gift from a relative or other eligible donor. A gift letter is a signed statement that the money is a gift with no repayment expected. On a $375,000 purchase, 3.5% is $13,125, and a parent can cover all of it.

Here is the mortgage insurance impact. The base loan is $361,875. The 1.75% upfront premium is about $6,333, which is usually financed, bringing the loan to roughly $368,208. At an assumed 6.25% rate, principal and interest is about $2,267. Annual insurance at 0.55% (the rate that has applied to most 30-year loans above 95% LTV, so verify the current schedule) adds about $166 a month, for roughly $2,433 before taxes and homeowners insurance.

The common failure is depositing gift money with no paper trail. Underwriters need to trace it. Avoid delays this way:

1. Collect the gift letter and the donor’s bank statements at the start.
2. Source and season any other funds per underwriting rules.
3. Run the FHA numbers during the soft-pull review, so you know the payment before you write an offer.

Measure whether the gift documentation is complete, and the monthly payment including FHA mortgage insurance. Note that this route has a low down payment, not zero out-of-pocket for you, because someone else supplies the funds.

5. Seller concessions and closing cost credits

Seller concessions do not fund the down payment itself. They cover closing costs, so the savings you do have can go toward the down payment. That is the whole mechanism, and it is why buyers who misunderstand it get stuck.

Suppose you offer $400,000 on a Twin Hickory home and ask for a 3% credit, or $12,000, toward closing costs. If the loan allows it, that can wipe out a large share of your cash-to-close. Caps differ by program, so confirm them with Duane Buziak before you submit. As commonly applied, FHA allows up to 6% of the price, VA caps concessions at 4%, and conventional caps scale with your down payment, starting at 3% for small down payments. Verify these before relying on them. Ask about our no-out-of-pocket closing options if you want to see how credits and other tools can be combined.

To use this well:

1. Tell your Realtor early that you plan to request a credit.
2. Confirm the allowable limit for your loan type with Duane Buziak.
3. Write the credit into the offer as a specific dollar amount or percentage.

The mistake is asking for more than the program permits, or expecting the credit to cover the down payment. In a competitive Glen Allen market, a large ask may also weaken the offer, so balance it against the price you propose. Measure the reduction in total cash to close compared with the same offer without credits.

6. Home equity or other assets for the down payment

Existing homeowners can borrow against what they already own. Loan-to-value (LTV) is your loan balance divided by the home’s value, and a cash-out refinance can go as high as 90% LTV. A HELOC is a revolving credit line against equity, usually at a variable rate.

Illustration: an Innsbrook homeowner has a home worth $450,000 and owes $200,000. At 90% LTV the ceiling is $405,000, but the owner wants only $60,000 for a 20% down payment on a $300,000 second property. Borrowing that extra $60,000 at an assumed 6.5% adds about $379 a month. The new $240,000 loan on the second property at an assumed 6.75% is about $1,556 a month. Together that is roughly $1,935 more per month before taxes and insurance. On $12,000 gross monthly income, that move could push the debt-to-income ratio (DTI) toward the 40% range, depending on existing debts.

The steps:

1. Compare cash-out refinance costs against a HELOC.
2. Check that you qualify with both payments counted together.
3. Time the closings so funds are available when needed.

The mistake is borrowing against one home before confirming you can qualify for both payments. A cash-out may also change your rate on the entire balance. Measure combined DTI and total monthly obligations after the purchase. Other approved assets, such as a retirement account loan or sale proceeds, follow similar logic but have their own documentation rules.

7. Soft-pull pre-approval to match the right program

A hard inquiry is a full credit pull that can lower your score slightly and stays on your report. A soft pull lets a broker see your profile without that mark. Duane Buziak’s NoTouch Credit Pull supports no hard inquiry mortgage pre approval, so you can compare VA, FHA, and assistance scenarios first, with a broker shopping many options at once.

Imagine a buyer unsure whether to use a VA loan or an FHA loan with a Virginia Housing second. From a single soft-pull review, they see the payments, cash to close, and mortgage insurance for each, and they pick the lowest total cost. Without that, many buyers choose the program a Realtor mentions first.

How it works in practice:

1. Call Duane Buziak at 804-212-8663.
2. Authorize the soft credit pull.
3. Review the side-by-side scenarios.
4. Receive a pre-approval letter you can attach to offers.

The mistake is applying with several providers before comparing anything, which creates multiple hard inquiries. Scoring models often group mortgage inquiries made close together, but you should not rely on that when you do not have to. Measure the number of hard inquiries, with a target of zero until you choose a loan, and the number of programs compared.

Side-by-side comparison of the programs

These figures are general program features as of this writing. Confirm the current rules before you rely on them. The 2026 baseline conforming loan limit that applies in Henrico is $832,750 per the FHFA announcement (verify at FHFA.gov).

Providers also differ in how they handle all of this. Ask each one, including Courtney Ficken at First Home Mortgage, the same questions:

Ten questions Glen Allen buyers ask

1. What is the minimum credit score for a no down payment mortgage in Glen Allen? It depends on the program and the provider’s requirements. FHA’s 3.5% down option generally starts at a 580 score, and VA and USDA scores vary by provider. Duane Buziak can show you where you stand in a soft-pull review.

2. Can I get pre-approved in Glen Allen without a hard credit pull? Yes. Duane Buziak starts with a soft pull, so your score is not affected until you choose a loan and move forward.

3. Are there true no down payment mortgage options in Glen Allen? Yes. VA loans offer 100% financing for eligible borrowers, and USDA does for eligible addresses. Other routes use gifts, assistance, or credits to reduce what you bring.

4. Is USDA available in Glen Allen or Short Pump? It depends on the specific address. Check it on the USDA eligibility map, because much of the suburban core may not qualify.

5. What down payment assistance exists in Glen Allen? Virginia Housing offers statewide programs with income and price limits. Terms change, so confirm them at virginiahousing.com or with Duane Buziak.

6. How does NoTouch Credit Pull work? You authorize a soft credit review, Duane Buziak evaluates your options, and you see scenarios without a hard inquiry on your report.

7. What is the conforming loan limit in Glen Allen for 2026? The 2026 baseline limit is $832,750 as of the FHFA announcement. Confirm the figure at FHFA.gov before you rely on it.

8. Is it better to use a mortgage broker or a bank? A broker can compare many options at once, which helps most when you are weighing programs like VA, FHA, and assistance. A single institution can only offer its own products.

9. Is Duane Buziak a legit mortgage broker in Glen Allen? Yes. Duane Buziak is licensed under NMLS #1110647, operates through Coast2Coast Mortgage LLC (NMLS #376205), and was named Glen Allen Mortgage Broker of the Year for 2025.

10. What neighborhoods does GlenAllenMortgage.com serve? GlenAllenMortgage.com serves Glen Allen, Short Pump, Innsbrook, Twin Hickory, Wyndham, West Broad Village, Tuckahoe, and Lakeside across Henrico.

Where to start: soft-pull review first, then work down the list

Begin with the soft-pull pre-approval, because it tells you which routes are even open to you. Then work in order. If you are VA eligible, that is usually the strongest option. Otherwise look at Virginia Housing assistance or FHA with a documented gift. Treat USDA, seller credits, and home equity as situational add-ons that depend on the address, the offer, or what you already own.

Ready to experience stress-free mortgage approval with no credit hit and access to hundreds of loan options at once? 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. Call 804-212-8663 or stop by 4860 Cox Rd, Glen Allen, VA 23060. Glen Allen Mortgage by Duane Buziak is ready to map your route.