New - 9 Hours Ago
$310,000
Active
3
Beds
2.10
Baths
1554
Sqft
0.0500
Acres
1430 Sierra Dr #Dr, Virginia Beach, VA 23453
MLS#: 10652543
Hampton Roads buyers can purchase a home with as little as 0% down using a VA loan, 3.5% down with FHA, or 3% down with certain conventional programs. On a $375,000 home, that's a range of $0 to roughly $75,000 depending on the loan type and your eligibility.
How much down payment do you actually need to buy a home in Great Neck, Virginia Beach?
The minimum down payment in Great Neck depends on the loan type you qualify for. VA loans allow eligible buyers to purchase with no down payment at all. FHA loans require 3.5% down for borrowers with a 580 or higher credit score. Conventional loans can go as low as 3% down through certain programs. In Great Neck, where the median sale price runs well above the Hampton Roads average, that difference is the gap between $0 and $18,000 or more out of pocket before closing costs.
Key Takeaways
- According to the U.S. Department of Veterans Affairs, nearly 90% of VA-backed purchase loans are made with no down payment, the single most powerful financing advantage available in a military-heavy market like Hampton Roads.
- FHA loans require a minimum 3.5% down payment for borrowers with a credit score of 580 or higher, which works out to $17,500 on a $500,000 purchase or $19,250 on a $550,000 purchase, price points that are common in Great Neck.
- The 2026 conforming loan limit is $832,750, per the Federal Housing Finance Agency, meaning most Hampton Roads purchases fall well within conventional loan territory.
- Virginia's DHCD down payment assistance programs can provide up to $40,000 (or up to $50,000 for eligible buyers at or below 60% AMI), but these are eligibility-based, not universal.
- Zero down on a VA loan does not mean zero cash at closing, buyers still need to budget for the VA funding fee, inspections, and closing costs.
What are the real down payment numbers for VA, FHA, and conventional loans in Great Neck?
This is the question I get from nearly every buyer I work with before we even start touring homes. The answer changes depending on which loan you qualify for, and in this market, with a massive active-duty and veteran population, the options are genuinely different from most parts of the country.
Here's how the three main loan types compare at Great Neck price points. Homes in this neighborhood routinely trade in the $500,000 to $600,000 range, with waterfront and water-view properties pushing higher. The numbers below use $500,000 and $550,000 as representative benchmarks.
| Loan Type | Minimum Down Payment | Down on $500,000 | Down on $550,000 | Mortgage Insurance? |
|---|---|---|---|---|
| VA Loan | 0% (for eligible borrowers) | $0 | $0 | No monthly MI, one-time funding fee applies |
| FHA Loan (580+ credit) | 3.5% | $17,500 | $19,250 | Yes, upfront and monthly MIP |
| Conventional (low-down) | 3% | $15,000 | $16,500 | Yes, PMI until 20% equity reached |
| Conventional (standard) | 5%–20% | $25,000–$100,000 | $27,500–$110,000 | PMI below 20% down; none at 20%+ |
The down payment figures for FHA and the 3% conventional benchmark are derived from the official program minimums, your lender will confirm your specific eligibility. The VA figures assume sufficient entitlement and a property that appraises at or above the purchase price, per VA purchase loan guidelines. At Great Neck price points, the gap between loan types is more pronounced than it is at the Hampton Roads median, which makes choosing the right program even more consequential.
VA loans: the strongest option for eligible Great Neck buyers
If you're eligible, a VA loan is the best financing tool on the table, full stop. The VA reports that nearly 90% of VA-backed loans are made with no down payment, and the program does not require monthly mortgage insurance, which saves eligible buyers hundreds of dollars per month compared to FHA or low-down conventional loans.
Hampton Roads has one of the highest concentrations of active-duty military and veterans in the country, and Great Neck attracts a meaningful share of senior officers and career military families who are ready to buy at a higher price point. The most common misconception I hear: "zero down means zero cash." That's not accurate. At a $525,000 purchase price, you'll still need cash for the VA funding fee (which can be financed into the loan in most cases), a home inspection, any appraisal gap if the home doesn't appraise at purchase price, and closing costs. Your lender can walk you through what can be rolled in and what needs to come out of pocket.
For a deeper look at how a military background shapes the buying process here, I'd point you to my post on Military Mindset in Hampton Roads Real Estate, it covers the discipline and strategy that make VA buyers strong competitors in this market.
FHA loans: the path for buyers building credit or needing flexibility
FHA's minimum down payment is 3.5% for borrowers with a credit score of 580 or higher, that's $17,500 on a $500,000 home and $19,250 on a $550,000 home, per HUD's FHA program guidelines. Borrowers with scores between 500 and 579 must put 10% down, which at Great Neck price points means $50,000 or more.
Virginia's 2026 FHA loan limits range from $541,287 in lower-cost areas up to $1,249,125 in higher-cost areas statewide. Virginia Beach falls within the higher-limit tier, so most Great Neck purchases are within FHA's reach. The tradeoff is mortgage insurance: FHA charges both an upfront mortgage insurance premium and a monthly premium, and in most cases that monthly charge stays for the life of the loan unless you refinance into a conventional product later. At a $525,000 price point, that monthly MIP adds up quickly.
Conventional loans: more flexibility at higher credit scores
Conventional loans backed by Fannie Mae and Freddie Mac can go as low as 3% down through specific low-down-payment programs, that's $15,000 on a $500,000 purchase or $16,500 on a $550,000 purchase. The 2026 baseline conforming loan limit is $832,750, per the Federal Housing Finance Agency, which covers the full range of typical Great Neck transactions, including most waterfront properties.
The key difference from FHA: private mortgage insurance (PMI) on a conventional loan can be removed once you reach 20% equity, and qualifying borrowers with stronger credit often get better PMI rates than FHA's fixed premiums. At Great Neck price points, the monthly difference between FHA MIP and conventional PMI can be $100 to $200 or more. If your credit score is above 700 and you have a modest down payment, running the conventional option against FHA side by side with your lender is worth the 20 minutes.
Are there down payment assistance programs in Virginia that can help?
Yes, and they can meaningfully change the cash-to-close picture for eligible buyers. These are not universal programs, but if you qualify, they're worth knowing about before you assume you can't afford to buy.
Virginia's Department of Housing and Community Development runs two programs worth understanding:
- HOMEownership Down Payment and Closing Cost Assistance: Can provide up to 10% or 15% of the sales price plus up to $2,500 for closing costs, with a maximum assistance of $40,000. Income and purchase price limits apply.
- Virginia Pilot Down Payment Assistance Program: Can provide up to $50,000 for eligible first-time homebuyers at or below 60% of area median income. This is a significant amount of assistance for buyers who qualify.
Both programs are eligibility-based, income limits, first-time buyer status, and purchase price caps all apply. I always tell buyers who ask me about these: get pre-qualified with a lender who knows the Virginia DHCD programs before you assume you're out of reach. The eligibility criteria change, and a good lender will know whether you qualify before you've spent a weekend touring homes you can't finance.
If you're targeting a waterfront or water-view property in Great Neck specifically, the financing picture has a few additional layers. My post on What to Expect When Buying a Waterfront Home in Virginia Beach covers the nuances that come with coastal properties, including flood insurance, appraisal considerations, and how lenders treat waterfront premiums.
Frequently Asked Questions
How much down payment do I need for a VA loan in Hampton Roads?
Eligible VA borrowers can purchase with no down payment at all, as long as the sales price does not exceed the home's appraised value and the borrower has sufficient entitlement, per VA purchase loan guidelines. You will still need cash for closing costs, the home inspection, and potentially the VA funding fee if it isn't financed into the loan, so zero down does not mean zero cash to close.
What is the minimum FHA down payment on a $500,000 or $550,000 home in Great Neck?
FHA's minimum down payment is 3.5% for borrowers with a credit score of 580 or higher, that's $17,500 on a $500,000 purchase and $19,250 on a $550,000 purchase, per HUD's FHA program guidelines. Borrowers with scores between 500 and 579 must put 10% down, which would be $50,000 or $55,000 at those price points.
Can I buy a home in Great Neck with 3% down?
Yes, certain conventional loan programs allow as little as 3% down, which is $15,000 on a $500,000 home or $16,500 on a $550,000 home. These programs have credit score and income requirements, so eligibility isn't automatic. At Great Neck price points, confirm the specifics with your lender before counting on the 3% minimum, and factor in that PMI at these loan amounts will be a meaningful monthly line item until you reach 20% equity.
Do VA loans require mortgage insurance?
No, VA-backed loans do not require monthly mortgage insurance, which is one of the program's most significant financial advantages over FHA and low-down conventional loans, per the VA's funding fee and closing costs guidance. Instead, the VA charges a one-time funding fee that helps sustain the program, and in most cases that fee can be financed into the loan amount.
Are there down payment assistance programs in Virginia for first-time buyers?
Virginia DHCD offers two programs that can provide meaningful assistance: the HOMEownership Down Payment and Closing Cost Assistance program (up to $40,000) and the Virginia Pilot Down Payment Assistance Program (up to $50,000 for buyers at or below 60% of area median income), per Virginia DHCD. Both are income- and eligibility-based, so work with a lender familiar with these programs early in your search to determine whether you qualify.
Down payment strategy is one of the first conversations I have with every buyer I work with in Great Neck. At this price point, the loan type you choose affects not just how much cash you need on day one, but your monthly payment, your mortgage insurance obligation, and how competitive your offer looks when you're up against other buyers who have done their homework. In a neighborhood where well-priced homes move quickly, showing up pre-approved and clear on your financing structure is a real advantage.
Call me at 757-502-5077 and I'll walk you through your options before you make a single offer. If you're focused on Great Neck specifically, ask me about the Great Neck Insider Report, it covers pricing trends, neighborhood nuances, and what to expect in this market.
This article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Loan program eligibility, down payment requirements, and assistance program terms are subject to change, confirm your specific numbers with your lender, closing agent, and tax advisor. Equal Housing Opportunity. Andrew Christie | Virginia Real Estate License #0225199734 | Licensed by the Virginia Department of Professional and Occupational Regulation (DPOR) | The Coastal Collective | Atlantic Sotheby's International Realty.