Roanoke, VA Mortgage Guide: Complete 2025 Resource
Roanoke's $270,000 median home market (November 2025 Zillow ZHVI, +3.1% annual appreciation representing post-pandemic normalization) positions Virginia's largest Roanoke Valley city 9.5% below neighboring Salem's $296,251 median, justified by Carilion Clinic employment hub (10,000+ employees anchoring healthcare professional demographics), 70-75/100 Redfin competitiveness score (25-30 day pending timeline, 97-98% sale-to-list ratio) reflecting moderate buyer demand among healthcare workers (Carilion Clinic 10,000+, HCA Health System), retail/service managers, and professionals seeking 98,677-population urban city's amenities and walkability over Salem's 25,346-resident suburban bedroom community character.
This comprehensive guide addresses Roanoke-specific financing strategies across loan types (conventional 3-20% down requiring $8,100-$54,000 on median, FHA 3.5% down $9,450 accessibility, VA $0 down for veteran population, USDA $0 down Roanoke County rural eligibility excluding Roanoke city limits), income requirements spanning $70,000-$120,000 household earnings aligning with Roanoke's $52,671 median supporting diverse demographics, neighborhood stratification from Northwest Roanoke $150,000-$200,000 affordability tier to South Roanoke $300,000-$400,000+ premium positioning, property tax calculation methodology (1.22% rate generating $3,294 annual/$275 monthly on median versus Roanoke County $2,781/$232 creating strategic location trade-offs), and 5-10 year wealth accumulation demonstrating Roanoke's steady 3-6% historical appreciation creating equity through ownership versus rental expense generating zero return.
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Roanoke Housing Market Snapshot (December 2025)
| Metric | Roanoke | Comparison |
|---|---|---|
| Median Home Value | $270,000 | 9.5% below Salem ($296K) |
| Year-over-Year Change | +3.1% | Steady, sustainable growth |
| Days to Pending | 25-30 days | Moderately competitive (70-75/100) |
| Sale-to-List Ratio | 97-98% | Selling 2-3% below asking on average |
| Market Competitiveness | 70-75/100 | Moderately Competitive (Redfin) |
| Inventory | 693 homes | More options (vs Roanoke 123) |
| Over Asking Sales | 12-15% | Less competitive than Roanoke |
| Property Tax Rate | 1.22% | Roanoke city rate |
| 5-Year Appreciation | +64.6% | $164K (2020) → $270K (2025) |
| Annual Growth Rate | 3-6% | Normalized sustainable appreciation |
Roanoke Market Characterization
Moderately competitive market (70-75/100) with steady 3-6% historical appreciation, positioned as Virginia's largest Roanoke Valley city 9.5% below Salem's $296,251 median. Carilion Clinic employment hub (10,000+ employees), more inventory (693 vs Salem 123), and 25-30 day pending timeline reflect moderate buyer demand among healthcare workers, retail/service managers, and professionals seeking urban amenities and walkability.
Table of Contents
Roanoke Housing Market Overview (December 2025)
Current Market Snapshot
Key Metrics
- Median home price:$270,000
- Year-over-year change:+3.1%
- Days to pending:25-30 days
- Sale-to-list ratio:97-98%
- Market competitiveness:70-75/100
- Inventory:693 homes
- Over asking:12-15%
What This Means for Buyers
- ✅ Competitive but not frenzied (24-day pending vs 10 days last year)
- ✅ Some negotiation room (81.5% sell at/below asking)
- ✅ Stronger market than Roanoke (faster timeline)
- ✅ Can include contingencies with competitive offer
5-Year Appreciation
Roanoke Home Value Trend:
5-year appreciation: $164,000 (2020) → $270,000 (2025) = +64.6%
Annual average: 10.5% (includes pandemic spike 2020-2022)
Normalized: 3-6% sustainable long-term
Roanoke vs Salem vs Regional Markets
| Market | Median Price | Competitiveness | Days to Pending | Property Tax |
|---|---|---|---|---|
| Roanoke | $270,000 | 70-75/100 | 25-30 days | 1.22% |
| Salem | $296,251 | 80/100 | 19-24 days | 1.20% |
| Roanoke County | Varies | Varies | Varies | 1.03% |
| Blacksburg | $423,000 | 84/100 | 14 days | 1.01% |
| Winchester | $392,222 | 56/100 | 22 days | 0.795% |
Roanoke Positioning
- • 9.5% less expensive than Salem (more affordable entry)
- • 34% lower median income than Salem ($52,671 vs $79,758)
- • Slightly higher tax than Salem city (1.22% vs 1.20%)
- • Less competitive than Salem (70-75/100 vs 80/100), more negotiation room
- • More inventory than Salem (693 vs 123 homes)
- • Independent city (own government, schools separate from Roanoke County)
Roanoke Neighborhoods & Pricing
Affordable Tier: $150,000-$200,000
Northwest Roanoke: $150,000-$180,000 median
- • Older established area
- • Smaller homes, older construction
- • Entry-level for Roanoke market
- • Who buys: First-time buyers, investors
Other affordable areas: Various Northwest neighborhoods - Most affordable Roanoke areas, older housing stock, starter homes
Mid-Range Tier: $200,000-$300,000
Grandin Village: $220,000-$260,000 median
- • Walkable, vibrant neighborhood
- • Mix of historic and newer homes
- • 3-4 bedroom single-family
- • Who buys: Young families, professionals
Other mid-range Roanoke neighborhoods:
- • Old Southwest: $230,000-$270,000 median - Historic charm, mature trees, walkable
- • Raleigh Court: $240,000-$280,000 median - Desirable family neighborhood, good schools nearby
- • Cave Spring: $250,000-$290,000 median - Near Roanoke median, suburban character, family-oriented
Typical home: 3-4 bed, 2-2.5 bath, 1,400-2,000 sq ft, 0.25-0.5 acre
Upper Tier: $300,000-$400,000+
South Roanoke: $320,000-$380,000 median
- • Premium Roanoke neighborhood
- • Larger homes, premium finishes
- • 2,000-3,000+ sq ft
- • Established professionals, executives
Who buys at this tier:
- • Carilion Clinic executives: $350,000-$400,000
- • HCA Health System professionals: $360,000-$410,000
- • Dual high-income professionals: $370,000-$420,000
Typical home: 3-4 bed, 2-2.5 bath, 1,600-2,200 sq ft, 0.25-0.5 acre
Upper Tier: $450,000-$650,000+
- • Established neighborhoods near Apple Pie Ridge
- • Newer construction communities
- • Larger lots (0.5-2 acres)
- • 4-5 bedrooms, 2,500-3,500+ sq ft
- • Premium finishes, updated systems
Who buys: D.C. commuters (federal employees, contractors), Healthcare executives (Valley Health leadership), Dual high-income professionals, Relocating from higher-cost NoVA seeking space
Current Mortgage Rates - Roanoke
December 2025 Rate Snapshot
| Loan Type | Rate Range | Best For |
|---|---|---|
| 30-Year Conventional (20% down) | 6.1-6.25% | Good credit (680+), 5-20% down |
| 30-Year Conventional (10% down) | 6.1-6.25% | Good credit, lower down payment |
| FHA (3.5% down) | 5.85% | Lower credit (580+), minimal down |
| VA ($0 down) | 5.71% | Veterans, active duty |
| USDA ($0 down) | 5.562% | Roanoke County rural, income under $119,850 |
| 15-Year Fixed | 5.60-5.75% | Faster equity building |
| 7/1 ARM | 5.65-5.85% | Fixed 7 years, then adjusts |
| 5/1 ARM | 5.50-5.70% | Fixed 5 years, then adjusts |
Important: Rates vary based on credit score (680 vs 740 = 0.25-0.50% difference), down payment amount, and lender. These are representative ranges for well-qualified borrowers.
Get personalized rates from lenders who understand Roanoke's Roanoke Valley market
Roanoke Mortgage Options
Conventional Loans (Most Common)
Traditional Financing for Qualified Buyers
- Down Payment: 3% first-time buyer: $8,100 on $270,000 median
- Down Payment: 5% standard: $13,500
- Down Payment: 10% recommended: $27,000
- Down Payment: 20% optimal: $54,000
- Current Rates: 6.1-6.25% (20% down), 6.1-6.25% (10% down), 6.1-6.25% (3-5% down)
- PMI: Cancels at 20% equity (6-8 years via appreciation)
Best For: Buyers with good credit (680+), 3-6 months saved (down payment + closing costs), Planning to stay 5+ years, Want PMI to cancel (unlike FHA lifetime MI)
Roanoke Conventional Example ($270,000 median, 10% down):
- • Down payment: $27,000
- • Loan amount: $243,000
- • P&I (6.35% rate): $1,520
- • PMI: $101/month
- • Property tax (1.22%): $275/month
- • Insurance: $125/month
- • Total: $2,021/month
- • Income needed: $86,600/year (no other debts)
PMI cancellation: Automatic at 78% LTV, requestable at 80% LTV. Via appreciation: 6-8 years (Roanoke's 3-6% annual growth). Saves $101/month = $36,360 over 30 years.
Explore Roanoke Conventional Loans →FHA Loans (Low Down Payment)
Low Down Payment Option
- Down Payment: 3.5% = $9,450 on $270,000 median
- Current Rate: 5.85% (December 2025)
- Mortgage Insurance: Upfront 1.75% ($4,560 financed), Annual 0.55% ($122/month LIFETIME)
- Cannot cancel unless refinance
Best For: First-time buyers with limited savings, Credit scores 620-679 (FHA more forgiving), Need higher DTI flexibility (FHA allows 50% vs conventional 43%), Income $85,000-$110,000 range
Roanoke FHA Example ($270,000 median, 3.5% down):
- • Down payment: $9,450
- • Base loan: $260,550
- • Upfront MIP (1.75%): $4,560
- • Total loan: $265,110
- • P&I: $1,609
- • MIP (0.55%): $122/month (LIFETIME)
- • Property tax: $275/month
- • Insurance: $125/month
- • Total: $2,131/month
- • Income needed: $91,300/year (no other debts)
FHA strategy: Use to get in door (only $9,450 down vs $27,000-$54,000 conventional). Live 6-8 years, build equity via appreciation. Refinance to conventional once 20% equity reached. Eliminate lifetime MI, save $122/month going forward.
Explore Roanoke FHA Loans →VA Loans (Veterans)
Zero Down for Military & Veterans
- Down Payment: $0
- Current Rate: 5.71% (December 2025)
- Veterans in Roanoke: ~7% of population (~7,100 total, estimated based on 98,677 population)
- Similar to Virginia average (~7-8% veteran population)
- Veterans include: Retirees, healthcare workers, professionals
VA trade-off: ✅ $0 down (save $54,000 vs conventional 20%), ✅ No monthly MI, ❌ Highest rate (5.71% vs 6.1-6.25%), ❌ Highest monthly payment, ❌ Highest total cost over 30 years
Roanoke VA Example ($270,000, $0 down):
- • Down payment: $0
- • Base loan: $270,000
- • Funding fee (2.15%): $5,805
- • Total loan: $275,805
- • P&I (7.65% rate): $1,954
- • Mortgage insurance: $0
- • Property tax: $275/month
- • Insurance: $125/month
- • Total: $2,354/month
- • Income needed: $100,900/year (no other debts)
Disabled veterans (10%+ rating): Funding fee WAIVED (saves $5,805). Total loan: $270,000 (not $275,805). Payment: $1,954/month (same P&I, but lower total due to no funding fee). Income needed: $100,900/year.
Best for: Veterans who cannot save down payment, Disabled veterans (10%+ rating = funding fee waived, much better deal), Planning to refinance when rates drop, Short-term ownership (5-8 years = upfront savings justify higher rate).
Explore Roanoke VA Loans →USDA Loans (Roanoke County Rural)
Zero Down Payment, Rural Areas
- Roanoke city limits: ❌ NOT eligible (independent city, 98,677 population)
- Roanoke County rural surrounding: ✅ Eligible areas
- Down Payment: $0
- Current Rate: 5.562% (December 2025) - LOWEST RATE AVAILABLE
- Income Limit: $119,850 (2025)
- Verify eligibility: eligibility.sc.egov.usda.gov
USDA advantages: ✅ Lowest rate (5.562% vs 6.1-6.25% conventional), ✅ $0 down, ✅ Low MI ($82/month vs $101 conventional, $122 FHA), ✅ Lower Roanoke County property tax (1.03% vs Roanoke 1.22%)
Roanoke USDA Example ($280,000 Roanoke County rural home):
- • Down payment: $0
- • Base loan: $280,000
- • Upfront fee (1.00%): $2,800
- • Total loan: $282,800
- • P&I (6.00% rate): $1,696
- • Annual fee (0.35%): $82/month
- • Property tax (Roanoke County 1.03%): $240/month
- • Insurance: $125/month
- • Total: $2,143/month
- • Income needed: $91,800/year (no other debts)
Trade-offs: Roanoke city limits NOT eligible (must be Roanoke County rural), Income limit $119,850 (dual high earners may exceed), Rural location (not Roanoke city amenities), Commute to Roanoke/Salem jobs.
Best for: Income under $119,850, Willing to live in Roanoke County rural (10-20 min to Roanoke/Salem), Want lowest rate + lowest monthly cost, Value space/land over city amenities.
Explore Roanoke USDA Loans →Roanoke Income Requirements by Price
$240,000 Home (Below Median)
Conventional 10% down:
- • Down payment: $24,000
- • Monthly payment: $1,787
- • Income needed: $77,100/year (no other debts)
- • With $400/month debt: $83,500/year
FHA 3.5% down:
- • Down payment: $8,400
- • Monthly payment: $1,883
- • Income needed: $80,600/year
- • With $400/month debt: $87,100/year
Who can afford: Single Carilion Clinic RN ($75,000-$85,000), HCA Health System professional ($70,000-$85,000), Dual service workers ($38K + $42K = $80K). Target neighborhoods: Northwest Roanoke, Grandin Village
$270,000 Median Home
Conventional 10% down:
- • Down payment: $27,000
- • Monthly payment: $2,021
- • Income needed: $86,600/year
- • With $500/month debt: $93,800/year
Conventional 20% down:
- • Down payment: $54,000
- • Monthly payment: $1,780
- • Income needed: $76,300/year (LESS than 10% down due to no PMI)
- • With $500/month debt: $82,200/year
FHA 3.5% down:
- • Down payment: $9,450
- • Monthly payment: $2,131
- • Income needed: $91,300/year
- • With $500/month debt: $98,800/year
Who can afford: Dual-income professionals ($47K + $50K = $97K), Carilion Clinic healthcare workers ($85,000-$105,000), HCA Health System professionals ($90,000-$110,000), Retail/service managers ($85,000-$100,000)
$350,000 Home (Upper Tier)
Conventional 20% down:
- • Down payment: $70,000
- • Loan: $280,000
- • P&I: $1,726
- • Property tax: $356/month
- • Insurance: $130/month
- • Total monthly: $2,212
- • Income needed: $94,800/year (no other debts)
Who can afford: Dual professionals ($50K + $50K = $100K), Carilion Clinic executives ($95,000-$120,000), HCA Health System management ($100,000-$130,000), Carilion physician assistant ($110,000-$130,000). Target neighborhoods: South Roanoke, premium areas
Calculate your exact Roanoke payment based on YOUR income
Run Payment CalculatorRoanoke Property Taxes
Tax Rate: 1.22% (Roanoke City)
How it works:
- • Tax rate: 1.22% (Roanoke city)
- • Assessment: 100% of market value
- • Roanoke County: 1.03% (lower rate if outside city limits)
Examples:
$240,000 home:
Annual tax: $2,928
Monthly: $244
$270,000 median home:
Annual tax: $3,294
Monthly: $275
$320,000 home:
Annual tax: $3,904
Monthly: $325
Roanoke vs Regional Tax Comparison
| Location | Tax Rate | Annual Tax ($270K) | Monthly |
|---|---|---|---|
| Roanoke City | 1.22% | $3,294 | $275 |
| Roanoke County | 1.03% | $2,781 | $232 |
| Salem | 1.20% | $3,240 | $270 |
| Blacksburg | 1.01% | $2,727 | $227 |
| Winchester | 0.795% | $2,147 | $179 |
Roanoke positioning:
- • $5/month more than Salem ($60/year more)
- • $43/month more than Roanoke County ($516/year more)
- • Higher than Blacksburg ($48/month more)
- • Much higher than Winchester ($96/month more)
Over 30 years: vs Roanoke County: Pay $15,480 more, vs Blacksburg: Pay $17,280 more, vs Salem: Pay $1,800 more. Consider Roanoke County if lower taxes are priority.
Roanoke Rent vs Buy Analysis
Current Rent: $1,367/month Average (November 2025)
Rent trends:
- • Up 3.6% year-over-year
- • Down 1.6% month-over-month (seasonal)
- • 5-year growth: $1,000 (2020) → $1,367 (2025) = 36.7%
5-Year Comparison: $270,000 Median Home
Buying (Conventional 10% down)
Upfront:
- • Down payment: $27,000
- • Closing costs: $8,000
- • Total: $35,000
Monthly: $2,021
Year-by-year equity:
- • Year 1: Appreciation (4%): $10,800 + Paydown: $2,400 = $13,200
- • Year 2: Appreciation: $11,232 + Paydown: $2,550 = $13,782
- • Year 3: Appreciation: $11,681 + Paydown: $2,700 = $14,381
- • Year 4: Appreciation: $12,149 + Paydown: $2,850 = $14,999
- • Year 5: Appreciation: $12,626 + Paydown: $3,000 = $15,626
Total 5-year equity gain: $71,988
Home value Year 5: $328,488 (4% annual appreciation)
Loan balance: ~$229,500
Total equity: $98,988
Total paid: $35,000 (upfront) + $121,260 (payments) = $156,260
Equity gained: $98,988
Net cost: $57,272 over 5 years = $954/month effective "rent"
Renting
Year-by-year (3.6% annual increases):
- • Year 1: $1,367/month = $16,404
- • Year 2: $1,416/month = $16,992
- • Year 3: $1,467/month = $17,604
- • Year 4: $1,520/month = $18,240
- • Year 5: $1,575/month = $18,900
Total 5-year rent: $87,140
Equity gained: $0
Comparison:
Buying: Paid: $156,260, Equity: $98,988, Net cost: $57,272, Effective rent: $954/month
Renting: Paid: $87,140, Equity: $0, Net cost: $87,140, Effective rent: $1,452/month
Buying wins after 5 years by $29,868
Break-even point: ~Year 3 in Roanoke market
10-Year Wealth Building
Buying $270,000 home, 10% down:
After 10 years:
- • Home value (4%/year): $399,800
- • Loan balance: ~$210,000
- • Equity: $189,800
Total invested over 10 years:
- • Down payment: $27,000
- • Closing costs: $7,500
- • Payments: $242,520 (120 × $2,021)
- • Maintenance: $24,000 ($200/month avg)
- • Total: $301,020
Return: Equity $189,800 + Tax benefits ~$15,000-$20,000 = $204,800-$209,800
Net housing cost: $91,220-$96,220 over 10 years = $760-$802/month effective
Renting 10 years:
Total rent (3.6% annual increases): ~$201,000
Equity: $0
Buying wins by $111,200-$116,200 after 10 years
Plus: Tax benefits (mortgage interest deduction worth $15,000-$20,000 over 10 years)
Roanoke Mortgage Application Process
Step 1: Determine Budget (Month 0)
Calculate affordability: Annual income × 28% ÷ 12 = max housing payment, Annual income × 43% ÷ 12 = max total debt
Example: Income: $87,000/year, Max housing (28%): $2,030/month, Max total debt (43%): $3,118/month
Roanoke reality check: Median income $52,671 = can afford $200,000-$240,000 range, Need $82,000+ for median $270,000, Dual-income common in Roanoke (Carilion Clinic, HCA Health System, retail/service managers)
Step 2: Check Credit & Improve If Needed (Months 1-6)
Target credit scores: 740+: Best rates (6.28%), 680-739: Good rates (6.35%), 620-679: FHA friendly (6.45-6.55%), Under 620: Need improvement
Improvement timeline: 620 → 680: 6-9 months, 680 → 740: 12-18 months
Step 3: Save Down Payment & Closing Costs (Months 1-24)
Roanoke median ($270,000) savings needed:
- • FHA 3.5%: Down $9,450 + Closing $7,000 + Emergency $7,000 = $23,450 total (16 months at $1,500/month)
- • Conventional 10%: Down $27,000 + Closing $7,500 + Emergency $7,000 = $41,500 total (21 months at $2,000/month)
- • Conventional 20%: Down $54,000 + Closing $8,000 + Emergency $7,000 = $69,000 total (23 months at $3,000/month)
Step 4: Get Pre-Approved (Month 18-24)
Documents needed: Last 2 years W-2s and tax returns, Last 30 days pay stubs, Last 2 months bank statements, Photo ID, List of debts
Roanoke advantage: 70-75/100 moderately competitive market means pre-approval matters (show sellers you're serious), but more negotiation room than Salem's 80/100
Step 5: House Hunt (Months 24-27)
Roanoke timeline: 25-30 days average (moderately competitive)
Roanoke neighborhoods to explore: Northwest Roanoke (affordable entry), Grandin Village (mid-range family), South Roanoke (premium tier), Near Carilion Clinic (healthcare worker appeal)
Step 6: Make Offer (Month 27)
Roanoke market (70-75/100 competitiveness): Moderate competition, Some negotiation room (12-15% sell above asking), Can include standard contingencies (inspection, appraisal, financing)
Offer components: Price: Full asking or slightly above if hot property, Earnest money: $2,000-$4,000, Contingencies: Inspection (always), appraisal (always), financing (always), Timeline: 30-45 days to closing
Step 7: Home Inspection (Week 2-3 of contract)
Common issues: Older homes (pre-1980s): Asbestos, lead paint, outdated electrical, Foundation settling (Shenandoah Valley soil), Moisture/drainage (valley location), HVAC age (replacement $5,000-$12,000)
Inspection cost: $400-$600. Strategy: Winchester's less competitive market means you can negotiate repairs or credits. Focus on big issues, Request credit at closing vs asking seller to fix
Step 5: Final Underwriting (Weeks 15-16)
Federal employee advantage: Easy employment verification (lender calls federal HR), Stable income = smooth underwriting, Few surprises, Some lenders offer special programs for federal employees
Timeline: 7-10 days typically
Step 6: Closing (Week 17-18)
Closing costs ($270,000 median home, conventional 10% down):
- • Lender fees: $1,500-$2,500
- • Appraisal: $600
- • Title search: $300-$500
- • Title insurance: $1,200-$1,800
- • Recording fees: $150-$300
- • Prepaid property tax: $230-$460
- • Prepaid insurance: $125-$250
- • Total: $6,000-$8,500
Plus down payment: $27,000 (10%). Total cash needed: $33,000-$35,500
Common Roanoke Buyer Mistakes
❌ Mistake 1: Underestimating Roanoke Premium vs Roanoke
The assumption: "Roanoke and Roanoke are basically the same market"
Reality: Roanoke median: $270,000, Salem median: $296,251, Salem 9.5% more expensive. Why it matters: Same income buys more house in Roanoke, $87,000 income → $270K in Roanoke vs $296K in Salem, Salem premium justified by: higher incomes, Roanoke College, demographics, But not everyone needs/values premium
Solution: Evaluate if Roanoke premium worth it for YOUR situation, Consider Roanoke if budget-constrained, Roanoke County if want lowest taxes (1.03%)
❌ Mistake 2: Buying at Top of Budget
The trap: Approved for $320,000, Buy at $315,000, Payment: $2,200/month, Income: $95,000 (42% DTI)
Reality: Gross monthly: $7,917, Take-home: ~$5,700, Payment: $2,200, Other debt: $300, Remaining: $3,200 for EVERYTHING. One emergency = debt spiral: HVAC dies: $7,000 → credit card, Now carrying debt at 22% APR, Financial stress
Solution: Approved: $320,000, Buy: $270,000 (84% of max), Payment: $2,021, Remaining: $3,679 (breathing room). Roanoke rule: Buy at 75-85% of max approval
❌ Mistake 3: Ignoring Roanoke County Tax Advantage
The oversight: Buy Roanoke city: $270K, 1.22% tax = $275/month, Could have bought Roanoke County: $270K, 1.03% tax = $232/month, Difference: $43/month = $516/year
Over 30 years: $15,480 more in Roanoke city taxes. When Roanoke city worth it: Value Roanoke city services/identity, Want Carilion Clinic proximity, Prefer Roanoke city schools/community, Work in Roanoke city (Carilion Clinic, HCA Health System). When Roanoke County better: Lower taxes priority, Don't need Roanoke city specifically, Willing to be "county" vs "city" resident
Solution: Evaluate trade-offs before buying
❌ Mistake 4: Forgetting PMI Cancellation
The mistake: Buy with 10% down, PMI: $101/month, Year 7: Hit 20% equity via appreciation, But forget to request cancellation, Continue paying $101/month for years
Cost: Should have canceled Year 7, Continue for 5 more years: $101 × 60 = $6,060 wasted
Solution: Set calendar reminder Year 6: "Check home value, request PMI removal", Order appraisal ($600-700), Submit to lender, Actually do it
❌ Mistake 5: Not Shopping Lenders
The assumption: "Rates are about the same everywhere"
Reality: Lender A: 6.35% + $2,000 fees, Lender B: 6.28% + $0 fees (Better.com), Lender C: 6.42% + $2,500 fees. Lender B saves: 0.07% lower rate = $11,340 over 30 years, $2,000 lower fees, Total: $13,340 saved
Solution: Time to shop: 3-5 hours, Hourly rate: $13,340 ÷ 4 hours = $3,335/hour. Shop 3-5 lenders, compare APR
Frequently Asked Questions
What salary do I need to buy in Roanoke?
Quick reference by price: $240,000 home: $77,000-$81,000/year (10% down conventional or FHA), $270,000 median: $87,000-$91,000/year (varies by loan type, down payment, debt), $320,000 home: $95,000-$105,000/year (20% down conventional). Factors that change this: Other debt (student loans, cars, credit cards), Down payment amount (20% down needs less income than 10%), Credit score (affects rate, payment, income needed), Loan type (FHA allows higher DTI than conventional).
Is Roanoke a good market for first-time buyers?
Yes, with advantages. Advantages: Moderately competitive (70-75/100, manageable), More time to make decisions (25-30 days), FHA/conventional 3% accessible, More inventory (693 homes vs Salem 123), More affordable than Salem ($270K vs $296K), Carilion Clinic employment hub (10,000+ employees). Challenges: Need $82,000+ income for median, Property tax 1.22% (Roanoke city), Lower median income than Salem ($52,671 vs $79,758). Best for first-timers who: Dual-income ($40K + $42K = $82K), Work at Carilion Clinic or HCA Health System, Want urban amenities, Prefer more affordable entry than Salem.
Should I wait for rates to drop before buying in Roanoke?
The math: Scenario A: Buy now (6.35% rate) - $270,000 home, 10% down, Rate: 6.35%, Payment: $1,520 (P&I). Scenario B: Wait 1 year for rates to drop to 5.75% - Home price increases 4%: $280,800, Rate: 5.75%, Down payment 10%: $28,080, Payment: $1,477 (P&I), Saved: $43/month. But: Rent paid while waiting: $1,367 × 12 = $16,404, Missed appreciation: $10,800, Total opportunity cost: $27,204. Even if rates drop, appreciation eats savings. Better strategy: Buy now with intention to refinance if rates drop 0.75%+, Capture appreciation immediately, Refinance later = best of both worlds.
Can I afford Roanoke on a single $70,000 income?
Yes, with planning. With minimal debt ($200/month): Max housing (28%): $1,633/month, Max total debt (43%): $2,508/month, Available for housing: $2,308/month. Can afford: ~$240,000-$260,000 with FHA 3.5% down, Payment: $1,800-$2,000/month, Fits in $2,308 budget. Target: Below-median Roanoke homes (Northwest Roanoke, some areas). With moderate debt ($400/month): Available for housing: $2,108/month, Can afford: ~$220,000-$240,000, Still possible, lower price range. With high debt ($600/month): Available for housing: $1,908/month, Can afford: ~$200,000-$220,000, Tight but doable. $70K fits Roanoke's $52,671 median income better than Salem's $79,758.
How does Roanoke compare to Salem for investment?
Depends on goals. Roanoke advantages: Lower purchase price ($270K vs $296K) = easier entry, More inventory (693 vs 123) = more options, Carilion Clinic 10,000+ employees = built-in rental demand, Urban amenities = renter appeal, Lower entry barrier. Salem advantages: Higher home values ($296K vs $270K) = more equity potential, Roanoke College presence = steady rental demand (faculty, staff), Higher income demographics = quality tenants. For appreciation: Tie (both steady 3-6% long-term). For rental income: Roanoke: $1,367/month average rent, Salem: $1,490/month average rent, Salem edges out ($123/month more = $1,476/year). For hands-off: Salem (higher-quality tenant base, Roanoke College stability). For volume: Roanoke (more inventory to choose from). Recommendation: Roanoke better for multi-property portfolio building, Salem better for quality single-property investment.
What's the difference between Roanoke and Salem?
Roanoke is Virginia's largest city in the Roanoke Valley (98,677 population) positioned as urban hub with Carilion Clinic employment center. Roanoke advantages: More affordable entry ($270K vs $296K), More inventory (693 vs 123), Carilion Clinic employment hub (10,000+), Urban amenities/walkability, Lower tax if Roanoke County (1.03%). Salem advantages: 9.5% higher home values ($296K vs $270K), 51% higher median income ($79,758 vs $52,671), Roanoke College presence, Slightly lower tax than Roanoke city (1.20% vs 1.22%), Suburban/small city feel. Choose Roanoke if: Want more affordable entry, Working at Carilion Clinic or HCA Health System, Prefer urban amenities, Lower income ($52K median fits better), Want more inventory options. Choose Salem if: Higher income ($80K+), Want Roanoke College proximity, Prefer suburban character, Working in Roanoke but prefer bedroom community.
Roanoke Mortgage Bottom Line
Roanoke's $270,000 median market (November 2025 Zillow ZHVI, +3.1% annual appreciation) positions Virginia's largest Roanoke Valley city 9.5% below neighboring Salem's $296,251 through Carilion Clinic employment hub (10,000+ employees anchoring healthcare professional demographics), 70-75/100 Redfin competitiveness (25-30 day pending timeline, 97-98% sale-to-list) reflecting moderate demand among healthcare workers (Carilion Clinic 10,000+, HCA Health System), retail/service managers, and professionals seeking 98,677-population urban city's amenities and walkability—with 1.22% property tax ($275/month median) matching Roanoke city rate while exceeding Roanoke County's 1.03% creating strategic location trade-offs.
Strategic financing spans conventional 3-20% down ($8,100-$54,000) optimizing for $82,000-$120,000 income households, FHA 3.5% accessibility ($9,450, $91,300 income) trading lifetime $122/month MI for immediate entry with 6-8 year conventional refinance planning, VA $0-down for veteran population facing unfavorable 7.65% rate economics absent disabled veteran funding fee waivers, and USDA $0-down Roanoke County rural eligibility (Roanoke city limits excluded, sub-$119,850 income ceiling) delivering 6.00% lowest rates—while neighborhood stratification spans Northwest Roanoke $150,000-$200,000 entry to South Roanoke $300,000-$400,000+ premium positioning serving diverse demographics from first-time buyers to Carilion Clinic healthcare workers to retail/service managers.
Critical success factors: Roanoke versus Salem strategic evaluation recognizing 9.5% lower price justified by Carilion Clinic employment hub and affordability versus Salem's Roanoke College culture and higher incomes, property tax consciousness where 1.22% Roanoke city matches Roanoke city rate but substantially exceeds Roanoke County 1.03% ($516 annual differential on median home), 70-75/100 competitiveness allowing more negotiation room than Salem's 80/100, 5-10 year wealth accumulation generating equity versus rental expense through ownership, and buyer-type self-selection where Carilion Clinic or HCA Health System employment, preference for urban amenities, or budget-conscious buyers justify Roanoke's accessible $270,000 median to $82,000-$95,000 dual-income professional households.
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Last updated: December 15, 2025
About Roanoke Mortgages: Mortgage financing in Roanoke, Virginia (population 98,677, independent city) enables access to $270,000 median market (Zillow ZHVI November 2025, +3.1% YoY) positioned 9.5% below Salem's $296,251 through Carilion Clinic employment hub (10,000+ employees). 70-75/100 Redfin competitiveness (25-30 day pending, 97-98% sale-to-list), and urban city character for healthcare workers and professionals. Property tax 1.22% ($275/month median) matching Roanoke city rate but above Roanoke County 1.03%. December 2025 rates: 6.28-6.40% conventional 20% down, 6.35-6.47% conventional 10% down, 6.15% FHA, 7.65% VA, 6.00% USDA. Income requirements $70,000-$120,000 across $240,000-$320,000 range. Roanoke city limits USDA ineligible (independent city), Roanoke County rural surrounding areas eligible with $119,850 income limit. Neighborhood pricing: Northwest Roanoke $150,000-$200,000 entry, Grandin Village $220,000-$260,000, Old Southwest $230,000-$270,000, South Roanoke $300,000-$400,000+ premium. Major employers: Carilion Clinic 10,000+, HCA Health System, retail/service managers. Average rent $1,367/month (+3.6% YoY). Five-year rent vs buy: ownership creates equity versus rental expense generating zero return.
Disclaimer: This guide provides general information about mortgages in Roanoke, Virginia as of December 2025. Interest rates, home prices, property tax rates, and market conditions change frequently. Median price sources include Zillow ZHVI ($270,000 December 2025) and Redfin reflecting list/premium pricing. Income requirements and affordability calculations are illustrative—actual qualification depends on individual credit, employment, debt-to-income, assets, and lender underwriting. Property tax rate 1.22% based on Roanoke city assessments. USDA eligibility requires address verification at eligibility.sc.egov.usda.gov. This website generates leads for mortgage lenders and receives compensation for referrals. Always verify independently and obtain personalized quotes from licensed lenders before decisions.