Conventional loans offer Staunton homebuyers maximum flexibility—work anywhere in the city from historic downtown to Wharf District, no income limits (unlike USDA's $119,850 cap), and mortgage insurance that cancels at 20% equity (unlike FHA's lifetime MI). With Staunton's median at $276,000-$278,000 and strong appreciation (8-11.7% recent growth), conventional financing delivers the best long-term value for buyers with good credit (680+) and 5-20% down payment, as PMI cancellation in 6-9 years saves tens of thousands vs FHA alternatives.
This comprehensive guide covers everything Staunton conventional buyers need to know: requirements, current rates, PMI costs and cancellation timeline, down payment options from 3-20%, when conventional beats FHA/VA/USDA in Staunton's fast-moving 15-day market, and optimal strategies for the city's mix of historic Victorians, modern Wharf lofts, and established neighborhoods.
No impact on credit score to check
Unlike FHA's lifetime MI, conventional PMI disappears (6-9 years with Staunton's 8-11% appreciation)
3-20% options ($8,280-$55,600 on median)
Works downtown, Wharf, Gypsy Hill, everywhere (USDA doesn't work in city)
Earn $60K or $200K—doesn't matter (USDA caps at $119,850)
680+ credit gets best rates, saves thousands
Staunton's appreciation + payments = 20% equity quickly
| Loan Type | Rate Range |
|---|---|
| 30-Year Fixed | 6.28%-6.40% |
| 15-Year Fixed | 5.49%-5.72% |
| 5/1 ARM | 6.10%-6.50% |
| Credit Score | Rate | Monthly P&I | 30-Year Interest |
|---|---|---|---|
| 760+ | 6.28% | $1,652 | $326,720 |
| 720-759 | 6.35% | $1,671 | $333,560 |
| 680-719 | 6.50% | $1,700 | $343,000 |
| 640-679 | 6.75% | $1,740 | $358,400 |
| 620-639 | 7.00% | $1,785 | $374,600 |
760 vs 680 = $48/month = $17,280 over 30 years. Improving credit from 680 to 720 saves $10,440.
Required: 2 years steady employment
Staunton: Augusta Health, Mary Baldwin, downtown businesses provide stable W-2 income.
$276K, 10% down, 700 credit = 2 months reserves ($4,234) recommended.
PMI required if down payment less than 20%, but cancels at 20% equity.
| Credit Score | Annual PMI | Monthly PMI |
|---|---|---|
| 760+ | 0.50% | $109 |
| 720-759 | 0.65% | $142 |
| 680-719 | 0.85% | $186 |
| 640-679 | 1.15% | $251 |
| 620-639 | 1.50% | $328 |
| Credit Score | Annual PMI | Monthly PMI |
|---|---|---|
| 760+ | 0.45% | $93 |
| 720-759 | 0.60% | $124 |
| 680-719 | 0.75% | $155 |
| 640-679 | 1.00% | $207 |
Key: 10% down + good credit drastically reduces PMI. 760 credit with 10% = $93/month vs $328/month for 620 credit with 5%.
With 8-11% annual appreciation + principal paydown:
Staunton Strategy: 10% down is sweet spot—achievable ($27,600), reasonable PMI, cancels in 6-9 years with appreciation.
| Feature | Conventional 5% | FHA 3.5% |
|---|---|---|
| Down payment | $13,800 | $9,660 |
| Upfront fee/MI | $0 | $4,661 |
| Monthly MI/PMI | $142 (cancels) | $124 (lifetime) |
| Monthly payment | $2,132 | $2,117 |
| 10-year MI cost | $17,040 | $14,880 |
| 30-year MI cost | $0 (cancels year 8) | $44,640 |
7+ year ownership (PMI cancels, saving $36,000+)
Lower down, 3-5 year ownership, credit under 680
| Feature | Conventional 5% | VA $0 |
|---|---|---|
| Down payment | $13,800 | $0 |
| Monthly PMI | $142 | $0 |
| Rate | 6.35% | 7.65% |
| Monthly payment | $2,132 | $2,316 |
| Cash needed | $18,800 | $5-8K |
Lower monthly payment
If eligible—$0 down, no MI, worth higher payment
| Feature | Conventional 5% | USDA $0 |
|---|---|---|
| Down payment | $13,800 | $0 |
| Income limits | None | $119,850 |
| Location | Anywhere | Eligible areas |
| Monthly payment | $2,132 | $2,079 |
Income over $119,850, Staunton city location
Eligible area + income-qualified, $0 down
Perfect For: Removing FHA lifetime MI
When: Rate 0.75-1.0%+ above market
Result: High PMI ($328/month). Better to save for 10% or improve credit to 680+.
Rates vary 0.25-0.50% = $14,000-$28,000 over 30 years on Staunton median.
With 5% down, PMI lasts 8-10 years. Make extra payments to reach 20% faster.
If 680+ credit and 5%+ down, run both. Conventional often wins for 7+ year ownership.
Conventional allows 3% (10%+ down) or 6% (under 10%). That's $8,280-$16,560 on $276K.
With 680+ credit and 5-20% down, conventional loans offer best long-term value in Staunton. PMI cancellation at 20% equity (6-9 years with 8-11% appreciation) saves tens of thousands vs FHA's lifetime MI, making conventional ideal for buyers planning 7+ year ownership in historic downtown, Wharf District lofts, Gypsy Hill neighborhoods, or anywhere in this walkable, arts-rich, Shenandoah Valley city.
Minimum 620, recommended 680+, ideal 740+. Each tier improves rate 0.125-0.25% and lowers PMI.
20% ($55,200) eliminates PMI. 10% ($27,600) is sweet spot—lower PMI, cancels 6-9 years. 5% ($13,800) works if that's all you have.
Yes, but FHA might be better. Compare both—FHA often wins below 680 credit.
5% down: 8-10 years. 10% down: 6-9 years. 15% down: 3-5 years. With Staunton's 8-11% appreciation, these timelines hold or accelerate.
Yes! Request removal once 20% equity reached. Requires appraisal ($450-$650). Or refinance.
Conventional Wins: 680+ credit, 7+ year ownership, 5%+ down. FHA Wins: Under 680 credit, 3-5 year ownership, only 3.5% down available.
Get matched with conventional lenders who understand Staunton's ultra-competitive 15-day market. Compare rates, get pre-approved, and shop with confidence.
No impact on credit score to check
Last updated: November 26, 2025
About Staunton, VA: Staunton is an independent city in the Shenandoah Valley with a population of approximately 25,000. The median home price as of November 2025 is $276,000-$278,000, representing 37% below the national average. The market is ultra-competitive with homes selling in 15 days on average. Property taxes are $0.91 per $100 of assessed value. Major employers include Mary Baldwin University, Augusta Health, and a diverse downtown economy.
Disclaimer: This guide provides general conventional loan information for Staunton, Virginia as of November 2025. Conventional loan rates, programs, and requirements change frequently. This website generates leads for mortgage lenders and receives compensation for referrals. Always verify current rates, terms, and eligibility with licensed conventional lenders. Compare offers from multiple lenders before choosing. Consult with mortgage professionals and financial advisors before making home financing decisions.