FHA loans provide Staunton's first-time buyers the most accessible path to homeownership with just 3.5% down ($9,660 on the $276,000 median), credit scores as low as 580, and lenient qualification standards. In Staunton's ultra-competitive 15-day market where homes sell faster than most Virginia cities, FHA's low barrier to entry makes historic downtown living, Wharf District lofts, and valley neighborhoods achievable for households earning $85,000-$95,000 annually—though lifetime mortgage insurance means long-term FHA costs demand careful cost-benefit analysis vs conventional alternatives.
This comprehensive guide covers everything Staunton FHA buyers need to know: current rates, down payment requirements, mortgage insurance costs, credit and income qualifications, strategies for competing in the fast-moving market, and when FHA delivers best value vs conventional, VA, or USDA options in the Queen City of the Shenandoah.
No impact on credit score to check
3.5% ($9,660 on median) vs 20% ($55,200) conventional
580 minimum (500-579 with 10% down) vs 680+ conventional preferred
Up to 50% debt-to-income with compensating factors
Up to 6% toward closing ($16,560 on $276K)
6.04-6.23% (lower than VA, competitive with conventional)
In 15-day market, having ANY pre-approval beats waiting to save 20%
| Loan Type | Rate Range |
|---|---|
| 30-Year Fixed FHA | 6.04%-6.23% |
| 15-Year Fixed FHA | 5.15%-5.40% |
| Credit Score | FHA Rate | Monthly P&I |
|---|---|---|
| 680+ | 6.04%-6.10% | $1,627-$1,637 |
| 640-679 | 6.15%-6.25% | $1,646-$1,662 |
| 620-639 | 6.30%-6.45% | $1,671-$1,692 |
| 580-619 | 6.50%-6.75% | $1,701-$1,737 |
Lower than VA (7.62-7.70%) and competitive with conventional (6.28-6.40%).
Standard: 3.5% of purchase price
NOT Allowed: Unsecured borrowed funds (credit cards, personal loans)
Required: 2 years steady employment
Staunton Employment: Augusta Health, Mary Baldwin University, downtown businesses provide stable employment for FHA borrowers.
1.75% of loan
30-Year MI Cost: $124/month × 360 months = $44,640
Critical: FHA MI never cancels with 3.5% down. Only way to remove: refinance to conventional once you have 20% equity.
| Feature | FHA | Conventional 5% | VA (Military) |
|---|---|---|---|
| Down payment | $9,660 | $13,800 | $0 |
| Credit minimum | 580 | 680 | 620 |
| Monthly MI/PMI | $124 (lifetime) | $143 (cancels) | $0 |
| Interest rate | 6.15% | 6.35% | 7.65% |
| Monthly P&I | $1,646 | $1,643 | $1,969 |
| Total payment | $2,117 | $2,133 | $2,316 |
| Cash needed | $14.7-17.7K | $18.8-21.8K | $5-8K |
| 30-yr MI cost | $44,640 | $17,160* | $0 |
*Conventional PMI cancels at 20% equity (7-10 years with Staunton appreciation)
Lower down payment, easier credit qualification, 3-5 year ownership
PMI cancels, better for 7+ year ownership, good credit (680+)
If eligible—$0 down, no MI, worth higher payment
Having FHA pre-approval beats waiting years to save 20%
FHA closes same timeline (30-40 days) as conventional
$9,660 down lets you compete without needing $55,200 saved
FHA requires safe, sanitary, structurally sound homes.
$524,225 (one-unit)
Staunton Reality: Median $276K (well within limit), 95% of homes: Under $450K, FHA covers all but most expensive downtown properties.
In 15-day market:
Total Timeline: 35-40 days offer to closing
Staunton Strategy: Request 6% concessions ($16,560 on $276K) to cover most/all closing costs.
FHA MI lasts 30 years with 3.5% down. On $276K: $44,640 total. Plan to refinance to conventional once you reach 20% equity (7-10 years with Staunton's 8-11% appreciation).
FHA needs $9,660 vs conventional $55,200 (20%). But conventional has no MI after 20% down. Run full 30-year cost comparison.
620 credit vs 680 credit = 0.25-0.50% rate = $50-$100/month = $18,000-$36,000 over 30 years. Worth improving credit before applying.
FHA rates vary 0.25-0.50% between lenders. That's $14,000-$28,000 over 30 years on Staunton median.
In 15-day market, waiting means losing homes. Get pre-approved, start hunting immediately.
When: You have 20% equity (appreciation + principal paydown)
With just $9,660 down (3.5%) and 580 minimum credit, FHA makes Staunton's $276K median homes accessible to households earning $85,000-$95,000 annually. The trade-off is lifetime mortgage insurance ($124/month = $44,640 over 30 years), but for 3-5 year ownership or buyers who can't save 20% down, FHA delivers immediate access to Staunton's historic downtown, Wharf District lofts, valley views, and arts scene—with appreciation (8-11% annually) building equity for eventual refinance to conventional once 20% equity is achieved.
Minimum 580, recommended 620+. Below 620, expect higher rates. Above 660, smooth approval and better rates.
$5,000-$8,500, but FHA allows 6% seller concessions ($16,560 on $276K). Many Staunton FHA buyers get 4-6% concessions.
Yes, if home meets FHA standards. Older homes (1880s-1930s) may need minor repairs. Factor inspection costs.
Pre-approval: 3-7 days. Full approval to closing: 35-40 days.
Not on existing FHA with 3.5% down (it's lifetime). Only way: refinance to conventional once you have 20% equity.
No. FHA closes 35-40 days (same as conventional). Strong pre-approval from good lender = competitive.
FHA Better If: Credit 580-680, only have 3.5-5% down saved, planning 3-5 year ownership, need lenient qualification. Conventional Better If: Credit 680+, have 10-20% down, planning 7+ year ownership, want PMI to cancel eventually.
Get matched with FHA 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 FHA loan information for Staunton, Virginia as of November 2025. FHA 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 FHA lenders. Compare offers from multiple lenders before choosing. Consult with mortgage professionals and financial advisors before making home financing decisions.