Market Overview: Virginia Housing Mid-Range
Virginia ranks as a mid-range housing market, with a median home price of $400,201. The state's effective property tax rate of 0.80% is lower than the national average of 1.00%, and annual homeowners insurance averaging $1,664 falls below the US median of $2,201.
These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in Virginia. Below we break down a realistic purchase scenario using state-specific data.
🏡 Purchase Example: Buying a $400,201 Home in Virginia
Using the state's median home price of $400,201, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in Virginia:
| Cost Component | Amount |
|---|---|
| Home Price | $400,201 |
| Down Payment (20%) | $80,040 |
| Loan Amount | $320,161 |
| Estimated Closing Costs (3.5%) | $14,007 |
| Total Cash Needed at Closing | $94,047 |
Monthly Payment (20% Down)
| Item | Monthly |
|---|---|
| Principal & Interest | $2,024 |
| Property Taxes (0.80%) | $267 |
| Homeowners Insurance | $139 |
| PMI (not needed at 20% down) | $0 |
| Total Monthly Payment | $2,429 |
Annual income needed (28% DTI): $105,000/yr
PMI Scenario: What If You Put Only 10% Down?
With a 10% down payment ($40,020), you'd have a loan of $360,181 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.7% of the loan annually:
| Item | 10% Down | 20% Down (savings) |
|---|---|---|
| Principal & Interest | $2,277 | $2,024 |
| Monthly PMI | $210 | $0 |
| Total PITI+PMI | $2,892 | $2,429 |
The lower down payment costs you an extra $463/month (P&I + PMI). You would need $124,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.
First-year interest: In year one, $20,705 of your payments go to interest alone. Over the full 30-year term, you'll pay $408,347 in total interest.
💰 State-Specific Cost Notes for Virginia
Property taxes in Virginia are 0.80%, meaning about $3,202/year ($267/month) on the median-priced home.Homeowners insurance in Virginia averages $1,664/year ($139/month).
Closing costs in a mid-range market like Virginia typically run 2%–4% of the purchase price — roughly $14,007 on a $400,201 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.
Monthly Payment on a $400,201 Home in Virginia
With a standard 20% down payment ($320,161 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $2,429.
Monthly Payment Breakdown (PITI)
| Component | Monthly Cost | Annual Cost |
|---|---|---|
| Principal & Interest | $2,024 | $24,288 |
| Property Taxes (0.80% est.) | $267 | $3,204 |
| Home Insurance | $139 | $1,668 |
| Total Monthly Payment | $2,429 | $29,148 |
Income Required in Virginia
Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $105,000 to comfortably afford the median-priced home in Virginia with 20% down at 6.5%.
How Interest Shapes Your Payments
In your first year, approximately $20,705 goes toward interest alone. Over the full 30-year term, you'll pay a total of $408,347 in interest.
Amortization Schedule — First 10 Years
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| Year 1 | $3,579 | $20,705 | $316,582 |
| Year 2 | $3,818 | $20,465 | $312,764 |
| Year 3 | $4,074 | $20,210 | $308,690 |
| Year 4 | $4,347 | $19,937 | $304,344 |
| Year 5 | $4,638 | $19,646 | $299,706 |
| Year 6 | $4,948 | $19,335 | $294,757 |
| Year 7 | $5,280 | $19,004 | $289,478 |
| Year 8 | $5,633 | $18,650 | $283,844 |
| Year 9 | $6,011 | $18,273 | $277,833 |
| Year 10 | $6,413 | $17,870 | $271,420 |
* Full 30-year amortization available in our interactive calculator.
❓ Frequently Asked Questions — Buying a Home in Virginia
How much income do I need to buy a house in Virginia?
With the median home price in Virginia at $400,201 and a 20% down payment, you need roughly $105,000/year based on the 28% front-end DTI rule (total monthly housing costs of $2,429). If you put down 10%, the income requirement rises to about $124,000/year due to the higher loan amount and PMI.
What's the minimum down payment in Virginia?
While 20% down ($80,040) avoids PMI, many Virginia buyers opt for lower down payments. FHA loans require as little as 3.5% ($14,007), and conventional loans can go as low as 3%–5% ($12,006–$20,010). However, a 10% down payment ($40,020) would cost you $2,892/month — about $463 more than 20% down — due to PMI and a larger principal.
What are property taxes like in Virginia?
Virginia's effective property tax rate is 0.80%, which is moderate the national average of 1.00. On a $400,201 home, you'd pay approximately $3,202/year in property taxes ($267/month).
How much is homeowners insurance in Virginia?
The average annual premium in Virginia is $1,664, which is roughly in line with the US median of $2,201. This is a relatively affordable insurance market for homeowners. This adds $139/month to your payment.
What are the total closing costs for a home in Virginia?
On a $400,201 home in Virginia, expect to pay about $14,007 in closing costs. Combined with a 20% down payment ($80,040), you'd need approximately $94,047 in cash at closing. First-time buyers in Virginia may qualify for down payment assistance programs or reduced closing costs through local housing authorities — check your state housing agency for available grants and low-interest loan programs.
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Disclaimer: This is an estimate for informational purposes only. Actual mortgage payments depend on your credit score, exact interest rate, property taxes, insurance premiums, PMI, and other factors. Sources: Zillow Q1 2025 (median home prices), ATTOM 2025 (property tax rates), Quadrant Information Services Feb 2025 (insurance premiums). Consult a qualified mortgage professional for personalized advice. See our full Disclaimer.