By Duane Buziak, NMLS #1110647. Virginia buyers can choose from USDA, VA, FHA, conventional, down payment assistance, and investor programs, and the right one depends on four things: where the home sits, your service history, your credit, and your cash. Picking by headline rate alone is the most common way to end up in the wrong loan. Duane Buziak works these decisions every week in the Richmond area, and Goochland County is where the first question matters most: much of the county is rural, and many Richmond-area brokers never check whether an address qualifies for USDA financing. The seven strategies below follow the order I’d use to narrow your options, starting with the program that has the biggest upside and the strictest geography.
1. Check USDA Eligibility First for Rural Goochland County Homes
The USDA Rural Development guaranteed loan is not a farm loan. It is a no-down-payment mortgage for primary residences in areas USDA designates as rural, and the designation is mapped property by property. That is why geography should be your first filter: it is the one program restriction you cannot change after you’ve fallen for a house.
Illustration: a buyer with a $375,000 target is told that Short Pump-area homes are the only realistic option. A home near Centerville may check as USDA-eligible, which would allow a purchase with no down payment, where a conventional buyer putting 20% down would need $75,000. Eligibility must be verified per address; this is an example, not a promise about any property.
- Enter the specific address in the USDA property eligibility tool.
- Confirm that your total household income, not just the borrower’s, falls under the limit for your household size on the USDA income eligibility page.
- Confirm the home will be your primary residence.
- Request a soft-pull pre-approval so you know your payment before you tour.
The common mistake is assuming eligibility by town or zip code. Boundaries cut through neighborhoods, and two homes on the same road can check differently. The second mistake is counting only the borrower’s income. USDA looks at everyone living in the household, so a working adult child or spouse who isn’t on the loan can still matter.
To measure it, track the share of your shortlisted homes confirmed eligible, and compare the projected monthly payment against an FHA alternative on the same price. Our USDA loan page explains the program in more detail. For local context, Goochland County’s official site publishes the current real estate tax rate, which belongs in any payment estimate for a rural purchase.
2. Use VA Entitlement If You Have Served
Eligible veterans, service members, and some surviving spouses can buy with no down payment and no monthly mortgage insurance. The VA guarantees part of the loan, which is why the monthly insurance charge disappears. What you pay instead is a one-time funding fee, unless you are exempt, for example because of a service-connected disability rating.
Illustration: a veteran buys at $375,000 with nothing down. If the first-use funding fee were 2.15% (check the current VA funding fee table as of 2026), that is $8,062.50, which can be rolled into the loan for a balance of $383,062.50. At an illustrative 6.5% over 30 years, principal and interest is roughly $2,421, with no monthly mortgage insurance on top. An FHA buyer on the same house pays annual MIP every month.
Steps to put it into practice
- Request your Certificate of Eligibility through VA.gov, or have your broker pull it.
- Confirm your funding fee status, including any exemption.
- If you’ve used VA benefits before, ask the broker to review remaining entitlement.
Two mistakes come up repeatedly. Buyers leave the funding fee out when estimating cash needs, and others believe entitlement is gone for good after one VA loan. Entitlement can often be restored or partly remain available, so a second VA purchase is frequently possible.
Measure the monthly payment without mortgage insurance against your other options, plus total cash to close. See our VA loan page for program details.
3. Choose FHA When Credit or Savings Are Thin
The misconception worth killing here is that FHA is only for bad credit. FHA is built for buyers with limited savings or a credit profile that conventional pricing punishes, and it works anywhere in Virginia, which makes it the fallback when a home sits outside a USDA zone or your household income exceeds the USDA limit. HUD’s guidance sets a minimum score of 580 for the 3.5% down option; see HUD’s FHA loan overview and confirm current rules as of 2026.
Illustration: a $375,000 purchase at 3.5% down is $13,125 down and a $361,875 base loan. The upfront MIP, 1.75% of the base amount, is $6,332.81, which can be financed, bringing the loan to about $368,208. Annual MIP then adds a monthly charge, roughly $166 at an assumed 0.55% rate.
- Confirm your credit tier against HUD guidance.
- Estimate both upfront and annual MIP before comparing payments.
- Order the FHA appraisal and plan for repairs the appraiser may require, such as peeling paint or a failing handrail.
The pitfall is ignoring duration. With less than 10% down on current FHA loans, mortgage insurance generally lasts for the life of the loan, so the exit strategy is usually a refinance. Measure the total monthly payment including MIP, and calculate the break-even point against a future refinance, meaning how many months of savings it takes to recover refinance costs. Our FHA loan page covers the details.
4. Stack Down Payment Assistance on Top of Your Core Loan
Down payment assistance (DPA) is not a loan type of its own. It pairs with a first mortgage to cover some or all of the down payment and sometimes closing costs, so it changes what you need in the bank rather than what you borrow against the home’s price. That is why it belongs after you’ve chosen the core program.
Illustration: assistance equal to 3.5% on a $375,000 home is $13,125, which could cover an FHA down payment entirely. Terms vary by program, so confirm current ones before relying on any figure.
- Confirm program terms and minimum credit scores.
- Check income and purchase price limits.
- Choose a first mortgage the assistance is compatible with.
- Read the repayment or forgiveness terms, and any occupancy period.
The mistake is treating assistance as free money. Some programs are second liens due on sale or refinance, some forgive over time, and some come with a slightly higher first-mortgage rate. Read all three: repayment, rate, and occupancy.
Measure cash needed at closing before and after assistance, and any rate difference versus going without it. If the assistance saves $13,000 up front but raises the payment by $60 a month, you want to know that figure before you sign. Start with our down payment assistance page. Ask about our no-out-of-pocket closing options when you review your estimate.
5. Go Conventional When Your Profile Is Strong
You do not need 20% down for a conventional loan. Many buyers put down 3% to 5% and pay private mortgage insurance (PMI), which, unlike FHA mortgage insurance, can be cancelled once you reach sufficient equity. Conventional loans also carry no geographic restriction like USDA and no service requirement like VA, so a strong profile gives you the widest choice of homes.
Illustration on a $375,000 home at an assumed 6.5% rate: 3% down is $11,250; 5% is $18,750; 20% is $75,000. Loan amounts are $363,750, $356,250, and $300,000, with principal and interest of roughly $2,299, $2,252, and $1,896. PMI is where it moves: at assumed rates of 0.9% and 0.6%, the first two add about $273 and $178 a month, and 20% down adds none. Real PMI quotes depend heavily on your score.
- Get a pre-approval.
- Request PMI quotes at several down payment levels.
- Check the current conforming limit; FHFA set the 2026 baseline at $832,750, so confirm it for your county.
- Compare the result against FHA on the same price.
The pitfall is overlooking how a few score points change PMI cost. Moving from one pricing tier to the next can shift the payment by tens of dollars a month. Measure the payment with PMI at each down payment level, and the date PMI can be removed. Our conventional loan page has more.
6. Use DSCR Loans for Investment Property
A debt service coverage ratio (DSCR) loan qualifies the property, not the borrower’s tax returns. The underwriting question is whether the rent covers the full payment, written as PITIA: principal, interest, taxes, insurance, and association dues. That suits self-employed investors and anyone whose tax returns understate their real cash flow.
Illustration: a rental with $2,400 monthly rent against a $2,000 payment has a coverage ratio of 1.2 (2,400 divided by 2,000). Now suppose real taxes and insurance push the payment to $2,300. The ratio drops to about 1.04, which may fall below a program’s minimum and change your pricing or required down payment.
- Gather the signed lease, or a market rent estimate if the unit is vacant.
- Calculate rent divided by full PITIA, using quoted insurance and the actual tax bill.
- Confirm required down payment and reserves with your broker before making an offer.
The common mistake is underestimating taxes, insurance, and vacancy. Use real quotes, and stress-test the number with a month or two of vacancy per year. Measure two things: the DSCR itself, and cash-on-cash return after financing costs, which tells you whether the property pays you for tying up the cash. DSCR financing is for investment property, not a primary residence. See our DSCR loan page.
7. Start With a Soft Credit Pull Mortgage Pre-Approval and a Broker Comparison
A common worry is that pre-approval always damages credit. A hard inquiry can cause a small, temporary dip, but a soft credit pull mortgage pre-approval does not. Duane Buziak uses the NoTouch Credit Pull, so you get a no hard inquiry mortgage pre approval and can see programs side by side before committing to any one. The CFPB’s homebuying guidance also recommends comparing multiple offers.
A broker also changes what you compare. A direct retailer can offer only its own loan shelf; a broker can shop many wholesale sources. Illustration: from one pre-approval on a $375,000 Goochland home, all at an assumed 6.5% rate for comparison only, principal, interest, and mortgage insurance work out to roughly:
- USDA, no down payment: about $2,504 a month, with a 1% upfront fee financed and a 0.35% annual fee.
- FHA, 3.5% down: about $2,493 a month, with upfront and annual MIP.
- Conventional, 5% down: about $2,430 a month, with assumed PMI.
Taxes and homeowners insurance come on top, and real rates will differ by program, so treat the spread as a method, not a quote.
- Request pre-approval through NoTouch Credit Pull.
- Review side-by-side estimates for each program you qualify for.
- Pick a program, then authorize a full credit pull only when you are ready to lock.
The mistake is comparing only interest rates. A lower rate with higher mortgage insurance or fees can cost more each month. Measure the number of programs compared, the payment spread between them, and your credit score before and after pre-approval, which should not move. Our soft pull pre-approval page shows how it works. The table below shows how a broker like Duane Buziak differs from other channels in general terms.
| Feature | Goochland Mortgage by Duane Buziak | Direct online retailer | Regional bank retail |
|---|---|---|---|
| Programs offered | VA, USDA, FHA, down payment assistance, DSCR, conventional | Typically conventional, FHA, VA; varies by company | Typically conventional, FHA, VA; first-time buyer programs vary |
| Rural/USDA specialty | Yes, focused on Goochland’s USDA-eligible zones | Not typically a focus | No county-specific rural specialty in general |
| Loan shelf | 500+ wholesale sources | Its own products only | Its own products only |
| Broker vs. direct | Broker | Direct | Direct |
| Soft pull option | NoTouch Credit Pull | Varies; confirm before applying | Varies; confirm before applying |
Channels differ by company and change over time, so confirm details with whichever provider you consider.
Where to Start: The Order That Saves Time and Money
Check the USDA map and your VA eligibility first, because those two programs offer the least out-of-pocket cost and depend on facts you can’t change. If neither fits, compare FHA and conventional on the same price, layer down payment assistance where it’s compatible, and begin with a soft-pull pre-approval so none of this costs you a credit inquiry.
Ready to explore your home loan options in Goochland County? Whether you’re buying your first home, refinancing a rural property, or exploring USDA, VA, or down payment assistance programs, I shop 500+ wholesale mortgage sources to find the right fit, with no hard inquiry to start. Call or text me at (804) 212-8663, or visit GoochlandMortgage.com to get started with a soft pull pre-approval today.
Virginia Home Loan Programs: Frequently Asked Questions
What are the main Virginia home loan programs?
The main options are USDA, VA, FHA, conventional, and DSCR for investment property, often paired with down payment assistance. Each has different down payment, credit, income, and location rules.
Is Goochland County eligible for USDA loans?
Many rural parts of Goochland County may be eligible, but eligibility is decided per address. Check the property in the USDA eligibility tool before assuming a home qualifies.
Can I buy a home with no down payment in Virginia?
Yes, through USDA for eligible rural properties and VA for eligible service members and veterans. Both have requirements and fees, and approval is never guaranteed.
Does VA financing require mortgage insurance?
No. VA loans have no monthly mortgage insurance, but most borrowers pay a one-time funding fee unless exempt. See the VA funding fee page for current rates.
Is FHA only for people with bad credit?
No. FHA suits buyers with limited savings or a thinner credit profile, but many buyers use it for the 3.5% down option. Check HUD’s guidance for current credit rules.
Do I need 20% down to buy a home?
No. Conventional loans allow as little as 3% down for qualified buyers, with PMI that can be cancelled later. Putting 20% down avoids PMI altogether.
Does a mortgage pre-approval hurt my credit?
Not if it uses a soft pull. A mortgage pre approval without hard pull, such as the NoTouch Credit Pull, lets you compare programs without a hard inquiry. A full credit pull comes later, when you are ready to proceed.
Is Goochland Mortgage by Duane Buziak a legitimate mortgage broker?
Yes. Duane Buziak is licensed under NMLS #1110647 through Coast2Coast Mortgage LLC, NMLS #376205, and is licensed in VA, FL, TN, and GA. You can verify both numbers at the NMLS Consumer Access site.
Disclaimer: This article is general information, not a loan offer, commitment to lend, or financial advice. All rates, payments, and fees shown are illustrations and will vary with credit, property, and market conditions as of 2026. Program rules, income limits, fees, and eligibility change; verify with the official source and your broker. Approval is not guaranteed. Not all applicants will qualify, and a USDA, VA, or FHA loan requires the property and borrower to meet program guidelines.
About the author: Duane Buziak is a mortgage broker specializing in rural USDA and VA financing in Goochland County and the greater Richmond area. His credentials include a Scotsman Guide Top Originator ranking (#114, $51.2M) and UWM PRO ELITE recognition for 2025. Duane Buziak | NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205 | Licensed in VA, FL, TN, GA | 804-212-8663