Programs and options for buyers vary by lender and location

If you are purchasing a new house or refinancing your existing mortgage, a small change in Virginia mortgage rates can have a big impact on your overall cost. Just a 1 percent difference can add or subtract $100 or more from your payment each month. Before you make decisions about new home financing you should carefully research all the available lending institutions and programs.

Virginia new home financing options:

Virginia-mortgage-rate-programs-and-options-1Fixed-rate mortgages let you budget for the same payment monthly. With acceptable credit in the summer of 2016, you may qualify for a 30-year fixed mortgage at interest rates between 3.75 and 4.21 percent. Rates for shorter loans like a 15-year mortgage are ranging between 2.67 and 3.77 percent.

Adjustable-rate mortgages (ARM) deliver low rates for a specific length of time and then adjust based on contract terms. In 2016, Virginia residents with approved credit are getting five-year ARMs at 2.94 percent and seven-year ARMs at 2.84 percent.

Jumbo mortgages provide financing options for homes that cost more than $417,000. In some Virginia counties, the home cost must be even higher. In 2016, borrowers can apply for fixed-rate loans ranging from 2.89 to 4.27 percent interest and adjustable-rate loans ranging from 2.66 to 3.29 percent interest.

Current opportunities for Virginia new home financing include:

Virginia Housing Development Authority (VHDA): The VHDA grants first-time homebuyer loans through network of approved local lenders. Borrowers can qualify for 30-year fixed mortgages at competitive rates. Each lender sets its own origination fees, so annual percentage rates can vary.

Federation of Appalachian Housing Enterprise (FAHE): The FAHE promotes home ownership in the Appalachian region through its JustChoice lending program. Borrowers can get Section 502 rural housing mortgages to build, purchase or repair homes. Interest rates are hovering around 3.25 percent in 2016.

Fairfax Redevelopment and Housing Authority: First-time homebuyers with low to moderate income may enter a drawing for a townhouse or condo within the district. The Fairfax government works with lenders to deliver stable mortgages at affordable rates.

United States government: Several federal agencies insure or back mortgage programs. In 2016, you will see home loan rates around 3.44 percent interest from the Department of Veteran Affairs, the Federal Housing Administration and the Department of Agriculture. These agencies do not directly issue mortgages, so the loan terms and annual percentage rates vary by lender.

Virginia-mortgage-rate-programs-and-options-2Local governments: Many cities and counties offer attractive mortgage rates as an incentive for buying properties in distressed areas of Virginia. You may obtain down-payment assistance; help with closing costs, lower interest rates or special terms.

Financial professionals predict that Virginia mortgage rates will increase over the next year. If you want help understanding your options in today's market conditions, RealtyNow can connect you with local lenders and help you make informed decisions about your future.