Plenty of Ashland and Hanover County buyers assume they need 20% down before they can even look at a house. Between the train whistle downtown, the Randolph-Macon College area, and the Saturday crowd along the Ashland Farmers Market, the town feels small enough that people also assume the financing must be old-fashioned. It isn’t. USDA and VA loans can finance 100% of a purchase, and a few supporting tactics can shrink the cash left over. Duane Buziak, NMLS #1110647 (Coast2Coast Mortgage LLC, NMLS #376205), a mortgage broker who works with 500+ wholesale lenders, explains seven ways to use these zero down payment mortgage programs for a home near the Henry Clay Inn, out toward Beaverdam, or on the Richmond commute. One honest caution first: zero down is not zero cash. Closing costs, prepaid items, and reserves are separate, and several strategies below deal with exactly that.
1. Check whether your Ashland address qualifies for a USDA loan
The USDA Section 502 guaranteed loan finances up to 100% of the purchase price, which means a loan-to-value ratio (LTV, the loan amount divided by the home’s value) of 100%. The catch is that eligibility is tied to the property address and to household income, not just to the buyer. The program targets eligible rural and small-town areas, and borderline cases are common around a place like Hanover County, where one side of a road can be treated differently from the other.
Suppose a buyer is eyeing a house near Beaverdam or Doswell. Before assuming conventional financing is the only route, they check the address on the USDA property eligibility tool and compare household income to the county limit. Income is counted for everyone in the household, not only the people on the loan, and the limits depend on household size. Confirm the current figures on the USDA guaranteed loan program page, since they change.
For a local sense of price, the Census QuickFacts page for Hanover County lists the county’s median value of owner-occupied homes. Compare that figure to the home you are considering, then check the specific address. Do not assume the 23005 ZIP code, or any part of it, is eligible until the map says so for that parcel.
- Enter the exact property address on the USDA eligibility map.
- Add up gross household income and compare it to the current county limit for your household size.
- Ask Duane Buziak to run a USDA pre-approval before you write an offer.
Common mistake: treating all of Ashland or Hanover County as eligible, or ignoring income because your own paycheck looks modest. A second earner can push the household over the limit. What to measure: the property confirmed eligible and household income under the limit before the offer, plus a USDA pre-approval in hand.
2. Use your VA entitlement for a true $0 down purchase
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 lets the lender accept zero down without charging ongoing insurance. In place of that, most borrowers pay a one-time funding fee, which can be financed. Check the current table on the VA funding fee and closing costs page.
Here is the worked math. On a $350,000 purchase at 0% down, the first-use funding fee of 2.15% (as of 2026) is $7,525. Financed, that makes a $357,525 loan. The same house costs $12,250 down on an FHA loan at 3.5%, or $70,000 down on a 20% conventional loan. The VA buyer brings none of that to the down payment line.
- Request your Certificate of Eligibility through the VA’s COE process, or have a broker pull it for you.
- Confirm your funding fee status. The fee is waived for veterans receiving VA disability compensation, among other exemptions.
- Run the payment with and without the fee financed.
- Make offers only with a pre-approval letter attached.
VA cash-out refinances can reach 100% LTV as well, which matters later if you tap equity, but this strategy is about the purchase.
Common mistake: forgetting the funding fee when comparing loan amounts, or never checking for a disability exemption that would remove it entirely. What to measure: cash required at closing against the alternatives, and the monthly payment with no mortgage insurance in it. For many veterans in Ashland, VA is the strongest option on both counts.
3. Compare USDA and VA side by side before you choose
A buyer who qualifies for both programs can get stuck choosing by the headline fee. The better approach is to price both on the same home. USDA charges a 1% upfront guarantee fee and a 0.35% annual fee (as of 2026, so confirm at application). VA charges the funding fee above and nothing monthly.
On the $350,000 home, the numbers look like this:
- VA: $0 down, loan of $357,525 with the 2.15% fee financed, no monthly mortgage insurance.
- USDA: $0 down, loan of $353,500 with the 1% fee financed, plus an annual fee of 0.35% that works out to about $103 a month.
- FHA: 3.5% down is $12,250, with a 1.75% upfront premium financed and an annual premium that is roughly $155 a month at a typical 0.55% rate.
- 3% conventional: $10,500 down, with private mortgage insurance priced by credit score and often cheaper than FHA for strong borrowers.
The VA loan is $4,025 larger than the USDA loan, which looks worse on paper. But the USDA buyer pays about $103 a month for the life of the fee, and the VA buyer pays none. At roughly $1,236 a year, the USDA fee passes that $4,025 difference in a little over three years of fee payments, before accounting for rate differences. Interest rates between the programs can also differ, which is why you need quotes rather than assumptions.
Ask for a side-by-side showing loan amount, rate, monthly payment, and cash to close for all four options. Common mistake: picking the program with the lowest upfront fee without comparing the monthly cost. What to measure: total monthly payment and five-year cost for each program, including fees financed and any mortgage insurance.
4. Stack Virginia Housing down payment assistance on a low-down loan
Down payment assistance (DPA) is money from a housing finance agency or program that covers some or all of the minimum down payment. Virginia’s state agency, Virginia Housing, offers first-mortgage and assistance programs for eligible first-time buyers. Pairing assistance with a low-down first mortgage can leave a buyer’s own savings needed only for what the assistance does not cover.
Here is an illustration, not a quote: a first-time buyer in Mechanicsville uses a low-down first mortgage and applies assistance toward the minimum down payment. Their savings then go to inspection, appraisal, prepaids, and a small reserve instead of a large down payment. The exact structure depends on the program that month.
- Open Virginia Housing’s current program page and check income limits, purchase price limits, and credit requirements. These change, so treat anything you read secondhand as dated.
- Complete the required homebuyer education course.
- Have a participating lender submit the application. Not every lender or broker channel offers every program, so ask up front.
Many DPA products are structured as a second loan, and some are forgiven over time while others must be repaid when you sell or refinance. Read the terms before you rely on the money.
Common mistake: overlooking repayment or recapture terms, then being surprised at a sale or refinance. A second loan can also change your monthly payment and your options later. What to measure: your own cash required at closing, plus the total cost of any second loan, including interest and what you would owe if you moved in five years.
5. Let a gift cover the down payment on FHA or conventional
If a program needs a minimum down payment and you do not have it, an acceptable donor can supply it. FHA and conventional loans both allow gift funds toward the down payment, generally from family members and certain other approved donors. The rules turn on documentation: underwriting must see that the money is a true gift with no expectation of repayment. See HUD’s FHA loan information for program basics, and confirm gift rules with your broker since donor definitions and conventional requirements vary by loan type.
For example, imagine a relative gives $12,250 toward the 3.5% FHA down payment on a $350,000 home. The donor signs a gift letter stating the amount, the relationship, and that no repayment is expected. The money moves by transfer from the donor’s account, so both sides show the trail: the withdrawal on their statement and the deposit on yours.
- Ask the donor to sign a gift letter in the form your broker provides.
- Transfer the funds electronically or by check, never as cash handed over in person.
- Provide the donor’s statement and your own showing the deposit before underwriting begins.
The timing matters. Large deposits that appear without explanation mid-process are a classic source of underwriting conditions, and they can delay a closing.
Common mistake: handing over undocumented cash, or a loan disguised as a gift. Underwriters are trained to spot both, and a false gift letter creates real problems. What to measure: the gift documented and accepted in underwriting without conditions, ideally cleared before you go under contract.
6. Negotiate seller concessions and lender credits for no-out-of-pocket closing options
A seller concession is money the seller agrees to put toward your closing costs, written into the offer. A lender credit works differently: you accept a slightly higher interest rate, and the credit offsets closing costs. Either can reduce the cash you bring to closing, and together they create what Duane Buziak calls no-out-of-pocket closing options for qualifying buyers.
Illustratively, a 3% seller concession on a $350,000 home equals $10,500 toward closing costs. Each program caps the amount. FHA and USDA generally allow up to 6% in seller contributions, VA limits seller concessions to 4% plus customary costs, and conventional caps depend on down payment size. For conventional, see Fannie Mae’s interested party contribution rules. Verify current limits before writing the offer.
- Ask your broker to price a par rate option and one or more credit options on the same loan.
- Decide whether you want the concession in the contract, a lender credit, or both, staying within the program cap.
- Calculate breakeven: divide the credit by the monthly payment increase it causes.
For instance, a $3,500 credit that raises the payment by $35 a month breaks even at 100 months, a little over eight years. If you may move or refinance sooner than that, the credit wins. If you plan to stay twelve years, it likely does not.
Common mistake: exceeding the concession cap, which forces a re-trade late in the process, or ignoring what a higher rate costs over time. What to measure: cash to close and breakeven months for any credit.
7. Use a NoTouch Credit Pull pre-approval and a broker’s lender menu to pick the right program
Many buyers believe any pre-approval check damages their credit. A soft credit pull does not affect your score, and Ashland Mortgage by Duane Buziak uses one in its free NoTouch Credit pre-approval. That lets you see real numbers before committing to a full application and its hard inquiry.
The second half of this strategy is the broker model. A loan officer at a single company can only show you that company’s products, whether it is a national retail shop like Movement or a respected regional name like Valerie Holbrook’s team at C&F Mortgage. Duane Buziak is a broker, so he compares programs across 500+ wholesale lenders and picks the fit for your income, credit, and property. That matters for a zero down buyer, because the best program may be USDA for one address and VA or a DPA-backed loan for another.
Picture a buyer who gets a pre-approval and a program comparison without a score impact, then shops for homes in Ashland knowing the numbers.
- Contact Ashland Mortgage by Duane Buziak and complete the NoTouch Credit Pull.
- Review the side-by-side options for VA, USDA, FHA, and conventional.
- Make offers with the right pre-approval letter.
Common mistake: submitting full applications at several lenders before you know which program fits, which can stack hard inquiries. What to measure: the number of hard inquiries, speed to pre-approval, and the cash needed under the chosen program.
Eight questions Ashland and Hanover County buyers ask about zero down
Can I really buy a home in Ashland VA with no down payment?
Yes, if you qualify for a VA loan or a USDA loan on an eligible property. Both can finance 100% of the price. You still need cash for some closing costs unless the seller or a credit covers them.
Is all of Hanover County eligible for USDA?
No. Eligibility depends on the specific property address, so check each home on the USDA map. Do not assume a ZIP code qualifies as a whole.
Do I need 20% down to buy in Ashland?
No. VA and USDA allow 0% down, FHA allows 3.5%, and some conventional programs allow 3%. The 20% figure only avoids private mortgage insurance on conventional loans.
Is a VA loan or a USDA loan better for Ashland buyers?
For eligible veterans, VA is often better because it has no monthly mortgage insurance. USDA is the strongest zero down option for non-veterans buying in eligible areas. Compare both on your actual price.
Does a pre-approval hurt my credit?
Not if it uses a soft pull. The free NoTouch Credit Pull at Ashland Mortgage by Duane Buziak does not affect your score, while a full application usually brings a hard inquiry.
What is the VA funding fee on a $350,000 home?
At 2.15% for first use with 0% down (as of 2026), it is $7,525. It is waived for veterans who receive VA disability compensation, among other exemptions.
Can a family member gift me my down payment?
On FHA and conventional loans, usually yes, with a signed gift letter and a documented transfer. The money cannot be a loan in disguise.
What is the 2026 conforming loan limit for Hanover County?
The 2026 baseline is $806,500, with a high-cost ceiling of $1,249,125, as announced by the FHFA. Confirm which limit applies to your county before you shop.
Where to start: VA first, USDA second, then layer the rest
Start with VA eligibility. If you qualify, it usually delivers the cleanest zero down result, with no monthly mortgage insurance. If you do not, check the USDA address and income rules next. After that, layer on Virginia Housing assistance, a documented gift, and seller concessions or lender credits to cover what remains. Begin everything with a soft-pull pre-approval so you know the numbers before you tour homes.
Ready to explore your home financing options without impacting your credit score? Get your free NoTouch Credit pre-approval today and discover exactly how much home you can afford, with zero hard inquiries and personalized guidance from our local Ashland team. You can also call 804-212-8663.