How much of a down payment do I need to buy a house in West Virginia?

West Virginia offers first-time home buyers assistance of up to 8% of their home's purchase price in the form of a second mortgage that can be applied to their down payment. Many home buyers will qualify for this assistance, but even if you don't, you can also get a zero down payment mortgage through the VA or USDA. In addition, conventional mortgages typically only require 3% down, and FHA mortgages just 3.5%.

How much are closing costs in West Virginia?

West Virginia closing costs are reasonable, averaging about $3,406, or 1.8% of your home's value. However, you can also use first-time home buyer funds of up to $8,000 to help offset this cost. Remember, these funds are a loan that must be repaid, but can help you get into a home sooner.

What does homeowners insurance cost in West Virginia?

The cost of homeowners insurance on a $300,000 home in West Virginia is significantly below the national average, at just $1,911 per year. This is 27% below average, largely due to a lack of serious hazards in the state. However, as the climate changes, this can also change.

What is the property tax rate in West Virginia?

West Virginia's property tax rate is just 0.49% of a home's assessed fair market value, making it 46th in the nation.

West Virginia Mortgage Calculator

Sometimes, you just want to get away from it all and move to a place where the views are scenic and epic. If that's what's tugging at your heart, the Mountain State may be for you. Before you make your move to West Virginia, though, give our West Virginia mortgage calculator a try to better understand your potential housing costs there. Add numbers for a mortgage, interest, and more to find out how much your monthly housing tab might come to.

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Sometimes, you just want to get away from it all and move to a place where the views are scenic and epic. If that's what's tugging at your heart, the Mountain State may be for you. Before you make your move to West Virginia, though, give our West Virginia mortgage calculator a try to better understand your potential housing costs there. Add numbers for a mortgage, interest, and more to find out how much your monthly housing tab might come to.

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West Virginia housing market

West Virginia used to be known for its incredibly inexpensive real estate prices, but that's changed a lot in the last five years. Although still much lower than the national median home sales price, median sales prices in West Virginia have grown by 66% over the last five years, far outpacing the national average gain of almost 48%. Prices in West Virginia are still low by comparison, but they're gaining ground.

Lack of housing inventory has plagued most of the nation for some time, but West Virginia has struggled with low housing supply since March 2020. There hasn't been more than three months' worth of inventory on the market at any given time since then, which is definitely having an effect on prices.

West Virginia isn't the most competitive market, but you may find it to be a challenge, especially if you're looking for a home in a specific town or you're in a hurry to buy. Be sure to check with the best mortgage lenders for their best rates and a pre-approval letter before you even start shopping in the Mountain State.

Here's a quick snapshot of some of the most important West Virginia markets and how home prices are trending there.

Metropolitan Area	Average Home Value	1-Year Change
Martinsburg	$250,000	(2.0%)
Charles Town	$424,900	14.2%
Shannondale	$370,532	4.4%
Falling Waters	$259,900	(0.04%)
Ranson	$282,925	21.7%

Data source: Redfin. Figures accurate as of May 8, 2024.

How do I calculate my mortgage payment?

Calculating your mortgage payment by hand can be complicated, so most people choose to use a mortgage calculator like this one. But, if you're financially curious, the formula looks like this:

Although this isn't too complicated, most mortgage payments also include principal, interest, real estate taxes, and homeowners insurance. This version of the mortgage payment is commonly called PITI. In addition, extra fees like homeowners association (HOA) assessments are also sometimes included in the mortgage payment, as is optional insurance for natural disasters like flooding.

In addition, if you have a smaller than 20% down payment like most Americans, you will likely also have to pay for mortgage insurance, such as private mortgage insurance (PMI) on a conventional loan. If you get an FHA loan, you'll owe a mortgage insurance premium (MIP) upfront and every month. When required, these are also included in your monthly mortgage payment.

To calculate your new mortgage with these additional expenses included, just click "show additional inputs" on the mortgage calculator above and add your estimated figures. This will give you a very close estimate of what to expect.

Things to know before buying a house in West Virginia

West Virginia still has pretty reasonable real estate prices, though it is experiencing higher-than-average price appreciation. Fortunately, it still has some of the lowest real estate taxes in the country. Ranking 46th in the nation, with property tax rates of just 0.49%, you can buy a lot of house and not pay a lot of tax in the state. If your home was assessed at $94,500, you'll only pay $464 in taxes per year.

So far, West Virginia is one state that has not seen huge effects from climate change. Although its temperature has increased, it's increased less than most of the United States. It is experiencing increased average precipitation in winter and spring, and earlier than usual snow melts, which will ultimately lead to both flooding and drought, but these issues are limited and are less severe than in other states. There is no guarantee that this trend will continue, however.

For most of West Virginia, a basic homeowners insurance policy should be plenty of coverage. But if you live near a waterway, adding flood insurance might help prevent bigger problems down the road. Ask your insurance agent what's appropriate, even if it's not required. You can also plug that number into the West Virginia mortgage calculator to help give you a better estimate of your overall payment.

Tips for first-time home buyers in West Virginia

West Virginia offers down payment and closing cost assistance through the West Virginia Housing Development Fund. There is only one program available at this time, called the Low Down Home Loan. This is a 15-year second mortgage of up to $8,000 at 2% interest. You'll have to pay it back, but if you don't have a better way to come up with the money you need, this program can make homeownership happen for your family.

Advice for all first-time borrowers

Whether you qualify for first-time home buyer assistance in West Virginia or not, you can still apply for other loans with appealing terms for first timers, like FHA loans or conventional loans. Both have low down payment requirements, making them easier to secure, and can be used on a vast array of home purchases.

Before you apply for your home mortgage, make sure that you're showing the lender the very best version of yourself possible. This will not only increase your odds of being approved at all, it'll help you score better rates on both your mortgage and PMI, if applicable.

A great home buyer has:

Consistent and lengthy employment history of at least two years at the same company, in the same industry.
A track record of on-time payments and no current collection activity.
Low debt, leading to a lower debt-to-income ratio, which lenders love.
Closing funds tucked away in a dedicated account so they can be verified and seasoned.

You'll also do yourself a huge favor by not making any significant financial moves until your home has completely closed. Lenders want to be sure you are ready for the expenses of homeownership, so they check your borrowing profile multiple times throughout the process.

Just because you have a pre-approval and closing day is approaching doesn't mean the lender won't check your stats again just to be sure nothing has changed. Refrain from borrowing more money, charging anything to your credit lines, or changing jobs until after your closing is completed and you've got the keys to your new home.

FAQs

West Virginia offers first-time home buyers assistance of up to 8% of their home's purchase price in the form of a second mortgage that can be applied to their down payment. Many home buyers will qualify for this assistance, but even if you don't, you can also get a zero down payment mortgage through the VA or USDA. In addition, conventional mortgages typically only require 3% down, and FHA mortgages just 3.5%.
West Virginia closing costs are reasonable, averaging about $3,406, or 1.8% of your home's value. However, you can also use first-time home buyer funds of up to $8,000 to help offset this cost. Remember, these funds are a loan that must be repaid, but can help you get into a home sooner.
The cost of homeowners insurance on a $300,000 home in West Virginia is significantly below the national average, at just $1,911 per year. This is 27% below average, largely due to a lack of serious hazards in the state. However, as the climate changes, this can also change.
West Virginia's property tax rate is just 0.49% of a home's assessed fair market value, making it 46th in the nation.

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