Most first-time buyers in Richmond start their home search by browsing listings. That is backwards. The right starting point is figuring out what you can actually afford, because the answer changes everything: which neighborhoods are realistic, what kind of home you can stretch into, and whether you should be looking at all yet.
Here is how to think about home affordability before you fall in love with a house.
The Three Numbers That Actually Matter
Lenders look at a small set of inputs to decide what they will lend you. Understanding these inputs gives you the same view they have.
Your gross monthly income. Pre-tax, including any reliable bonus or commission income that you can document with a two-year track record. Side income that is not on tax returns does not count.
Your existing monthly debt payments. Car loans, student loans, credit card minimums, child support, alimony. Not living expenses like groceries or utilities. Just the minimums lenders see on your credit report.
Your available cash for down payment and closing. Cash in checking, savings, money market, or accessible investment accounts. Retirement accounts technically count for some loan types but are usually a last resort.
With those three numbers, lenders run a debt-to-income ratio. The general guideline is that your total monthly housing payment plus all other debt payments should not exceed 43 percent of your gross monthly income. Some loan programs allow more, some require less, but 43 percent is the working number.
How That Translates to Home Price
The Richmond median home price in 2026 is sitting around $350,000, with significant variation by neighborhood. Western Richmond, Short Pump, and the Far West End trend higher. Southside, Henrico, and parts of Chesterfield offer more affordable entry points.
A $350,000 home with 5 percent down and a 30-year conventional loan at current rates means a monthly payment in the neighborhood of $2,300, including taxes and insurance. That payment, plus other debts, has to fit inside 43 percent of your gross income.
If you and a partner earn a combined $90,000 gross annually, your 43 percent ceiling is $3,225 a month. Subtract $700 in existing car and student loan payments, and you have $2,525 a month available for housing. A $350,000 home fits, with a bit of room.
If you earn $60,000 individually with a $400 car payment, your 43 percent ceiling is $2,150 a month. Subtract the car payment, and you have $1,750 a month for housing. A $350,000 home is out of reach. A $250,000 home is comfortable.
These are rough numbers. Your specific situation will vary. The point is to know which range you are working inside before you start looking.
Down Payment Reality
The 20 percent down payment myth costs Richmond buyers years of delay. Most Richmond first-time buyers put 3 to 5 percent down using conventional, FHA, VA, or USDA loans. On a $350,000 home, that is between $10,500 and $17,500, not $70,000.
Paired with one of the Virginia down payment assistance programs we covered in our recent guide, your out-of-pocket can be even lower. Some buyers come to closing with $5,000 in cash or less, depending on the program stack.
What does come out of pocket regardless: closing costs, which usually run 2 to 3 percent of the purchase price. On $350,000, plan for $7,000 to $10,500 in closing costs. Some sellers will pay a portion of these.
The Affordability Mistake to Avoid
The most common mistake first-time buyers make is stretching to the absolute top of their lender’s pre-approval. The lender’s number is the maximum they will lend, not the maximum you should borrow.
A mortgage payment that uses 28 to 32 percent of your gross income leaves you room for life. A payment at 40 percent does not. Cars break down. Kids need braces. The HVAC fails in August. Buying at the top of your range means every one of those becomes a stress event instead of a manageable expense.
We regularly walk Richmond buyers through this conversation. The math says they could afford a $400,000 home, and the lender agrees, but the right answer for their actual life is $325,000.
Starting the Conversation
At Honey Tree Realty, we will sit down with you, look at your numbers, and tell you honestly what range makes sense. If you are not quite ready yet, we will tell you that too, along with what to do over the next six to twelve months to get there.
Reach out to schedule a buyer consultation. We work across the Richmond metro area, including Henrico, Chesterfield, Hanover, and Powhatan.