Editorial review by Robert Lee, President of 1st Nations Mortgage Corp. — not a loan originator
1st Nations Mortgage Corp. | NMLS #2924 | nmlsconsumeraccess.org
1st Nations Mortgage Corp. | NMLS #2924 | nmlsconsumeraccess.org
Materially updated: September 2, 2026 · Reviewed for mortgage terminology and source accuracy
Talk to a licensed loan officer or start your application online — no obligation, no cost to check your options.
Three months ending June 2026, per Redfin. Historical citywide figures, not a property-specific valuation or forecast.
This example uses the citywide median sale price as a round planning case. It is not a property valuation, current rate quote, underwriting decision, or a statement that a median-priced property matches your specific situation.
| Input | Illustrative value | What to verify |
|---|---|---|
| Purchase price | $264,000 | Contract price and appraisal |
| 5% down | $13,200; $250,800 loan | Program LTV, closing costs, reserves, and prepaid items |
| Principal and interest | ~$1,585/month | Hypothetical 6.5% rate, 30-year amortization |
| Lynchburg real estate tax | ~$196/month | Uses a recently reported $0.89/$100 city rate — verify current adopted rate and assessed value directly with the City |
| Insurance and PMI | Not included | PMI likely applies below 20% down; obtain insurance quotes for the specific property |
| Modeled payment (P&I + tax only) | ~$1,781/month | Excludes insurance, PMI, and lender-specific adjustments |
At $264,000, a 3.5%, 5%, and 20% down payment equal approximately $9,240, $13,200, and $52,800 respectively. Cash needed also includes closing costs, prepaid taxes and insurance, and any lender-required reserves.
At a median price around $264,000 — roughly 40% below the national average — Lynchburg is one of the more attainable markets in Virginia for a first-time buyer, especially compared to Northern Virginia's much higher price points. That affordability also means down payment assistance dollars go further here: a $40,000 DHCD grant covers a much larger share of a Lynchburg purchase than it would in a higher-cost market.
Virginia's DHCD Down Payment Assistance Program offers up to $40,000 to first-time buyers at or below 60% of area median income, administered through local partners. This can be paired with Virginia Housing's statewide Down Payment Assistance Grant (2.0-2.5%) and Closing Cost Assistance Grant (up to 2.0%) for buyers who qualify for both. Income and program limits apply.
Tax rate has been under active council review. Lynchburg's real estate tax rate has changed in recent budget cycles and was subject to a contested council vote for the current fiscal year — verify the currently adopted rate directly with the City Assessor before finalizing a budget, rather than relying on a figure from a prior year.
Biennial reassessment. Unlike Alexandria's annual cycle, Lynchburg reassesses property every two years, which can create a larger single-year jump in assessed value — and therefore tax bill — when a reassessment lands.
Start with mortgage pre-approval, then house hunt, make an offer, complete inspection and appraisal, and close — typically 30-45 days from accepted offer.
Approximately $264,000 as of mid-2026, per Redfin, among the most affordable markets in Virginia.
Yes — up to $40,000 through Virginia's DHCD program for qualifying buyers, plus statewide Virginia Housing grants.
Talk to a licensed loan officer or start your application online — no obligation, no cost to check your options.
Materially updated September 2, 2026. Robert Lee reviewed the mortgage terminology, illustrative payment calculation, local tax figures, and primary-source links on this page.
Reviewed by Robert Lee · President of 1st Nations Mortgage Corp. · NMLS #2924 · NMLS Consumer Access