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Communication overhead is a key task for the large-scale wireless sensor networks (WSNs) in the cooperative localization problems. This paper is aimed to propose a low-overhead algorithm without sacrificing the performance of localization, which is more practical for energy-saving WSNs. In this paper, the cooperative localization problem is formulated as a variational reference problem on a factor graph (FG). Combining the high performance of particle-based algorithms and the overhead advantage of parametric ones, a parametric variational sum-product algorithm (PVSPA) is proposed for the cooperative localization of WSNs. In prediction operation, to ensure high accuracy, messages referenced inside sensor nodes are particle-based. In correction operation, Gaussian parametric representation is adopted to the observation message and the communication overhead is obviously decreased. Simulation results show that the localization accuracy of PVSPA equally matches the classic particle-based algorithms, while the communication overhead of it is far lower.