Virginia's mortgage market has its own distinct rules — from closing customs to transfer tax structure to the specific down payment programs available through the state's housing finance agency. This guide covers what's genuinely different about buying in Virginia, not just the generic national mortgage process.
Virginia at a Glance
Est. payment: $2,848/mo
Est. payment: $1,979/mo
Est. payment: $2,689/mo
Estimated payments assume 5% down, 6.82% 30-year fixed rate, plus $150/month insurance. Your actual payment will vary by lender, credit score, and specific property tax rate.
How Virginia Closings Work
Virginia does not legally require an attorney but attorney closings are extremely common in Northern Virginia given the region's transaction complexity and proximity to DC-market pricing; Hampton Roads and other regions more frequently use title companies.
Transfer tax: $0.25 per $100 of sale price (state grantor tax) plus a similar local recordation tax — Northern Virginia additionally charges a $0.15 per $100 regional congestion relief fee on top of the base rates.
The Virginia Property Tax Quirk You Should Know
Northern Virginia (Fairfax, Arlington, Loudoun counties) operates as a functionally separate real estate market from the rest of the state — pricing, closing customs, and even typical contract contingency periods differ meaningfully from Hampton Roads or Richmond, so guidance calibrated to statewide averages should be treated as directional only for NoVA buyers.
Virginia's Down Payment Assistance Program
Virginia Housing (formerly VHDA) Down Payment Assistance Grant, Closing Cost Assistance Grant
Virginia Housing's Down Payment Assistance Grant provides up to 2-2.5% of the loan amount as a genuine grant (never repaid) stacked with a competitive first mortgage — a comparatively modest ceiling versus some neighboring states, but the true-grant structure (rather than deferred loan) is notable.
USDA Rural Eligibility in Virginia
Southern and southwestern Virginia, along with the Eastern Shore, have substantial USDA-eligible territory; Northern Virginia's DC-suburb counties are entirely ineligible.
Mortgage Loan Limits in Virginia
| Loan Type | Limit | Down Payment |
|---|---|---|
| Conventional (Fannie/Freddie) | $766,550 | 3–20% |
| FHA (VA) | $1,006,250 | 3.5% |
| VA (eligible veterans) | No limit (full entitlement) | 0% |
| USDA (eligible rural areas) | No set limit | 0% |
Frequently Asked Questions
Virginia does not legally require an attorney but attorney closings are extremely common in Northern Virginia given the region's transaction complexity and proximity to DC-market pricing; Hampton Roads and other regions more frequently use title companies.
Virginia's transfer tax structure: $0.25 per $100 of sale price (state grantor tax) plus a similar local recordation tax — Northern Virginia additionally charges a $0.15 per $100 regional congestion relief fee on top of the base rates. This is typically disclosed on your Closing Disclosure and paid at settlement.
Virginia Housing's Down Payment Assistance Grant provides up to 2-2.5% of the loan amount as a genuine grant (never repaid) stacked with a competitive first mortgage — a comparatively modest ceiling versus some neighboring states, but the true-grant structure (rather than deferred loan) is notable.
Southern and southwestern Virginia, along with the Eastern Shore, have substantial USDA-eligible territory; Northern Virginia's DC-suburb counties are entirely ineligible.
Sources for This Page
- Freddie Mac PMMS — national rate benchmark
- HUD FHA Mortgage Limits — VA loan limit data
- USDA Rural Development Eligibility — Virginia rural zone verification
- Virginia state Housing Finance Agency — program terms and current DPA availability