Virginia Mortgage Guide 2026

What Virginia Homebuyers Actually Pay

Virginia sits in an interesting middle ground for housing costs. Property taxes run below the national average, closing costs carry a few state-specific line items that catch buyers off guard, and home prices range from the mid-$200,000s in rural Southside Virginia to well north of $700,000 in the Northern Virginia suburbs of Washington, D.C. Getting a handle on all three before you make an offer is how you avoid an expensive surprise at the closing table.

The statewide median home price was approximately $438,000 in early 2026, according to Redfin data — though that figure masks a sharp geographic divide. Loudoun County, Fairfax County, and Arlington routinely see median prices $200,000 to $400,000 above the state average. Richmond and Virginia Beach sit closer to $350,000 to $380,000, while markets in the Shenandoah Valley and far Southwest Virginia remain significantly more affordable. All figures below are labeled estimates unless sourced otherwise.

Virginia Property Taxes

Virginia's average effective property tax rate on owner-occupied homes is 0.78%, per the Tax Foundation's 2026 state rankings. That puts the state comfortably below the national average of roughly 1.1% and well below high-tax states like New Jersey (2.49%) or Illinois (2.07%).

The catch: Virginia has no countywide assessment cap comparable to California's Proposition 13. Assessors in most localities conduct revaluations every one to four years, so buyers in appreciating markets can see meaningful tax increases after purchase. Northern Virginia jurisdictions reassess more frequently than rural counties.

Closing Costs & Recordation Taxes in Virginia

Virginia buyers typically pay between 2% and 5% of the purchase price in closing costs, averaging around 3% to 3.5%. On a $440,000 purchase that translates to roughly $13,200 to $15,400 out of pocket before any seller concessions. Standard lender fees, title insurance, appraisal, and prepaid escrow items account for most of that total.

Two line items specific to Virginia deserve attention:

State Recordation Tax

Virginia charges a state recordation tax of $0.25 per $100 (or fraction thereof) of the consideration or actual value stated in the deed of trust, per the Code of Virginia, Title 58.1, Chapter 8. This tax applies to the deed securing your mortgage — on a $352,000 loan, that's $880 in state recordation tax. Counties may add a local recordation tax equal to one-third of the state rate, so Fairfax County buyers pay an additional $0.083 per $100 on top of the state charge.

State Grantor Tax

The grantor tax — paid by the seller in most transactions — is $0.50 per $500 of the property's value, which works out to approximately $1 per $1,000. On a $440,000 sale, the seller owes $440 in state grantor tax. Some sellers factor this into their net proceeds; others negotiate it as part of closing cost contributions. In Northern Virginia jurisdictions that opted into a regional transportation authority surcharge, additional grantor-side taxes apply.

First-Time Buyer & Down Payment Assistance Programs

Virginia Housing (the state's housing finance agency, formerly known as VHDA) runs several programs worth knowing. All require working with a Virginia Housing-approved lender, and income and purchase price limits apply.

Down Payment Assistance Grant

The Down Payment Assistance Grant provides qualified first-time homebuyers with funds for their down payment — and these funds never need to be repaid. This is a true grant, not a deferred loan or second mortgage. Eligibility requires a Virginia Housing-backed first mortgage, first-time buyer status (no ownership of a primary residence in the prior three years), and income within program limits.

Closing Cost Assistance Grant

The Closing Cost Assistance Grant reduces out-of-pocket closing costs for buyers using a Rural Housing Service (RHS/USDA) or Veterans Affairs (VA) bond loan through Virginia Housing. Like the down payment grant, repayment is never required. The grant can be stacked with other non-Virginia Housing assistance, which makes it particularly useful for buyers layering local jurisdiction funds.

Plus Second Mortgage

Buyers who don't qualify for the grants due to income limits — or who are not first-time buyers — may still access the Virginia Housing Plus Second Mortgage. This pairs a standard Virginia Housing first mortgage with a 30-year fixed second mortgage covering 3% to 5% of the purchase price (the percentage depends on credit profile and first loan type). The second mortgage covers the down payment and can include closing costs. Buyers must bring at least 1% of the purchase price to closing as cash. No prepayment penalties apply to either loan.

Military and Veteran Resources

Virginia Housing maintains a dedicated military and veteran lending track. Service members can access VA loans through approved lenders, and Virginia Housing offers specific education and accessibility grant resources for disabled veterans. The standard first-time buyer requirement is waived for active-duty buyers in some circumstances.

Current program guidelines, income limits, and participating lenders are published at virginiahousing.com.

Sample Monthly Payment — Virginia (Estimate)

The table below is an illustrative estimate only, based on a statewide average scenario. Actual payments depend on your loan terms, exact property tax rate, insurance quotes, and HOA fees.

Property tax estimates use a 0.78% statewide rate (Tax Foundation) except Northern Virginia, which uses 0.94% (Fairfax County approximate). PMI is not included above; at 0.7% annually on the 5%-down scenario it adds roughly $244/month until 20% equity is reached. Use the calculator for your specific address and lender quote.