Virginia Home Loans & Mortgage Rates

Virginia is really two different housing markets wearing one state flag.

Northern Virginia (Arlington, Fairfax, Loudoun, Prince William) is one of the most expensive markets on the East Coast, driven by federal government, defense contracting, and tech employment. Median prices in this region push well above $600,000, and some areas exceed $800,000. But the FHA and conforming limits here match the national ceiling at $1,249,125, meaning government-backed financing remains viable even for expensive properties.

The rest of Virginia tells a completely different story. The statewide median is around $402,000, but markets like Richmond ($350,000), Virginia Beach/Hampton Roads ($330,000), Roanoke ($250,000), and Lynchburg ($225,000) offer significantly more affordable entry points. Most of these areas sit at or near the FHA baseline.

The market overall is holding steady with modest appreciation around 3.2% year-over-year. Inventory is improving but still relatively tight at about 3.1 months of supply. The Hampton Roads military corridor benefits from a large veteran population, making VA loans extremely common. Virginia Housing (formerly VHDA) offers grants of 2-2.5% of the purchase price plus a separate closing cost assistance grant, and the state’s DHCD program provides up to $50,000 for lower-income buyers.

Mpire Direct is licensed across all Virginia counties and independent cities. Below you’ll find county-specific loan limits, state DPA programs, closing cost details, and property tax information.

2026 Loan Limit Takeaways

The entire Northern Virginia/DC metro area (Arlington, Fairfax, Loudoun, Prince William, Stafford, Spotsylvania, Fauquier, Clarke, and the independent cities of Alexandria, Falls Church, Fairfax, Manassas) hits the national FHA ceiling of $1,249,125. This means you can use FHA financing on a $1.29 million home with 3.5% down in NoVA. The Richmond metro is at $589,950. Hampton Roads (Virginia Beach, Norfolk, Chesapeake, Newport News) is at $565,500. Roanoke, Lynchburg, and most rural Virginia counties sit at the $541,287 baseline. Conforming limit is $832,750 statewide outside the high-cost NoVA/DC area, where it matches at $1,249,125.

Down Payment Assistance Notes

Virginia Housing’s DPA Grant (2-2.5%) is a true grant with no repayment, which is relatively rare among state programs. The separate Closing Cost Assistance Grant for USDA and VA loans means veterans and rural buyers can layer zero-down financing with free grant money for closing costs. The DHCD program ($25,000-$50,000) is extremely generous but limited to buyers at or below 80% AMI.

Local programs add more options: Arlington’s MIPAP, Norfolk’s NRHA HOME ($60,000), Virginia Beach’s DPA, Richmond’s Maggie Walker CDFI programs, and more.

Closing Costs in Virginia

Virginia closing costs are moderate but include some state-specific taxes that buyers should understand.

Transfer Tax (Grantor/Grantee Tax): Virginia imposes a transfer tax of $0.25 per $100 of the sale price (0.25% total), typically split between buyer and seller. On a $400,000 home, that’s $1,000 total ($500 per side). Some cities and counties add additional local transfer taxes on top.

Mortgage Recording Tax: Virginia charges $0.25 per $100 of the loan amount (0.25%) as a mortgage recording tax, paid by the buyer. On a $385,000 mortgage, that’s approximately $963. Counties can add up to $0.083 per $100 in additional mortgage taxes. This is separate from the transfer tax and adds to buyer costs.

Attorney State: Virginia is primarily an attorney-closing state, especially in Northern Virginia and the Tidewater region. Some areas use title companies. Attorney/settlement fees typically run $800-$1,500.

Title Insurance: The buyer pays for the lender’s title policy. The seller typically pays for the owner’s title policy, though this is negotiable. Virginia title insurance rates are competitive.

Estimated Total Buyer Closing Costs: On a $400,000 purchase with a $386,000 mortgage, expect approximately $8,000-$14,000 in total buyer closing costs (2-3.5%). This includes the mortgage recording tax ($965), your share of the transfer tax ($500), attorney/settlement fees, lender fees, title insurance, appraisal, prepaid taxes and insurance, and recording fees. Northern Virginia transactions tend toward the higher end due to higher home prices and additional local taxes.

Property Taxes in Virginia

Virginia property taxes are moderate overall but vary dramatically by locality, which is important because Virginia has 95 counties and 38 independent cities, each setting their own rates.

Statewide Average: Virginia’s average effective property tax rate is approximately 0.75-0.82%, slightly below the national average.

Northern Virginia: Fairfax County has an effective rate around 1.03% (one of the higher rates in the state). Arlington is approximately 0.96%. Loudoun County runs about 0.87%. On a $700,000 home in Fairfax, expect roughly $7,200 per year.

Central Virginia: The City of Richmond’s effective rate is around 1.10% (among the highest in Virginia). Henrico County is about 0.76%. Chesterfield is approximately 0.73%.

Hampton Roads: Virginia Beach is around 0.83%. Norfolk is approximately 1.01%. Chesapeake is about 0.88%.

Southwest/Rural: Many rural Virginia counties have effective rates below 0.60%, with some of the lowest property taxes in the state.

Tax Relief Programs: Virginia offers property tax relief for elderly and disabled homeowners (age 65+ or permanently disabled) through local programs. Each city/county sets its own eligibility criteria and benefit levels. Apply through your local Commissioner of the Revenue.

USDA Loan Eligibility in Virginia

Virginia has good USDA eligibility in the Shenandoah Valley, Southwest Virginia, Southside, and the Eastern Shore. Eligible areas include communities around Harrisonburg, Staunton, Lexington, Blacksburg (portions), Martinsville, Danville, Emporia, and the entire Eastern Shore (Accomack and Northampton counties).

Even within commuting distance of Richmond and Hampton Roads, some outer areas qualify. Parts of New Kent County, King William County, and Isle of Wight County have USDA-eligible sections. In the Charlottesville area, surrounding counties like Greene, Fluvanna, and Nelson have eligible territory.

Northern Virginia has essentially no USDA eligibility due to the dense suburban development, but buyers willing to look in Culpeper, Rappahannock, or Madison counties (60-90 minutes from DC) may find qualifying areas with a more rural lifestyle. Check specific addresses at the USDA eligibility map.