Virginia mortgages: recordation taxes, monthly payments and Virginia Housing

#Virginia incomes and home prices

Virginia’s median household income of $92,090 is the 13th-highest among the 50 states and DC and above the national median. The median home value of $403,500 ranks 18th-highest and sits above the US figure, so the price-to-income ratio is about the same as the nation’s.

Statewide medians blend very different markets, from Northern Virginia to the rural southwest, so use your county’s or city’s numbers when you set a budget.

#Who pays what: Virginia’s recordation and grantor taxes

Virginia’s Code taxes the recording of both the deed and the deed of trust. The recordation tax is 0.25% of the greater of the price or the property’s value for the deed, and 0.25% of the amount the deed of trust secures. A city or county may add a local recordation tax equal to one-third of the state tax. Separately, the grantor tax of 0.1% must be paid by the grantor — the seller — unless the two sides agree otherwise. Together the two deed taxes come to 0.35% of the price.

Lender fees, title insurance, prepaid interest and escrow come on top; the CFPB’s typical 2%–5% of the price is $8,070–$20,175 here. The closing cost calculator applies Virginia’s taxes to your price.

#Monthly payment on the median Virginia home

On the median income of $92,090, Freddie Mac’s guideline of keeping housing under 30% of gross income allows $2,302 a month — enough for about $304,000 with 10% down, $99,500 less than the median value. The median home within that guideline needs a household income of about $122,000. Change any input in the mortgage payment calculator or the affordability calculator.

#Virginia Housing’s Plus Second Mortgage and grants

Virginia Housing, the state’s housing finance agency, makes its loans through approved lenders. FHA, VA and USDA loans are available with credit scores as low as 620; conventional loans need a higher score. Three kinds of down payment help can sit on top:

• Plus Second Mortgage — a 30-year fixed-rate second loan of up to 5% of the purchase price, for first-time or repeat buyers within Virginia Housing’s income limits. On the median home that could be up to $20,175.
• Down Payment Assistance Grant — a true grant you never repay, for first-time buyers (or repeat buyers in designated Areas of Economic Opportunity) using an eligible Virginia Housing FHA or conventional loan, within income and sales price limits.
• Closing Cost Assistance Grant — for closing costs, also for first-time buyers.

A second mortgage adds its own monthly payment, while a grant doesn’t, so ask a Virginia Housing lender to quote both routes. Our guide to first-time buyer programs explains how state help works with your first loan.

#Property taxes set by Virginia’s counties and cities

At 0.71% of value, Virginia’s effective rate is below the national 0.89% and the 20th-lowest among the 50 states and DC; the median bill is $2,872 a year. Real estate tax is set locally, and Virginia’s independent cities set rates separately from the surrounding counties, so the same price can carry noticeably different bills a few miles apart. Look up the locality’s current rate per $100 of assessed value before you write an offer.

#Service members and veterans buying in Virginia

A VA loan lets eligible buyers put 0% down with no monthly mortgage insurance, in exchange for a one-time funding fee — 2.15% of the loan on a first-use loan with no down payment, which can be financed.

See the full rules in our VA loans guide.