Virginia First-Time Home Buyer Guide

Buyers typically pay about 2–5% of the purchase price — roughly $8,000–$20,000 on a $400,000 home — covering lender fees, title insurance, recordation taxes, prepaids, and escrow funding. Virginia Housing's Closing Cost Assistance Grant can cover up to 2% on VA and USDA loans, and every line is itemized on your Loan Estimate.

The buyer typically pays for the lender's policy, and an owner's policy is optional but recommended. Under Virginia's settlement law (RESA) you have the statutory right to choose your settlement agent — which means you can shop title and settlement services rather than defaulting to whoever the contract names.

No general one — unlike many states, Virginia has no statewide homestead exemption for typical homeowners. Relief programs are local-option, mainly for homeowners 65+ or permanently disabled with locality-set income and asset limits. Veterans rated 100% permanently and totally disabled are the exception: full real-estate tax exemption on the principal residence statewide.

Buyers customarily pay the recordation tax ($0.25 per $100 of price at the state level, plus a local third), while sellers pay the grantor's tax ($0.10 per $100). In Northern Virginia, sellers also pay two regional fees of $0.10 per $100 each — $0.30 per $100 total on the seller side — and Hampton Roads sellers add $0.06 per $100 for regional transit.

Only loans above $1,249,125 in the DC-metro counties (Arlington, Fairfax, Loudoun, Prince William, Alexandria, and neighbors) are jumbo in 2026 — a common surprise, since a $1M+ purchase in Fairfax can still be a conforming loan. In most of the rest of Virginia the limit is $832,750. It's the loan amount after your down payment that decides.

No — Virginia's settlement agent law (RESA) allows licensed non-attorney settlement agents and title companies to conduct closings, and the law gives you, the buyer, the right to choose your settlement agent. Virginia is also a "wet funding" state: loan funds disburse promptly at settlement, so you get keys without waiting days.

Virginia localities levy an annual personal property tax on vehicles — roughly $3 to $5.33 per $100 of assessed value depending on the locality. It's not a mortgage cost, but budget for it alongside your housing payment, and register with the DMV within 30 days of moving.

Four brackets — 2%, 3%, 5%, and 5.75% — with the top rate starting above just $17,000 of taxable income. Social Security is fully exempt, taxpayers 65+ can claim an age deduction of up to $12,000, and up to $40,000 of military benefits can be subtracted with no age requirement. Confirm specifics at tax.virginia.gov or with your tax professional.

If the home sits in a FEMA high-risk flood zone and you use any federally backed mortgage, yes. More than a third of Norfolk, Portsmouth, and Virginia Beach sits in high-risk zones, so we run the flood-zone determination early. NFIP coverage caps at $250,000 for the structure with a 30-day wait; private flood carriers active in Virginia can offer more.

Federally designated areas where the three-year first-time-buyer rule is waived and income and price limits are often higher — buying in one can qualify a repeat buyer for first-time-buyer programs. We check the map for any address you're considering.

Veterans rated 100% permanently and totally disabled from service-connected causes pay no real estate tax on their principal residence — the dwelling and up to one acre of land, or more where the locality has adopted larger-acreage relief — under Article X, Section 6-A of the Virginia Constitution. Qualifying surviving spouses keep the exemption, and one vehicle is also exempt.

Widely — most of Virginia's land area outside the metro cores is USDA-eligible, including much of Southside and the Shenandoah Valley, and USDA Rural Development means $0 down for eligible buyers under the program's income limits. Eligibility is address-specific; we check the current map for you.

It's a true grant — never repaid, with no lien recorded. That's different from the Plus Second Mortgage, which is a real second mortgage repaid monthly alongside your first mortgage.

Generally no. You select one DPA program per transaction. Most Virginia DPA programs don't combine with each other.

Most Virginia Housing programs require 640+. Some national programs (Chenoa Fund) accept 600+.

Some Virginia Housing programs cover closing costs as part of DPA structure. Specifics vary by program — we walk through which applies to your scenario.