Understanding Closing Costs in Virginia (2026)

Closing costs are everything you pay at the closing table beyond the purchase price and down payment. In Virginia, they typically run 2–5% of the loan amount. This 2026 guide breaks down each line item, what to expect on a Hampton Roads transaction, and how seller concessions can dramatically reduce your cash to close.

Loan Type	Max Seller Concessions	Notes
VA	100% of closing costs + 4% additional	Most generous in any U.S. program
FHA	Up to 6% of purchase price	Stable across down payment levels
Conventional (<10% down)	3% of purchase price	Most restrictive tier
Conventional (10–25% down)	6% of purchase price
Conventional (25%+ down)	9% of purchase price
USDA	Up to 6% of purchase price	Plus the 1% guarantee fee can be financed

Always negotiate seller concessions into your offer — on a $325k home, a 6% concession is $19,500 of buyer cash savings.

What's in your closing costs

• Lender fees — origination, processing, underwriting, application (varies; on the Loan Estimate)
• Discount points — optional; lower the rate
• Appraisal — $500–$800
• Credit report — $40–$80
• Title insurance (owner's + lender's policy) — $1,200–$2,500
• Title settlement fee — $500–$1,200
• Recording fees + Virginia grantee tax — $300–$700
• VA funding fee / FHA UFMIP / USDA fee — varies by loan type, usually financed
• Pre-paid items — escrow set-up for property taxes and homeowners insurance
• Per diem interest — closing date through month-end
• Homeowners insurance — first year typically paid at closing
• Flood insurance — if required, first year paid at closing

How seller concessions reduce your cash

Sellers can pay a portion of your closing costs through "concessions" written into the offer. The maximums by loan type:

• VA: seller can pay 100% of closing costs PLUS 4% additional concessions (most generous in any U.S. program)
• FHA: up to 6% of purchase price
• Conventional with <10% down: up to 3% of purchase price
• Conventional with 10–25% down: up to 6%
• USDA: up to 6%

On a $325k home, seller concessions can save $10–20k of buyer cash.

How to compare Loan Estimates

The Loan Estimate is the standardized federal form lenders must give you within 3 days of application. Compare at least 2 LEs side-by-side and look at:

• Section A (Origination Charges) — lender fees
• Section B (Services You Cannot Shop For) — appraisal, credit report
• Section C (Services You Can Shop For) — title, settlement
• Section E (Taxes and Other Government Fees) — Virginia recording fees
• Section F (Pre-Paid Items) — interest, taxes, insurance
• Total Cash to Close (the bottom line)

How to reduce your closing costs

• Negotiate seller concessions — biggest lever
• Shop multiple lenders — origination fees can vary $500–$2,000+ between lenders
• Shop title insurance — Virginia allows you to choose your own title company
• Skip discount points unless you'll keep the loan 5+ years
• Lender credits — accept slightly higher rate in exchange for lender paying costs

Frequently Asked Questions

How much are closing costs in Virginia?

Typically 2–5% of loan amount ($6,500–$16,250 on a $325k home). Includes lender fees, title insurance, escrow set-up, recording fees, and pre-paid items.

Can sellers pay closing costs in Virginia?

Yes — and they often do. VA loans allow 100% of closing costs plus 4% concessions. FHA allows 6%. Conventional 3–9% depending on down payment.

What is the Virginia grantee tax?

A small recording tax paid by the buyer in Virginia, typically $0.25 per $100 of purchase price. About $812 on a $325k home.

Are closing costs tax-deductible?

Mostly no. Mortgage interest is deductible (if you itemize). Property taxes are deductible up to the SALT cap. Discount points may be deductible. Most other closing costs are not deductible directly but may add to your home's cost basis.

When do I find out my exact closing costs?

You receive a Closing Disclosure 3 business days before closing showing the final numbers. The Loan Estimate (within 3 days of application) gives you the early estimate.

Can I roll closing costs into the loan?

Some — VA funding fee, FHA UFMIP, and USDA fee can typically be financed. Most other closing costs cannot be rolled in unless you do a "no closing cost" refinance with lender credits.

Who chooses the title company in Virginia?

In Virginia, the buyer chooses the settlement agent / title company. Compare 2–3 options for fees and reputation.

How do I lower my cash to close?

Use seller concessions aggressively, shop lenders for lowest origination, skip discount points, request lender credits for "no closing cost" structure (trades for higher rate).

Sources & further reading

• CFPB — Loan Estimate
• CFPB — Closing Disclosure
• ALTA — Consumer information
• Virginia Code — Recording Taxes

Information reflects 2025-2026 conditions and rules. Always confirm current details with the relevant agency, lender, or licensed professional before relying on any specific figure or rule.