Closing Costs in Virginia: What Buyers Pay (2027)
Closing costs are everything you pay at settlement beyond the purchase price and down payment: lender fees, title and settlement charges, Virginia recordation taxes, and prepaid taxes, insurance and interest. Freddie Mac tells buyers to plan on 2% to 5% of the purchase price (page reviewed February 26, 2026), which is about $6,500 to $16,250 on a $325,000 Hampton Roads home. This 2027 guide covers each line item, Virginia's recordation taxes, and how seller credits cut your cash to close.
Key takeaways at a glance
- Plan on 2% to 5% of the price ($6,500 to $16,250 on a $325,000 home).
- Virginia recordation taxes on a $325,000 purchase with 5% down come to about $2,113.
- Seller credits can cover a large share: limits run from 3% to 9% by loan type, and VA does not cap credits for closing costs.
- Lender fees and title charges are worth shopping. In Virginia you choose the settlement agent.
- Federal timing rules: a Loan Estimate within 3 business days of applying, a Closing Disclosure at least 3 business days before closing.
| Loan Type | Max Seller Concessions | Notes |
|---|---|---|
| VA | No cap on credits for closing costs, plus concessions up to 4% of reasonable value | Concessions include paying the funding fee, prepaid insurance or buyer debts |
| FHA | Up to 6% of sales price | Same at every down payment level; any excess lowers the price used for the loan |
| Conventional (<10% down) | 3% of purchase price | Fannie Mae limit when LTV is over 90% |
| Conventional (10–25% down) | 6% of purchase price | LTV 75.01% to 90% |
| Conventional (25%+ down) | 9% of purchase price | LTV 75% or less; investment property is 2% |
| USDA | Up to 6% of purchase price | The upfront guarantee fee can be financed |
Seller credits can pay only your real closing costs and prepaids, never the down payment. On a $325k home, 3% is $9,750 and 6% is $19,500, if your costs are that high. Limits as of October 29, 2026 (VA, HUD, Fannie Mae, 7 CFR 3555.102).
In this guide
What's in your closing costs
Dollar figures are general ranges, not quotes; your Loan Estimate shows the real numbers.
- Lender fees: origination, processing and underwriting (Section A of the Loan Estimate).
- Discount points: optional; each point is 1% of the loan and buys a lower rate.
- Appraisal and credit report: commonly $500 to $800 and $40 to $80.
- Title insurance: the lender's policy is required; the owner's policy is optional but protects your equity. Together, commonly $1,200 to $2,500.
- Settlement fee: commonly $500 to $1,200.
- Virginia recordation taxes and clerk fees: set by statute (next section).
- VA funding fee, FHA upfront mortgage insurance or USDA guarantee fee: usually financed.
- Prepaids and escrow deposit: first-year homeowners insurance (and flood insurance if required) plus a starting balance for taxes and insurance. Virginia Beach's rate is $0.97 per $100 of assessed value for FY 2026-27; see Hampton Roads property tax rates by city and how escrow works.
- Per diem interest: from closing day to month-end, about $61 a day on a $308,750 loan at 7.24% (Freddie Mac 30-year average, October 29, 2026).
Your deposit is not a closing cost; it is credited to you at settlement (see how earnest money works).
Virginia recordation and grantor taxes
The circuit court clerk collects these when the deed and deed of trust are recorded. Your contract says who pays; customarily the buyer pays recordation taxes and the seller pays grantor taxes.
- State recordation tax on the deed: 25 cents per $100 of the price or the assessed value, whichever is greater (§ 58.1-801).
- State recordation tax on the deed of trust: 25 cents per $100 of the loan amount, for loans up to $10 million (§ 58.1-803).
- Local recordation tax: a city or county may add a tax equal to one-third of the state recordation tax (§ 58.1-3800).
- Grantor tax (seller): 50 cents per $500 of value (§ 58.1-802).
- Hampton Roads regional fee (seller): 6 cents per $100 on deeds for property in the Hampton Roads Transportation District (§ 58.1-802.5).
Worked example: $325,000 price, 5% down ($308,750 loan)
- Deed: $812.50 state + $270.83 local
- Deed of trust: $772.00 state + $257.33 local
- Buyer total: about $2,113, plus the clerk's flat recording fees
- Seller: $325 grantor tax + $195 regional fee
Assumes the locality charges the full local share and the price is at least the assessed value. Your settlement agent confirms the exact amounts.
How seller concessions reduce your cash
Sellers can pay part of your costs through a credit written into the offer, within the limits in the table above. Two details matter most:
- VA: credits for the loan's closing costs are not capped. Concessions such as paying the funding fee, prepaying your insurance or paying off a debt are capped at 4% of the reasonable value on the VA Notice of Value. See VA loan closing costs in Hampton Roads.
- FHA, conventional and USDA: the percentage is a ceiling, and a credit cannot exceed your actual closing costs and prepaids. Get a lender estimate before you write the number into an offer.
How to compare Loan Estimates
Federal rules (12 CFR 1026.19) require a Loan Estimate within 3 business days of your application. Get one from at least two lenders for the same loan type on the same day, then compare:
- Section A (Origination Charges): the lender's own fees
- Sections B and C: services you cannot and can shop for, such as appraisal and title
- Section E (Taxes and Other Government Fees): Virginia recordation taxes
- Sections F and G: prepaids and the initial escrow payment
- Cash to Close, plus the APR and Total Interest Percentage on page 3
Lender fees generally cannot rise after the estimate; recording fees and services picked from the lender's list can rise no more than 10% in total; prepaids and escrow can change. The Closing Disclosure must reach you at least 3 business days before closing, and only three changes restart that clock: an APR that becomes inaccurate, a new loan product, or an added prepayment penalty. Our step-by-step guide to how closing works in Hampton Roads covers the rest of the timeline.
How to reduce your closing costs
- Negotiate seller concessions: usually the biggest lever.
- Shop lenders: compare total origination charges, not just the rate. Our Hampton Roads lender directory is a starting point.
- Shop settlement and title: you pick the settlement agent (Va. Code § 55.1-1006), and a seller cannot require a particular title insurer (12 U.S.C. § 2608).
- Run the math on points: divide their cost by the monthly savings and buy them only if you will keep the loan past that break-even month.
- Consider lender credits: a slightly higher rate in exchange for the lender paying some costs.
- Close later in the month: less per diem interest is due at closing.
Frequently Asked Questions
How much are closing costs in Virginia?
Plan on 2% to 5% of the purchase price, or $6,500 to $16,250 on a $325,000 home.
Can sellers pay closing costs in Virginia?
Yes, if the contract says so and the credit fits your loan's limit: 3% to 9% for conventional, 6% for FHA and USDA, and no cap on VA closing-cost credits plus up to 4% in concessions.
What is the Virginia grantee tax?
The common name for the recordation tax the buyer usually pays: 25 cents per $100 on the deed and on the deed of trust, plus a local tax of up to one-third of that.
Are closing costs tax-deductible?
Mostly no. If you itemize, mortgage interest and qualifying purchase points are generally deductible, and property taxes count toward the state and local tax cap ($40,400 for 2026, lower at high incomes). Appraisal and notary fees are not. Ask a tax professional.
Can I roll closing costs into the loan?
Only certain fees: the VA funding fee (the only one on a VA purchase), FHA upfront mortgage insurance and the USDA guarantee fee.
Who chooses the title company in Virginia?
The buyer chooses the settlement agent (Va. Code § 55.1-1006).
Have a question about your home purchase?
Talk to a Hampton Roads buyer's agent or loan officer who can walk through your specific situation - no pressure, no obligation.
Sources & further reading
- CFPB: Loan Estimate
- CFPB: Closing Disclosure
- CFPB: 12 CFR 1026.19 (timing and tolerances)
- Virginia Code: recordation taxes
- Va. Code § 58.1-3800: local recordation tax
- Va. Code § 55.1-1006: settlement agent
- VA: Funding fee and closing costs
- HUD: FHA seller contributions
- Fannie Mae: interested party contributions
- 7 CFR 3555.102 (USDA)
- IRS Topic 504: points
- Freddie Mac PMMS
Information reflects rules and figures as of October 29, 2026. Always confirm current details with the relevant agency, lender, or licensed professional before relying on any specific figure or rule.
About the Author
Tom & Dariya Milan are a husband-and-wife team of licensed Virginia real estate agents serving Hampton Roads since 2005. Tom handles listing strategy, pricing and negotiation; Dariya handles buyers, contract-to-close and relocations. Their closings and reviews, pulled from the MLS, are on the About page. Brokered by LPT Realty. Call (757) 777-7577 or email tom@vahome.com.
About the Hampton Roads Real Estate Market
Hampton Roads is one of the most dynamic real estate markets on the East Coast, anchored by the largest naval complex in the world at Naval Station Norfolk and home to roughly 120,000 active-duty, reserve, and civilian Department of Defense personnel. The region spans seven cities — Virginia Beach, Norfolk, Chesapeake, Suffolk, Portsmouth, Hampton, and Newport News — plus the Peninsula communities of Williamsburg, Yorktown, and Poquoson, with each market carrying its own personality, school district, and price profile.
Buying or selling here means thinking about more than just a house. Tidewater geography means flood zones, hurricane preparation, and waterfront premiums matter. Military presence means BAH affordability, PCS season inventory crunches (May through August), and VA loan eligibility are top of mind for a meaningful share of every neighborhood. School quality varies block by block, especially across the seven independent city school divisions, and is often the deciding factor for relocating families.
Why Buyers and Sellers Choose VaHome
Tom & Dariya Milan, Realtors focus on the Hampton Roads region with deep expertise in military relocation, VA financing, and the trade-offs that local buyers actually face. From listing strategy that gets your home in front of the right relocating buyer to buyer representation that respects your BAH cap and PCS timeline, the team treats every transaction as a long-term relationship. The site is built to make decisions clearer: BAH-aware search, drive-time mapping to every major installation, neighborhood guides written by people who live here, and a calculator that shows real monthly cost — taxes, insurance, HOA, and PMI included — instead of a teaser headline number. Brokered by LPT Realty.
Plan Your Next Move
Whether you are buying your first home with a VA loan, moving up while your kids transition between school districts, or selling a Hampton Roads property to relocate to your next duty station, the resources on this site are organized around the questions you are actually asking. Browse listings filtered by base proximity, paygrade-aware BAH cap, and commute time. Read neighborhood guides for Virginia Beach, Norfolk, Chesapeake, Suffolk, Hampton, Newport News, Williamsburg, and the Peninsula communities. Use the mortgage calculator to compare conventional, FHA, VA, USDA, and jumbo loan scenarios side by side. When you are ready to talk, the contact form goes directly to a specialist who knows the area, the lenders, and the timing.