Virginia Closing Costs Guide 2026
A complete breakdown of closing costs in Virginia — grantor’s tax, deed of trust recordation tax, title insurance, settlement fees, and strategies to reduce your costs.
Virginia’s closing cost structure is unique among states. It imposes both a grantor’s tax (paid by sellers) and a deed of trust recordation tax (paid by buyers), making tax-related costs more significant here than in many other states.
Closing Costs Overview for Virginia
Virginia buyers typically pay between 2% and 4% of the purchase price in closing costs. Virginia has a unique closing cost structure because it imposes both a grantor’s tax (paid by sellers) and a deed of trust recordation tax (paid by buyers), making tax-related costs more significant here than in many other states.
Virginia-Specific Closing Costs
Grantor’s Tax
Virginia’s grantor’s tax is charged at $0.50 per $500 of the sales price, paid by the seller. In Northern Virginia jurisdictions, a regional congestion relief tax adds an additional $0.15 per $100 of sales price. While buyers don’t pay this directly, it affects seller net proceeds and negotiating dynamics.
Deed of Trust Recordation Tax
Buyers in Virginia pay a deed of trust recordation tax of $0.25 per $100 of the loan amount. On a $500,000 loan, this is $1,250. Some jurisdictions impose additional local recordation taxes.
Title Insurance and Settlement Fees
On a $500,000 purchase, combined title insurance premiums typically run $1,200–$2,000. Settlement company fees typically add $300–$700 for a standard transaction.
| Tax/Fee | Rate | Paid By |
|---|---|---|
| Grantor’s Tax | $0.50 per $500 of sales price | Seller |
| NoVA Congestion Relief Tax | +$0.15 per $100 of sales price | Seller (NoVA only) |
| Deed of Trust Recordation Tax | $0.25 per $100 of loan amount | Buyer |
| Item | Amount (on a $500,000 Purchase) |
|---|---|
| Title Insurance (combined) | $1,200-$2,000 |
| Settlement Company Fees | $300-$700 |
| Deed of Trust Recordation Tax | $1,250 |
Virginia Closing Cost Summary
| Cost Category | Estimated Range | Paid By |
|---|---|---|
| Loan Origination Fee | 0–1% of loan | Buyer |
| Underwriting/Processing | $400–$900 | Buyer |
| Appraisal | $550–$800 | Buyer |
| Title Insurance (both) | $1,200–$2,000 | Buyer |
| Settlement/Title Fees | $300–$700 | Buyer |
| Deed of Trust Recordation Tax | $0.25 per $100 of loan | Buyer |
| Grantor’s Tax | $0.50–$0.65 per $500 of price | Seller |
| Recording Fees | $100–$250 | Buyer |
| Prepaid Insurance | $1,200–$3,600 | Buyer |
| Prepaid Taxes (escrow) | $1,000–$4,000 | Buyer |
| Total Buyer Estimate | $8,000–$18,000+ |
Settlement Process in Virginia
Virginia law allows real estate closings to be handled by either a licensed attorney or a registered non-attorney settlement agent, commonly a title company, under the Real Estate Settlement Agent Registration Act. The settlement agent coordinates document signing, holds funds, and ensures all conditions are met before disbursing.
- Settlement period: Typically 30–45 days for financed transactions
- Signing: Documents are signed with the settlement attorney or title company; Virginia was the first state to authorize remote online notarization (RON) and it remains legal for closings today
- Funding and recording: After signing and funds are confirmed, the lender funds the loan, the deed is recorded, and proceeds are disbursed
How to Reduce Your Virginia Closing Costs
- Negotiate seller concessions: Ask the seller to cover some or all buyer closing costs — up to 3% (conventional), 6% (FHA), unlimited (VA)
- Use Virginia Housing assistance: The DPA Grant or Plus Second Mortgage can cover down payment and closing costs for eligible buyers
- Compare lenders: Loan origination fees vary; getting multiple Loan Estimates is the most effective way to reduce buyer-side costs This is where working with an experienced Brokered Mortgage Advisor can help you save time and money throughout your transaction, by shopping rates and costs with several different lenders before your loan package is submitted.
- Close near month-end: Minimizes prepaid daily interest charged at closing
