Virginia Hard Money and DSCR Loans: Closing Taxes, Inspections and Tenant Rules (2026)
Recordation tax, inspection districts and Virginia's new tenant rules.
- DSCR, fix and flip and portfolio loans
- No income documentation for DSCR; most borrowers have 660+ credit, lower scores reviewed case by case
- $75,000 to $5 million
By Beltway Lending. Updated November 2026.
Most states tax the deed when a property sells. Virginia taxes the loan as well, because its recordation tax reaches the deed of trust and not just the deed. Several Virginia cities can also order a rental inspection after you buy, before the first tenant moves in. Put both in your numbers before you sign a contract.
Beltway Lending works out of Kingsville, Maryland, and Virginia ranks among the states where we close the most loans.
How Virginia investors finance with us
On a Virginia flip, closing taxes hit twice: recordation tax when you buy and borrow, grantor tax when you sell.
- Fix and flip: we finance up to 90% of the purchase and all of the renovation budget, subject to underwriting, so the down payment can be as small as 10%. Closing costs and any required reserves come on top of that. Rehab funds go out in draws as the work gets done.
- Refinance into a rental: once the house is finished, you can sell it or move it into a 30-year fixed DSCR loan with us, with no balloon (a 40-year term is also available). It's sized on the rent against principal, interest, taxes and insurance, not your tax returns.
- Several properties: a portfolio loan puts two or more rentals, in Virginia or across state lines, on one loan and one payment.
Loan sizes run from $75,000 to $5 million, for investment property only. Every term is on our Loan Facts page.
Choosing a lender for a Virginia deal
Ask any lender you're considering:
- Can you refinance my flip into a 30-year rental loan, or will I need a second lender?
- Is the purchase price, the rehab budget or the after-repair value capping my loan?
- Will your closing estimate show the recordation tax on the deed of trust as its own line?
Checklist: How to Choose a DSCR Lender.
What's different about investing in Virginia
- The loan is taxed, not just the deed: State recordation tax is 25 cents per $100 on the deed and the same rate on the deed of trust, with lower rates on very large loans and some refinances. A city or county can add its own tax equal to one-third of the state tax. The seller owes a grantor tax of 50 cents per $500 unless the contract shifts it, so count it in a flip's resale math. (Va. Code Title 58.1, Chapter 8)
- Inspection districts: Virginia lets a city require rental inspections only inside rental inspection districts it designates, or for individual properties with violations. Newport News, Virginia Beach, Roanoke and Lynchburg have districts, and a sale can trigger a fresh inspection even when the last owner passed one. Check the city's map before setting a move-in date. (Va. Code 36-105.1:1)
- Short-term rentals are local: In Richmond's residential zoning districts, a short-term rental has to sit on the lot of the operator's primary residence, and the city lists a $600 biennial permit fee. Confirm zoning first. (City of Richmond)
- Unpaid rent notices: Since July 1, 2026, a written notice for unpaid rent gives the tenant 14 days to pay, up from 5. Starting July 1, 2027, landlords who own more than four rental units must offer a payment plan to tenants who owe no more than one month's rent. Update your notice forms and hold reserves for slower collections. (Va. Code 55.1-1245)
- Move-in report: Within five days after a tenant moves in, the landlord must give a written report of existing damage, and the report must say whether there is visible evidence of mold in readily accessible areas inside the unit. (Va. Code 55.1-1214)
Virginia by the numbers
2024 Census estimates put Virginia's median gross rent at $1,646 a month and its median owner-occupied home value at $403,500, so a year of rent ($19,752) equals about 4.9% of value. Treat that as a rough statewide gross ratio before taxes, insurance, repairs and vacancy, not as the yield on any one property; our rent vs. home price page lines up every state.
Where we lend in Virginia
Statewide, including Richmond, Norfolk, Virginia Beach, Newport News, Hampton, Roanoke, Petersburg and Lynchburg. Nationwide, the only states we skip are Alaska, Hawaii, Nevada, North Dakota, South Dakota and Vermont. Next door, see our Maryland investor's guide.
Buying in Virginia from out of state?
You don't need to live in Virginia to borrow, because a DSCR loan is qualified on the property's rent rather than your job. What out-of-town buyers miss are the local steps: the inspection district map, the city's short-term rental rules and the five-day move-in report. Our team gathers the loan documents, chases the appraisal and keeps you posted until closing.
Virginia questions
Is my loan taxed when I close in Virginia?
Yes. State recordation tax on a deed of trust is 25 cents per $100 of the debt it secures, the same rate as on the deed, and a city or county can add a local tax equal to one-third of the state tax.
How long does a Virginia tenant have to pay after a late-rent notice?
14 days after written notice is served, under the version of the law in effect since July 1, 2026.
Can I run a short-term rental in a Richmond residential zone if I don't live there?
Generally no. In residential zoning districts, Richmond requires the short-term rental to be on the lot of the operator's primary residence.
Have a Virginia deal? Let's talk it through.
Get a quote online or call our team.
