Virginia Mortgage Calculator
Model your budget in the Old Dominion. Navigate the massive "NOVA Premium," capitalize on favorable 0.80% property taxes, and explore Virginia Housing DPA grants.
A Tale of Three Markets
Virginia's real estate market is completely fragmented based on your distance from Washington D.C. While the statewide median home price is roughly $410,000, this number is an average of extreme highs and lows.
The market is broken into three main zones: First, the Coastal/Hampton Roads area is heavily driven by the military; it is a stable, affordable market dominated by zero-down VA loans. Second, the Richmond/Central area is growing rapidly as buyers seek historic homes at a fraction of Northern prices. Finally, there is the beast of the state: Northern Virginia (NOVA).
The "NOVA Premium"
Northern Virginia (Fairfax, Arlington, Loudoun, Prince William counties) acts as the economic engine for D.C.
Driven by massive federal contractor salaries and tech giants (like Amazon HQ2), housing inventory is fiercely competitive. A modest single-family home that costs $350k in Richmond will easily cost $700k to $1M+ in NOVA. You are paying a massive premium simply to shorten your commute on I-66 or I-495, which are among the most congested highways in America.
The Favorable Property Tax
The saving grace of the Virginia market is its property tax structure.
The statewide effective average is a very manageable 0.80%. Even in the highly expensive NOVA counties, the actual rate is relatively low compared to neighboring Maryland or New Jersey. This keeps the monthly escrow portion of your payment in check, allowing you to afford a higher principal loan balance.
State Assistance: Virginia Housing
To assist first-time buyers with upfront closing costs, Virginia Housing (VH) provides excellent, true-grant programs.
- DPA Grant: Provides eligible first-time homebuyers with a grant of 2% to 2.5% of the purchase price. Because this is a true grant, it never has to be repaid.
- Plus Second Mortgage: If the grant isn't enough, VH offers a second mortgage of 3% to 5% to cover the remaining down payment, allowing buyers to purchase with zero money out of pocket.
- Mortgage Credit Certificate (MCC): Provides a dollar-for-dollar federal tax credit, saving you up to $2,000 a year, making your monthly payments more affordable.
Calculating Your Virginia Budget
Let's calculate a realistic payment for a $410,000 home purchase outside of the NOVA bubble, utilizing a 10% down payment and a 6.5% interest rate:
- Mortgage Amount: $369,000
- Principal & Interest: ~$2,332/mo
- Property Taxes (0.80%): ~$273/mo
- Home Insurance: ~$100/mo
- Total Payment: ~$2,705/mo
If you are buying in Northern Virginia (NOVA), you must drastically increase the home price in the calculator, though the tax rate will remain similar.
Crucial Mid-Atlantic Inspections
- Historic Home Lateral Sewers: Virginia has massive inventory of homes built from 1900 to 1950 (especially in Richmond and Alexandria). Their cast-iron or terra cotta sewer lines connecting to the street are reaching the end of their lifespan. A $150 camera inspection can save you from a $15,000 excavation nightmare.
- Crawlspace Humidity: Summer humidity in VA is oppressive. If buying a home on a crawlspace rather than a slab, inspect the floor joists for wood rot and mold. Installing a vapor barrier and dehumidifier is often necessary.
- Termites: Subterranean termites are highly active in the mid-Atlantic. A WDI (Wood Destroying Insect) report is standard for closing, and ongoing termite treatment plans are highly recommended.
Frequently Asked Questions
Why is Northern Virginia (NOVA) so expensive?
Northern Virginia acts as a massive suburb for Washington D.C. Because of the heavy concentration of federal government jobs, military contractors, and massive tech headquarters (like Amazon HQ2), there is a massive influx of high-earning workers competing for limited housing, driving prices to astronomical levels.
Are property taxes high in Virginia?
Overall, Virginia's property taxes are moderate, averaging around 0.80% statewide. However, in the highly populated NOVA counties (Fairfax, Loudoun, Arlington), the massive assessed home values mean your actual tax bill in dollars will be very high.
What is the Virginia Housing (VH) DPA Grant?
Virginia Housing provides Down Payment Assistance (DPA) Grants to eligible first-time homebuyers. The grant provides 2% to 2.5% of the purchase price and absolutely never has to be repaid.
Is Virginia Beach a good market for VA Loans?
Yes. The Hampton Roads/Virginia Beach area has a massive concentration of Navy and Air Force bases. Because of this, it is one of the highest-volume markets for zero-down VA loans in the entire country.
What should I look out for in older Virginia homes?
Virginia has some of the oldest housing stock in the United States. In historic areas like Richmond or Alexandria, buyers must rigorously inspect for foundational settling, obsolete electrical systems (Knob and Tube), and collapsing terra cotta sewer lines.
Nearby Real Estate Markets
Comparing housing markets or considering a move across state lines? Check out the true cost of homeownership in neighboring states: