Reverse Mortgages in Virginia

In Virginia, a homeowner 62 or older can convert part of their home equity to cash through a federally insured HECM reverse mortgage. Here is how the math works, what Virginia layers on top of the federal rules — including a recordation tax that, unlike most states, attaches to the mortgage itself — and where to find a counselor.

Virginia applies the federal HECM program without enacting a separate state reverse-mortgage statute. What changes here is the licensing agency for the originator, a recordation tax on the deed of trust, and the concentration of counselors in the Northern Virginia, Richmond, and Hampton Roads metros. About 16.3% of Virginia residents are 65 or older (U.S. Census Bureau, American Community Survey 5-year estimates 2018–2022), with a wide span between the high-value Northern Virginia suburbs and the lower-value rural southwest and Southside counties.

The 2026 federal HECM lending limit of $1,249,125 applies in Virginia (HUD Mortgagee Letter 2025-22). For the structural basics of the product, see what a reverse mortgage is and how it works.

What reverse mortgage rules are specific to Virginia?

No state-specific counseling overlay. Virginia applies the federal HUD-approved counseling requirement (HUD Handbook 4000.1, Section II.B) and adds no separate state session. Phone counseling is permitted; the certificate is valid for 180 days from the session date.

Lender and originator oversight. Mortgage loan originators and lenders operating in Virginia are licensed and supervised by the Virginia Bureau of Financial Institutions, a division of the State Corporation Commission. The Bureau administers Virginia's mortgage lender and broker licensing law (Va. Code Title 6.2, Chapter 16). Originator licenses are verifiable through NMLS Consumer Access.

Recordation tax attaches to the deed of trust. Unlike the many states whose transfer taxes fall only on conveyances, Virginia imposes a recordation tax on the deed of trust securing the loan (Va. Code §58.1-803), calculated on the amount secured, with a state component and a local (city or county) component. Because a HECM is secured by a recorded deed of trust, this tax does appear as a closing line item, though Virginia caps and tiers the rate so the burden is moderate rather than steep. This is a notable difference from no-transfer-tax states, and it is worth confirming the figure in the loan estimate.

No homestead obstacle to the HECM lien. Virginia's homestead exemption (Va. Code §34-4) shields a capped dollar amount of equity from general creditors but does not block a HECM lien, because the borrower consents to the deed of trust at closing.

Surviving non-borrowing spouse. Virginia applies the federal HUD ML 2015-15 deferral framework through the loan note. There is no separate state statute layered above the federal rule.

How much can you borrow with a reverse mortgage in Virginia?

The state median owner-occupied home value is about $360,700 (U.S. Census Bureau, ACS 5-year, table B25077), well below the $1,249,125 federal HECM cap (HUD Mortgagee Letter 2025-22). For a typical 70-year-old Virginia borrower with a paid-off home appraised near that median, the HUD principal-limit factor across a 6.0–7.5% expected-rate planning range returns roughly 35.0–41.5% of value before closing costs — about $126,000–$150,000 (an estimate, not a quote). Where an appraisal exceeds the cap, the cap binds and the jumbo question becomes worth asking.

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For how Virginia ranks against the other 50 jurisdictions on standard-HECM fit, see the Virginia suitability score — a computed 0–100 comparison built from senior population share, median home value against the cap, recording-cost burden, and counselor access. Virginia's strong counselor coverage and above-median home values lift its score; its recordation tax on the deed of trust adds a recording-cost burden that weighs modestly against it.

Do you need counseling for a reverse mortgage in Virginia?

Every Virginia HECM borrower completes a session with a counselor on HUD's HECM Roster before the lender may process the application (HUD Handbook 4000.1), and FHA's list of HECM counseling agencies shows six based in Virginia as of October 7, 2026. Three are in Norfolk and two in Richmond, and one is in Woodbridge; each sets its own fee, and the HUD HECM Counselor Roster or 1-800-569-4287 also finds agencies that counsel by phone.

Will my heirs be on the hook?

A HECM is non-recourse: your heirs and your estate will never owe more than the home is worth at the time of sale, even if the loan balance has grown past the home's value (12 USC §1715z-20). For the heir-side timeline and the four disposition options, see reverse mortgage due and payable.

What does the borrower still have to pay?

The FHA-insured HECM is a loan, not a government benefit. It removes the monthly principal-and-interest payment but does not remove the borrower's other obligations. Throughout the life of a Virginia HECM the borrower must:

• Keep property taxes current. Virginia property taxes are assessed and collected at the city or county level, and non-payment is a default event under the HECM note that can trigger a property-charge foreclosure.
• Maintain homeowners insurance. Standard hazard coverage, plus flood insurance where applicable for properties in FEMA Special Flood Hazard Areas in the Hampton Roads tidewater and along the coast, where hurricane and tidal-flood exposure is significant.
• Occupy the home as a primary residence. Moving out for more than 12 consecutive months, including a permanent move into assisted living, triggers the loan's due-and-payable clause.
• Keep the home in reasonable repair. Significant deferred maintenance can constitute a property-charge default under the HECM contract.

These obligations are federal and apply identically in every state. Virginia's older coastal and rural housing stock can make the required-repair test relevant at origination, when an FHA appraisal flags needed repairs.

What about jumbo in Virginia?

For a Virginia home appraised above the $1,249,125 federal HECM cap, proprietary jumbo programs (Finance of America's HomeSafe, Longbridge Platinum, and Mutual of Omaha's SecureEquity) lend up to $4 million and are not FHA-insured. Mutual of Omaha's SecureEquity rate sheet lists Virginia among its approved states (Mutual of Omaha, SecureEquity brokered rate sheet effective September 9, 2026). Each lender sets its own state availability and minimum age, as young as 55 in some states (each lender's product page). See the HECM vs. jumbo comparison.

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