Reverse Mortgages in Virginia

Last reviewed 2026-06-01

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?

Virginia home values sit above the national median, driven by the high-cost Northern Virginia suburbs, but the $1,249,125 federal HECM cap is still non-binding for the bulk of the state. The state median owner-occupied home value is about $360,700 (U.S. Census Bureau, ACS 5-year, table B25077). For a typical 70-year-old Virginia borrower with a paid-off home appraised near that median, the principal-limit factor at current HECM rates returns roughly 47–54% of value before closing costs — a planning range in the high $160,000s to mid $190,000s (an estimate, not a quote). In the highest-value Northern Virginia submarkets, where appraisals can approach or exceed the cap, the cap begins to bind 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 HUD-approved counseling session before the lender may accept the application. Sessions run 60–90 minutes and cost roughly $125–$200, with fee waivers available for borrowers whose household income falls below the threshold the agency publishes. Virginia has comparatively strong counselor coverage; in-person sessions are available across the Northern Virginia, Richmond, and Hampton Roads metros, and phone sessions serve the rural southwest.

Find a Virginia-authorized counselor on the HUD HECM Counselor Roster or call 1-800-569-4287. The metros generally schedule within 1–2 weeks; the rural Appalachian counties often rely on phone sessions.

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?

Virginia is partly a jumbo-relevant state, concentrated in Northern Virginia. In the high-cost Fairfax, Loudoun, and Arlington submarkets, home values can approach or exceed the $1,249,125 federal HECM cap, at which point the cap binds and jumbo / proprietary programs become relevant. Those programs (HomeSafe, Platinum Preserve, SecureEquity+) admit at age 55 and extend the cap up to $4M loan value, trading FHA statutory non-recourse and MIP for contractual terms and a higher lender margin. For the rest of the state the standard HECM is the path. See the HECM vs. jumbo comparison.

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