A Virginia DSCR loan is business-purpose financing on a 1-4 family rental, often secured by a deed of trust. Virginia charges a state recordation tax of 25 cents per $100 of the obligation secured under Va. Code 58.1-803.
Virginia investors get a predictable recordation tax and a trustee-sale foreclosure system that runs outside court. The state's prepayment cap is written for owner-occupied homes, so a rental loan's prepayment terms are a matter of contract.
A Virginia rental you plan to live in for part of the year is a different loan; see what living in one unit does to a DSCR loan.
How much is Virginia's recordation tax on a rental property loan?
Virginia's state recordation tax on deeds of trust and mortgages is 25 cents per $100 of the obligation secured under Va. Code 58.1-803(A)(1), with graduated rates above $10 million and lower rates for certain refinances.
| Loan amount | State recordation tax at $0.25 per $100 |
|---|---|
| $200,000 | $500 |
| $400,000 | $1,000 |
Exception: Ask the title company whether a local recordation tax applies on top of the state tax.
According to Va. Code 58.1-803, Virginia General Assembly, as of October 2026.
How are rental property loans foreclosed in Virginia?
Virginia law lets a deed of trust be foreclosed by a trustee's sale outside court; Va. Code 55.1-320 sets default deed-of-trust terms, including the trustee's power to sell at auction after default.
- Va. Code 55.1-320 sets default terms for a deed of trust, including the trustee's duties and power of sale.
- Va. Code 58.1-803 taxes deeds of trust and mortgages alike, reflecting that both instruments are used.
Exception: Whether a judicial foreclosure is used in a given case depends on the instrument; ask the lender which path its documents use.
According to Va. Code 55.1-320, Virginia General Assembly, as of October 2026.
Does Virginia limit prepayment penalties on rental property loans?
Va. Code 6.2-422 caps prepayment penalties at 2% only for loans on a home occupied or to be occupied by a borrower, so it does not reach a loan on a rental the borrower doesn't occupy.
- The 2% cap applies to a home occupied, or to be occupied, in whole or in part by a borrower.
- Va. Code 6.2-423 separately covers certain subordinate mortgages and deeds of trust.
Exception: Prepayment terms on a business-purpose rental loan come from the contract and vary by lender.
According to Va. Code 6.2-422, Virginia General Assembly, as of October 2026.
What Virginia landlord rules affect a rental property's numbers?
Virginia caps a security deposit at two months' periodic rent and requires an itemized return within 45 days after the tenancy ends, under Va. Code 55.1-1226.
- Va. Code 55.1-1226(A) sets both the two-month cap and the 45-day itemized return.
Exception: The Virginia Residential Landlord and Tenant Act has its own scope rules. Check that it covers your rental before relying on these figures.
According to Va. Code 55.1-1226, Virginia General Assembly, as of October 2026.
Local guides for Virginia: Fairfax County.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.