Mortgage closing costs in Virginia typically run a few percent of the loan amount, and several of them are negotiable, financeable, or payable by someone other than you. The number on your Closing Disclosure depends less on the state than on the loan program, the title charges, and what you negotiate with the seller. This article, from Duane Buziak at Goochland Mortgage by Duane Buziak, walks through each fee, the Virginia-specific taxes, a worked dollar example, and the ways USDA, VA, and FHA buyers can reduce what they bring to the table.
Closing Costs in Goochland County’s Rural and Suburban Markets
Goochland is two markets in one county. Out past Goochland Courthouse and toward Manakin-Sabot, many parcels sit in rural areas that may qualify for USDA financing. On the Short Pump side of the Henrico border, the neighborhoods are suburban and almost certainly fall outside USDA boundaries, so conventional, FHA, and VA loans do the work there. Eligibility is parcel-specific, so check any address on the USDA property eligibility map before assuming anything about a street or a neighborhood. Our guide to rural home loans in Virginia covers the options for buyers in the county’s outlying areas.
Program choice matters for closing costs because each program handles its own fees differently. A USDA buyer finances a guarantee fee and may put nothing down. A conventional buyer at 5% down needs the down payment and the closing costs in cash at the same time. Same house, very different cash needs at the table.
Local taxes also shape what you owe at closing. Prepaid property taxes and escrow deposits are calculated from the county’s real estate tax rate, which Goochland sets per $100 of assessed value. The current rate and assessment details are published on the Goochland County government site. Rates are reset by the Board of Supervisors, so confirm the figure as of your closing date rather than relying on an old number.
I’m writing this as Duane Buziak, NMLS #1110647. Goochland Mortgage by Duane Buziak is a broker, not a direct bank, which means I compare pricing and fee structures across many wholesale partners instead of offering one in-house rate sheet. That shapes how I look at closing costs: the fees are only half the story, and the rate and structure behind them are the other half.
Line by Line: The Fees Behind Virginia Closing Costs
The CFPB organizes the Loan Estimate and the Closing Disclosure into sections, and the charges fall into three buckets.
- Loan-related charges: origination or processing and underwriting fees, the appraisal, credit report, and flood certification.
- Third-party services: title search and title insurance, the settlement or closing fee, and a survey if one is required.
- Government charges: recording fees and Virginia’s recordation taxes.
Virginia recordation and grantor’s tax
Virginia charges a state recordation tax on the deed of trust that secures your loan, and localities add their own recordation tax on top. As of this writing, the state rate under Virginia Code § 58.1-801 is $0.25 per $100 of the loan amount, and the local tax is generally one-third of the state amount. The grantor’s tax is a separate charge on the deed transferring the property, and it is customarily paid by the seller. Rates and regional add-ons change, so confirm them against the statute or the Clerk of the Circuit Court before you rely on the figures.
Prepaids and escrow are not fees
Prepaid interest, the first year of homeowners insurance, and escrow deposits for taxes and insurance appear on the same disclosure, but they are not charges for a service. They are your own housing expenses, paid in advance. They still count as cash due at closing, which is why two buyers with identical fees can owe very different totals. A buyer closing late in the month pays fewer days of prepaid interest, and one closing just before a tax bill comes due needs a larger escrow deposit.
Title insurance in Virginia
Virginia real estate closings are conducted through attorneys and title agents. Title insurance is two separate policies: the loan policy protects the lender’s interest and is required, and the owner’s policy protects you and is optional but strongly worth considering. Each carries its own premium. When both are issued at the same time, a reduced “simultaneous issue” rate often applies to the second policy, but premium schedules vary by underwriter. Ask your title agent for a written quote instead of working from a rule of thumb.
How USDA, VA, and FHA Change What You Bring to Closing
Government-backed programs replace some conventional costs with their own fees, usually financed into the loan.
USDA. The program charges an upfront guarantee fee and an annual fee. As of this writing, the USDA Rural Development guaranteed loan program lists 1.00% upfront, financed into the loan, and 0.35% annually, built into the monthly payment. Confirm the current percentages before you budget. If the home appraises above the contract price, the loan can sometimes be sized to the appraised value, which opens up no-out-of-pocket closing options for some buyers. See the USDA Loans Goochland County page for how eligibility works locally, and our walkthrough on how to qualify for a USDA mortgage in Virginia for the step-by-step.
VA. Eligible veterans pay a funding fee that depends on service history, down payment, and whether it’s a first or later use. Veterans receiving VA disability compensation, and certain others, are exempt. The current tiers are on the VA funding fee and closing costs page. VA rules also restrict which fees a veteran may be charged, so some items common on other loans must be paid by the seller or absorbed elsewhere. Details are on the VA Loans page.
FHA. FHA loans carry an upfront mortgage insurance premium, which as of this writing is 1.75% of the base loan and is usually financed, plus an annual premium that varies with loan size, term, and down payment. Check HUD’s FHA insurance pages for current figures. The FHA Loans page covers who tends to fit this program, and our overview of which lenders offer FHA loans in Virginia explains how to find the right fit.
Down payment assistance. Assistance can stack on top of these programs. For example, programs like Dynamo DPA (2.5% or 3.5% options, with a 580 minimum FICO) and Turbo DPA (3.5% or 5% options, 600 FICO) have been offered, but terms, scores, and availability change, so treat those figures as of this writing and confirm them. The Down Payment Assistance Goochland VA page has the current details, and these low down payment mortgage strategies for Virginia buyers show how the pieces fit together.
Worked Example: Closing Costs on a $375,000 Goochland Purchase
This is an illustration, not a quote. Every figure is an estimate for a hypothetical $375,000 purchase, and real costs vary by property, title agent, and loan terms. Assume the USDA scenario uses the 1.00% upfront guarantee fee, and that the conventional scenario puts 5% down.
USDA, 100% financing
- Base loan: $375,000
- Upfront guarantee fee (1.00%, financed): $3,750
- Total loan amount: $378,750
- Loan-related fees (estimate): $2,400
- Appraisal and credit report (estimate): $750
- Title, settlement, and survey (estimate): $2,800
- Recordation tax on deed of trust, state $946.88 plus local $315.63: $1,263
- Closing costs subtotal: $7,213
- Prepaids and escrow deposits (estimate): $4,200
- Cash needed before any credits: $11,413
Conventional, 5% down
- Down payment: $18,750
- Loan amount: $356,250
- Same fee estimates, with recordation of $1,188 on the smaller loan: $7,138 in closing costs
- Prepaids and escrow deposits (estimate): $4,200
- Cash needed before any credits: $30,088
As a rough benchmark, closing costs of 2% to 4% of a $356,250 loan would be $7,125 to $14,250, so the line items above sit at the low end. The gap between the two scenarios is about $18,675, and nearly all of it is the down payment.
Now the seller concession step. Suppose the seller agrees to a $8,000 credit. Caps depend on program and loan-to-value, and USDA has allowed up to 6% of the price while other programs set their own limits, so verify against current USDA, HUD, VA, and Fannie Mae guidelines. A $8,000 credit on the USDA example brings cash needed to $3,413. Credits can only cover eligible closing costs and prepaids, not the down payment. For more on how a shortfall at appraisal can reshape these numbers, see our guide to low appraisal mortgage options in Goochland County.
Ways to Lower Closing Costs Without Cutting Corners
- Negotiate seller credits. In a market where sellers are flexible, a credit toward closing costs can matter more than a small price cut, because it lowers cash to close directly.
- Take credits in exchange for a slightly higher rate. A higher rate can fund a credit that pays some of your costs. The break-even logic: divide the credit by the extra monthly payment. If a $3,000 credit raises your payment by $60 a month, you break even at 50 months, so it only makes sense if you expect to keep the loan longer than that is a bad deal and shorter is a good one. I can’t promise any particular rate, so ask for both options priced side by side. Our piece on when mortgage points pay off for Virginia buyers applies the same break-even thinking.
- Shop what you’re allowed to shop. Title and settlement services can often be compared. Ask the Loan Estimate which services you can choose.
Compare Loan Estimates line by line, using the CFPB’s Loan Estimate guide. A provider must deliver the Loan Estimate within three business days of receiving your application, so you can collect several quickly. Compare the same loan type, term, and points on each.
You can start the numbers without a credit hit. A soft credit pull mortgage start through my NoTouch Credit Pull lets you see a realistic picture early, since it is a mortgage pre approval without hard pull. Begin on the Soft Pull Pre-Approval Goochland County page.
Be skeptical of “no closing costs” offers. The costs don’t vanish: they move into a higher rate, a larger loan balance, or a seller’s price. That can be a sound choice, but it should be a choice you can see. What I offer are no-out-of-pocket closing options, where the costs are covered through seller credits, lender-paid structures, or financing, and I show you the trade-off in dollars. If you want the mechanics of what can roll into the loan, read can closing costs be financed.
Comparing Closing Cost Approaches: Goochland Mortgage vs. Other Richmond-Area Options
The comparison below is based on how each type of provider is structured. Offerings change, so treat it as of this writing and confirm directly with each company.
- Goochland Mortgage by Duane Buziak. Program offered: VA, USDA, FHA, conventional, DSCR, and down payment assistance. Rural/USDA specialty: yes, a core focus in Goochland’s rural zones. Loan shelf: 500+ wholesale partners. Broker vs. direct: broker.
- Rocket. Program offered: a broad national menu, confirm current programs. Rural/USDA specialty: not a local specialty, so confirm USDA availability for your parcel. Loan shelf: its own products. Broker vs. direct: direct.
- Movement. Program offered: a national menu, confirm current programs. Rural/USDA specialty: not a Goochland-specific focus. Loan shelf: its own products. Broker vs. direct: direct.
- Other Richmond-area providers. Program offered: varies, often conventional and FHA with VA. Rural/USDA specialty: varies, and many focus on the suburban core. Loan shelf: typically a single company’s offerings. Broker vs. direct: mostly direct.
A broker can request fee and rate structures from several wholesale partners and choose the one that fits your costs, while a direct provider can only price what is on its own shelf. That isn’t automatically better or worse: a direct provider may be fast and convenient. But for USDA and VA buyers, where fee rules differ by program, a wider shelf and local parcel knowledge tend to matter more. Our breakdown of mortgage lender vs. broker in Goochland County goes deeper on the trade-offs. Whoever you choose, compare Loan Estimates.
Mortgage Closing Costs in Virginia: Eight Common Questions
How much are mortgage closing costs in Virginia?
Closing costs commonly run about 2% to 5% of the loan amount, though the exact figure depends on the loan type, title charges, and location. Prepaids and escrow deposits can add more. Your Loan Estimate gives the actual numbers for your loan, and they should be compared across providers.
Who pays closing costs in Virginia?
The buyer pays most closing costs, including loan fees, title insurance, and recordation tax on the deed of trust. The seller customarily pays the grantor’s tax and any agreed concessions. Who pays what is negotiable and set in the sales contract.
Can closing costs be financed?
Some can. USDA, VA, and FHA let you finance upfront fees such as the guarantee fee, funding fee, or upfront MIP. Other costs usually need to be paid in cash or covered by seller credits. USDA may allow financing up to the appraised value in some cases.
What is Virginia recordation tax?
Recordation tax is a state charge, plus a local add-on, for recording your deed of trust. As of this writing, the state rate is $0.25 per $100 of the loan amount, and the local tax is typically one-third of that. Confirm current rates with Virginia Code § 58.1-801 or your clerk.
Can the seller pay my closing costs?
Yes, within limits. Seller concessions are capped by program and loan-to-value, and they can only cover eligible costs, not your down payment. Check current USDA, HUD, VA, and Fannie Mae guidelines for the cap that applies to your loan.
How soon will I receive the Closing Disclosure?
Federal rules require the Closing Disclosure to be delivered at least three business days before closing. That window lets you compare it against your Loan Estimate and ask questions. Some changes can trigger a new waiting period, so review it right away.
What is a funding fee?
The funding fee is a VA loan charge that helps sustain the program. The percentage depends on service history, down payment, and whether you’ve used the benefit before. It can be financed into the loan, and some veterans, including many receiving disability compensation, are exempt.
Are closing costs tax deductible?
Some items, such as mortgage points and certain prepaid interest or property taxes, may be deductible, while most other closing costs are not. Rules depend on your situation and change over time, so talk with a qualified tax professional before filing.
Know the Number Before You Sign: Your Next Step on Closing Costs
Closing costs are knowable and partly controllable. Pick the program that fits the property, collect Loan Estimates, and compare them line by line, and you’ll see where the real differences are: fees, credits, and the rate behind them. A no hard inquiry mortgage pre approval gets you those numbers early, without a credit hit.
Ready to explore your home loan options in Goochland County? Whether you’re buying your first home, refinancing a rural property, or exploring USDA, VA, or down payment assistance programs, I shop 500+ wholesale lending partners to find the right fit, with no hard inquiry to start. Call or text me at (804) 212-8663, or visit GoochlandMortgage.com to get started with a soft pull pre-approval today.
Disclaimer: This article is for general information only and is not a loan offer, commitment to lend, or tax or legal advice. All figures and examples are illustrative estimates. Rates, fees, program terms, and eligibility change and are subject to underwriting, appraisal, and program guidelines. Nothing here guarantees a rate or loan approval. Confirm current requirements with the sources linked above and consult a qualified tax or legal professional.
About the author: Duane Buziak | NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205 | Licensed in VA, FL, TN, GA. Duane is a Scotsman Guide Top Originator and was named VA Broker of the Year for 2024 and 2025, with a solo production of $95.6M. Learn more on the About page.
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