Virginia HELOC Rates and Rules 2026: Recordation Tax and Fees

HELOC rates in Virginia right now

Most HELOCs have a variable rate based on the prime rate plus a margin set by the lender. Your margin depends mostly on your credit and how much of your home's value you borrow.

In 2025, the median HELOC in Virginia opened at 7.63%, and half opened between 6.75% and 8.50%, across 26,912 lines reported under federal HMDA data. The national median was 7.50%. Leaving out lines with a 3 to 12 month introductory rate, the Virginia median was 7.75%. Home equity loans in Virginia, which usually have a fixed rate, closed at a median of 8.75%. HELOC rates in every state.

Prime rate, unchanged since September 17, 2026 (Federal Reserve): 7.00%
Median Virginia HELOC rate at opening, 2025 (HMDA): 7.63%
Average 30-year fixed mortgage rate, week of October 29, 2026 (Freddie Mac): 7.24%

The Federal Reserve raised rates on September 16, 2026, which moved prime to 7.00%. Its October 27 and 28 meeting is more recent than the prime rate data shown here, which runs through October 27, 2026. Its next meeting is December 8 and 9. With 30-year mortgage rates above 7%, a HELOC lets you borrow against your equity without refinancing a lower rate you already have.

How much can you borrow in Virginia?

Virginia law doesn't set a home equity borrowing cap. Each lender sets its own limit on all the loans on your home combined, your current mortgage plus the new line.

Virginia homes are worth more than the national median: $403,500 against $360,600 for the U.S. But only 34.2% of Virginia owners have no mortgage, so what you owe matters as much as what the home is worth.

Home value ×80% −what you owe now =a likely maximum line

Example

Home value (the Virginia median for owner-occupied homes): $403,500
80% of value (a common lender limit, not a Virginia law): $322,800
Current mortgage balance: $200,000
Maximum line of credit: $122,800

Example only. Lenders set their own limits and the final amount after an appraisal, and many approve less than the maximum based on credit and income. A $122,800 line would carry $307 of state recordation tax, plus up to about $102 more if your city or county charges its share.

Run your own numbers in our home equity calculator

Virginia home prices nearly doubled from 2014 to 2025

On the FHFA House Price Index, Virginia home prices rose 94.7% from 2014 to 2025 and went up every single year, with the biggest jumps in 2021 (+14.0%) and 2022 (+11.7%). Prices kept climbing after that: up 4.6% in 2025 and 3.10% in the year to mid-2026, 24th of the 50 states and DC.

Source: FHFA House Price Index, Virginia, purchase-only, through 2026 Q2.

Chart data as a table

Virginia House Price Index, annual average (1991 = 100)
Year	Index (1991 = 100)
2014	217.73
2015	222.62
2016	230.53
2017	239.52
2018	250.53
2019	261.92
2020	281.38
2021	320.73
2022	358.22
2023	380.48
2024	405.01
2025	423.83

The Virginia rules that affect a HELOC, in plain English

Virginia has no HELOC borrowing cap or waiting period. The rule you will notice most is the recordation tax on a new line. These come from the Code of Virginia, summarized here in plain words.

The recordation tax

Taxed on your full line.: Virginia charges a state recordation tax of 25 cents per $100 when your HELOC deed of trust is recorded. It is based on the most you could owe on the line, not on what you draw at closing.
Your city or county may add a third.: Localities can add their own recordation tax equal to one-third of the state tax. On a $100,000 line, that is $250 to the state plus about $83 locally, about $333 in all.
Raising your limit later.: If you increase an existing line, the tax is due only on the amount of the increase.

Your credit line deed of trust

Clearly labeled.: The front page must say 'THIS IS A CREDIT LINE DEED OF TRUST' and state the maximum amount it secures.
One recording covers every draw.: Draws you take after closing are secured by the same recorded deed of trust.
Refinancing your first mortgage.: If you refinance your first mortgage in a way that meets Virginia law, your HELOC keeps the same second place it had before.

Fees and licensing

Fee cap for non-bank lenders.: If your HELOC lender isn't a bank, savings institution or credit union, Virginia caps its loan fee at 5% of the loan and bars other points or discount charges. Banks and credit unions are exempt from this rule.
Limits on prepayment penalties.: Those same non-bank lenders can't charge a penalty for a partial payoff, or for paying an open-end line to zero without asking to release the lien. Any penalty on a full payoff is capped at 2%.
Use a licensed lender.: Mortgage lenders and brokers need a license from the State Corporation Commission. Banks, savings institutions and credit unions are exempt.

If you can't pay

Foreclosure without a court case.: A Virginia deed of trust can be foreclosed by a trustee's sale, without a lawsuit. The trustee must advertise the sale in a local newspaper first.
60 days of notice for your home.: If you live in the home, notice of the sale must be mailed to you at least 60 days ahead. It has to list housing counseling and legal aid contacts and say plainly that it is not a notice to vacate.

Property tax basics

Assessed at full market value.: Virginia localities assess real estate at 100% of fair market value.
Local relief at 65 or with a disability.: Cities and counties may exempt or defer property tax for owners 65 and older, and for owners who are permanently and totally disabled if their ordinance allows. The rules and amounts are set locally.

Virginia homeowners by the numbers

Median value of an owner-occupied Virginia home: $403,500; U.S.: $360,600
Virginia homeowners with no mortgage at all: 34.2%; U.S.: 40.3%
Owner-occupied homes in Virginia: 2.3 million
Median yearly property tax paid in Virginia: $2,872; U.S.: $3,211

Source: U.S. Census Bureau, American Community Survey 2024 1-year estimates.

One request, multiple Virginia lenders

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LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

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Frequently asked questions

Do I pay a tax to open a HELOC in Virginia?

Yes. Virginia charges a recordation tax of 25 cents per $100 when the deed of trust is recorded, and your city or county may add up to one-third of that amount.

Is the Virginia recordation tax based on what I draw or my credit limit?

Your credit limit. For a credit line, the tax is based on the most that can be outstanding at any one time, no matter how much you owe when it is recorded.

If I raise my HELOC limit later, do I pay the tax again?

Only on the increase. When you add to an existing line, the tax is due on the amount above the previous maximum.

Will my HELOC stay in second place if I refinance my first mortgage?

Yes, if the refinance meets the requirements of Virginia law. The credit line deed of trust keeps the same position behind the new first mortgage that it had behind the old one.

Is foreclosure in Virginia done through the courts?

It doesn't have to be. A deed of trust can be foreclosed by a trustee's sale, without a lawsuit. If you live in the home, notice of the sale must be mailed to you at least 60 days ahead.

How much have Virginia home prices risen?

On the FHFA House Price Index, Virginia prices rose 3.10% in the year to mid-2026 and 37.3% over 5 years. From 2014 to 2025 they rose 94.7%.

Does checking my options with LenderMatch affect my credit?

No. LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

HELOCs in Virginia: how much you can borrow and the recordation tax to plan for

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