Virginia is a beautiful state. When you move here, you will have the best of both worlds as you are never more than a few hours drive from the mountains or the beach. Virginia is also know for its rich history. There is always something to see and do in the state.
Median Home Prices in Virginia
The median home price in Virginia as of the third quarter of 2010 is $337,582. This is much higher than the national median home price for the same time period. The national median home price is $177,900. Much depends on where you choose to buy your new home as prices vary greatly across the nation. Here are the median prices broken down by region.
- Northeast-$253,400
- Midwest-$145,600
- Southwest-$157,000
- Western-$224,800
The portion of the state where you choose to buy will also affect the median home price. Expect to pay more if you choose to live in the Arlington or Alexandria metro area. Here the median home price is currently $228,600. Settle in the Richmond metro area and the median home price drops to $220,600. It goes even lower, down to $215,000 if you relocate to the Virginia Beach, Norfolk, Newport News metro area.
Cities to Consider in Virginia
McLean is the fastest growing city in Virginia for 2010. This is due in large part to the availability of jobs in the area. Many who live in the city commute to Washington. Others prefer to work for corporations within the city limits such as Mars, Freddie Mac, Capital One and Gannett. Other cities that are growing at a rapid rate include:
- Virginia Beach
- Norfolk
- Arlington
- Alexandria
- Chesapeake
Arlington and Alexandria remain popular thanks in large part to the proximity to the nation’s Capitol. Virginia Beach, Chesapeake and Norfolk attract those looking for low housing costs. Access to the beach is another asset.
Types of Mortgages Offered in Virginia
In Virginia, deeds are used to record the transfer of real property between two parties. On this document you will find the name of the current owner, referred to as the grantor, and the name of the new owner, referred to as the grantee. The document will also contain a legal description of the real property as well as the signature of the grantor. All deeds must be documented as well as notarized. Once this has been done, the deed will need to be recorded in the county in which the property is located. How the title will be held must also be documented. When more than one person is buying a property, they can either be tenants in common or joint tenants who have a right of survivorship. Here are the various types of deeds allowed in Virginia:
Most real estate transactions in the state utilize a general warranty deed. This type of deed transfers interest from one party to another in real estate. The buyer the receives real property along with warranty covenants. The grantor’s signature must be acknowledged in this process.
Warranty Deeds
This is the most common deed found in Virginia as it is used in most real estate transactions. The reason this type is preferred is that it guarantees the grantee a valid title. This means it is both good and marketable. If any claims are made by a third party, the grantor must defend the grantee. Here are the provisions found with a general warranty deed: names and addresses of both grantee and grantor, amount of consideration, property location including city and county, legal property description, grantor and grantee signatures and acknowledgement by a notary.
Many Virginia warranty deed types are available to choose from. Here are just a few-individual grantor to individual grantee, two individual grantors to corporation grantee, corporation grantor to two individual grantees and living trust grantor to living trust grantee. Other property transfers include a limited warranty deed, a special warranty deed or a quitclaim. When a buyer holds a mortgage, a contract for deed, installment agreement or land contract is used until the property has been paid for in full.
Deeds Without Warranty
When one chooses to use a limited or special warranty or deed, the grantor does not guarantee that he will defend the grantee against any claims. He will only attest to no title defects during his ownership. This offers less protection that a general or full warranty.
Quitclaim Deed
This type of deed in Virginia is used for properties where there is no guarantee that the title is valid. The property may also have claims or liens against it. This type of deed is most frequently used when spouses are transferring property to each other or in non-sale transactions.
Deed of Trust
This document is in many ways like a mortgage. A trustee will hold a title until the loan is paid for in full. At that time the title will revert to the buyer. A trustee will only have to take action if the borrower does not pay as agreed. Then, and only then, can the property be sold at a foreclosure sale auction so the lender may be paid.
Grant Deed
With this type of deed, ownership of a property will be transferred to the grantee. When this occurs, the grantor is promising that the title is his to transfer and that he has not done so before. He also promises that there are no encumbrances on the title unless they are specifically stated on the deed.
Virginia is a Recourse Loan State
A recourse loan is one that allows a lender, when you default on a loan, to come after you. This creates less risk for the lender. What this means, in simple terms, is that after a lender takes the collateral back due to non-payment, if the lender sells it for a loss, you can be held responsible for the difference. They can request garnishment of wages, sue you in court and collect the difference. As Virginia is a recourse state, you must be aware that you will be responsible when defaulting on a loan if the lender takes a loss.
The Virginia Foreclosure Process
Judicial and non-judicial foreclosures are allowed in Virginia. In a judicial foreclosure, a lawsuit will be filed. The purpose of this lawsuit is to obtain a court order allowing the lender to foreclose. This process will be used when the deed of trust or mortgage does not allow the lender the power of sale. Once the court rules in favor of the lender, the property will be sold at auction. When the property is sold in this manner, the borrower has a time period in which to redeem the property by paying the sale amount along with interest of six percent. This time period in Virginia is 240 days.
If a non-judicial foreclosure is used, the deed of trust or mortgage contains a power of sale clause. This clause states that the borrower has given permission for the property to be sold if they do not make payments as agreed. Either the lender or his representative can hold this power. Certain guidelines must be followed during this process though.
- If the power of sale clause specifies conditions of the sale, they must be followed. This is especially true when it comes to advertising the sale. This same information must be sent to the borrower a minimum of 14 days before the sale date.
- The deed of trust will determine what the ad must include. The terms of sale must be given along with the date and place are required in the ad. Trustee contact information must be provided also.
- If the borrower wishes to stop the sale, he may, at any time before the sale, stop the foreclosure process. All that is required is that he pay the lien debt along with attorney’s fees and costs.
- The sale cannot take place until eight days after the ad is first published. It must be completed within 30 days of the last ad publication date.
- The sale must be to the highest bidder.
- Anyone may bid at the sale with the exclusion of the trustee.
- A deposit may be required and often the deposit amount will be documented in the deed of trust.
- Once the sale is completed, the trustee will be paid first, then taxes, assessments and levies. The third in line for payment will be any remaining debts which have been secured by the lien as well as any liens of record. Finally, if any money remains, it will go to the borrower.
Mortgage Rates in the United States and Virginia
Mortgage rates for the entire United States as of 12/24-12/31/10 are:
30 Year Fixed Rate Mortgage
Interest Rate-5.09%
Points-.14
15 Year Fixed Rate Mortgage
Interest Rate-4.46%
Points-.13
30 Year 1/1 ARM
Interest Rate-3.87%
Points-.12
Mortgage rates for Virginia as of 12/24-12/31/10 are:
30 Year Fixed Rate Mortgage
Interest Rate-5.20%
Points-.28
15 Year Fixed Rate Mortgage
Interest Rate-4.65%
Points-.23
30 Year 1/1 ARM
Interest Rate-4.13%
Points-.00
Although Virginia mortgage rates will change over time, Virginia interest rates do tend to be slightly higher than the national average. This is due to “jumbo loans” which must be issued in certain parts of the state, most notably those closest to the nation’s capital. Due to the increased risk to the lender, this type of loan tends to have a higher interest rate which drives the statewide average up.
In closing, Virginia is a great place to live. With plenty of job opportunities and wonderful colleges and universities to choose from, you and your children can easily find a place you will love. The economy tends to be stable in this state and population growth is consistent. With so much to see and do within its borders, it is no wonder so many prefer to call Virginia home.