DSCR Loans in Virginia: Military Renters, Flood Zones, and Three Different Markets

Virginia rewards investors who pick their region deliberately. Federal employment anchors the north, state government and universities anchor Richmond, and the largest concentration of military personnel in the country anchors Hampton Roads. Each one underwrites differently. The investment property program is the same statewide — here's what changes underneath it.

A DSCR loan qualifies on gross rent divided by the full monthly payment — principal, interest, taxes, insurance, and HOA — rather than on your income. No tax returns, no employment verification, and closing in an LLC is routine. The complete list is in DSCR loan requirements.

Virginia has no statewide property tax rate. Each city and county sets its own per $100 of assessed value, and independent cities are separate from the counties around them. Rates across the major markets generally fall between roughly 0.8% and 1.25% of value. Look up the actual locality — a Richmond city address and a Henrico County address can be across the street from each other with different bills.

Norfolk, Virginia Beach, Portsmouth, and Hampton sit at sea level with some of the highest rates of recurrent flooding on the East Coast. A property in a special flood hazard area requires flood insurance, and premiums under the current federal rating system can be significant. Since insurance is part of the DSCR payment, get the flood zone determination and a quote before you settle on a price. An elevation certificate can sometimes lower the premium.

• The Virginia Residential Landlord and Tenant Act applies statewide to most residential rentals.
• Rent control: Virginia localities do not have the authority to enact it.
• Security deposits: capped at two months' rent.
• Nonpayment: the process generally begins with a 5-day pay-or-quit notice, followed by an unlawful detainer filing in general district court.
• Short-term rentals: regulated locally. Virginia Beach limits new STRs to specific overlay districts, and Northern Virginia jurisdictions commonly require permits and restrict rentals to a host's primary residence.

Confirm current rules with a Virginia attorney or the locality — I'm a lender, not a legal advisor.

• Northern Virginia — Arlington, Fairfax, Loudoun, Prince William: high prices, excellent tenants, and ratios that often need 30% or more down to reach 1.0.
• Richmond metro: balanced prices and rents, steady demand from state government, healthcare, and VCU, and ratios that typically clear 1.0 with 25% down.
• Hampton Roads: military tenants whose housing allowance sets a visible floor under rents, lower prices, and the strongest ratios — before flood insurance.
• Roanoke, Lynchburg, and the college towns: lower price points and smaller tenant pools; student rentals bring their own local rules.

Virginia charges a recordation tax on both the deed and the deed of trust — 25 cents per $100 at the state level, plus a local share — and a grantor's tax customarily paid by the seller. Northern Virginia and Hampton Roads add regional fees. Closings are handled by settlement agents or attorneys, and Virginia law gives the buyer the right to choose the settlement agent. Most DSCR loans include a prepayment penalty.

A $310,000 single-family home in the city of Richmond rents for $2,350. With 25% down, the loan is $232,500. At an illustrative 7.5% rate — an example, not a quote — principal and interest is about $1,626. City taxes at $1.20 per $100 add $310 a month, and insurance adds $110, for a payment of $2,046 and a DSCR of 1.15. Put the same house in a Norfolk flood zone with a $250-a-month flood policy and the ratio falls to 1.02. Same rent, same price, different deal. Run yours in the DSCR calculator.

It's a Non-QM investment mortgage, available for purchases, rate-and-term refinances, and cash-out, that uses the property's rent to qualify. Investors use it to scale past the limits of conventional financing — see how many DSCR loans can you have.

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Looking at a Virginia rental? Send me the address and the rent, and I'll run it with the right locality's tax rate and a flood check. I'm licensed in all 50 states. Guidelines vary by lender and change over time.