Bridge Loan, Line, or Refinance: The Virginia Comparison
Program and regulatory figures verified September 19, 2026. Details change; confirm your scenario with us.
Most states make you choose between flexibility and cost of funds. Virginia adds a third variable, and it is decided by which document gets recorded.
The Virginia variable
Elsewhere in this network the state either taxes the lien at one flat rate, as Florida and Tennessee do, or not at all, as Colorado does. Virginia is the only state we build for where the same dollar amount is taxed at three different rates depending on the instrument.
New debt, 25 cents per $100 of the obligation secured. Refinancing of existing already-taxed debt, 18 cents per $100 on the first $10 million and stepping down above that. Supplemental instrument, tax only on the portion in addition to the original. A locality may add a third of the state figure to whichever applies.
What it means product by product
| Route | Instrument | State rate | On $300,000, with local third |
|---|---|---|---|
| Bridge loan | New deed of trust | 25 cents per $100 | about $1,000 |
| New home equity line | New deed of trust | 25 cents per $100 | about $1,000 |
| Cash-out refinance of the existing first | Refinance of taxed debt | 18 cents per $100 | about $720 |
| Increase to an existing deed of trust | Supplemental | On the increase only | depends on the increase |
| Carry both and recast | Nothing recorded | — | $0 |
Those figures cover the two state and local recordation taxes only. Clerk fees, title charges and lender fees are separate and usually larger.
What not to do with this information
Do not replace a first mortgage you are happy with in order to save a few hundred dollars in recording tax. The rate difference between routes is real, and on most residential amounts it is smaller than the cost of giving up a good existing loan.
Where it genuinely tips a decision is at larger balances, which in Virginia means the seventeen Northern Virginia and Fredericksburg-area jurisdictions where the conforming ceiling reaches $1,249,125. At $600,000 the spread between the new-debt and refinance routes is several hundred dollars, and at that level it is worth putting on the table alongside everything else.
The usual comparison still applies
Term financing gives a fixed obligation and a defined payoff. A line gives flexibility and interest only on what is drawn. Both add an obligation measured in your debt ratio while you still hold the first mortgage. Neither creates income.
Virginia's short marketing times tilt this further than the tax does. When the departing home is expected to go pending in 26 days in Richmond or 35 in the DC area, a defined bridge is easy to size and the case for paying for open-ended flexibility is weaker. In Danville at 62 days, or Winchester where the figure rose 10 days over the year, a line's flexibility is worth more.
The route that avoids the question
If income supports both payments, carrying both and recasting after the sale records nothing. No deed of trust, no recordation tax, no second obligation to underwrite.
In most states that is a nice idea that few households can actually execute. In Virginia, where the overlap is frequently measured in weeks, it is the realistic answer far more often. Compare all of them on the structures page, or run your numbers on the recordation calculator.
Frequently asked questions
Is a bridge loan taxed differently from a refinance in Virginia?
Yes. A bridge loan is secured by a new deed of trust and taxed at 25 cents per $100 of the obligation secured under Va. Code § 58.1-803(A). A deed of trust securing the refinancing of an existing debt on which the tax has already been paid is taxed under § 58.1-803(E) at 18 cents per $100 on the first $10 million.
How much does Virginia charge to record a $300,000 home equity line?
As new debt, about $750 in state recordation tax at 25 cents per $100, plus roughly $250 if the locality imposes the full one-third permitted by § 58.1-814, so around $1,000 combined. The refinance schedule would put the same amount closer to $720.
Should I refinance instead of taking a bridge loan just to save recording tax?
Usually not on residential amounts. The rate difference is real but typically smaller than the cost of replacing a first mortgage you want to keep. It becomes worth weighing at larger balances, such as in the Northern Virginia jurisdictions where the conforming ceiling reaches $1,249,125.
What is the cheapest way to buy before selling in Virginia?
Carrying both payments and recasting after the sale, where income supports it, because nothing is recorded and no recordation tax applies. Virginia's short marketing times, including 26 days in Richmond and 35 in the Washington DC area, make that structure realistic for more households than in most states.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Local tax relief ordinances, recordation treatment, and landlord obligations change and depend on your facts; your commissioner of the revenue, your CPA or a Virginia attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.