The Northern Virginia contractor file
A cleared engineer billing corp-to-corp through an S-corp in Fairfax, a two-person firm on a subcontract in Reston, a consultant to a federal program office in Alexandria — these households own a large share of the equity in Fairfax, Loudoun, Arlington and Prince William counties. The pattern is consistent: contract payments on the government's schedule, a salary set by the CPA, distributions after a retirement plan contribution, and a personal return that shows a fraction of the business. A bank lends on the return. This program reads 12 months of deposits from the contracting entity and sizes the line from those.
What is specific to a Virginia file
- Recordation tax. Virginia charges a state recordation tax when a deed of trust is recorded, based on the amount secured, and localities may add their own share. It is a tax disclosed on the closing statement, not a lender fee.
- Deeds of trust. Virginia records home equity liens as deeds of trust. Nothing changes at closing.
- HOAs are the norm in Northern Virginia and the Richmond suburbs. Dues are counted as an obligation. Condominium files include a look at the association.
- Coastal and tidal property. In Hampton Roads, Norfolk, Virginia Beach and the Northern Neck, flood coverage is confirmed where it applies.
- Valuation. Northern Virginia, Richmond and Hampton Roads have deep automated-valuation data; lines to $400,000 usually close without an appraiser. Farm, vineyard and mountain property in the Shenandoah and Southwest Virginia is thinner and more likely to need one. A home that is part of a working farm or vineyard is reviewed differently from a rural residence.
Beyond the Beltway
- Hampton Roads. Shipyard and repair subcontractors, defense-services firms and 1099 specialists around the Navy's largest base, paid on contract milestones.
- Richmond. Physicians and dentists in private practice, attorneys and consultants in small firms, agents working the Fan and the West End.
- The Shenandoah and Piedmont. Wineries, breweries, orchards and cattle operations with season-timed income and heavy depreciation.
Common questions
How does Virginia recordation tax work on a home equity line?
The state charges it when the deed of trust is recorded, based on the amount secured, and your city or county may add a local share. It appears on the closing statement and is not a lender fee.
I'm a cleared contractor. Does the clearance or the contract vehicle matter?
No. The 12 months of deposits from your contract payments into the business account are what is read. The salary you pay yourself and the K-1 are irrelevant.
Our winery shows a loss after equipment and vines. Can we qualify?
The return is not part of this file; 12 months of deposits are. A home on a working vineyard is a different property review than a rural residence, so say which yours is.
Are you in Virginia?
No office. Korbin Spangenthal is licensed in Virginia and originates from Fort Lauderdale; the process is electronic end to end.