Virginia Private Money Lending:
Licensing, Compliance & Documents
By Anthony Geraci, Managing Partner & CEO, Geraci LLP | January 2026
Virginia is an active private money lending market, particularly in Northern Virginia (Washington D.C. suburbs), Richmond, and Virginia Beach/Hampton Roads. Proximity to the federal government provides economic stability, and strong population growth drives real estate investment activity. Virginia's fast non-judicial foreclosure and no redemption period make it attractive for lenders.
This guide covers the essential licensing, usury, foreclosure, and document requirements for private money lenders originating loans in Virginia.
Virginia at a Glance
Security Instrument: Deed of Trust
Foreclosure Type: Non-Judicial
Typical Foreclosure Timeline: approximately 45-60 days
Usury: Virginia's general usury limit is 12% per year for written contracts under Virginia Code Section 6.2-303. However, state-chartered banks, savings institutions, and credit unions are exempt. Business-purpose loans and loans above $5,000 made by licensed lenders may qualify for higher rate exemptions. Private money lenders should carefully analyze their licensing status and loan structure.
Related: Usury Laws by State | Deed of Trust vs. Mortgage Guide | How to Lend in Multiple States
Licensing Requirements
Virginia requires a Mortgage Lender license from the Bureau of Financial Institutions for companies making consumer mortgage loans. Private money lenders making business-purpose loans may be exempt depending on loan volume and structure.
Key Compliance Considerations
Virginia uses a deed of trust with a power of sale clause. Non-judicial foreclosure requires publishing notice once a week for two consecutive weeks, with the sale occurring at least 14 days after the second publication.
Virginia's foreclosure process is one of the fastest in the country, which is a significant advantage for private money lenders.
Virginia provides no statutory right of redemption after the foreclosure sale, making enforcement more certain for lenders.
The state's 12% usury limit requires careful structuring for private money loans. Licensed lenders may have broader rate flexibility than unlicensed lenders.
Document Requirements for Virginia Private Money Loans
Virginia private money loans require a deed of trust as the primary security instrument, along with a promissory note, loan agreement, personal guaranty (for entity borrowers), and state-specific disclosures and compliance riders. For fix-and-flip and construction loans, draw agreements, scope of work exhibits, and completion guarantees are also required.
Automate Loan Docs generates complete, Virginia-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Virginia lending transactions.
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