Buying A Second Home In Nelson County: What To Know

Thinking about a mountain escape you can slip away to on weekends and share with friends and family? Nelson County offers ski days at Wintergreen, hiking to waterfalls, and a lively Route 151 tasting trail, all within a few hours of many Mid‑Atlantic cities. If you are weighing a second home here, you want clear answers on financing, taxes, permits, utilities, and upkeep before you buy. This guide gives you the essentials, with local links and a practical checklist so you can move forward with confidence. Let’s dive in.

Why Nelson County works for second homes

Nelson County blends resort living with rural landscapes. On the mountain, Wintergreen Resort’s year‑round activities support steady visitor demand in every season. In the valley, the Route 151 corridor draws guests to wineries, breweries, and scenic drives.

It is a mixed market. Mountain condos and townhomes at or near Wintergreen behave differently than single‑family homes and acreage in the Rockfish Valley or near Lovingston. If rental income is part of your plan, expect seasonal patterns to affect pricing, occupancy, and cleaning cadence.

Work with a local agent to pull sub‑market comps and help you compare mountain properties to valley homes. Pricing, HOA rules, and access needs can vary street by street.

Decide your use plan first

Your intended use drives everything from loan options to county filings. Clarify whether you plan to:

• Use the home mainly for personal and seasonal stays.
• Offer short‑term rentals during peak periods.
• Lease long term to a single tenant.

Conventional lenders follow Fannie Mae’s second‑home definitions. A second home is typically a one‑unit property you will occupy part of the year, that is suitable for year‑round use, and that remains under your control. If you plan to rent the property frequently or rely on rental income to qualify, your lender may treat it as an investment property. Share your use plan with your lender early so you choose the right loan path from day one.

How second‑home financing works

For conventional loans, expect higher credit standards and cash‑reserve requirements than a primary residence. Many lenders want you to document several months of mortgage payments in reserves for second homes or investment properties. Rental income from the property generally cannot be used to qualify for a true second‑home mortgage under agency rules.

Government‑backed products like FHA and VA are built for primary residences, not vacation homes. If you are exploring those options, review occupancy rules with an approved lender and read a plain‑English primer on restrictions for government loans and rentals, such as this overview of FHA and VA occupancy limits. Your best next step is a quick call with a local mortgage pro to confirm the right program and down payment for your situation.

Taxes and local filing you must budget

• Property taxes: Nelson County’s real estate tax rate is $0.65 per $100 of assessed value. Bills are issued twice a year. Confirm current rates and due dates on the county’s tax rates page.

• Lodging tax for STRs: If you plan to short‑term rent, Nelson County’s Transient Occupancy Tax is 7 percent. Third‑party platforms often remit the tax, but hosts are still responsible for county filings and documentation. You must also hold a county business license to operate an STR. See the county’s Short‑Term Rentals guidance for details.

• Income taxes: Rental income is taxable. Rules differ based on your personal use and level of participation. Keep good records and consult a CPA on deductions, depreciation, and state filings.

Rules, permits, and STR compliance

Nelson County requires STR operators to obtain a business license and to follow specific filing procedures for the lodging tax. Start with the county’s Short‑Term Rentals page to confirm what applies at your address. If your property is within Wintergreen, the property owners association maintains additional rental and notification rules. You must comply with both county and any HOA or POA requirements.

Planning updates or renovations? The county’s Building Inspections office enforces the Virginia Uniform Statewide Building Code. Many projects require permits, inspections, and scheduled approvals. Review fees and timelines on the Building Inspections page before you draft your scope.

Water, sewer, power, and internet checks

Many rural properties use wells and septic systems. Public water and sewer are available only in select service areas. The Nelson County Service Authority operates systems serving Wintergreen, Lovingston, Schuyler, Piney River, and parts of Stoney Creek Village. Confirm availability by contacting the Nelson County Service Authority before you write an offer.

If a property has a septic system, Virginia law sets permitting and maintenance standards. As a buyer, you should order a septic inspection and request pump‑out and maintenance records. Review the state’s onsite sewage code for context on permitting and performance standards via the Virginia Code section on onsite sewage.

Electric service varies by location through regional providers, and many rural homes use propane, oil, wood, or heat pumps rather than natural gas. For internet, some addresses have fiber or cable while others rely on satellite. Mountain and valley terrain affects cellular coverage, so verify service at the address.

Hazard and access planning

Check FEMA maps during due diligence. If a property lies within a Special Flood Hazard Area, most lenders will require flood insurance. Use the FEMA Flood Map Service Center to review panels for the parcel and confirm with your lender and insurer. The county has also discussed updated flood map adoption, so verify current information at the time you buy.

Plan for winter access if your driveway is steep or remote. Arrange snow removal, keep a minimum heat setting, and prepare a water shut‑off plan if the home will sit vacant in cold snaps.

If you plan to rent short term

Short‑term rentals can help offset carrying costs, especially near Wintergreen and Route 151. To operate smoothly and stay compliant, build your plan before your first booking.

• Confirm zoning and obtain a county business license using the Short‑Term Rentals guidance.
• Register for lodging tax reporting. If a platform remits TOT, you may still need to file documentation with the county.
• Build a local vendor list for cleaning, maintenance, HVAC, septic, landscaping, snow removal, and locksmith support. The Nelson County Service Authority site is a good starting point for water and sewer contacts.
• Create a winterization checklist for vacancy periods, including heat minimums, pipe insulation, and a local emergency contact.

Maintenance and remote‑owner logistics

Mountain and rural homes need proactive care. Common items include HVAC servicing, septic pumping, gutter and roof checks, vegetation management, and winterization. For slopes and longer private drives, plan for snow removal and routine surface maintenance.

If you live out of the area, budget for a local point person or a property manager. A small reserve fund for emergency repairs, utilities, and seasonal work will keep surprises from derailing your plan.

What a local agent handles for you

A trusted local agent makes remote ownership feel easy. Here is what you can expect when you work with an experienced Wintergreen and Nelson County advisor:

• Property search tuned to your goal, whether personal use, STR potential, or long‑term holding.
• Local comps and pricing guidance by sub‑market, from Wintergreen condos to Rockfish Valley homes and acreage.
• Due diligence coordination: septic and well inspections, permit history checks with Building Inspections, water and sewer confirmation with the Service Authority, and flood‑map verification through FEMA.
• Introductions to vetted vendors for cleaning, repairs, seasonal work, and STR management.

Gavin Sherwood Real Estate pairs boots‑on‑the‑ground service for remote buyers with a calm, consultative process and a proven track record in resort and acreage transactions. You get patient guidance and practical execution from search to close and beyond.

Quick buyer checklist

1. Clarify use: personal seasons, STR, or long‑term lease. This affects loan type and taxes. Review Fannie Mae’s occupancy definitions.
2. Confirm financing path: conventional second‑home loan vs. investment vs. government loan. Validate occupancy rules with your lender.
3. Ask your agent for recent comps in your target sub‑market, since mountain condos and valley homes behave differently.
4. Confirm utilities: check NCSA service areas or plan for well and septic. Ask for well water tests and septic pump‑out and maintenance records.
5. Check hazards: verify FEMA flood maps and any insurance needs via the FEMA map center.
6. If renting: obtain a county business license and follow lodging tax rules using the county’s Short‑Term Rentals page.
7. Build a local vendor list and keep 6 to 12 months of reserves for maintenance and vacancy.

Ready to explore available homes and map a smart plan for your second home in Nelson County? Schedule a friendly, no‑pressure consult with Gavin Sherwood Real Estate to get local insight, vetted resources, and steady, step‑by‑step support.

FAQs

What should I know about second‑home financing in Nelson County?

• Conventional loans follow Fannie Mae’s second‑home rules, often require stronger credit and cash reserves, and do not allow rental income to qualify for a true second‑home mortgage.

How does Nelson County’s lodging tax work for short‑term rentals?

• The county’s Transient Occupancy Tax is 7 percent; hosts must hold a business license and may need to file forms even if a platform remits tax, per the county’s Short‑Term Rentals guidance.

Are public water and sewer available at my Nelson County address?

• Only in select areas; check availability with the Nelson County Service Authority and plan for a private well and septic if service is not available.

Do I need flood insurance for a Nelson County second home?

• If a property lies in a Special Flood Hazard Area, lenders typically require it; confirm panel status at the FEMA Flood Map Service Center during due diligence.

What permits do I need for renovations or repairs?

• Many projects require permits and inspections under Virginia’s Uniform Statewide Building Code; start with the county’s Building Inspections office to review requirements and timelines.

Can I use FHA or VA financing for a vacation home?

• FHA and VA loans are designed for primary residences; review occupancy rules with your lender and see this overview of FHA and VA occupancy limits before you apply.