Everything You Need to Know About VA Home Loans in North Carolina

As of 2020, the average VA home loan in North Carolina is $245,976. Without the protections of a VA loan, a mortgage could be hard to obtain for many home buyers.

There are over 665,000 veterans living in North Carolina, accounting for 8.3% of the state’s population. With the median listing price for a home in the state’s capital of Raleigh landing at $325,000, the VA loan’s no down payment benefit is a notable advantage for North Carolina homebuyers.

A VA loan is a mortgage option offered from private lenders that are fully backed by the U.S. Department of Veteran Affairs. With the guarantee of the federal government, VA mortgages require no private mortgage insurance and make the qualification process easier.

These loans require $0 down to help make the home buying process easier and more affordable for veterans. However, keep in mind that while there is no credit score requirement, you should still check with your mortgage lender for their requirements.

According to the U.S. Department of Veteran’s Affairs, VA loans can be used for the following purchases:

• Buying a home or condominium unit in a VA-approved project
• Building a home
• Purchasing and renovating a home
• Improving a home by installing energy-efficient features or making energy-efficient upgrades
• Buying a manufactured home and/or lot
• Refinancing an existing VA-guaranteed or direct loan for the purpose of a lower interest rate
• Refinancing an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the veteran as a home

There are numerous advantages to applying for a VA loan as a prospective home buyer. For those looking to buy in North Carolina, some benefits of the VA loan include:

• 100% financed, meaning no down payment
• No cash reserves
• No application fee
• No monthly mortgage insurance premiums
• VA funding fee may be financed
• Reusable
• Seller can pay certain closing costs, thus decreasing closing costs for the borrower
• Low monthly interest rates compared to other loans
• Similar qualification standards to conventional loans
• You don’t have to be a first time home buyer to qualify

Are you ready to apply for a VA home loan in North Carolina? Contact us and and we’ll start the process together.

Although VA loans are most commonly used for the traditional mortgage, there are four different variations of financing for veterans.

1. Purchase loan: Standard home loan for veterans and active service members that can be used to purchase a home in North Carolina without a down payment.
2. Refinancing loan: These loans enable you to refinance and access funds equal to your home’s equity up to 100% to put toward things such as college tuition, home renovations, or medical bills.
3. Renovation loan: This financing option enables you to simultaneously purchase and renovate a home with funds guaranteed by the VA. Added benefits include that the financing amount is based on the “after-improvement” expected value of the property, and borrowers can finance 100% of the projected home equity.
4. Interest Rate Reduction Refinance loan (IRRRL): This loan allows borrowers with a current VA loan to obtain a line of credit without a home appraisal or income documentation.

The VA loan program was established to offer long-term financing for American veterans and active service members. However, VA loans are also available for spouses and/or citizens who served in other federal organizations.

When applying, you must first verify your eligibility with a Certificate of Eligibility (COE).

To obtain a COE, you must meet the following VA loan eligibility requirements:

• Served for 90 days during a time of war
• Served for 181 days during a time of peace
• Served for 6 years or more in the National Guard or Reserves
• You are the spouse of a serviceman or servicewoman killed in the line of duty or as the result of a service-related incident

If this sounds like you, allow Blue Water Mortgage to guide you through the next steps of securing a mortgage in North Carolina — request a rate today.

In North Carolina, there are no limits to VA loan maximum dollar amounts. For loans purchased on the secondary market, there are limitations as prescribed by Ginnie Mae (GNMA).

Here is a county-by-county breakdown of the current VA mortgage rates in North Carolina: (Source: VA Mortgage Center)

Not sure whether you’re eligible for a VA loan or require assistance applying for one in the state of North Carolina? Our team has 150 years of combined experience helping service members and veterans apply for and get qualified for VA home loans through a variety of private lenders and local banks. Reach out to a VA loan specialist today to get started on your journey to homeownership.