Pros And Cons of a North Carolina VA Loan

  • Home
  • /Pros And Cons of a North Carolina VA Loan


If you are a veteran, you will always be better served if you can qualify for a VA loan. We serve communities with a large number of veterans. Loan officers from our Fayetteville office have helped over 300 local families purchase homes. The most popular mortgage for a veteran in any location is called a VA loan. These loans are directly related to the US Department of Veterans Affairs. There are many benefits to VA home loans:

  • LOW interest rates – among the lowest available.
  • NO monthly mortgage insurance or private mortgage insurance.
  • No down payment.

VA loans are approved by the various lenders who offer this type of loan, and we compare lenders to find you the best rate. The Veterans Affairs Department guarantees the loans for the lender, so there is no mortgage insurance. To be clear, Veterans Affairs does not lend the money or own the mortgage. Veterans Affairs just protects the lender in case you default on the loan. The VA mortgage requires a funding fee which can be included in the total loan amount.

The VA funding fee varies, depending on whether you are an active duty veteran or a reserve/national guard veteran. It also varies if you have used your entitlement to purchase a home before or if the veteran is a first-time home buyer. The funding fee is a one-time charge for the VA to “guarantee” the loan. This means if you were to default on a VA loan, the Veterans Affairs Department would cover the loan for the lender.

There are some exceptions to the funding fee. If the veteran is disabled by the VA and receives VA disability, the funding fee is completely exempt! This means a disabled veteran can get a VA mortgage loan for 100 percent financing, no money down and no funding fee included.

We work with many lenders that are favorable to low credit scores and veterans who may have experienced credit hardships in the past. Do not wonder if you would or would not qualify…find out for sure!

Example: While there are many factors that determine a monthly payment, such as property taxes and homeowner’s insurance, here are some VA loan payments that may be typical in areas surrounding Fort Bragg, North Carolina:

  • $  900 a month for a $150,000 home*
  • $1190 a month for a $200,000 home*
  • $1340 a month for a $225,000 home*

*These payments are estimates and will vary.

What If I Want to Refinance?

You can refinance your VA loan with another VA loan if the rate is better. Right now in North Carolina, you can refinance your VA loan now with

  • NO money out of pocket
  • NO appraisal
  • AND it’s non-income qualifying, even if you no longer live in the home!!

If you currently own a home in NC with a VA loan and your interest rate is over 4.75%, you need to check out your options for refinancing. You can skip up to two mortgage payments and lower your payment, ALL with no out of pocket cost to you. Call today for your risk free, cost free assessment to see if a VA Interest Rate Reduction Refinance Loan (IRRRL) would benefit you!! Remember, NO appraisal and this can be done on investment properties as well as primary residence!!

Hint: If you are an active-duty veteran, you are eligible for a VA loan after 90 days of continuous service. The minimum service required for post-veterans, those who have served in the past but are no longer serving, as well as reserves/national guard veterans varies. The quickest answer is to call or email

VA Loan Types
You should inquire about a VA loan if you want

  • To buy an existing home, including a townhouse or condominium unit in a VA-approved development.
  • To build a home.
  • To simultaneously purchase and improve a home.
  • To improve a home by installing energy-related features
  • To refinance an existing home loan.
  • Cash-out refinance.
  • Reduce the interest rate (Interest Rate Reduction Loan or Streamline)
  • Convert an adjustable rate mortgage (ARM) to a fixed rate mortgage.
  • To purchase a multi-family property (up to four units). The veteran must occupy one of the units as his or her primary residence.

And you can pay your loan off early with no penalty!

US Department of Veterans Affairs

Your service to your country has been valued and the US Department of Veterans Affairs is also there to help you. You get more information from their website on home loans.

Go to US Department of Veterans Affairs website here.


Why Work With Us?
Carolina Home Mortgage is local and an independent small business. You’ll find our rates are low if you do the comparison. For 15 years we have helped clients become our neighbors. You don’t get to do that unless you offer quality and client-centered service.

Email your questions to
or call us. At the end of the day we report to you, not the bank! We are available after hours and weekends.

Helping You Make Carolina Home!