100 percent VA loans are available to eligible vets and active military throughout North Carolina by the U.S. Department of Veterans Affairs (VA) VA loans are underwritten and issued by qualified mortgage lenders and banks. VA mortgages are designed to provide flexible financing opportunities to veterans that are eligible and who have surviving spouses (if they haven’t remarried) The program is one of the only 100% home loans still available in NC and offers many great benefits as we will discuss below.
Home buyers that have questions can reach out to us 7 days a week by calling ph: 904-385-3988 or just submit the request form on this page. VA Mortgage Hubs serves buyers nationally including those in NC: Charlotte, Raleigh, Greensboro, Durham, Winston-Salem, Fayetteville, Cary, Wilmington, High Point, Greenville, Asheville, Concord, Gastonia, Jacksonville, Chapel Hill, Rocky Mount
We will start by discussing the North Carolina VA Loan Benefits:
- 100% financing with low fix interest rates. VA mortgage rates are some of the lowest available.
- The seller can pay buyer’s allowable closing costs.
- No monthly mortgage insurance, just a one-time VA funding fee 2.15-3.3 percent that is included in the buyer’s loan. Note* most disabled vets are exempt from paying the funding fee. VA is the only government home loan that does not have monthly PMI – Both FHA and USDA loans require this.
- No early payoff penalty. Homeowners that have a VA loan can move and sell their home anytime.
Now let’s detail what type of applicant is eligible for a VA financing:
Veterans with active duty service, that was not dishonorable, during World War II and later periods, are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days of service.
Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days of active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.
VA paperwork required to apply:
Lenders will need some things to determine your eligibility – DD214 for discharged veterans, a statement of service for active military personnel, and a certificate of eligibility (COE) to determine you have VA entitlement. Don’t have these things? No problem, please contact us below for assistance. You will also need your last (3) months income pay stubs, (3) months of bank statements and (2) years W2/tax returns. A photocopy of your ID will be required as well.
Important things to remember before applying:
- The applicant must be an eligible veteran who has available VA entitlement as stated above.
- All applicants need to have decent credit (over 620) with no recent financial hardships.
- The income of all applicant(s) must demonstrate enough to meet the mortgage payments, cover the costs of owning a home. VA, like all home loans, has max allowed debt to income ratios. The mortgage lender will be able to discuss specific income and other qualifying requirements.
- The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan. VA loans cannot be used for investment or vacation home purchases.
Getting approved for a VA home loan:
Pre-qualifying for a VA loan is the best way to determine how much borrowing power you have. Pre-qualifying involves completing a VA loan application. Based on that information, you can find out if you qualify for a given loan. Note that pre-qualifying only gives an estimate of the amount of mortgage payment you can afford, based on the information you provide. While pre-qualifying is not a requirement, it is highly recommended. Without pre-qualifying first, you may find yourself looking at houses that you wouldn’t necessarily be able to afford. Once you pre-qualify, you’ll have a strong idea of how much income you’ll need to qualify. You’ll also know what price range of houses you can afford, which is important for the next step.
Selecting The Perfect Home:
By now you have been VA mortgage pre-approved and have a good idea of your purchase price point. You can now begin the process of selecting your new home. Finding a home can be accomplished through several ways:
- Online: There are many web pages dedicated to listing homes for sale. These pages are often useful for finding homes that are out of your travel range, and often include numerous pictures and detailed information. Zillow and Trulia are both great choices to research online.
- Using a real-estate agent: Again, Zillow or Trulia is a great way to find a qualified realtor. Many buyers use real estate agents to help navigate through the paperwork involved in buying a new home. Recommendations from friends, etc is also a great way to find a realtor. If you are a first-time buyer, it’s highly recommended you have a good realtor to assist you.
Submitting Offer / Contract:
Also referred to as a “sales contract” or “purchase agreement” , the document represents the finalized terms and conditions upon which the transfer of real estate will take place. A purchase contract is essentially an agreement between the buyer and seller to buy the house on agreed upon terms, whatever they may be. The Purchase contract will among other things address: restrictions and easements, liens on the property, inspections, prior leases, disclosures, preparing of documents for closing, and maintenance of the property up to closing. Keep in mind, not only is VA 100% financing, but the program also permits the home seller to pay all the home buyer’s allowable closing costs. If you plan to ask the home seller for closing cost concessions and reduce your out of pocket costs, now is the time to do it.
VA Home Appraisal:
Your lender will order the home appraisal once your contract is complete. This is needed to finalize the loan as the home must be worth the selling price. It is important to remember that while the VA appraisal estimates the value of the property, it is not an inspection and does not guarantee that the house is free of defects. Homebuyers should hire a reputable home inspector to help give everything a close look. Same is true for the water, depending on the water source a simple test may be required. VA guarantees the loan, not the condition of the house – be aware of this.
If the appraisal is acceptable to all parties and the lender determines that your loan is approved, the VA closing process begins.
All parties go to the loan closing and sign the note, mortgage and other related papers. The lender and title agent, or closing attorney will explain the loan terms and requirements as well as where and how to make the monthly payments. When the loan is reported to the VA, the Certificate of Eligibility is annotated to reflect the use of entitlement and returned to the Veteran. The loan closing procedure may vary in some states, but after the signing your loan will fund and you’ll be ready to move.
VA also offers many streamline IRRRL and 100% cash out refinance options for NC homeowners that currently have a VA loan. Call us at ph: 904-385-3988 to learn more.