What Are North Carolina VA Home Loans?
North Carolina VA loans are mortgages backed by the Department of Veterans Affairs (VA). VA loans originated in 1944 as part of the original Servicemen’s Readjustment Act, commonly known as the GI Bill of Rights. This Bill was signed into law by President Franklin D. Roosevelt, providing veterans with a federally guaranteed home with no down payment. This feature was designed to offer housing and assistance to veterans and their families to make the dream of homeownership a reality for millions of veterans.
What Is the Max VA Loan in NC?
It depends. If you have full entitlement, North Carolina VA home loans have no limit for loans over $144,000. There is no down payment, and the lender is guaranteed that any default will be paid up to 25% of the loan amount.
What does full entitlement mean? That means you’ve never used the home loan benefit, have paid a previous VA loan in full and sold the property, or you’ve used the benefit but had a foreclosure or short sale and repaid in full. For those looking to work with a NC VA loans mortgage broker or lender, they should not have any problems. The maximum amount varies based on the borrower. In some cases, the borrower may have to add a down payment to qualify.
Many people understand the terms basic entitlement and bonus entitlement. There are differences between the two. The basic entitlement is when the VA insures up to 25% of loan amounts up to $144,000 or $36,000, whichever is less. In most cases, the basic and bonus may have to be used.
The bonus entitlement is where the VA insures up to 25% of the loan amounts between $144,000 to the current conforming loan limit in the county established by the Federal Housing Finance Agency.
The entitlement works as a down payment substitute because it is a guarantee. In most cases, borrowers can get up to four times their entitlement amount.
What Types of NC VA Loans Are Available?
There are multiple North Carolina VA loans available from Griffin Funding, including:
- VA purchase loan: You can purchase a home with lower interest rates and no down payment if you are a current service member, veteran, or surviving spouse. These mortgages have better terms and work well when other financing options are non-existent.
- VA cash-out refinance loan: You can refinance with a VA cash-out loan even if your original home loan wasn’t a VA loan. This provides an opportunity for qualified veterans to replace the existing mortgage, refinancing up to 100% of the home’s value. Another alternative is to refinance at a lower percentage rate using the additional cash to cover any outstanding debts or financial needs.
- VA streamline refinance loan: You can lower your interest rate and save money by refinancing your original VA home loan. This option is good for homeowners who are already under a VA loan and are looking for a lower monthly rate. It can be done quickly since it’s one loan to another. In most cases, no appraisal is needed, no inspection for pests, no income qualification, no need for another COE, and little to no out-of-pocket costs.
If you don’t qualify for an original VA loan in North Carolina, there are several other Non-QM loans and mortgage products that may work for you. These are mortgage loans that help you qualify for a loan under alternative methods. This includes using bank statement loans where your bank statements qualify you for a loan with as little as twelve months of statements. There are also asset-based loans where you can leverage the assets you have to secure the loan.
What Are the Requirements for a VA Loan in North Carolina?
The requirements for North Carolina VA loans are simple. You must be a current service member, veteran, or surviving spouse. You must have a Certificate of Eligibility (COE), a minimum FICO score of 500, and meet the income qualifications.
What Are the Benefits of North Carolina VA Home Loans?
There are many benefits that come with obtaining a North Carolina VA home loan. Since it’s not a traditional mortgage and is backed by the Department of Veterans Affairs, the process may be a lot easier. Additional benefits include:
- No down payment
- Lower interest rates
- No private mortgage insurance (PMI)
- Flexible requirements
- Limited closing costs
- It can be used to purchase different types of properties like a home, duplex, condo, etc.
- Can be transferred to another VA-eligible buyer
- No penalty for early payoff
- Homes can be sold or refinanced without restrictions
- A non-spouse family member can be added to VA joint loans
- Cash-out up to 100% of the home’s value
Areas We Serve
We can provide NC VA loans for individuals living virtually anywhere in North Carolina. Some of the areas we serve include:
- High Point
- And more
- Chapel Hill
How to Apply for a VA Loan in North Carolina
To qualify for a North Carolina VA home loan, you must complete the following steps:
- Secure your COE from the VA.
- Contact the lender so a loan officer can evaluate loan eligibility.
- Complete an application, sign the disclosures, and have all additional documentation ready.
- Schedule the appraisal by the VA and pest inspection.
- Review the loan documents and get them notarized.
- Get funded. Most VA purchase loans are funded on the same day, but a refinance loan has a three-day waiting period.
Find Out if You Qualify for a North Carolina VA Home Loan
If you’re ready to move into your future home in North Carolina, the team at Griffin Funding is ready to assist. Apply for a North Carolina VA home loan by completing an application. Once you complete an application for a VA loan in North Carolina, the team at Griffin Funding can work with you to secure the loan you want at a competitive rate.