If you're a veteran, active-duty service member, or eligible spouse looking to buy a home in North Carolina or South Carolina, the VA home loan is one of the most powerful benefits available to you. With 0% down payment, no mortgage insurance, and competitive interest rates, VA loans make homeownership more affordable and accessible. This comprehensive guide covers everything you need to know about VA loan requirements in North Carolina in 2026.

What is a VA Loan?

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs, designed to help veterans, active-duty service members, and eligible surviving spouses purchase homes with favorable terms. The VA doesn't lend money directly—instead, it guarantees a portion of the loan, which allows approved lenders to offer better terms than conventional mortgages.

VA Loan Eligibility Requirements

To qualify for a VA loan in North Carolina, you must meet service requirements and obtain a Certificate of Eligibility (COE).

Service Requirements

Active Duty Service Members:

• Served 90 consecutive days during wartime, OR
• Served 181 days during peacetime

Veterans:

• Served 90 consecutive days during wartime with honorable discharge, OR
• Served 181 days during peacetime with honorable discharge, OR
• Served 6 years in the National Guard or Reserves with honorable discharge

Surviving Spouses:

• Spouse of service member who died in service or from service-connected disability
• Spouse of service member missing in action or prisoner of war
• Must not have remarried (some exceptions apply)

Note: North Carolina is home to Fort Liberty (formerly Fort Bragg), one of the largest military installations in the world, as well as Camp Lejeune, Marine Corps Air Station Cherry Point, and Seymour Johnson Air Force Base. South Carolina has Joint Base Charleston and Shaw Air Force Base. This makes the Carolinas a major hub for military families using VA loans.

How to Get Your Certificate of Eligibility (COE)

Your COE proves to lenders that you're eligible for a VA loan. There are three ways to obtain it:

1. Online (Fastest): Log in to eBenefits or VA.gov and request your COE instantly. Most veterans receive it immediately.

2. Through Your Lender: We can request your COE on your behalf during the pre-approval process. You'll need to provide your DD-214 (discharge papers) or Statement of Service.

3. By Mail: Complete VA Form 26-1880 and mail it with supporting documents to the VA. This takes 2-4 weeks.

VA Loan Credit and Income Requirements

While the VA doesn't set a minimum credit score, most lenders require at least 580-620 for VA loans in North Carolina. However, we work with VA-specialized lenders who may approve borrowers with lower scores on a case-by-case basis.

Credit Score Guidelines

• 620+: Qualify with most VA lenders at best rates
• 580-619: May qualify with some lenders; higher rates possible
• Below 580: Manual underwriting required; must show compensating factors

Compensating Factors: If your credit score is below 620, you can still qualify by demonstrating:

• Stable employment history (2+ years same job/field)
• Significant cash reserves (3-6 months of payments saved)
• Low debt-to-income ratio (below 35%)
• Residual income well above VA minimums
• Recent credit improvement (paid off collections, on-time payments)

Income and Employment Requirements

The VA requires stable, reliable income sufficient to cover your mortgage payment and other debts. You'll need to provide:

• 2 years of W-2s and tax returns
• 2 recent pay stubs
• 2 months of bank statements
• Verification of other income (BAH, disability, retirement, etc.)

Military Income: The VA allows you to count certain military benefits toward qualifying income:

• Basic Allowance for Housing (BAH)
• Basic Allowance for Subsistence (BAS)
• Flight pay, hazard pay, and other special pays
• VA disability compensation (if you choose to disclose)
• Military retirement pay

Debt-to-Income Ratio (DTI)

The VA prefers a DTI of 41% or lower, but can approve higher ratios with strong compensating factors. DTI is calculated as:

Total Monthly Debts ÷ Gross Monthly Income = DTI%

Example: If your gross monthly income is $6,000 and your total monthly debts (including proposed mortgage payment) are $2,400, your DTI is 40%.

Residual Income Requirement

Unlike conventional loans, VA loans have a unique residual income requirement. This is the amount of money left over each month after paying your mortgage, debts, taxes, and estimated living expenses. The VA wants to ensure you have enough cushion for daily living.

VA Loan Limits in North Carolina 2026

As of 2020, the VA eliminated loan limits for veterans with full entitlement. This means you can borrow as much as a lender is willing to lend based on your income and creditworthiness, with 0% down.

However, conforming loan limits still matter because they determine how much the VA will guarantee:

• Most NC/SC Counties: $806,500 (2026 conforming limit)
• High-Cost Counties: Higher limits may apply (none in NC/SC)

If you're buying a home above the conforming limit (a jumbo VA loan), you may need to make a down payment of 25% of the amount exceeding the limit. For example, on a $1 million home, you'd need a $48,375 down payment (25% of $193,500 over the $806,500 limit).

VA Property Requirements

The VA has specific property standards to ensure the home is safe, sanitary, and structurally sound. The property must:

Basic Requirements

• Be your primary residence (no investment properties or vacation homes)
• Pass a VA appraisal conducted by a VA-approved appraiser
• Have adequate heating, cooling, and ventilation
• Have a safe water supply and sewage system
• Have safe electrical and plumbing systems
• Have a structurally sound roof (2+ years remaining life)
• Be free of lead-based paint hazards (homes built before 1978)
• Have safe access (paved roads, driveways)

Property Types Allowed

• Single-family homes
• Condos (must be VA-approved)
• Townhomes
• Manufactured homes (must meet HUD standards and be on permanent foundation)
• Multi-unit properties (2-4 units, if you live in one unit)
• New construction (builder must be VA-approved)

Property Types NOT Allowed

• Investment properties (not your primary residence)
• Vacation homes
• Co-ops
• Properties with more than 4 units
• Raw land (no home)
• Homes with significant safety issues

VA Funding Fee

The VA funding fee is a one-time charge that helps offset the cost of the VA loan program. It can be rolled into your loan amount (no upfront payment required).

Exemptions: Veterans receiving VA disability compensation and surviving spouses are exempt from the funding fee.

Example: On a $425,000 VA loan with 0% down (first use), the funding fee is $9,138 (2.15%). This can be rolled into the loan, making your total loan amount $434,138.

VA Loan Process in North Carolina

Here's how the VA loan process works from start to finish:

Common VA Loan Myths Debunked

Myth 1: "VA loans take longer to close."
Reality: VA loans typically close in 30-45 days, similar to conventional loans. With an experienced VA lender, closings can happen even faster.

Myth 2: "Sellers don't like VA loans."
Reality: While some sellers prefer conventional financing, VA loans are widely accepted. In a competitive market, your offer strength matters more than loan type.

Myth 3: "You can only use a VA loan once."
Reality: VA loans are reusable. Once you sell your home or pay off your VA loan, your entitlement is restored and you can use it again.

Myth 4: "VA appraisals are too strict."
Reality: VA appraisals ensure the home is safe and sound, which protects you. Most homes pass VA appraisal without issues.

Myth 5: "You can't buy a fixer-upper with a VA loan."
Reality: While the home must be move-in ready, minor repairs are acceptable. For major renovations, consider a VA renovation loan.

Why Choose Your Carolina Home Loan for Your VA Loan

As a Charlotte mortgage broker specializing in VA loans, we understand the unique needs of military families in North Carolina and South Carolina. We serve veterans and active-duty personnel at Fort Liberty, Camp Lejeune, Seymour Johnson AFB, Joint Base Charleston, Shaw AFB, and throughout the Carolinas.

Our VA Loan Expertise:

• VA-approved lender with deep experience in military relocations
• Fast pre-approvals (often same-day)
• Competitive rates from 50+ VA lenders
• Help obtaining your COE if you don't have it
• Guidance on using BAH and military income for qualification
• Coordination with military orders and PCS timelines
• Local knowledge of VA-friendly neighborhoods and builders

Start Your VA Loan Journey Today

If you're a veteran or active-duty service member ready to buy a home in North Carolina or South Carolina, your VA loan benefit makes homeownership more affordable than ever. Get started today with our free 3-minute pre-approval process. We'll help you understand your buying power, navigate VA requirements, and find the best rate for your situation. Thank you for your service—let us help you achieve the dream of homeownership.