How do VA loans work when buying in Fayetteville, NC?
A VA loan lets eligible service members and veterans buy a primary home in Fayetteville with no VA-required down payment and no private mortgage insurance. In 2026, first-time users pay a VA funding fee of 2.15% with less than 5% down unless they are exempt. In North Carolina you usually still pay a due diligence fee and earnest money up front, and the home must pass a VA appraisal.
What is a VA loan?
A VA loan is a mortgage made by a private lender and partly guaranteed by the U.S. Department of Veterans Affairs. That guaranty is why lenders can offer it with no down payment required by the VA and no PMI. Your lender may still set its own credit and income standards, and entitlement limits can affect how much you can borrow with nothing down.
To start, you need a Certificate of Eligibility (COE), which shows your entitlement and whether you are exempt from the funding fee. Most lenders can request it for you.
How much is the VA funding fee in 2026?
The funding fee is a one-time charge paid to the VA. For a purchase loan in 2026, it depends on your down payment and whether you have used a VA loan before:
First use, less than 5% down: 2.15%
First use, 5% to less than 10% down: 1.5%
First use, 10% or more down: 1.25%
Subsequent use, less than 5% down: 3.3%
Subsequent use, 5% or more down: 1.5%, or 1.25% with 10% or more
On a $300,000 loan with no down payment and first use, the fee is $6,450. Many buyers roll it into the loan instead of paying cash. Ask your lender how that changes your monthly payment.
Who is exempt from the funding fee?
Veterans receiving, or eligible to receive, VA disability compensation
Purple Heart recipients on active duty
Eligible surviving spouses
Make sure your COE shows the exemption before closing. If your disability claim is still pending, tell your lender early.
What does the VA appraisal check?
The VA appraisal does two jobs. It sets the home's value for the loan, and it checks the home against the VA's Minimum Property Requirements (MPRs). MPRs are meant to make sure the home is structurally sound, sanitary and livable. Common issues include roofs near the end of their life, heating or water systems that do not work, missing handrails and peeling paint on homes built before 1978. In North Carolina, VA loans commonly call for a wood-destroying insect (termite) report as well; your lender will confirm.
The VA appraisal is not a home inspection. Get your own inspection during the due diligence period. If the appraisal comes in below the price, the VA's amendatory clause, which is added to VA purchase contracts, means you do not have to complete the purchase or lose your earnest money because of the low value. You can renegotiate, pay the difference in cash, ask for a reconsideration of value, or walk away.
What are the VA occupancy rules?
At purchase, you must intend to live in the home as your primary residence. Lenders generally expect you to move in within a reasonable time, often about 60 days, and there are allowances for deployment, such as a spouse occupying the home. Your lender will confirm what applies to you. The rule is about your intent when you buy. Later, you can rent the home out.
How do VA loans work with the NC due diligence fee and earnest money?
This is the part that surprises many buyers arriving on PCS orders. A VA loan may need no down payment, but a North Carolina purchase under NC REALTORS® Form 2-T usually involves two payments before closing:
Due diligence fee: a negotiated amount paid directly to the seller. It is due on the Effective Date and must be delivered no later than the next banking day. It becomes the seller's money on the Effective Date, so it is generally non-refundable, but it is credited to you at closing.
Earnest money: held in escrow. The initial deposit is due within 5 days unless otherwise agreed. You generally get it back if you terminate during the due diligence period.
Two tips for VA buyers. First, schedule the VA appraisal as early as possible in your due diligence period, because the amendatory clause protects your earnest money but not your due diligence fee. Second, ask your lender how these credits will be applied at closing, since VA rules limit cash back to the buyer. Sellers can also pay some of your costs; VA rules cap certain seller concessions at 4% of the home's value, separate from normal closing costs. Talk to your lender about how to structure an offer.
What is VA entitlement, and can I use it again?
Entitlement is the amount the VA guarantees for you. With full entitlement, the VA does not cap your loan amount, though lenders set their own limits. Entitlement is reusable:
It can often be restored once a VA loan is paid off, such as when you sell the home.
If you keep the home but pay off the loan, you may get a one-time restoration.
If you keep the home and the loan, remaining entitlement may allow a second VA loan, for example if you PCS back to Fort Bragg later.
Ask your lender to review your COE before you assume how much entitlement you have left.
Can I keep my Fayetteville home as a rental after I PCS?
Yes. Once you have bought the home with honest intent to live in it, you can rent it out when orders move you. Your VA loan stays in place. Keep in mind that the entitlement on that loan stays tied up until the loan is paid off or restored.
Rental demand near Fort Bragg is steady. Median house rents in Fayetteville were $1,500 for 3 bedrooms and $2,075 for 4 or more bedrooms (Rentometer, February 2026). I work in property management every day, and owners who plan for renting before they PCS, with reserves and a maintenance plan, have a much easier time. Talk to a tax professional about how rental income and a later sale will be taxed.
As a former Air Force member who made three PCS moves, I know the VA loan is one of the most useful benefits you earned. Using it well comes down to planning around North Carolina's timeline.
Frequently asked questions
Do I need a down payment for a VA loan in Fayetteville?
The VA does not require one, though lender or entitlement limits may apply. You will usually still need cash for the North Carolina due diligence fee and earnest money, which are credited at closing.
Can I use my BAH to pay a VA mortgage?
Yes. Active-duty buyers can use BAH toward a mortgage payment. The 2026 Fort Bragg rate for an E-5 with dependents is $1,806 a month.
What happens if the VA appraisal is low?
The amendatory clause means you are not required to buy or lose earnest money because of the low value. You can renegotiate, pay the difference, request a reconsideration, or terminate.
Can I have two VA loans at once?
Sometimes. If you keep your first home and loan, remaining entitlement may allow a second VA loan. Your lender can check your COE.
Next steps
Planning a VA purchase around Fort Bragg? Download my free Home Buyer's Guide and check my area and PCS page. Then call or text me at 910-718-9733, seven days a week, and I can help you build a timeline that fits your report date.
About the author
Jesse Dickenson is a REALTOR® and the Property Manager at Brookdale Property Management LLC in Fayetteville, NC (NC broker license #368428). A U.S. Air Force veteran with three PCS moves behind him, he helps buyers, sellers, and rental owners across Cumberland County and the Fort Bragg area. Call or text 910-718-9733, 7 days a week.
