Educational information; not financial advice or a pre-approval. Subject to qualification: terms and funding can change and your lender confirms them. Berenice Cruz is a North Carolina real estate broker and does not originate loans.
Who it’s for
The benefit is for people who meet the minimum active-duty service requirements for their service period, per VA. Step one is the Certificate of Eligibility (COE), which confirms to your lender that you're entitled to the benefit.
VA doesn't publish a minimum credit score of its own. It says you must meet VA's credit, income and occupancy standards and your lender's as well, which is why two lenders can ask for different things. VA also points to a few other perks: fewer closing costs, which the seller may pay, and no penalty for paying the loan off early.
Requirements and sources
| Down payment | None, as long as the price doesn't exceed the appraised valueVA.gov — VA purchase loan · Page updated Jan 7, 2026 |
|---|---|
| Mortgage insurance | No PMI or MIPVA.gov — VA purchase loan · Page updated Jan 7, 2026 |
| Credit | No VA-set minimum; VA and lender standards applyVA.gov — Eligibility · Page updated Sept 22, 2026 |
| Certificate (COE) | Online, through your lender (Web LGY) or by mail with VA Form 26-1880VA.gov — How to request a COE · Page updated Sept 22, 2026 |
| Funding fee, first use | 2.15% under 5% down; 1.5% at 5% or more; 1.25% at 10% or moreVA.gov — Funding fee and closing costs · Page updated Oct 5, 2026 |
| Funding fee, later use | 3.3% under 5% down; 1.5% at 5% or more; 1.25% at 10% or moreVA.gov — Funding fee and closing costs · Page updated Oct 5, 2026 |
| Fee exemptions | Including service-connected disability compensation or a surviving spouse receiving DICVA.gov — Funding fee and closing costs · Page updated Oct 5, 2026 |
| Early payoff | No prepayment penaltyVA.gov — VA purchase loan · Page updated Jan 7, 2026 |
How it combines with other programs
A VA loan can be the first mortgage inside NCHFA's NC Home Advantage Mortgage™. And the $15,000 NC 1st Home Advantage Down Payment accepts military veterans even if they've owned a home before, subject to qualification. Since VA doesn't require a down payment, ask your lender how that help would apply in your case.
A participating lender confirms which combination applies and how each source of funds is used. Terms and funding can change; your lender confirms them.
Steps to apply
- Request your COE on VA.gov, or have your lender pull it through Web LGY.
- Ask two or more lenders what credit and income standards they apply.
- Find out whether you're exempt from the funding fee; if you receive disability compensation, keep your benefits letter handy.
- Write your offer with the appraisal in mind: zero down applies when the price doesn't exceed it.
- If state help interests you, ask about the NC Home Advantage Mortgage™ with VA financing.
The funding fee, by the numbers
VA's table, in effect since April 7, 2023, shifts with your down payment and whether you've used the benefit before. On first use, under 5% down the fee is 2.15% of the loan; on later use it rises to 3.3%. At 5% or more down it drops to 1.5% either way, and at 10% or more, to 1.25%. Beyond the table, other exemptions exist, such as certain service members with a disability rating before closing or a Purple Heart.
Frequently asked questions
Do I really need nothing down with a VA loan?
VA says no down payment is required as long as the sales price isn't higher than the home's appraised value. If the appraisal comes in below the price, talk with your agent and lender about your options before moving forward. Even at zero down, budget for closing costs, though VA notes the seller may pay them.
What credit score does VA require?
VA doesn't publish a minimum of its own. Its page says you must meet VA's credit, income and occupancy standards and your lender's too. In practice each lender sets its own bar, so it pays to ask more than one before you decide, subject to qualification.
How do I get my Certificate of Eligibility?
VA lists three ways: online at VA.gov, through your lender using the Web LGY system, or by mail with VA Form 26-1880. The certificate confirms to your lender that you qualify for the benefit. Requesting it early helps avoid delays once you have an accepted offer.
How much is the funding fee on first use?
Under 5% down, 2.15% of the loan; at 5% or more, 1.5%; at 10% or more, 1.25%, per the current table on VA.gov. On a $300,000 loan with nothing down, that comes to $6,450. If you receive service-connected disability compensation, you may be exempt.
Can I use NC 1st Home Advantage if I've owned before?
Yes, if you're a military veteran. NCHFA accepts veterans in that program without the first-time buyer test. The other requirements still apply: a 640 credit score, a $525,000 price cap, county income limits and legal residency, subject to qualification. It's paired with an NC Home Advantage Mortgage™.
Related programs
- NC Home Advantage Mortgage™
- NC 1st Home Advantage Down Payment
- FHA loan
- USDA loan
- Compare all
- Complete home-buying guide
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