Pender County has quietly become one of the most popular places in the Cape Fear region for military families and veterans to put down roots. Hampstead, Surf City, and the rest of eastern Pender sit between Wilmington and the Jacksonville area, which makes them a natural fit for buyers who work at or near Camp Lejeune but want a coastal lifestyle and a little more breathing room. For many of those buyers, a VA home loan is the most powerful tool they have. Here’s how it works in this market, and what to watch for.
Why VA Loans Matter Right Now
Borrowing costs are still the headline for every buyer this fall. Freddie Mac’s Primary Mortgage Market Survey for October 29, 2026 put the national 30-year fixed average at 7.24%, down from 7.32% the week before and the lowest reading of the month. That survey tracks conventional loans with 20% down, so it isn’t a VA quote, but it shows the backdrop: every dollar you don’t have to bring to closing, and every monthly cost you can avoid, counts more when rates are this high.
That’s where a VA loan stands out. According to the U.S. Department of Veterans Affairs, the VA home loan program doesn’t require a down payment or monthly mortgage insurance. For an eligible buyer, that can make a Hampstead or Surf City home reachable years sooner than saving 20% would.
The VA Loan Basics
No down payment and no monthly mortgage insurance
Eligible veterans, service members, and some surviving spouses can buy with nothing down. Unlike most low-down-payment conventional or FHA loans, there’s no ongoing mortgage insurance premium added to the monthly payment.
The VA funding fee
Instead of mortgage insurance, most VA borrowers pay a one-time funding fee. Under the VA’s current chart, a first-time user putting less than 5% down pays 2.15% of the loan amount, and that drops to 1.5% with 5% down and 1.25% with 10% down. Subsequent use with less than 5% down is 3.3%. The fee can be rolled into the loan. Importantly, the VA waives the funding fee for buyers who receive VA compensation for a service-connected disability, along with a few other groups listed on the VA’s site.
Seller concessions
The VA allows sellers or builders to help with a buyer’s closing costs. Concessions, such as paying the funding fee or prepaying hazard insurance, are capped at 4% of the home’s reasonable value, according to the VA. In a market with more inventory than we’ve seen in years, that’s a real negotiating lever.
Why Eastern Pender Works for Military Buyers
Hampstead offers established neighborhoods, newer subdivisions along the U.S. 17 corridor, and Topsail-area schools, with Wilmington to the south and the Jacksonville area to the north. Surf City and Topsail Island add beach access for buyers who want a primary home near the water. Farther west, Burgaw and Rocky Point appeal to buyers looking for more land and a slower pace, and some rural areas there may also qualify for USDA financing, which we covered in our USDA loan guide for Pender County.
Commute times vary a lot depending on which gate you use and the time of day, so we always suggest driving your route at rush hour before you commit to a neighborhood.
Local Details VA Buyers Should Plan For
Flood zones and insurance
Much of coastal Pender sits near marsh, creeks, and the sound. If a home is in a special flood hazard area, your lender will require flood insurance, and that premium becomes part of your monthly budget. Check the flood zone and get insurance quotes early in due diligence. Our flood zone guide walks through the basics.
Wells and septic
Many Pender homes outside town limits use private wells and septic systems. VA appraisals have minimum property requirements, and lenders may ask for water testing or septic documentation. Budget time for those inspections.
The VA appraisal
The VA appraisal checks both value and basic livability. If it flags a repair, such as peeling paint on an older home or a damaged roof, the issue usually has to be fixed before closing. Writing a clear repair plan into your offer helps keep things on schedule.
A Property Tax Break for Disabled Veterans
North Carolina offers a disabled veteran homestead exclusion that removes the first $45,000 of a qualifying home’s appraised value from property taxes. According to Pender County’s Property Tax Relief page, there’s no age or income requirement, but the owner must have a 100% permanent and total service-connected disability, own and live in the home as of January 1, and file Form NCDVA-9 (certified by a veterans service office) with the county tax office by June 1. Surviving spouses may also qualify under the rules described by the N.C. Department of Military and Veterans Affairs.
Tips for Making a Strong VA Offer
- Get fully pre-approved with a lender who closes VA loans regularly, and have your Certificate of Eligibility ready.
- Ask about seller-paid closing costs. With more homes on the market, many sellers are open to concessions.
- Keep your due diligence period long enough for well, septic, and flood insurance checks.
- Look at new construction too. Some builders in eastern Pender offer incentives that can stack with VA financing.
Frequently Asked Questions
Can I use a VA loan on a beach home in Surf City or Topsail Beach?
VA loans are for primary residences, so you need to live in the home. A beach home can qualify if it’s where you’ll actually live, but a pure vacation home or rental won’t.
Do I have to pay the VA funding fee?
Most borrowers do, but the VA waives it for buyers receiving compensation for a service-connected disability and a few other groups. Your lender can confirm your status.
Can I use a VA loan more than once?
Yes. VA entitlement can be reused, though the funding fee is higher after first use when you put less than 5% down.
Are VA loans harder for sellers to accept?
Not when they’re well prepared. A strong pre-approval and a clear plan for appraisal repairs go a long way with listing agents.
Thinking About Buying in Pender County?
Whether you’re getting new orders, retiring from service, or ready to stop renting near base, we’d love to help you find the right fit in Hampstead, Surf City, Burgaw, or anywhere in the Cape Fear region. Reach out to Aspyre Collective to start your VA home search with a local team that knows these neighborhoods.
