In Onslow and Pender Counties, the VA loan isn't just a "niche" product—it is the lifeblood of our market. With Camp Lejeune and New River Air Station driving our local economy, you would think every seller and agent would be a VA expert.

Yet, in late 2025, damaging myths persist. We still see sellers hesitate to accept VA offers because they fear "low appraisals" or "excessive repairs." We still see buyers warned that they can't compete in a multiple-offer situation.

The reality? A well-structured VA offer, backed by a knowledgeable local agent, is often the strongest one on the table. Here is the truth about VA loans in the Cape Fear region.

Myth 1: "VA Appraisals Kill Deals"

The Fear: Sellers worry a VA appraiser will flag every chipped paint fleck or undervalue the home, forcing them to lower the price.

The Reality:

The "Tidewater" Safety Net: Unlike conventional loans, the VA has a specific process called the Tidewater Initiative. If an appraiser sees that the value is coming in low, they must stop and notify the lender before finalizing the report. This gives us (your agents) 48 hours to provide better comparable sales to support the price. It is a built-in second chance that other loans don't have.

The "Coastal" Repair List: VA appraisers focus on "Minimum Property Requirements" (MPRs)—specifically safety and sanitation. In our coastal market, the "Big Three" we see are:

• Peeling Paint: Due to pre-1978 lead paint rules.
• Wood Destroying Insects: Termites are active here; a clear CL-100 letter is key.
• Handrails: Especially on high beach house decks.

Fix: These aren't deal killers. We often negotiate for the seller to fix these minor items before the appraiser arrives, or we can sometimes escrow funds for repairs after closing (weather permitting).

Myth 2: "VA Buyers Have No Skin in the Game"

The Fear: Because VA loans allow 0% down, sellers assume the buyer has no cash and might flake out if costs rise.

The Reality: VA buyers are often the most financially stable buyers in the market.

The "Residual Income" Test: The VA has stricter requirements for "leftover" monthly income than conventional loans. A VA approval often means the buyer has more disposable income than a conventional buyer with the same salary.

The NC Advantage: Eligible veterans in North Carolina can receive $15,000 in down payment assistance through the NC 1st Home Advantage Down Payment program (a 0% deferred second mortgage). This means a "0% down" buyer might actually have $15k in equity capability available to cover closing costs or buy down their rate.

Myth 3: "The VA Escape Clause Makes the Contract Worthless"

The Fear: Sellers hate the VA Amendment to Contract (Form 2A4-T) because it says the buyer can walk away penalty-free if the home doesn't appraise.

The Reality (The NC Friction Point):

Federal vs. State: Federal VA rules protect the veteran from losing Earnest Money if the appraisal comes in low. But North Carolina’s Due Diligence Fee is paid directly to the seller and is almost always non-refundable, creating a legal tension.

The Strategy: To win a competitive offer, we don't waive the appraisal (you legally can't with a VA loan). Instead, we structure the Due Diligence Fee wisely. We may increase the purchase price but keep the Due Diligence fee modest to protect the buyer’s risk while still appealing to the seller.

Warning: Any attempt to "waive" the VA Escape Clause is federally illegal and void.

Myth 4: "Sellers Have to Pay All the Closing Costs"

The Fear: Sellers think they are responsible for all of the buyer's "non-allowable" fees.

The Reality: This is an outdated rule.

The Change: While the VA limits certain fees a veteran can pay, the list of "non-allowable" fees has shrunk significantly. In 2025, buyers can pay their own origination fees and many customary costs if needed to compete.

The Market: We can structure the offer so the seller nets exactly the same as they would with a conventional buyer.

The Bottom Line

The VA loan is a benefit earned by service, not a handicap in the housing market. The difference between a rejected VA offer and an accepted one is often the agent presenting it.

You need a team that knows how to explain the Tidewater Initiative to a nervous listing agent and has a list of contractors ready to fix a loose handrail in 24 hours. At Aspyre Realty Group, we are honored to serve those who serve. Let us turn your Certificate of Eligibility into a set of keys.