VA Loans & Coastal Homes: What Every Veteran Should Know

If you’re a veteran dreaming of a beach house in Coastal North Carolina — first of all, thank you for your service. Second, good news: that dream might be more within reach than you think. VA loans are an incredible benefit for those who’ve served, but when it comes to buying a home at the coast, there are a few extra things to know.

Whether you’re eyeing a second home, a relocation to retire in Southport, or a brand-new build on Oak Island, let’s break down how the VA loan can help — and what to watch for.

🪖 VA Loan Basics (Quick Recap)

Let’s start with the big wins:

• 0% down payment (yes, really)

• No private mortgage insurance (PMI)

• Competitive interest rates

• Limited closing costs

• A VA appraisal to ensure you're not overpaying

The loan is backed by the Department of Veterans Affairs, but it’s issued by private lenders. You still need to qualify with income, credit, and property standards — but the benefits? Huge.

🏖️ Buying at the Coast? Here's the Catch

VA loans can be used for primary residences only — which means:

• No vacation homes

• No investment-only properties

• No Airbnbs or weekend getaways you don’t occupy

👉 BUT! If you’re relocating full-time, retiring to the beach, or making Coastal NC your new home base, the VA loan is a perfect fit.

Planning to build? You can also use a VA construction loan — and we’ll chat more about that in an upcoming blog.

🏡 What to Expect in a Coastal VA Home Search

Here’s where things get a little more local:

1. Flood Zones & Wind Insurance

VA loans require the property to be insurable. In flood-prone or hurricane-wind areas like Oak Island, Holden Beach, and even parts of Wilmington, you may need wind & hail coverage or flood insurance — and not all insurance quotes are equal. Work with an agent (hi 👋) who knows how to navigate this.

2. Appraisal Requirements

The VA has minimum property standards. If the home has peeling paint, broken windows, old wiring, or water damage, it may not pass a VA appraisal without repairs. Coastal homes can age fast due to salty air — so this comes up more often than you think.

3. Well & Septic? Not a Dealbreaker.

Rural or unincorporated areas (like parts of Bolivia, Winnabow, or Sunset Harbor) often rely on private wells or septic systems. VA loans allow this, but it may trigger extra inspections. Again, not a big deal — just something to plan for in your timeline.

🪪 VA Funding Fee Tip

If you’re using a VA loan for the first time, expect a funding fee of 2.15% (it’s rolled into the loan amount). BUT — and this is a biggie — if you have a VA disability rating, even 10%, you may be exempt from the fee entirely.

💡 Pro tip: If you’re still waiting on your VA rating, talk to your lender. Timing matters!

💬 Real Talk from the Real Kim Cotton

I’ve helped veterans buy property all around Brunswick County — and no two journeys are the same. Some clients had to wait on their VA disability rating, others worked through inspections and timelines — but they all had one thing in common: they knew what they wanted, and they fought for it — just like they always have.

If you’re thinking about using your VA benefits to move to the coast, don’t go it alone. Let’s chat about your goals, timeline, and which communities might be the best fit. Whether you're just starting the pre-approval process or you're ready to put down roots, I’m here to guide the way.