There are three important and vital facts you need to understand about VA loans.

1. VA loans are specifically for Veterans, active duty military, certain National Guard and Reservists, and eligible surviving spouses.

2. The VA loan is not charity but an earned benefit, a part of the soldier’s actual pay, much like access to health care, disability compensation, education, and training. Veterans secured access to the VA loan because they served their country. Indeed, fact number two should probably really be fact number one.

The VA loan is a reusable benefit. You can use the benefit multiple times. My very first real estate client, by the way, was a Veteran. He thought, because he’d already used the VA loan on his first house, that he’d be ineligible for the loan on the purchase of his second house.

The Cntrl-Alt Podcast: Unlock Your $90,000 Edge

The VA Is Not The FHA

Like the FHA loan, the VA home loan is guaranteed by Uncle Sam. And, just like the FHA program, you visit a private lender, a bank, a credit union, or a mortgage company to obtain the VA mortgage. Just as the FHA does not grant loans but only guarantees loans through the Department of Housing and Urban Development (HUD), VA loans are guaranteed via the government, but this time through the U.S. Department of Veterans Affairs, not HUD.

The biggest difference between the VA and the FHA—and definitely a conventional mortgage loan product—is that you are not required to carry mortgage insurance. For most borrowers, mortgage insurance (MIP for FHA or PMI for conventional) runs anywhere from 0.5% to 1.5% of the loan amount per year.

Cost Savings

Here’s what that looks like on a $400,000 home:

• FHA loan: about $225–$300/month in MIP.

• Conventional loan with PMI: about $150–$350/month, depending on credit score and down payment.

• VA loan: $0/month — no mortgage insurance.

So you’re looking at an average monthly savings of $200–$300 just from not paying for insurance.

Assume you keep the loan for 30 years (which most people don’t, but it’s a good baseline):

• $250/month × 12 months × 30 years = $90,000 saved.

Even if you sell or refinance after 7 years—the average lifespan of a mortgage—you’d still pocket around $21,000 in avoided insurance payments.

The Lower Interest Rate Kicker

That’s in addition to the VA loan’s lower average interest rate (typically 0.25–0.50% below conventional), which can save another $80–$120/month.

Combine those, and you’re looking at a total savings of $300–$400 per month—enough to cover a car payment, college fund, or a serious espresso habit.

Real Estate 101

Real estate without the real-estate-speak.

A Coffee With Steve Publication

Who Qualifies for a VA Loan in New Hampshire

If you’ve served for at least 90 continuous days—that’s all at once, without a break in service, you meet the minimum active-duty service requirements. So you don’t have to be a veteran to qualify for a VA loan. You at least have to be active.

If you are a Veteran, things get a bit complicated with the minimum length requirements, and are based upon when you exactly served. For most Veterans since August 2, 1990 (Gulf War to present), that means 24 continuous months or the full call-up period of at least 90 days, with exceptions for those discharged early or for a service-connected disability.

Gulf War period to present (Aug 2, 1990 – today)
You qualify if you served:

• 24 continuous months, or

• The full active-duty period (at least 90 days), or

• At least 90 days with a qualifying exception, or

• Fewer than 90 days if discharged for a service-connected disability

Between Sept 8, 1980 – Aug 1, 1990
You qualify if you served:

• 24 continuous months, or

• The full active-duty period (at least 181 days), or

• At least 181 days with a qualifying exception, or

• Fewer than 181 days if discharged for a service-connected disability

Officers between Oct 17, 1981 – Aug 1, 1990
Same as above:

• 24 continuous months, or

• The full active-duty period (at least 181 days), or

• At least 181 days with a qualifying exception, or

• Fewer than 181 days if discharged for a service-connected disability

Post-Vietnam (May 8, 1975 – Sept 7, 1980)
You qualify if you served:

• 181 continuous days, or

• Fewer than 181 days if discharged for a service-connected disability

Officers between May 8, 1975 – Oct 16, 1981
Same requirement:

• 181 continuous days, or

• Fewer than 181 days if discharged for a service-connected disability

Vietnam War (Aug 5, 1964 – May 7, 1975)
You qualify if you served:

• At least 90 total days, or

• Fewer than 90 days if discharged for a service-connected disability

In-country Vietnam (Nov 1, 1955 – May 7, 1975)
Same requirement:

• At least 90 total days, or

• Fewer than 90 days if discharged for a service-connected disability

Post-Korean War (Feb 1, 1955 – Aug 4, 1964)
You qualify if you served:

• At least 181 total days, or

• Fewer than 181 days if discharged for a service-connected disability

Korean War (June 27, 1950 – Jan 31, 1955)
You qualify if you served:

• At least 90 total days, or

• Fewer than 90 days if discharged for a service-connected disability

Post-WWII (July 26, 1947 – June 26, 1950)
You qualify if you served:

• 181 continuous days, or

• Fewer than 181 days if discharged for a service-connected disability

World War II (Sept 16, 1940 – July 25, 1947)
You qualify if you served:

• At least 90 total days, or

• Fewer than 90 days if discharged for a service-connected disability

You’ll also need to apply for the Certificate of Eligibility (COE) from the VA, which your lender uses to verify your entitlement. You can download the COE here.

Property Eligibility & Constraints

There are, of course, constraints to keep in mind.

The property must meet VA Minimum Property Requirements (MPRs)—safe, structurally sound, and sanitary. For the most part, the MPRs are equivalent to the FHA standards.

However, the VA sticker is much stricter. Utilities must be on and working at appraisal. Heating systems are a major focus, especially in cold states like us up here in New Hampshire and Maine. Since we’re within spitting distance of Canadian snow, those rooms must be able to reach a livable temperature.

Roof life must be solid. Any private roads or wells require legal access and adequate maintenance agreements. Think habitability first. If the home is not move-in ready from the get-go, the fixer-upper doesn’t usually qualify unless repairs are completed before closing.

The VA Funding Fee

The VA Funding Fee is a one-time charge, not a monthly add-on. It’s how the VA keeps the program self-sustaining, so taxpayers aren’t footing the bill for everyone else’s zero-down loans.

It’s a percentage of the loan amount, generally 1.25% to 3.3%, depending on your down payment and whether it’s your first or subsequent VA loan. You can pay it upfront at closing or roll it into the loan—most buyers just roll it in.

It’s not recurring like PMI or FHA’s MIP. Once you’ve paid, that’s it.

Of course, you don’t pay the fee if you: 1) receive VA disability compensation (even 10% qualifies), 2) are a surviving spouse of a veteran who died in service or from a service-connected disability, or 3) are an active-duty Purple Heart recipient

The Bank’s Limiting Beliefs

Remaining entitlement is one of those phrases that sounds like bureaucratic gobbledygook until you realize it’s the VA’s way of saying: “How much of your superpower is left?”

Every eligible veteran gets a certain amount of loan guarantee from the VA — it’s not money in your pocket, but the amount the VA promises to back if you default. That guarantee is what allows lenders to give you no-down-payment loans with killer terms.

For most veterans right now, the full entitlement covers 25% of the loan amount — meaning if you buy a $400,000 home, the VA guarantees $100,000 of it.
If you’ve used your entitlement previously and still hold an original loan, or if entitlement is “used up” you may be required to put a down payment for amounts above certain thresholds.

Also, many people might say that the VA mortgage doesn’t have any kind of loan limit; however, the real limit is what the lender will approve, plus what the property appraises for, plus your remaining entitlement.

And, the lender still requires you to meet credit, income (residual income), and debt-to-income (DTI) standards. The VA provides guidelines (for example DTI ~41%), but lenders may vary—so it’s a good idea to shop around mortgage brokers.

And lastly, to use the VA mortgage, this is not an investment property. You must occupy the home as your primary residence.

Why Realtors, Sellers, & Mortgage Brokers Think They Hate VA Loans

The VA loan has a reputation problem that goes back decades, when VA appraisals dragged on for weeks and every property had to pass a rigid checklist of “Minimum Property Requirements.” Even though today’s VA loans close nearly as fast as conventional ones, the myth of red tape still lingers. Add to that a fear that sellers might be on the hook for extra fees or repairs, and many agents reflexively push their clients to accept a conventional offer instead.

Many of you know I hold several degrees in English Lit and creative writing, and that journey really began at the University of Iowa. Back then, in my mid-twenties, wet behind the ears with a newborn on my knee, if I had known that UoI was the top school in the country for creative writing, I would have been too intimidated to have even thought about applying.

I’d gotten the advice to attend UofI from Patricia Wrede. She read some of my fantasy novel openings and said, “Uhm, Steve this needs a lot of work.”

I asked her what I should do—not really understanding exactly who she was at the time. We were online buddies on an old electronic bulletin board system (something akin to Discord these days), and I wasn’t that well-read. But she is of the Dealing with Dragons Enchanted Forest Chronicles fame.

She wrote back, “Well, if I had to do it all over again, I’d go to the University of Iowa.”

So did, and was accepted into the Iowa Writers Workshop as an undergrad. It was the easiest class I had ever taken because I had no fathomable idea of where I was or what I was doing, other than I knew I just needed to do the work.

It wasn’t until after I had attended the University of Iowa that I found out how difficult that experience was supposed to be.

My very first real estate client was a Veteran who didn’t know he was eligible for another VA loan. He thought it was a one and done. The mortgage broker said the VA was the best deal for him.

This was during the height of the Pandemic-era house-craze. High competition, lots of cash offers, ridiculous home prices. We were one of two top-tier offers, up against an all-cash offer to be exact.

And my client won.

The biggest concern was peeling paint on the railing into the house, which the seller took care of without even being asked.

I barely noticed my client utilized a VA loan the transaction was so simple, easy, and fast.

It wasn’t until after I had transacted my first VA mortgage that I found out how supposedly difficult that experience was supposed to be.

What’s really happening is psychology. In a competitive market, any perceived complication—real or imagined—makes people nervous. Listing agents want smooth, predictable deals, and VA loans sound like they might come with surprises. That perception becomes gospel, even when data shows VA buyers close at the same rate as everyone else. Most of the friction isn’t structural; it’s ignorance.

The irony, of course, is that VA buyers are often among the strongest, most reliable clients. Steady income, disciplined credit, and the backing of a federal guarantee. The smartest agents see through the noise: a VA offer isn’t weaker; it just needs narrated differently. In the right hands, a VA client is not a bureaucratic headache but a badge of earned trust.

For Agents & ISAs: How to Talk About VA Loans with Clients

If you’re part of my ISA network (or you just want to sound like you know your stuff when someone brings up conventional mortgages), I’ve built a short reference guide:

👉 “How to Talk About VA Loans Like a Pro.”

It breaks down:

• How to explain the VA loan in one line

• What to say when someone calls it “complicated”

• How to handle seller objections without losing the deal

• How to talk eligibility, entitlement, and funding fees like a pro

• How to turn VA expertise into confidence — and confidence into clients

Download it, study it, steal every line:

☕Other Articles in this Series:

The one home loan cash-strapped people ask me about is the USDA loan. These conversations often begin with the phrase, “You’ve probably never heard of this before, but…”

FHA loans are designed for buyers who’ve been told ‘no’ by traditional lenders — whether because of credit history, limited savings, or life just happening.

Conventional mortgages are the mainstream private-market home loan in the U.S. Unlike FHA, VA, or USDA home loans, they are not backed by Uncle Sam.

About this publication.

Coffee with Steve is an independent publication by Steve Bargdill. Views are my own and do not represent Keller Williams Coastal & Lakes & Mountains Realty (“KWCLM”) or any other organization. Each Keller Williams Office is Independently Owned and Operated.

Not advice. Content is informational and educational; it is not legal, tax, or financial advice and does not guarantee results. Talk to a licensed professional who knows your situation before you act.

No agency created. Reading this does not create an agency relationship or agreement for services. Brokerage representation requires a separate written agreement with KWCLM.

Licensure. I am licensed in New Hampshire. Equal Housing Opportunity.

Wire-fraud warning. During representation by Keller Williams, you will never be asked via email to wire funds to anyone, including a title company. Do not follow email wiring instructions. Always verify by phone using a trusted number.

You can reach Keller Williams Coastal and Lakes & Mountains Realty at 603-610-8500 or Steve Bargdill directly at 603-617-6018.

Pronouns: he, they