Loan Programs
VA Loans in Minnesota and Wisconsin: The Benefit Too Many Veterans Leave Unused
By Andrew B. Nilssen, NMLS 253300 •June 10, 2026 •3 min read
Of all the loan programs I work with, the VA loan is the one most often left on the table. I regularly meet veterans in the St. Croix Valley who assumed the benefit expired, or got used up, or could not possibly be as good as it sounds.
It has not, it did not, and it is.
What the VA loan actually offers
The VA home loan program backs mortgages for eligible veterans, active-duty service members, qualifying National Guard and Reserve members, and certain surviving spouses. The Department of Veterans Affairs guarantees a portion of the loan, and that guarantee lets lenders offer terms nothing else matches:
- Zero down payment on a primary residence.
- No monthly mortgage insurance. Not PMI, not FHA-style premiums. None.
- Competitive rates, frequently as good as or better than conventional.
- Limits on certain fees the borrower can be charged.
Stack that against the alternatives: FHA wants 3.5 percent down plus lifetime insurance premiums, conventional wants PMI until 20 percent equity. For an eligible buyer, VA usually wins before the tiebreakers.
The funding fee, explained honestly
The program’s main cost is the funding fee, a one-time charge calculated as a percentage of the loan amount. It varies with your down payment and whether you have used the benefit before, and it can be financed into the loan rather than paid in cash.
The important exemption: veterans receiving compensation for a service-connected disability are typically exempt from the funding fee entirely. If that is you, the VA loan is about as close to free leverage as mortgage lending gets.
Common myths, quickly retired
“I used it in 2009, so it is gone.” Entitlement is reusable. Sell the old house, restore the entitlement, use it again. In some situations you can carry two VA loans at once.
“It only works for cheap houses.” For most borrowers with full entitlement, the practical ceiling is what your income and credit support, not an arbitrary price cap.
“Sellers will not take VA offers.” A prepared VA offer closes on schedule like anything else. What sellers actually fear is sloppy financing, and that is lender-dependent, not program-dependent. A pre-approval from someone who closes VA loans routinely answers the question before it is asked.
“The house has to be perfect.” VA appraisals enforce minimum property requirements aimed at safety and soundness. Normal homes in normal condition pass every day across Hudson, River Falls, Woodbury, and Stillwater.
Using the benefit in MN and WI
The VA loan is federal, so it works identically on both sides of the St. Croix. A few local notes:
- Cross-border flexibility. Licensed in both states, I can carry one VA pre-approval across your whole search area, whether that is Oakdale or across the river in Hudson.
- Rural properties welcome. Acreage outside New Richmond or Baldwin is fine, provided the home meets property requirements. If you are comparing zero-down options in those towns, also peek at USDA eligibility, though VA usually wins for those who qualify for both.
- Pair with a real budget. Zero down does not mean zero planning. My guide to how much house you can afford applies doubly when nothing forces you to save a down payment first.
Getting started
The paperwork starts with your Certificate of Eligibility, which your lender can typically pull electronically in minutes. From there it is a normal pre-approval: income, credit, assets, and a letter that makes your offer real.
If you served, this benefit was earned. Let us find out exactly what it is worth in your situation. Book a free discovery call or call or text 651-398-4779.
Final Recap
- VA loans offer zero down payment and no monthly mortgage insurance, which beats FHA and conventional for most eligible buyers.
- Eligibility covers veterans, active-duty service members, National Guard and Reserve members meeting service requirements, and certain surviving spouses.
- Most borrowers pay a one-time funding fee that can be rolled into the loan. Veterans receiving disability compensation are typically exempt.
- VA loans are for primary residences and work the same in Minnesota and Wisconsin.
- The benefit is reusable. Using it once does not spend it forever.
Good to know
Frequently Asked Questions
Do VA loans really require no down payment?
Yes. Eligible borrowers can finance 100 percent of the purchase price on a primary residence, subject to the lender's approval of income, credit, and the home's appraised value. No down payment and no monthly mortgage insurance is the core of the benefit.
What is the VA funding fee?
The funding fee is a one-time charge from the VA that keeps the program running, calculated as a percentage of the loan amount that varies with your down payment and whether you have used the benefit before. It can be financed into the loan, and veterans receiving service-connected disability compensation are typically exempt.
Can I use a VA loan more than once?
Yes. VA entitlement is reusable, and in some cases veterans can even have two VA loans at once. If you used the benefit years ago, you almost certainly can use it again.
Are VA loan rates better than conventional rates?
VA rates are frequently as good as or better than comparable conventional rates because the VA guarantee reduces lender risk. Combined with no mortgage insurance, the monthly payment usually wins even when the rates look similar.
Is a VA loan harder to close in a competitive market?
Not when the file is prepared well. VA appraisals enforce minimum property requirements and can take a little longer in some markets, but a strong pre-approval from a lender who closes VA loans regularly keeps your offer competitive in Hudson, Woodbury, or anywhere else.
