VA loans in Minnesota, explained by a Navy veteran.
Steve Lawrence (NMLS #1983107) is a U.S. Navy veteran and a Minnesota-licensed loan originator at BLG Home Mortgage. This is how he explains VA loans to the veterans and service members he works with.
The short answer
A VA loan is a mortgage partly guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, service members, and certain surviving spouses. For eligible borrowers there is no down payment requirement and no monthly mortgage insurance, though a one-time VA funding fee applies unless you are exempt. BLG Home Mortgage originates VA loans across Minnesota through Edge Home Finance, LLC, a private broker that is not affiliated with the VA.
Who is eligible
Eligibility comes from service: veterans who meet minimum service requirements, current active-duty service members, National Guard and Reserve members who meet their own service requirements, and certain surviving spouses. You prove it with a Certificate of Eligibility (COE). Your originator can usually request the COE through the lender's system in minutes; you can also apply at VA.gov. If you need your DD-214, every Minnesota county has a County Veterans Service Officer who can help.
Entitlement and loan limits
Entitlement is the amount the VA will guarantee on your behalf. If you have full entitlement — you've never used it, or you used it and it was restored — VA county loan limits don't apply to you, though lenders still set their own maximums and you still have to qualify for the payment.
If part of your entitlement is tied up in another VA loan, county loan limits come back into the calculation and a down payment may be required above a certain amount. Entitlement is generally restored when a VA loan is paid off and the home is sold, and VA allows a one-time restoration if you pay the loan off but keep the home.
The funding fee, and who doesn't pay it
The VA funding fee is a one-time charge that helps fund the program. The amount depends on the loan type, whether it's your first use, and how much you put down; it can be paid at closing or financed into the loan, and it's itemized on your Loan Estimate.
You're exempt if you receive VA compensation for a service-connected disability (or would receive it if not for retirement or active-duty pay), are a surviving spouse receiving Dependency and Indemnity Compensation, or are an active-duty service member who has received the Purple Heart. VA confirms exemption status on the COE, so check it early.
What VA loans don't charge, and what they check
No monthly mortgage insurance. VA loans don't carry the monthly mortgage insurance that conventional loans with smaller down payments and FHA loans do.
Limits on borrower fees. VA restricts which closing costs a veteran can be charged and caps certain seller concessions. Sellers can pay many of your closing costs.
Appraisal and Minimum Property Requirements. A VA-assigned appraiser checks that the home is safe, structurally sound, and sanitary. Peeling paint on older homes, missing handrails, roof problems, and well or septic issues are the items that most often need repair before closing in Southern Minnesota.
Credit and income. The VA doesn't set a minimum credit score; lenders do, and they differ. VA underwriting also uses a residual income test — money left over each month after major expenses — which is one reason VA loans tend to perform well.
Occupancy. The home must be your primary residence, generally occupied within a reasonable time after closing. A VA loan can finance a property with up to four units if you live in one.
Refinancing a VA loan
The Interest Rate Reduction Refinance Loan (IRRRL) is a streamline refinance for borrowers who already have a VA loan. It generally requires less documentation than a standard refinance and must provide a net tangible benefit, with rules on how quickly closing costs are recouped.
A VA cash-out refinance can replace a VA or non-VA loan and can take equity out, with full underwriting and an appraisal. Whether either makes sense depends on how long you'll keep the home — the FAQ walks through the break-even math.
Who handles these loans at BLG
U.S. Navy veteran. VA purchase and IRRRL refinances, first-time buyers, conventional, FHA, and USDA.
Profile & licensing · (507) 779-4937Ranked #1 in Minnesota by closed loan units through United Wholesale Mortgage in 2023, 2024, and 2025. Conventional, FHA, VA, USDA, jumbo, construction, self-employed, and non-QM files.
Profile & licensing · (507) 351-0581FHA, VA, USDA, Fannie Mae and Freddie Mac programs, and renovation loans.
Profile & licensingCommon questions
Can I use a VA loan more than once?
Yes. VA home loan benefits are reusable. Your available entitlement determines how the next loan is structured, and entitlement is generally restored when a prior VA loan is paid off and the home is sold.
Does the VA require a minimum credit score?
No. The VA does not set a minimum credit score. Individual lenders do, and their requirements differ, which is one reason a broker that can compare lenders is useful on VA files.
Is there a VA loan limit in Minnesota?
Borrowers with full entitlement are not subject to VA county loan limits, though lenders set their own maximums. Borrowers with partial entitlement have county limits factored in, and a down payment may be required above a certain amount.
Who is exempt from the VA funding fee?
Veterans receiving VA compensation for a service-connected disability, surviving spouses receiving Dependency and Indemnity Compensation, and active-duty service members who have received the Purple Heart, among others as determined by the VA. Exemption status appears on the Certificate of Eligibility.
Can I buy a duplex with a VA loan?
Yes. A VA loan can finance a property with up to four units as long as you occupy one of them as your primary residence.
Who in Mankato handles VA loans at BLG Home Mortgage?
Steve Lawrence (NMLS #1983107), a U.S. Navy veteran licensed in Minnesota, leads BLG's VA work. Call him at (507) 779-4937.
Is BLG Home Mortgage affiliated with the VA?
No. Edge Home Finance, LLC is a private mortgage broker and is not affiliated with, endorsed by, or acting on behalf of the U.S. Department of Veterans Affairs.
Related guides
Official sources
- VA.gov — VA home loans
- VA.gov — Funding fee and closing costs
- VA.gov — Request a Certificate of Eligibility
- Minnesota Department of Veterans Affairs
Last reviewed: September 2026. Program rules change; confirm current requirements with your originator before relying on any detail on this page. Nothing here is a commitment to lend.