By Ryan Harsche | Mortgage Loan Officer | Hawley, PA | NMLS# 1126812
This Memorial Day, I want to take a moment to honor the men and women who have served our country — and to make sure every veteran in Pike County, Monroe County, Lackawanna County, Wayne County, and throughout Northeast Pennsylvania knows about one of the most powerful financial benefits they’ve earned through that service.
The VA home loan.
I’ve been originating VA loans in the Pocono region for over 15 years. In that time, I’ve seen too many veterans either not know this benefit exists, not know the full extent of what it covers, or work with lenders who don’t specialize in VA loans and leave money on the table as a result.
This post covers everything — the core VA loan benefits, Pennsylvania’s property tax exemption for disabled veterans, VA new construction loans for veterans who want to build in the Poconos, and the specific ways the VA benefit applies to this market.
If you’ve served, you’ve earned this. Let’s make sure you use it.
The Core VA Loan Benefits — A Refresher
The VA home loan program has been around since 1944, but its benefits remain among the most powerful in the entire mortgage market. Here’s what the VA loan offers that no other loan program matches:
Zero down payment. VA loans allow eligible veterans to purchase a home with no down payment whatsoever. On a $400,000 home in Pike or Wayne County, that’s $40,000 to $80,000 you don’t need to bring to closing. For a veteran or active-duty service member building wealth through homeownership, this is a transformative benefit.
No private mortgage insurance. Conventional loans require PMI when you put less than 20% down — typically $100 to $300 per month on a Pocono-priced home. FHA loans require mortgage insurance for the life of the loan. VA loans have neither. That savings adds up to tens of thousands of dollars over the life of a mortgage.
Competitive interest rates. VA loan rates are consistently among the lowest available in the market — often significantly lower than conventional loan rates for the same borrower profile. Because the VA guarantees a portion of the loan, lenders take on less risk and pass those savings to veteran borrowers.
No prepayment penalty. You can pay off your VA loan early — whether through extra payments, refinancing, or selling — without any penalty. This gives veterans maximum flexibility in managing their mortgage.
Reusable benefit. Your VA loan benefit doesn’t disappear after you use it once. You can use it multiple times throughout your life — to purchase a home, sell it, pay off the loan, and use the benefit again on a future purchase. In some cases you can even have two VA loans simultaneously.
Foreclosure avoidance assistance. The VA has a dedicated team of loan technicians who can intervene on behalf of veterans who are struggling to make payments. This is a meaningful safety net that conventional loan programs don’t offer.
Who Qualifies for a VA Loan
VA loan eligibility is based on your service history and discharge status. Generally, you may be eligible if you meet one of the following:
Active duty: 90 consecutive days of active service during wartime, or 181 days during peacetime.
Veterans: The same service requirements as above, with an honorable or under honorable conditions discharge.
National Guard and Reserve members: 6 years of service in the Selected Reserve or National Guard, or 90 days of active duty under Title 10 orders including at least 30 consecutive days.
Surviving spouses: The unmarried surviving spouse of a veteran who died in service or from a service-connected disability may be eligible for a VA loan.
The first step to using your VA benefit is obtaining your Certificate of Eligibility (COE) — the document that confirms to lenders that you qualify. I can help you obtain your COE as part of the loan application process. You don’t need to have it in hand before reaching out.
Pennsylvania’s Property Tax Exemption for Disabled Veterans — What You Need to Know in 2026
This is one of the most valuable and least-known benefits available to disabled veterans in Pennsylvania — and it’s directly relevant to anyone buying a home in Pike or Wayne County.
The current program: Pennsylvania’s Disabled Veterans’ Real Estate Tax Exemption Program provides a full real estate tax exemption for qualifying disabled veterans on their primary residence. To be eligible, a veteran must have received an honorable or under honorable conditions discharge, served during established war service dates or received an Armed Forces Expeditionary Medal, and have a 100% total and permanent service-connected disability rating from the VA, or be blind, paralyzed, or have lost two or more limbs due to military service.
Applicants must also demonstrate financial need. Veterans with an annual income of $114,647 or less are given a presumption of financial need. Veterans above that income threshold must prove financial need according to criteria established by the State Veterans Commission.
For a veteran buying a home in Pike or Wayne County, a full property tax exemption on a $400,000 home could mean saving $5,000 to $8,000 or more per year — every year — for as long as they own and occupy the property. Over a 30-year ownership period, that’s $150,000 to $240,000 in tax savings.
Surviving spouses: Upon the death of a qualified veteran, the tax exemption may pass to the unmarried surviving spouse if financial need can be shown.
Important legislation to watch in 2026: The Pennsylvania legislature is actively working to expand this benefit. Proposed legislation would remove the wartime provision from the program, allowing all honorably discharged veterans rated 100% disabled to receive the exemption regardless of whether their service was during wartime. The legislation would also provide the exemption to surviving spouses of eligible veterans who died in the line of duty, were taken as a prisoner of war, or are declared missing in action.
Additionally, proposed expansion legislation would make veterans with a VA rating of 50% or higher eligible for a proportional tax exemption — 50% disability rating equals a 50% tax exemption, scaling up to 90%. This would dramatically expand the number of Pennsylvania veterans who qualify for meaningful property tax relief.
This legislation has not yet passed as of this writing — but it’s worth monitoring if you’re a veteran with a disability rating below 100%.
How to apply in Pike or Wayne County: To apply for this benefit, contact your County Director of Veterans Affairs in the county where you reside. The process involves two forms — MA-VA 41 (information for the county tax assessment office) and MA-VA 40 (application for determination of need). Your county veterans affairs office can walk you through the process.
For Pike County veterans: contact the Pike County Veterans Affairs office in Milford. For Wayne County veterans: contact the Wayne County Veterans Affairs office in Honesdale.
The bottom line on this benefit: If you’re a 100% permanently and totally disabled veteran buying a home in the Pocono region, the property tax exemption could be worth more than the zero-down payment benefit of the VA loan itself — especially at current Pocono property values. Make sure you apply.
VA New Construction Loans — Building Your Pocono Home With Your VA Benefit
One of the least-known applications of the VA loan benefit is new construction financing. The Pocono Mountains has seen new construction activity — and veterans who want to build rather than buy an existing home can use their VA benefit to do it.
Here’s what you need to know about VA new construction loans in 2026.
How VA new construction loans work: A VA one-time-close construction loan allows you to close once, with the lender releasing funds in draws as the builder hits milestones. When the home is complete, the loan automatically converts to a standard VA mortgage. No second closing, no new paperwork.
This is significantly better than the traditional construction financing approach, which involves a separate construction loan that must be refinanced into a permanent mortgage after completion — meaning two closings, two sets of closing costs, and potential rate exposure between the construction and permanent phases.
With a one-time-close VA construction loan, your permanent rate locks at the initial closing, not after the build — eliminating rate exposure during the construction period.
The benefits of VA new construction: All the core VA loan benefits apply to new construction — zero down payment, no PMI, competitive rates, and limited closing costs. For a veteran building a home in the Poconos, this means financing land acquisition, construction, and the permanent mortgage with no down payment in many cases.
Builder requirements: Your builder needs to be licensed, insured, and have enough experience to meet the requirements of both the lender and the VA. The VA eliminated the requirement for builders to have a specific VA Builder ID, which makes the process somewhat more accessible — but lenders will still check the builder’s credentials, experience, and financial stability before approving the project.
Builders are required to have needed licensure, liability insurance, and a minimum of two years of experience building homes. You must also receive a new construction warranty from the home builder.
The draw process: Construction loan funds are released in draws as work progresses and inspections are completed — not as a lump sum. If an inspector finds work that doesn’t match the approved plans or doesn’t meet code, that draw gets held up until the builder fixes it. This protects veterans from paying for substandard work but can also cause delays if the builder cuts corners.
The funding fee on new construction: The VA funding fee can be rolled into the loan balance. On a $400,000 first-use construction loan with zero down, the financed amount becomes $408,600 — adding roughly $25 per month at a 6.5% rate. Many borrowers finance the fee rather than paying it out of pocket at closing.
Veterans with a service-connected disability rating of 10% or higher are exempt from the VA funding fee entirely — one more reason to make sure your disability rating is accurately reflected in your VA records before you close.
Finding a VA construction lender: As of 2026, the number of lenders offering VA one-time-close construction loans has shrunk significantly. Lenders that have historically offered the product include Veterans United, USAA, Navy Federal Credit Union, First Federal Bank, and a small number of regional banks and credit unions. Availability changes frequently — confirm directly with any lender before starting a builder search.
This is an area where working with an experienced VA lender matters enormously. If you’re a veteran interested in building in the Pocono region, reach out and I can connect you with the right resources for your specific situation.
New construction in the Poconos — what’s available: Pike and Wayne County have seen new construction activity in recent years — both custom builds on individual lots and smaller development projects. For veterans who want the benefit of a brand-new home with modern systems, energy efficiency, and a builder warranty, using your VA benefit for new construction is worth exploring. Land is still available at accessible price points in parts of Pike and Wayne County compared to surrounding markets.
VA Loans for Pocono Vacation Homes — What Veterans Need to Know
This is a common question I get from veteran buyers: can I use my VA loan to buy a Pocono vacation home or lake house?
The honest answer: generally no — but there’s nuance.
VA loans are designed for primary residences. The VA requires that the veteran intend to personally occupy the property as their primary residence. A vacation home or second home doesn’t meet that requirement.
However — there are scenarios where it works:
If you’re relocating to the Poconos permanently — making it your full-time primary residence — a VA loan absolutely applies. This is increasingly relevant as remote workers and retirees from NJ, NYC, and Philadelphia make the permanent move to the Poconos.
If you’re an active-duty service member who is PCSing to a base in the region, a VA loan can finance your primary residence in the area.
If you’ve previously used a VA loan on another property that you’ve since sold or paid off, your entitlement may be restored for a new primary residence purchase in the Poconos.
For Pocono vacation homes and investment properties specifically: Veterans who want to buy a lake house as a second home or investment property will typically need conventional financing — a vacation home loan or investment property loan rather than a VA loan. The good news is that the financial discipline and credit history that comes with responsible homeownership often means veterans are strong conventional borrowers as well.
VA Loan Myths — Debunked
Myth: VA loans take longer to close. This was true years ago. Today, with experienced VA lenders, VA loans close in the same 21-30 day window as conventional loans. The key is working with a lender who processes VA loans regularly and knows the VA appraisal process.
Myth: Sellers won’t accept VA offers. Some sellers and listing agents have outdated concerns about VA loans. An experienced buyer’s agent who can educate sellers on the strength of VA financing — and a pre-approval letter from a lender with a strong VA track record — addresses this effectively. In a normal market, a VA offer from a qualified veteran is as strong as any other offer.
Myth: You can only use a VA loan once. Completely false. Your VA loan benefit is reusable. You can use it multiple times throughout your life as long as you meet the eligibility and occupancy requirements.
Myth: VA loans have lower purchase price limits. The VA eliminated loan limits for veterans with full entitlement in 2020. If you have full entitlement — meaning you don’t have an existing active VA loan — there is no maximum loan amount set by the VA. Your loan amount is limited only by what you qualify for based on your income and credit. This is particularly relevant for veterans looking at higher-priced Pocono lakefront properties.
Myth: You need perfect credit for a VA loan. The VA doesn’t set a minimum credit score requirement. Individual lenders set their own minimums — typically 580 to 620 — but VA loans are generally more flexible on credit than conventional loans. Veterans who have had credit challenges related to the financial stresses of service or transition often find VA loans more accessible than they expected.
How to Start the VA Loan Process in the Poconos
If you’re a veteran thinking about buying a home in Pike County, Wayne County, or anywhere in the Pocono region, here’s how to get started:
Step 1 — Confirm your eligibility. If you’re not sure whether you qualify, reach out and I’ll help you determine eligibility and obtain your Certificate of Eligibility. This takes minutes in most cases through the VA’s automated system.
Step 2 — Get pre-approved. A VA pre-approval is the same process as any mortgage pre-approval — I’ll review your income, credit, and financial situation and issue a pre-approval letter that tells sellers you’re a serious, qualified buyer.
Step 3 — If you’re a disabled veteran — apply for the PA property tax exemption. Contact your county veterans affairs office as soon as you’re under contract on a property. The exemption application process takes time, and starting it early ensures you capture the benefit as soon as possible after closing.
Step 4 — Work with a VA-experienced local lender. VA loans have specific appraisal requirements, occupancy requirements, and property condition standards that a lender with VA experience navigates routinely. Working with someone who does VA loans in this specific market — and who knows the Pocono properties that might trigger VA appraisal conditions — makes the process significantly smoother.
A Personal Note on Memorial Day
I’ve been part of this community my entire life. I’ve watched Hawley grow, watched the Pocono market evolve, and watched neighbors and clients from all walks of life build their lives here.
The veterans in our community, the families in Pike and Wayne County who have served, the service members who have come home to the Poconos, the retirees from the military who have chosen this region for the next chapter of their lives deserve to know about every benefit they’ve earned.
The VA loan is one of the most powerful tools available to any homebuyer in America. The Pennsylvania property tax exemption for disabled veterans is an extraordinary benefit for those who qualify. And the ability to use VA financing to build a brand-new home in one of the most beautiful regions in the Northeast is an opportunity that too few veterans know exists.
This Memorial Day — thank you for your service. If there’s anything I can do to help you use the benefits you’ve earned to put down roots in the Pocono Mountains, I’m here.
Frequently Asked Questions
Can I use a VA loan to buy a home in Pike or Wayne County with zero down? Yes. Eligible veterans with full VA entitlement can purchase a home in Pike or Wayne County with no down payment. Your loan amount is determined by your qualifying income and credit, not a VA-set limit.
What is the VA funding fee and can I avoid it? The VA funding fee is a one-time charge that helps sustain the VA loan program. It ranges from 1.25% to 3.3% of the loan amount depending on your down payment and whether it’s your first use of the benefit. Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee entirely. Surviving spouses of veterans who died in service are also exempt.
How do I apply for the Pennsylvania disabled veteran property tax exemption? Contact your County Director of Veterans Affairs — the Pike County office in Milford or the Wayne County office in Honesdale. They will provide you with the required forms (MA-VA 41 and MA-VA 40) and guide you through the application process.
Can I use my VA loan benefit if I’ve used it before? Yes. Your VA entitlement is generally restored when you sell the home and pay off the VA loan, or when you refinance the VA loan into a non-VA loan. In some cases, remaining entitlement from a previous VA loan can be used simultaneously with a new VA loan.
Do VA loans work for new construction in the Poconos? Yes, through a VA one-time-close construction loan. You finance land, construction, and the permanent mortgage in a single closing with no down payment required. Not all lenders offer this product — working with an experienced VA lender is essential.
What credit score do I need for a VA loan? The VA doesn’t set a minimum credit score. Most lenders require 580 to 620 as a minimum, with better rates available for higher scores. VA loans are generally more flexible on credit than conventional loans.
Can a surviving spouse use the VA loan benefit? Yes. The unmarried surviving spouse of a veteran who died in service or from a service-connected disability may be eligible for a VA home loan. Contact me and I’ll help determine your specific eligibility.
To every veteran and active-duty service member in Pike County, Wayne County, and throughout the Pocono region — thank you for your service. This Memorial Day and every day.
Ryan Harsche | Mortgage Loan Officer | Hawley, PA NMLS# 1126812 Licensed in PA, NJ, NC, SC, and FL Phone: 570-576-9446 Instagram: @ryanhmortgage Schedule a call: meetryanhcw.com
This post is for educational purposes only and does not constitute financial, legal, or tax advice. VA loan eligibility, benefits, and property tax exemption eligibility are subject to individual circumstances. Loan programs, rates, and requirements are subject to change. Contact me directly to discuss your specific situation. Information about the Pennsylvania Disabled Veterans’ Real Estate Tax Exemption is current as of May 2026 — consult your County Veterans Affairs office for the most current program details.
Ryan Harsche is a mortgage loan officer based in Hawley, PA serving veterans and active-duty service members throughout Pike County, Wayne County, Monroe County, Luzerne County, Carbon County, and Lackawanna County in Northeast Pennsylvania. With over 15 years of experience originating VA loans in the Pocono region, Ryan helps veterans use their earned benefits to purchase homes throughout the Pocono Mountains.