If you’ve served, you’ve earned a home loan benefit that most buyers in Lancaster County don’t have access to. The challenge isn’t qualifying for it — it’s knowing what it actually does, how it works in Pennsylvania’s real estate process, and how to present it in a way that doesn’t scare off sellers who’ve heard the wrong things about VA loans.
This is what I walk through with veteran clients before we ever write an agreement of sale.
What the VA Loan Benefit Actually Gives You
The core benefits of a VA loan come down to three things: zero down payment, no private mortgage insurance (PMI), and no VA-imposed loan limit for eligible veterans with full entitlement.
Zero down means you can finance 100% of the purchase price. On a $400,000 home in Manheim Township or Lititz, that’s $40,000 you don’t have to save before you can buy.
No PMI is significant over time. Conventional loans require PMI when your down payment is less than 20% — typically $100–$200 per month on a mid-priced Lancaster County home. With a VA loan, that charge never appears on your statement, from settlement day through the life of the loan.
No loan limit applies when you have full VA entitlement and no active VA loans. VA doesn’t cap you at a specific purchase price — you’re limited by what your lender qualifies you to borrow, not by a VA-imposed ceiling. In 2026, veterans with full entitlement in Lancaster County can purchase homes well above conventional conforming limits with zero down.
Combined, these three benefits give veteran buyers meaningful financial advantages that take years to overcome with conventional or FHA financing.
The VA Funding Fee — and Who Doesn’t Pay It
VA loans aren’t entirely cost-free. Most borrowers pay a one-time VA funding fee, which goes directly to the VA to keep the program running without cost to taxpayers.
For first-time VA loan use with zero down, the funding fee is 2.15% of the loan amount. That’s $8,600 on a $400,000 loan. For repeat use, it rises to 3.30%. If you put 5% down, the fee drops to 1.50%.
You can roll the funding fee into your loan balance instead of paying it at settlement — which keeps your out-of-pocket costs low and preserves cash for moving expenses, repairs, or reserves.
Here’s the important exception: if you have any service-connected disability rating from the VA, the funding fee is completely waived. No charge at settlement, and nothing added to the loan. This includes veterans with partial disability ratings — it doesn’t have to be 100%.
Ask your lender to verify your funding fee status before you write any offers. It affects your net cost of financing and should be confirmed early in the process.
Pennsylvania’s Disabled Veteran Property Tax Exemption
This is the benefit that surprises most veteran buyers — and it’s one of the most valuable homeownership advantages available in Pennsylvania.
If you’re a veteran with a 100% total and permanent service-connected disability, you may qualify for a full real estate tax exemption on your primary residence in Pennsylvania — county, school district, and municipal taxes included.
In Lancaster County, annual property taxes on a home in the $350,000–$500,000 range typically run $4,000–$7,000 per year. Full exemption means that cost disappears entirely, every year you own the home.
Eligibility requirements:
- Honorable discharge (or under honorable conditions)
- 100% total and permanent service-connected disability rating from the VA
- Property must be your primary residence
As of August 2024, Pennsylvania removed the previous income-based restriction, which extended this exemption to more veteran homeowners across the state. Application goes through the Lancaster County Board of Assessment (150 N. Queen St., Suite 310, Lancaster, PA 17603). You’ll need your DD-214 and VA disability determination letter.
If you’re a disabled veteran buying in Lancaster County, this exemption changes the long-term math of homeownership significantly. I’d encourage you to apply as soon as you take ownership. For more on how Lancaster County property taxes are calculated and what to expect, our guide to property taxes in Lancaster County walks through the millage rate system in detail.
Why Some Sellers Hesitate — and Why They’re Wrong
This is the part I want veterans to understand clearly before they ever find a house they want to buy.
Seller resistance to VA offers is real. Listing agents in some markets discourage their sellers from accepting VA-backed offers because of outdated beliefs: that VA appraisals are more demanding than conventional ones, that VA loans take longer to close, or that sellers are automatically required to pay costs they wouldn’t owe on other loan types.
In 2026, none of that holds up.
VA loans are closing in 40–50 days — roughly the same as conventional. A Navy Federal Credit Union study found that 55% of veterans incorrectly believed a down payment was required for VA financing, and seller agents often operate on the same incorrect assumptions. The reality: sellers are not required to pay the buyer’s closing costs just because the loan is VA. Contributions are negotiated in the agreement of sale, the same as with any other loan type.
VA appraisals do include Minimum Property Requirements (more on those below), but most homes in decent condition pass without issue. And VA loans have historically had some of the lowest default rates in the mortgage market — which is exactly what a seller should want from a buyer.
The good news for Lancaster County veteran buyers: this market isn’t the frenzy it was a few years ago. Inventory has loosened slightly, and sellers are focused on serious, qualified buyers. A VA pre-approval from a strong local lender, combined with a well-structured offer, positions you competitively. In 2024, 283 VA loans closed in this county. Sellers who work with knowledgeable agents accept these offers regularly.
For a deeper look at offer strategy — including how to make your offer stand out regardless of loan type — I’ve written a guide to making a competitive offer in Lancaster, PA that’s worth reading before you start writing agreements.
What VA Minimum Property Requirements Actually Mean
VA’s MPRs exist to protect you, not to disqualify homes. The appraiser checks for baseline safety, soundness, and sanitation — not cosmetic condition or outdated finishes.
Specifically, the appraiser is looking at:
- Structural soundness — no major foundation, roof, or framing issues
- Functioning heating, electrical, and plumbing systems
- No active health hazards — significant mold, exposed lead paint, unsafe radon levels
- Adequate roofing with reasonable remaining life
- Safe access to the property and between interior rooms
In Lancaster County, the most common MPR issues that come up involve roof condition on older housing stock, exposed wiring in pre-1950s homes, and occasionally radon levels — Lancaster County sits in a high-radon zone, and elevated readings can trigger a mitigation requirement. If radon comes up during the inspection contingency, that’s usually handled through a radon mitigation system, which typically costs $800–$1,500 and resolves the issue permanently.
If the VA appraisal flags a condition issue, your options are: ask the seller to repair it before settlement, negotiate a price adjustment that reflects the condition, or in some cases request a reconsideration of value if you believe the appraiser made an error. Your agent should walk you through the options before you respond to a repair request — how you handle this moment can preserve or erode your negotiating position.
Getting Pre-Approved and Finding a VA-Experienced Lender in Lancaster
The starting point for any VA purchase is confirming your Certificate of Eligibility (COE) and getting fully pre-approved — not just pre-qualified — before you start shopping.
You can request your COE through the VA’s eBenefits portal, through your lender, or via VA Form 26-1880. Most VA-experienced lenders will pull it directly as part of the pre-approval process.
Working with a lender who regularly closes VA loans in Lancaster County matters. They understand the local appraisal timeline, know which title companies in the area are efficient with VA paperwork, and can communicate your loan strength to listing agents in terms that address common objections. Several Lancaster-area lenders — including local branches of Fairway Mortgage and Mid Penn Bank — close VA loans in this market regularly.
For a step-by-step walkthrough of the pre-approval process, including what documents you’ll need and how lenders evaluate VA buyers, our guide to getting pre-approved for a mortgage in Lancaster, PA covers the full picture.
Once you’re pre-approved, the buying process in Pennsylvania moves from agreement of sale to settlement — typically in 40–50 days. Settlement in Pennsylvania is handled by a title company, and as a VA buyer, your title insurance and settlement costs will be outlined in your loan estimate within three business days of your completed application.
Frequently Asked Questions
Can I use my VA loan benefit more than once?
Yes. Once you sell your home and pay off your VA loan, your entitlement is typically restored and you can use the benefit again. Some veterans carry partial entitlement from a previous VA loan and can still purchase a new home, though the math gets more complex. Your lender or a VA regional office can confirm your current entitlement status before you start shopping.
Do sellers in Lancaster County have to pay closing costs on a VA loan?
No — this is one of the most persistent VA loan myths. Seller contributions are negotiated in the agreement of sale; they’re not automatically required just because the buyer is using VA financing. Sellers may choose to offer a seller assist to make their home more competitive, but there’s no obligation. The VA does limit certain fees the veteran can pay (called “non-allowable fees”), which sometimes shifts a small amount of cost to sellers, but how this is handled is negotiated in the offer terms — not dictated by VA rules.
What is the VA funding fee and who has to pay it?
The VA funding fee is a one-time charge — 2.15% of the loan for first-time zero-down buyers, 3.30% for repeat use — that keeps the VA home loan program self-sustaining without taxpayer cost. Veterans with any service-connected disability rating are completely exempt. If you’re not exempt, you can roll the fee into your loan balance rather than paying it out of pocket at settlement.
How long does it take to close a VA loan in Lancaster County?
Typically 40–50 days from executed agreement of sale to settlement, which is comparable to conventional financing. VA appraisals are sometimes scheduled a few days later than conventional ones, but this rarely affects the overall timeline in a meaningful way. Working with a lender experienced in VA loans in Lancaster helps keep everything on schedule.
Can a 100% disabled veteran get their Lancaster County property taxes eliminated?
Yes, potentially in full. Pennsylvania’s Disabled Veterans’ Real Estate Tax Exemption can eliminate school, county, and municipal property taxes on a primary residence for honorably discharged veterans rated 100% permanently and totally disabled by the VA. In Lancaster County, that can represent $4,000–$7,000 in annual savings. Application goes through the Lancaster County Board of Assessment, and you’ll need your DD-214 and VA disability determination letter to apply.
Your VA loan benefit is one of the most powerful financial tools available to eligible homebuyers anywhere in the country. In Lancaster County — where mid-priced homes sit in the $350,000–$500,000 range — buying without a down payment and without PMI fundamentally changes what’s achievable.
If you’re a veteran thinking about buying here, the most important first step is getting your entitlement confirmed and talking to a VA-experienced lender before you make any assumptions about what you can or can’t do. The benefit is often better than people expect.
I work with veteran buyers in Lancaster County regularly. If you want to walk through your specific situation — loan type comparison, neighborhood options, offer strategy — reach out anytime. There’s no obligation, and the conversation usually saves people time and money.
About Craig Hartranft
Craig Hartranft is a top-ranked Lancaster County REALTOR® and Founder of The Craig Hartranft Team, Berkshire Hathaway’s #1 real estate team in Lancaster County, with 460 homes sold and $195M+ in sales in 2025, plus over 1,400 five-star reviews across Google and Zillow.