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VA loans near Portsmouth Naval Shipyard

Nearly 7,800 people work at the shipyard, and the overwhelming majority are civilians rather than active duty. A large share of them are veterans, which means a lot of people in the Seacoast are sitting on a benefit they have never used.

Written by Sean Goudreau, Mortgage Loan Officer · NMLS #326155 · Rate

Where do Portsmouth Naval Shipyard workers live?

Shipyard workers live on both sides of the Piscataqua River. Of roughly 7,700 civilian employees, about 4,250 live in Maine and 3,100 in New Hampshire, with the rest commuting from Massachusetts or further out. On the Maine side, Kittery, Eliot, York, the Berwicks and the Sanford area account for most of it. On the New Hampshire side, Portsmouth, Dover, Rochester and Somersworth.

Do you need to be active duty to use a VA loan here?

No, and at this installation that matters more than almost anywhere else.

The shipyard employs around 7,700 civilians and roughly 100 military personnel. It is one of four public shipyards in the country and its workforce is overwhelmingly civilian, which is unusual among major military installations.

A large number of those civilians are veterans. Shipyard trades draw heavily from people who served, and the apprentice program is a common landing spot after separation.

If that describes you, your eligibility comes from your service, not from your job. Working at the yard does not qualify you for a VA loan and it does not disqualify you either. What matters is your service record, and if you served long enough to qualify, the benefit is available regardless of what you do now or how long ago you separated.

Eligibility does not expire. Someone who separated in 1998 and has been at the yard for twenty years has the same benefit available today as someone who separated last month.

Maine or New Hampshire?

The shipyard sits on Seavey Island in Kittery, Maine, connected by bridges to Kittery and across the harbor from Portsmouth, New Hampshire. Which state you live in is a genuine decision here in a way it is not in most markets, and roughly 4,250 workers have chosen Maine while 3,100 have chosen New Hampshire.

New Hampshire has no income tax and no general sales tax. It funds itself substantially through property taxes, which run high. Maine has both an income tax and a sales tax, with property taxes that are generally lower.

For a homebuyer that is not a simple trade, because the two hit you in different places. Property taxes are part of your monthly payment and they affect what you qualify for. Income and sales tax are not, and they do not.

There is a wrinkle specific to this market that is worth raising with a tax professional rather than taking from a lender. The shipyard is physically located in Maine, which raises questions about state income tax for New Hampshire residents earning income there. That is a real issue for shipyard workers and it is outside what I can advise on, but it belongs in the decision.

What I can tell you is the mortgage side. Higher property taxes mean a higher monthly payment on the same purchase price, and that reduces what you qualify for. The payment calculator will show the difference if you run the same house with two different tax figures.

Which towns should you look at?

Roughly in order of distance from the yard, and split by state.

Kittery and Kittery Point, Maine

The closest option and the second largest source of shipyard employees, with over 450 workers living there. You are minutes from the gate.

The tradeoff is price. Kittery has become expensive relative to towns further inland, driven partly by proximity to Portsmouth and partly by the outlet corridor and coastal demand.

Eliot and the Berwicks, Maine

Just inland from Kittery. More land, lower prices, and a commute still under half an hour. South Berwick, Berwick and North Berwick all draw shipyard workers, and they suit people who want space without the coastal premium.

York, Maine

South along the coast. Expensive, seasonal, and beautiful. It suits people who want the beach town and can absorb the price, and the commute is manageable.

Sanford and Springvale, Maine

The single largest source of shipyard workers of any Maine community, with over 570 employees. That is worth sitting with, because it tells you what the market has actually decided.

Sanford is further out, around 40 minutes, and it is meaningfully more affordable than anything closer. People trade the drive for the price, and enough of them do it that Sanford outsends Kittery.

Portsmouth, New Hampshire

Directly across the river and the most walkable, most amenity-rich option in the market. It is also the most expensive place in the Seacoast, and prices have moved hard over the past decade.

It suits people who want a downtown and are buying at the top of their range to get it.

Dover, Somersworth and Rochester, New Hampshire

North along the Spaulding Turnpike, and where most New Hampshire shipyard workers actually land. Dover is the largest and most established, Somersworth sits between, and Rochester is the most affordable of the three.

The commute runs 20 to 35 minutes depending on which one and what time. This corridor is the New Hampshire equivalent of the Berwicks: enough distance to be affordable, close enough to be practical.

Prices and commute times move. Both are worth checking against current listings and against someone who drives the route daily.

Why does the VA loan work well in this market?

Two reasons, and the second one is the important one.

Seacoast prices have risen substantially, which means the down payment is the barrier for most buyers rather than the payment itself. A VA loan removes that barrier entirely. No down payment with full entitlement, and no county loan limit either, which matters in a market where prices in Portsmouth and York run well above the state median.

And there is no mortgage insurance. In a high property tax environment, every dollar of the monthly payment that is not principal and interest matters more. A conventional buyer under 20% down in New Hampshire is paying mortgage insurance on top of a property tax bill that is already high. A VA buyer is not, at any down payment.

The combination is why the VA loan is frequently the strongest option here even for someone who could put money down.

Frequently Asked Questions

Can civilian shipyard workers use a VA loan?

Only if they are veterans. VA eligibility comes from military service, not from federal employment. A civilian shipyard worker who served qualifies on that service. One who never served does not, regardless of where they work.

Does it matter if you buy in Maine or New Hampshire?

Not for the VA loan itself. The program rules are identical in Maine and New Hampshire. What differs is property taxes, which affect your monthly payment and therefore what you qualify for, and state income and sales tax, which do not affect the mortgage but do affect your budget.

Is the Portsmouth Naval Shipyard in Maine or New Hampshire?

Maine. Portsmouth Naval Shipyard sits on Seavey Island in Kittery, Maine, despite being named for Portsmouth, New Hampshire across the harbor. Workers live on both sides of the river.

Does VA eligibility expire if you left service years ago?

No. VA loan eligibility does not expire and there is no deadline for using it after separation. Someone who separated decades ago has the same benefit available today.

Served, and never used the benefit?

A lot of people at the yard are in exactly that position. Pulling your Certificate of Eligibility takes a few minutes and confirms what you have. No credit pull, no application.

No credit pull or application. Sean will reach out personally.

Sean Goudreau

Mortgage Loan Officer

NMLS #326155

Rate

465 Waverley Oaks Rd Ste 200

Waltham, MA 02452

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