"It's been frustrating," said Brown. "We made offers on homes. We're well qualified, outstanding credit, pre-approved loans and they just don't do business with VA loans."

Brown said using a VA loan means lower interest rates and lower down payment for him and his wife. They're also trying to take advantage of some bank-owned properties.

"It's no secret that some of them (bank-owned properties) are priced lower than the market value. We seem to get turned down and I think it's because he's using a VA loan," said Michelle Ackerman, a broker with Redfin.

If a seller decided to work with a VA loan, the property does have to meet certain levels of habitability. Ackerman said there are also certain VA fees that a seller has to pay that can range from $900 to $1200.

"Any sellers who wants to sell their house right now is being asked to pay some fees," Ackerman said.

In one particular home in Aurora, the home was foreclosed and bank-owned. The listing price was $460,000. While the VA loan limit is $417,000, Joel said they had the down payment to make it work. They were still turned down.

"In one circumstance, I got an email back stating the seller was not willing to take a VA loan," said Ackerman.

While a seller has right to determine which types of loans to work with, Joel and his wife are just hoping to get a break.

"We will hopefully find a home. It'll work out I'm sure. We're just disappointed," said Brown.

"Our veterans have gotten the short end of the stick," said Ackerman. "Think that's something they deserve, they've earned, and they should be able to use it."