Are you a veteran hoping to buy your dream home in Texas? The state has various benefits in place to help qualifying veterans get into a new home.
In this guide, you’ll learn more about these VA Texas loans and each one’s eligibility requirements.
Who Qualifies For VA Texas Loans?
All VA Texas loans come with certain eligibility requirements. To qualify for the Texas vet loan, the following criteria apply:
- The applicant is a legal resident of the state of Texas.
- The applicant is a qualified veteran or active-duty service member.
- The applicant is the surviving spouse of a veteran listed as missing in action or whose death was service-connected.
- The house is within the state of Texas.
- The home serves as a primary residence, not a vacation home or investment property.
There are also certain regulatory standards that apply to these loans. For example, new construction homes are only eligible if they meet the EPA ENERGY STAR’s rating guidelines.
If you’re eligible, you can look into the two main types of loan programs to assist Texas veterans in buying a new home—The Texas Veterans Land Board Program and The VA Guaranteed Loan Program.
The Texas Veterans Land Board Program
More commonly known as a Texas vet loan, the Texas Veterans Land Board Program’s loans are available to residents of Texas who are eligible veterans or active-duty personnel. The Texas Veterans Land Board sponsors this program, offering great rates that are posted weekly.
To qualify for this loan, you must meet the credit score and income requirements of your lender. Surviving spouses will also qualify for these types of VA Texas loans under certain circumstances. Plus, veterans with a VA service-connected disability rating of 30% or more receive a discounted interest rate.
Overall, a Texas vet loan comes with major benefits, but there are also some notable downsides. If your Texas Vet loan is underwritten as VA, a one-time VA funding fee applies unless you're exempt; it can be paid at closing or financed. Your lender must also approve the home you choose (investment properties aren’t eligible).
When using the Texas vet loan, you can choose a term. While there’s no down payment required, the loan amount will have an upper limit, which you can confirm with your lender.
The VA Guaranteed Loan Program
Another option for Texas veterans looking to purchase a home is the VA Guaranteed Loan Program. The Department of Veterans Affairs offers this program nationwide to eligible, qualified veterans.
The program isn’t exclusive to Texas. However, Texas-based veterans can use the program to purchase or refinance their homes and reap numerous benefits, such as:
- No down payment
- Low interest rates
- No monthly private mortgage insurance
In some cases, VA loans can include renovation or energy-efficiency improvements; land and home improvement loans are available separately through the Texas VLB.
VA Texas Loans Make Purchasing That Dream Home a Possibility for Qualifying Veterans
Do you want to buy a home in Texas with the help of a vet loan? VA Texas loans could make things easier for veterans and active-duty service members to do so. Chat with Shirley Mueller about VA Loans in Texas for help navigating the process.