The Texas Vet Loan is a home financing program intended particularly for Texas veterans. The Texas Veterans Land Board (VLB) offers this program, which gives low-interest home loans to veterans who want to buy an existing home, buy a newly built home, or pay off a construction loan once a new home is finished in Texas. Paying off a construction loan with a Texas Vet loan is a two-time close: the build is financed first, then the Texas Vet loan pays it off, and it's treated as a purchase because no one has lived in the home yet. If you build with a separate construction loan, my team can do the permanent Texas Vet loan that pays it off once your home is built. (My team’s VA construction loans are one-time close, so they don’t need a second loan.) It provides additional benefits beyond those accessible through normal VA loans.
How It’s Different from a standard VA Loan
Texas Vet Loan rates can offer big savings compared to standard mortgage rates. Unlike the federal VA home loan, which is available nationwide, the Texas Vet Loan is a state benefit designed just for Texas Veterans. Many Veterans have their Texas Vet loan underwritten as a VA loan, which combines the VLB's set rate with VA benefits like no down payment and no PMI. The VLB sets its rate for all eligible veterans, with a discount for qualifying disabled veterans, so your credit score doesn't change the rate. You still need to qualify on credit and income, but this can be a strong option for veterans whose scores would otherwise mean a higher rate.
Top Benefits for Texas Veterans
The Texas Vet Loan offers set interest rates, a variety of term options, and no prepayment penalties. It can be used to buy an existing or newly built home, or to pay off a construction loan once the home is finished. This flexibility can result in significant savings over time and provide Texas veterans with more financial control over their future.
Who is Eligible?
To qualify, you must:
- Be a legal resident of Texas on the date you apply.
- Be at least 18 years old.
Eligible Service Members Include:
- Active-duty military personnel.
- Members of the Texas National Guard.
- Reservists who have completed at least 20 qualifying years for retirement.
- Veterans who have served at least 90 active-duty days (unless discharged sooner due to a service-connected disability) with an honorable, general or medical discharge.
- Surviving spouses of Veterans listed as missing in action or whose death was service-connected.
Take the Next Step.
At VALoansTexas.com, we help veterans compare a Texas Vet loan with a regular VA loan and choose the one that fits. If you’re thinking about a Texas Vet Loan, call our team now to get started with a trustworthy guide by your side.