The Texas Veterans Land Board has been financing the purchase of Texas land by veterans since 1949. When the program began, Texas veterans could borrow less than $10,000 and had up to 40 years to pay off their loans. Things have changed a lot since then, and you may not be aware of some of the program transformations that have taken place.
- Residing in Texas one day meets the VLB Texas residency requirement. For many years, a veteran had to have begun military service in Texas in order to be eligible to apply for a VLB loan. That’s no longer true! Under current VLB program guidelines, a veteran or military member who lives in Texas for at least one day with the intention to remain, served at least 90 days active duty, and was not dishonorably discharged, can apply for VLB programs.
- Texas VLB can close on your loan quickly. Today’s typical Texas VLB land loan closes within 30 days. The quick turn-around is a result of a lot of hard work and attention to improving program efficiencies. Using your customer feedback, the VLB continues to improve its programs.
- One acre meets the minimum acreage requirement. Under the VLB’s current land loan program, a qualified Texas veteran can finance the purchase of land anywhere in the state as long as it’s at least one acre (net of any easements).
- Your land title is not held by the VLB. For many years, the State of Texas retained ownership of land financed by the VLB until the obligation was paid off. Program administrators recognized that this policy kept veteran landowners from accessing equity that had built up over time. Under current program rules, a veteran borrower owns the land outright at the time of closing, with the State of Texas holding a first lien on the land until the loan is paid off.
- You can use your VLB land loan benefit more than once. As long as each land loan is paid off before the next one is secured, there is no limit to how many times a veteran can use the land loan benefit in the course of their lifetime. It’s also possible for a veteran to have one active loan in each loan program— land, home and home improvement— at the same time.
As land prices in Texas have increased over time and more veterans are looking at more expensive, small acreage lots near urban areas, the VLB has increased its maximum land loan amount from $80,000 to $100,000. These loans are available to eligible Texas veterans with a minimum down-payment of 5%. While the VLB originally offered a 40-year note on land loans, the VLB reduced that maximum term to 30 years with no penalty for early payment. That means veteran borrowers who wish to pay down the principal of their VLB land loans early can reduce their total interest payments at any time.
The VLB routinely examines the market for land loans to make sure its land loan terms are as attractive as those offered by private lenders. The current fixed rate is 6.75%, which was reduced from the previous 7.25% rate in 2011. To learn more about land loans offered by the VLB please visit Texasveterans.com or call our Texas Veterans Hotline at 1-800-252-8387 (VETS) or send us an email.