5 Things You May Not Know About VLB Land Loans

Past Present Future BlogThe 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.

  1. 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.

  2. 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.

  3. 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).

  4. 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.

  5. 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.

20 thoughts on “5 Things You May Not Know About VLB Land Loans

    • Mr. Narvaez, it is possible to get a second loan for the difference. The main issue to consider is that the VLB will always be in first lien position on the entire tract. It can be difficult to find a lender willing to be in second lien position. Please let us know if there is anything else we can do.

  1. We would like to obtain a land loan through TVLB. Will a previous foreclosure on a house from over 2 years ago (on a non VA home loan) affect our approval?

    • Thank you for reaching out to us, N. Peters. A previous foreclosure does not automatically exclude you from our land loan program. We urge you to go ahead and apply and let us take a look at all of your information. We’ll do everything we can to work with you. You can begin the process here … https://vlbms.glo.texas.gov/application.asp

  2. How can I get pre approved for a Texas Veterans Land Board loan? Do I have to go to a private lender or is it with the state? Do you have a contact number?

    Thank you for the information in this post

    • Mr. Snow, this link will allow you to begin the land loan application process. https://vlbms.glo.texas.gov/application.asp You can get prequalified now even if you do not have a specific tract in mind. We originate the land loan in-house, so it is not necessary for you to go to an outside lender. If you have any questions or need additional information, please contact our Veterans Hotline at 1-800-252-8387. Thank you!

  3. I am looking a an acre of land with a shop and trailer on it. The trailer is attached, does this disqualify the land from being purchased under the land program? The other land I am looking at is 2 joining half acre lots by the same owner. Would this count as the 1 acre minimum?

    • Hi Johnny,

      No the trailer does not disqualify the land, however, the trailer and other non-land assets are not considered in the appraisal of the land, dirt only.

      We accept contiguous parcels to meet the one acre minimum. But be aware that the requirement is one acre net of any easements (we require at least a sixty foot easement from a public right of way). If you have further questions please call our veterans hotline at 1-800-252-8387 or you can email us at vlbinfo@glo.texas.gov.

      Thank you very much for your service.

  4. We would like to know if the TVLB will assist in paying on property that we have found in Brown County, in the Blanket area. Will ya’ll be able to pay for a mobile home or manufactured home. Need the information as soon as possible. Thank you for your patience and time.

    God Bless
    Chaplain Floyd Dale and Chandra Stearns

    • Thank you for reaching out to us, Mr. Dale and Ms. Stearns. Our program cannot be used for mobile homes. We do allow manufactured homes with certain requirements. We’ll send you a personal message to get more details. Thank you for your service!

    • Dear Sammy,

      Thank you very much for your comment. There are a few good websites that may be able to help. Please try landsoftexas.com, landandfarm.com and landwatch.com. Please feel free to give us a call at 1-800-252-8387 if you have questions about the land buying process. Thank you for your service.

  5. I purchased 5 acres of land about 5 yrs and just completed building a home on it. I really appreciate what the VLB and the State of Texas does for veterans.

    • Thank you so much for your comment and congratulations on finishing your new home Dave! We are honored to help veterans realize their dream of owning land and/or a home. Our Texas veterans deserve the very best. Thank you for your service.

    • Thank you for your comment, Mr. Cecil. We will contact you directly to answer your questions regarding the Parker County property we have available.

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