Benefits for Veterans Who Are Buying Homes in Texas

Veteran Home Loans

In 1983, the Texas Legislature created the Texas Veterans Land Board (VLB) Veterans Housing Assistance Program (VHAP) to assist Texas veterans in purchasing a home. The main goal of this program is to help Texas veterans and their families save money on their home mortgages and here are some of the ways the VLB and other organizations help them do that:

  1. Eligible Texas veterans can take advantage of their federal housing benefits through the U.S. Department of Veterans Affairs (VA), and their state benefits through the VLB, at the same time. The VLB’s interest rate on a VA-backed home loan is very competitive with other home loan interest rates. Through the VLB program veterans with a VA disability rating of 30% or greater receive an even better interest rate with an additional .50% reduction on the existing VLB interest rate.

  2. Texas veterans with a 10% or greater service-connected disability rating from the VA are eligible for property tax exemptions. A full property tax exemption is available for veterans with a 100% disability rating from the VA. To learn more about these exemptions click here and here. If a veteran qualifies for a property tax exemption they may have more monthly income to qualify for a mortgage.

  3. Texas veterans with a VA disability rating of at least 10% don’t have to pay the VA funding fee at closing. The VA funding fee can be between 1.25% and 2.15% of the loan amount for a veteran’s first VA-backed mortgage. The fee variation is dependent on the amount of the down payment.

  4. The VLB’s participating home loan lenders typically require that veteran borrowers have at least a minimum credit score of 620 to qualify for a VLB home loan of up to $417,000.

  5. Texas veterans who want to build a new home must first obtain a construction loan to pay the home builder. While the VLB can’t pay a home builder directly, it can fund the mortgage on a completed home. Most banks and credit unions that offer home construction loans typically require the borrower to have excellent credit history and pay a security deposit of at least 10% to 20% of the construction cost.

  6. A Texas veteran may roll a land loan into a VLB home loan on a newly constructed home at a total not to exceed $417,000. A Texas veteran who has a balance on a land loan— whether through the VLB or a private lender— may pay off that land loan with a VLB-funded home loan once new construction is complete. Alternatively, an existing home located on acreage may be surveyed in a manner that allows a Texas veteran to take advantage of their home and land loan benefits simultaneously. Call the Texas Veterans Hotline for more details.

To determine how much house they can afford, the VLB recommends that Texas veterans visit a VLB approved home loan lender and get pre-approved for a home loan prior to beginning their home search. To learn more about the VLB Veterans Housing Assistance Program please visit or call our Texas Veterans Hotline at 1-800-252-8387 (VETS) or send us an email.

16 thoughts on “Benefits for Veterans Who Are Buying Homes in Texas

  1. I currently have a VLB land loan. I want to build a house on the land. How can I combine the land loan into a home mortgage with the two combined?

    • The combining of the loan requires the bank that is going to give you your construction loan to approve the combination. Please contact us at 800-252-8387 and we can direct you to a bank that is experienced in these type of loans.

  2. Hello,, I tryed once before to get information on a loan for a house I like to refinance/credit line. I do not owe anything on it. When some one contacted me, they said they could only help with line of credit, but would use what I paid for. I didnt pay anything for it!! The house/ property is in my wife and my name. Any Options I could use please. Thanks.. I do want to get some money to finish my remodeling.

    • We can certainly help you with a home improvement loan, Mr. Garza. With our program, you can borrow up to $25,000 to make home repairs and improvements. This link will help you get started with the process. Please also feel free to give us a call at 1-800-252-8387 and we can help you get started that way.

  3. My husband served 10 years in the navy and we are looking to buy a house pretty soon. He enlisted in Dallas and has 25% disability. Any info would be great on where to start.

  4. I have a VA Loan on my condo with a balanced of $ 26,500.00 left. I plan on paying this loan off by early next yr. Or possibly by the end of this yr. Could I qualify to buy land and build a cabin with this VA Loan that I have now? Or would it be better to pay it off and then apply for a loan to buy land and build my large cabin on my own land? Need some advice!!! Thanks!!! Al V. Ramirez United States Marine Corps Retired!!!! Dallas, Texas

    • Good morning, Al. You can certainly use the VLB land loan program even if you have an existing VA home loan. The VLB land loan is independent from VA loans. Our land loan program allows you to borrow up to $100,000 for a tract of land that is one acre or more with a minimum of 5% down. You can pay that off up to 30 years. However, the land loan program cannot be used for construction purposes. If you are planning to build your primary residence on the land, there is a way we can combine your VLB land loan and your construction loan (from an outside lender) into a VLB home loan. When you get a free moment, please give Jimmy Smaragdis a call at 512-463-9299 or 1-800-252-8387 and let him explain the process. Thank you.

    • Good afternoon, Albert. If you are looking for a home, we can help you find one of our participating lenders. Please give us a call at 1-800-252-8387.

    • Thank you for your comment, Mr. Herrera. We can certainly help you find one of our participating lenders that will be able to walk you through the process. Give us a call at 1-800-252-8387 or email Jimmy Smaragdis at and let us help you get started. Thank you!

  5. My daughter joined the National Guard a few back. While she was in basic training she was injured. Her knees forced her to get a Medical discharge. Can she still qualifiy for VA or under the Vet. Land?

    • Thank you for your comment, Mr. Reyes. The VLB typically requires 90 days active duty. If your daughter was discharged early due to a service connected issue, I would urge her to go through the Certification of Eligibility process and let us take a look at her service records. This link has a Q&A section that may provide some guidance and you can also download the eligibility application. Please also ask her to call our Veterans Hotline at 1-800-252-8387 and let one of our Veteran Specialists talk with her. Have a great day!

  6. please provide the documents required to apply for home loan and form required for eligibility> I was
    a Vietnam era veteran enter in January 1966 and served 24 years active military service inducted from Dallas Texas.

    thank u
    Tonie FLores

    • Thank you for your comment, Tonie. We use a network of participating lenders throughout Texas to help veterans with our home loan program. They will walk you through the eligibility process and the actual loan. Please give us a call at 1-800-252-8387. We’ll also send you a private message with additional details.

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