VA Loans in Texas

Texas veterans have access to two separate home loan programs, and most only ever hear about one. There is the federal VA loan, available nationwide, and the Texas Veterans Land Board loan — a state program that has existed since 1983 and offers below-market fixed rates, with a further discount for veterans rated 30% or higher for service-connected disability.

They are different programs from different institutions. Knowing both exist is worth real money, and comparing them takes one conversation.

The Texas Veterans Land Board loan

The VLB's Veterans Housing Assistance Program was created by the Texas Legislature in 1983 to help Texas veterans buy homes. Per the Texas General Land Office, eligible participants "may receive up to $832,750 on a fixed-rate loan for 15, 20, 25 or 30 year terms."

What distinguishes it:

Rates are set by the state, not the market. The VLB publishes a base rate that adjusts weekly. Because the program is funded through state bonds rather than the secondary mortgage market, that rate is frequently below what conventional financing offers.

A disability rating earns a further discount. Per the GLO, "Veterans with a VA service-connected disability rating of 30% or greater qualify for a discounted interest rate." If you carry a 30% rating or higher and nobody has mentioned this to you, that is a conversation worth having.

Little or no down payment, similar to the federal VA loan.

The occupancy commitment is longer. The home "must remain the Veteran or Military Member's primary residence for at least three years," and you must occupy it "within 60 days after loan closing." The federal VA loan has the 60-day occupancy expectation but not the three-year commitment.

There is no VLB refinance. Per the GLO, "The VLB does not offer to refinance." If rates fall after you close, you refinance out of the program rather than within it. Worth knowing before you choose it.

Which one should a Texas veteran use?

Neither is universally better. The comparison usually turns on four things.

Your disability rating. At 30% or higher you get the VLB rate discount — and you are also exempt from the federal VA funding fee. Those two benefits sit in different programs, so the math genuinely has to be run rather than assumed.

How long you will hold the home. The VLB's three-year primary residence commitment is a real constraint for anyone who might be relocated, transferred, or separating from service.

The loan amount. The VLB caps at $832,750. Above that, the federal VA loan has no equivalent ceiling for a borrower with full entitlement.

Whether you expect to refinance. The VA has the IRRRL — a streamline refinance with a funding fee of just 0.5%. The VLB has no refinance product at all.

There are also scenarios where the programs work together rather than competing. That depends on current VLB participation rules, which change, and it is a question to ask rather than assume in either direction.

The federal VA loan in Texas

Everything in our VA loan guide applies here — entitlement, the funding fee schedule, the residual income test, assumability, and the appraisal's Minimum Property Requirements.

Three notes specific to Texas:

Property taxes change the qualifying math. Texas has no state income tax and comparatively high property taxes. Since taxes are part of the monthly payment underwriters count, a Texas buyer often qualifies for a smaller purchase price than someone with the same income in a lower-tax state. Budget from the full payment, not the principal and interest.

Texas has its own homestead and home equity rules. They affect cash-out refinances in particular, and they are stricter than most states'. If you are considering pulling equity out of a Texas homestead, get that reviewed specifically.

The disabled veteran property tax exemption is separate from anything above. Texas offers property tax exemptions scaled to disability rating, up to a full exemption at 100%. That is administered by your county appraisal district, not by us or by any lender — but it changes your monthly payment, so it belongs in the conversation before you decide what you can afford.

Anywhere in Texas

We lend across the entire state — Houston, Dallas-Fort Worth, San Antonio, Austin, El Paso, the Rio Grande Valley, the Panhandle, and every county in between. Texas is served by one VA loan program and one set of federal rules, and a veteran in Lubbock or Laredo gets the same file handled the same way as one in Houston.

Our Texas division is based in Greater Houston, so Harris and Montgomery counties are where our people know the appraisers, the builders and the county appraisal districts by name. That is a genuine advantage if you are buying there. It is not a limit on where we lend, and it is not a reason to call someone else if you are buying somewhere else in the state.

Loan limits do not cap a VA loan for a borrower with full entitlement, so wherever you are buying in Texas the ceiling is what you qualify for and what the home appraises for.

Talk to a veteran about it

I served in the Marine Corps, and VA lending is the part of this business I care most about getting right. If you want to know which of the two Texas programs fits your situation — including the disability discount and the funding fee exemption, which most borrowers do not know they qualify for — call me directly.

Jon Linhart · NMLS #2449959 · (832) 322-3590

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FAQ

What is the difference between a Texas Vet loan and a VA loan? The Texas Vet loan comes from the Texas Veterans Land Board, a state program created in 1983, with rates set by the state and a discount for veterans rated 30% or higher. The VA loan is federal, available nationwide, and has no loan ceiling for borrowers with full entitlement. The VLB caps at $832,750 and offers no refinance.

Can I get a discounted rate with a disability rating in Texas? Yes. The Texas General Land Office states that veterans with a VA service-connected disability rating of 30% or greater qualify for a discounted interest rate on the VLB loan. Separately, a service-connected disability generally exempts you from the federal VA funding fee.

Does the Texas Vet loan require a down payment? The program allows purchases with little or no down payment, similar to the federal VA loan.

How long do I have to live in a home bought with a VLB loan? It must remain your primary residence for at least three years, and you must occupy it within 60 days of closing.

Can I refinance a Texas Vet loan? Not within the program — the VLB does not offer refinancing. You would refinance into a different loan, which may include a federal VA loan.

Do VA loan limits apply in my Texas county? Not for a borrower with full entitlement. The practical ceiling is what you qualify for and what the property appraises for.