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Texas Vet Loans and Texas Veterans Home Loans

The Texas Veterans Land Board (VLB), a division of the Texas General Land Office, administers the Texas State Veterans Homes loan program.

How the Housing Assistance Program Works

The Veterans Housing Assistance Program (VHAP) provides financing up to $325,000 toward the purchase of a home to qualified Texas veterans.

There is no maximum sales price with the VHAP; however, the VLB can only loan up to $325,000 towards the purchase. The VHAP must be originated in conjunction with Federal Housing Administration (FHA), Veterans Administration (VA), or conventional financing.

Texas Vet home mortgages must be originated by a participating lender as either;

Properties types allowed

Single family, town homes, condos and PDU's must be approved.
2-4 unit multifamily properties constructed at least five years prior to the closing date.

Loan Terms

Housing loans are available with 30, 25, 20 or 15 year terms. Home Improvement loans are available with 2 to 20-year terms.

Texas Vet Loan rates

All rates are fixed rate home mortgages. The rates are lower than traditional mortgage rates.The Veterans with Disabilities Discount applies to veterans with a compensable disability by the United States Department of Veterans Affairs.

Veterans with Disabilities Program

The Veterans Housing Assistance (VHAP) and Home Improvement (VHIP) Programs offer an interest rate reduction to qualifying veterans with disabilities.

The veteran must have a compensable service-connected disability of 30% or greater as verified by an Award Letter from the Department of Veterans Affairs (VA). The amount of the regular 30 year fixed rate would be discounted by 1/2 a point.

The veteran must also meet all other eligibility requirements for the VHAP and VHIP.

What are the Current Texas Vet Loan lending limits?

Currently the maximum Texas Vet Loan limit is at $325,000.

  • VA Maximum Loan Limit is $325,000 (Zero Down) using VA Loan along with Texas Vet.
  • FHA Maximum Loan Limit is $287,500 using FHA Loan along with Texas Vet.
  • Conventional Maximum Loan Limit is $325,000 using Conventional Loan along with Texas Vet.

Can we use a Texas Vet Loan to Refinance?

The VHAP is not a refinancing program. If you have an existing loan on your home, you cannot use the VHAP to lower your interest rate, nor can the VHAP be used as a down payment on a home. It can only be used to obtain a purchase money loan with a first lien on your primary residence.

Do i have to set up an escrow account?

VHAP loans typically require an escrow account be set up for taxes and insurance.

How is the VLB funded?

Interest paid by veterans on the loans themselves and investment earnings make the program self-sufficient. No state tax revenue is used to fund the VLB programs. These programs are an innovative and cost effective way to reward veterans for their service and sacrifices.

All new-construction housing must be ENERGY STAR® labeled and certified.

All new-construction homes financed through the Texas Veterans Housing Assistance Program (VHAP) must meet the U.S. Environmental Protection Agency's (EPA) guidelines for ENERGY STAR® qualified homes. This includes completion of the Thermal Bypass Checklist, by a certified Home Energy Rating System (HERS) Rater, prior to wallboard being installed.

Cosigners and guarantors may be accepted on the veteran's behalf if the veteran has sufficient income to qualify for at least 60 percent of the monthly payments on the mortgage loan, including taxes and insurance.

What are the Credit requirements for a Texas Vet Loan?

All Texas Vet Land Board loans are subject to credit approval as determined by the lender.

The VHAP does not guarantee an interest rate on any loan. The interest rate on the VHAP loan will be determined at the time the rate lock is secured.
*Note: If more than one rate lock is obtained in a twelve-month period, the highest locked rate will prevail.

HUD Equal Housing Opportunity Choosing the right Mortgage Company is the most important decision you will make when financing your next property!

Current Texas Vet Loan Rates:

Rates Effective 2/17/2012   5:00 p.m. CST

30 Year Fixed Rate: 3.63%
3.81% APR

30 Year Fixed Rate: 3.13% *
3.47% APR

* Qualified Veterans with Disabilities Program Discount: VA Disable 30% or more, for 1/2 point off. *

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