Texas Veteran Homeownership Resources

Resources, Loans and Assistance For Veterans

Texas offers some of the most aggressive "Texas-sized" benefits for Veterans in the nation. This guide covers state-specific loans, property tax exemptions, and down payment assistance.

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Table of Contents

1. Texas Veterans Land Board (VLB) Programs
2. Property Tax Exemptions (The "Texas Advantage")
3. Down Payment & Closing Cost Assistance
4. Federal VA Loan "Hidden" Savings
5. Veteran Homebuyer Document Checklist (Texas 2026)

Texas Veterans Land Board (VLB) Programs

The VLB offers state-backed loans that can be used alongside your federal VA entitlement.

Home Loans

• Max Loan Amount: $832,750 (updated for 2026).
• Key Advantage: Competitive low-interest rates with little-to-no down payment.
• Discounts: Veterans with a service-connected disability rating of 30% or higher receive a 0.50% (50 basis point) reduction on their interest rate.

Land & Home Improvement Loans

• Land Loans: Borrow up to $150,000 for tracts of one acre or more. Requires only a 5% down payment.
• Home Improvement: Loans up to $50,000 for repairs or energy-efficiency upgrades to your primary residence.

Property Tax Exemptions (The "Texas Advantage")

Texas law provides significant property tax relief based on your VA disability rating. These exemptions are applied to the assessed value of your home.

Pro-Tip: If you are a 100% disabled Veteran, you may also qualify for a property tax freeze or "deferral" if you are over age 65, ensuring your taxes never increase even if property values do.

Down Payment & Closing Cost Assistance

Even though VA loans often require $0 down, closing costs can still be high. These programs help bridge that gap.

Homes for Texas Heroes (TSAHC)

• Benefit: Provides 3% to 5% of the loan amount in assistance.
• Format: Can be a gift/grant (no repayment) or a 3-year forgivable second lien.
• Bonus: Veterans using this program get a Mortgage Credit Certificate (MCC) for free (a $500 value), which allows you to take a federal tax credit on a portion of your annual mortgage interest.

HAVEN Grants (FHLB Dallas)

• Amount: Up to $25,000.
• Eligibility: Specifically for Veterans with service-related disabilities or Gold Star Families.
• Use: Can be used for down payments or for modifying a home to be more accessible.

Federal VA Loan "Hidden" Savings

• VA Funding Fee Waiver: If you receive any amount of VA disability compensation (even 10%), you are exempt from the VA Funding Fee. This typically saves you 2.15% to 3.3% of the total loan amount.
• No PMI: Unlike FHA or Conventional loans, VA loans never require private mortgage insurance, saving you hundreds of dollars per month.

💡 Quick Directory for Applicants

• To check VLB Eligibility: Visit vlb.texas.gov or call 1-800-252-VETS.
• To check TSAHC Eligibility: Take the Eligibility Quiz.
• To Apply for Tax Exemptions: Contact your local County Appraisal District (CAD) and file Form 50-114.

Veteran Homebuyer Document Checklist (Texas 2026)

1. Military Service & Eligibility Documents

• [ ] DD-214 (Member 4 Copy): Must show your character of service.
• [ ] Certificate of Eligibility (COE): Available via eBenefits or your lender.
• [ ] VA Disability Award Letter: Required for the funding fee waiver and VLB interest rate discounts.
• [ ] Statement of Service: (For Active Duty) Signed by your commander.
• [ ] NGB Form 22/23: (For National Guard/Reserve) Proof of service points.

2. Financial & Income Verification

• [ ] Last 30 Days of Paystubs: Or most recent LES.
• [ ] Last 2 Years of W-2s: To show employment stability.
• [ ] Last 2 Years of Federal Tax Returns: (Required for self-employed or rental income).
• [ ] Last 60 Days of Bank Statements: Include all pages, even blank ones.
• [ ] Proof of Texas Residency: Texas DL with current address or a utility bill.

45-Day Texas Veteran Homebuying Timeline

Phase 1: Preparation (Days -30 to 0)

• Day -30: Apply for your COE and locate your DD-214.
• Day -15: Get Pre-Approved. Submit your W-2s and bank statements to your lender.
• Day -5: Provide your Disability Award Letter to lock in VLB discounts.

Phase 2: Under Contract (Days 1 to 15)

• Day 1: Turn in the Executed Contract to your lender/title company.
• Day 3–7: Conduct your home inspection (Option Period).
• Day 8: Lender orders the VA Appraisal.

Phase 3: The "Quiet" Period (Days 16 to 35)

• Day 20: Appraisal Review. Address any MPR (Minimum Property Requirement) repairs.
• Day 30: Finalize your Homeowners Insurance policy.

Phase 4: The Home Stretch (Days 36 to 45)

• Day 38: Clear to Close (CTC).
• Day 40: Acknowledge your Closing Disclosure (CD)—3 days before signing is required by law.
• Day 45: CLOSING DAY. Bring your ID and keys!

Texas Veteran Homebuying Glossary

1. Tidewater Initiative
A safety net for VA appraisals. If the value is low, your agent has 48 hours to provide extra data to justify the price before the report is finalized.

2. Residual Income
Texas lenders verify that you have enough "gas and grocery money" left over each month after the mortgage, calculated based on your family size and home square footage.

3. Minimum Property Requirements (MPRs)
The VA's checklist to ensure the home is safe. In Texas, the "Big Three" are Termites, Foundation, and Roof Life.

4. VLB (Veterans Land Board)
The Texas agency providing exclusive Land Loans and Home Improvement Loans you won't find at the federal level.

5. Funding Fee Waiver
A disability rating of 10% or more saves you 2.15%–3.3% in upfront fees.

6. Escrow Deferral (100% Disability)
If you are 100% disabled, ask your lender for an Escrow Waiver so you don't have to fund a tax account for taxes you don't owe.