VA Loans Texas
An incredible 1.4 million service members call Texas home, including thousands of active duty service members at the 15 bases around the state. Many of these are eligible for VA loans — and you may be one of them!
Eligible Texas veterans use the VA loan program because it requires no down payment, offers excellent interest rates, and accepts applicants with less-than-perfect credit. District Lending is proud to assist Texas veterans in finding the perfect home loans. We’re one of the top mortgage companies working with the Department of Veterans Affairs to provide affordable, low-interest loan products to military members throughout Texas.
Texas VA Home Loans
The Veterans Housing Assistance Program, which includes VA loans, was formed by the legislature created at the end of WWII, called the GI Bill. With this program, the Department of Veterans Affairs partners with private lenders who offer home loans to eligible military members and qualifying spouses.
Last year, over 43,000 Texas veterans and active service members received over $16 billion in home loan benefits to purchase a home, with the average loan being about $366,000. In fact, Bexar County, Texas, led the country for loan amounts in 2023, with 7,090 loans offered for purchasing, cash-out refinances, and Interest Rate Reduction Refinance Loans (IRRRL).
Veteran-friendly Texas has a variety of other programs, including the Homestead Exemption on property taxes for 100% disabled veterans and partially disabled veterans above age 65. The Texas Veterans Land Board also allows veterans to borrow up to $150,000 for land purchases. Combined with an affordable VA loan, this program can help a service member create the property of their dreams.
What You Need to Know About Texas VA Loans
VA loans offer favorable terms for a service member or qualified spouse who wants to purchase a primary residence. They generally cannot be used to purchase land or investment properties. You’ll work with a qualified VA lender like District Lending, who will guide you through each step of the process. However, if you need further help, you can call the Texas Veterans Commission for assistance at 800-252-VETS (8387).
Funding Fees
One of the benefits of the Texas VA loan program is that you can put little or no money down as a down payment. However, you will have to pay a funding fee upfront, which is used to fund the loan program. This will be a percentage of the amount of money you borrowed, ranging from 1.5% to 3.3%, depending on your down payment, loan amount, and whether you have an existing loan with the VA.
Loan Eligibility
A VA home loan requires a Certificate of Eligibility, which is based on your military service. This document, received from the VA, shows that you meet the qualifications necessary to borrow money through the program.
Loan Insurance
A VA home loan does not require private mortgage insurance, as the federal government insures the product. Additionally, the state of Texas does not require homeowners insurance. However, your VA lender may still require you to get homeowners insurance as a prerequisite for opening a home loan with them.
Loan Interest Rates
A Texas active duty service member or veteran is entitled to a lower interest rate than would be possible for a conventional loan. For example, the average borrower seeking a 30-year fixed-rate conventional mortgage will be facing rates of about 7.54%, while those looking at a VA loan can enjoy a 6.97% rate. This can make a huge difference in your monthly payment, proving VA loans are the superior choice.
How to Know if You Qualify for a VA Loan in Texas
The Texas VA loan process starts with a Certificate of Eligibility (COE), which shows that you are entitled to VA benefits. There are several factors that go into whether you can purchase a home using this all-important document.
Duty Status
To get a VA home loan, you need to have enough qualifying services. For active duty military, this is 90 days of continuous active duty in wartime. National Guard members need to have served at least six years. Veterans need to have served 90 days of continuous active duty, or 180 days in peacetime. If you were discharged due to injury, this may be shorter.
VA Entitlement
Your Certificate of Eligibility will also list your entitlement — if you have never taken out a VA loan before, you will likely have full entitlement. Partial entitlement is subject to county loan limits, which is $766,550 for every county in the Lone Star State.
Discharge Status
Last on the COE list is your discharge status. Only those who were honorably discharged can receive an entitlement, though this can be due to medical issues, government convenience, early out, or hardship. If you received a dishonorable, less-than-honorable, or bad conduct discharge, you may be able to dispute this by requesting a discharge upgrade to get your eligibility.
Decent Credit Score
The next component is your financial history. As with any other loan program, the lender will run a credit check and base your interest rate partially on your score. The minimum score for most VA loans is 580, but you should strive to boost your credit before applying so you can access the best rates.
Low Debt-to-Income Ratio
With VA loans, you should be paying no more than 41% of your paycheck to other debts, such as credit cards, student loans, and car payments. The lower this debt-to-income ratio (DTI), the more likely you are to be approved for a VA home loan.
Waiting Period
Many veterans will choose to refinance their VA loan after a certain period, whether that is just to access a new rate, to get a cash-out refinance with their home equity, or to turn it into a non-VA loan. You must let the loan season for at least 210 days from close before you can seek refinancing. You also need to wait three to four years between opening loans.
District Lending is Your Texas VA Loan Partner
Texas veterans deserve the best for all they have sacrificed for our homeland. If you’ve served the United States in any military branch for a qualifying period of time, District Lending is here to assist you in the next part of your journey: a VA home loan. You’ll enjoy no down payment requirement, a low interest rate, and a stress-free process.
Our team of mortgage professionals will help you every step of the way, from receiving your Certificate of Eligibility to closing. We’re also happy to help with your refinancing needs once you’re ready to take that step. Whether you served in Fort Hood or far, far away, we’ll help you get a VA loan that meets your needs.
Contact us today to learn more about our excellent options for military members and their families throughout Texas. Let’s make your dream come true.
Know exactly what to expect from your loan
Get a free loan quote today and leave the guesswork behind.
get a FREE quote- No documents required.
- No commitment.
- No fine print.
