What is a Texas Vet Loan?
A Texas Vet Loan is a mortgage loan designed to help veterans and their families purchase a home in Texas. The loan is backed by the Texas Veterans Land Board (TVLB), which was established in 1946 to assist returning veterans in purchasing land and homes. The TVLB offers several loan programs to eligible veterans, including the Veterans Housing Assistance Program (VHAP) and the Veterans Land Program (VLP).
Who Qualifies for a Texas Vet Loan?
To be eligible for a Texas Vet Loan, you must meet certain criteria set forth by the TVLB. These include:
- Veteran Status: You must be a veteran of the armed forces of the United States who has served at least 90 active duty days and has been honorably discharged.
- Texas Resident: You must be a resident of Texas at the time of application.
- Property Eligibility: The property being purchased must be located in Texas and meet certain requirements set forth by the TVLB.
- Income and Credit: You must meet certain income and credit requirements set forth by the TVLB.
- Military Service Requirements: Depending on the type of loan, you may be required to meet certain military service requirements, such as serving during a certain time period or in a certain conflict.
It’s important to note that the TVLB sets its own eligibility requirements and may have additional criteria that must be met. It’s best to consult with a qualified mortgage advisor, such as Hurst Lending, to determine if you are eligible for a Texas Vet Loan.
Advantages of a Texas Vet Loan
There are several advantages to using a Texas Vet Loan to finance your home purchase. These include:
- Lower Interest Rates: Texas Vet Loans often lower interest rates compared to normal VA loans and conventional mortgages, which can save you thousands of dollars over the life of the loan.
- You can get an even lower rate if you are a disabled veteran or are an Unmarried Surviving Spouse of a service member who died in the line of duty (or died from a service-connected cause).
- No Mortgage Insurance: Texas Vet Loans do not have any mortgage insurance.
To take advantage of the Texas vet loan program, your home must meet the following requirements. The home must be:
- Your primary residence
- Located in Texas
- Single-family home, townhome, or condominiums
- Duplexes or other multi-family units (must have been constructed at least five years prior to the closing date of the loan).
- All new construction homes must meet Energy Star guidelines.
- If your home does not meet these requirements, please contact us as we have other programs that may meet your needs.
Is a Texas Vet Loan better than a VA loan?
A Texas Vet Loan is often a great choice for customers but at times a VA loan may be a better option as the closing costs for a VA loan are often lower than Texas Vet Loans. In some cases, the slightly higher rates of the traditional VA, in combination with paying less out of pocket for closing costs, can make more sense for the borrower than the Texas Vet Loan. For recommendations based on your unique situation, contact us and we can guide you through the pros and cons of both options.
If you’re a veteran or the spouse of a veteran and you’re looking to purchase a home in Texas, a Texas Vet Loan may be the right choice for you. These loans offer several advantages over conventional mortgages and are often better than a VA loan. This is especially true if you are a disabled veteran or a surviving spouse of a disabled veteran. To determine if you qualify for a Texas Vet Loan and to learn more about the application process, contact Hurst Lending today. Our team of experienced mortgage advisors can guide you through the process and help you secure the financing you need to make your dream of homeownership a reality.
- Texas Veterans Land Board: https://www.texasveterans.com/
- Texas Vet Loans – Hurst Lending: https://www.hurstlending.com/texas-vet-loans/
- Texas Vet Loan Program – MilitaryVALoan.com: https://militaryvaloan.com/texas-vet-loan-program/
About Scott Bailek
In addition to being one of the founders of Hurst Lending, I am also an attorney and real estate investor. I have a portfolio of residential and commercial properties. I have been helping our customers buy, sell, and refinance their homes since 2000. Our personalized approach to the home buying process includes a suite of services that solve common hurdles in the home buying process. Have you ever experienced the frustration of Losing your dream home in a bidding war; Trying to buy before you sell; Had your buyer fallout; or Being on a fixed income and needing your equity to purchase a new home? Our Industry-leading suite of Dominate with a Cash Offer line of credit/short-term loans solves these issues. We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, construction, and traditional home loans.
Please feel free to contact me directly if I can help provide a loan for your next purchase or refinance, or even if you just want advice on how to get started or expand your real estate investing activities.
Scott E. Bialek
Co-Founder, Hurst Lending
*Please note that this article is not intended to provide legal advice. You should contact your own attorney to understand the legal protections that are available to you when you purchase or refinance real estate.