Serving Veterans of Texas with VA Home and Texas Veteran Loans
Texas Veteran Loans
You can find unbeatable rates with the Texas Land Board. These loans are available to vets living within Texas and are made available through lenders who actively participate in the Veterans Housing Assistance Program. The Texas Veteran Land Board sets the loan rates and these rates are updated each week.
15 and 30 year fixed rates are available on Texas Veteran Mortgages and require no down payment. The loan amounts can exceed up to $417,000. In order to pre-qualify, you may fill out the short pre-qualification form at end of page and one of our experienced lenders will be happy to assist you with the process.
There are Additional Benefits Available to Disabled Veterans
Un-married surviving spouses and disabled vets often qualify for interest rates with discounts of 50 base points on each half of one percent on Texas Veteran Land mortgages. To read more about disabled Veterans mortgage benefits.
Three Types of Texas Veteran Loans are Land, Home Improvement and Home Purchase
Land and Home Improvement loans originate from the Texas Vet Land Board and are not available by private lenders.
Home Mortgages Available Through Texas Veteran Mortgages
This program allows eligible vets who live within Texas to utilize the opportunity of purchasing a home with extremely low interest rates with very little or no money down. This loan can be used to purchase a home that meets the following criteria:
- The purchased home must the Veteran’s primary home
- The house must be located in the state of Texas
- The home must be a single family detached or attached house, condo, townhome or planned unit development
- Multi-family units and duplexes must have been built within the last 5 years before closing
- All new construction must meet the Environmental Protection Agency guidelines for qualified homes under Energy Star or must have a HERS Index Score of no more than 75 under the RESNET National Home Energy Rating Standards and will also need to have a certificate that documents energy rating of the HERS index score
How to Obtain a Texas Veteran or VA Loan
First, you must get pre-qualified for a home purchase or refinancing utilizing your benefit of Veterans Affair. Our lenders can tell you what price you are able to pre-qualify for and give you a pre-approval letter for a Veteran Mortgage loan.
After you have pre-qualified for the VA or Texas Veteran Mortgage, you will then need to select the home you would like to purchase. If you are refinancing, you can omit this step.
Once you have selected the home you wish to purchase, you will need to complete a formal application and supply a copy of your contract for purchase and we will prepare the required disclosures for signature. We will also give you a personal list of pertinent documents required at final approval.
After all required documents are received, we underwrite and process your Texas Veteran or VA Mortgage and this includes your appraisal. After loan approval, loan closing will take place and you can then sign your final loan documents.
Benefits of the Texas Veteran and VA Loan Mortgage
Texas veterans have the choice of two superb home loan programs. The Department of Veteran Affairs loan program provides excellent benefits for Texas vet borrowers. The Texas Veteran Land Board sponsors the Texas Veteran housing assistance program. The following benefits are available:
- No down payment and 100 percent financing offered
- Seller can pay all closing costs
- Credit requirements are flexible
- Loan amounts are available for any amount of $417,00 for VA Jumbo Loans
- Private mortgage insurance is not a requirement
- 15 and 30 year fixed rate loans are low in comparison to most other conventional loans with the low down payment of 20 percent
- No funding for VA required if veteran is on disability
- VA streamline refinancing is available to offer lower payments when the rates go down
- 0.5 percent additional rate discount for vets with a 30 percent or greater service type disability
Texas Veteran and VA Loan Mortgage Requirements
Veterans or active duty service members are eligible for VA or Texas Vet mortgages if they have served in any the following:
- 91 days of Active Wartime Service
- 181 days of Active Peacetime Service
- 6 years of National Guard or Reserve Service
Requirements Regarding Income
Debt to income ratio is most used to determine the amount of loan the borrower can qualify for. Most mortgages of this type are reviewed by the residual income calculation. When calculated this way, the determination is made in determining whether or not the Veteran has the pertinent income to cover all living expenses after mortgage payment is made. The type of expenses that will need to be covered are expenses such as housing, taxes and other debt types such as credit card payments or car payments.
What are the Credit Requirements?
No minimum credit score is necessary for the VA loan guidelines. There is a minimum loan score required though. Even if your credit score is somewhat below where it needs to be, our lenders can work with you in helping you raise your score to an adequate level to ensure qualification.
If you have ever filed bankruptcy in the past, you can still qualify. After bankruptcy discharge, you will need to have a year of clean credit history. If the bankruptcy was a Chapter 7, you will need to wait 2 years for the bankruptcy discharge date to begin application process.
It is necessary to obtain a VA Certificate of Eligibility when applying and you can obtain this through the Automated Certificate of Eligibility System we can provide to you as a lender.
VA Mortgage and Texas Veteran Interest Rates
The Texas Veteran Land Board sets the Texas Vet loan interest rates. The rates are updated once per week on Fridays and pertain to the following week.
VA Current Mortgage Rates
The Department of Veteran Affairs does not set the VA interest rates. These rates are set by each lender for VA loans. There are several aspects that determine the rate your VA mortgage rate is set at and pre-qualification is the first step. After this step, your quote is based on current market conditions.
As with most interest rates, VA mortgage rates change as the financial markets change. Once you are locked in with your own interest rate, your interest rate will not change.
We are able to offer you a highly competitive rate on your VA loan which is typically comparative to most 30 year conventional rates that require 20 percent down.
What are the Required Documents of Texas Vet and VA Loans?
To obtain a Texas Vet or VA loan, the borrower will need to provide the following documents regarding personal income and military service:
- A Veteran’s VA Certificate of Eligibility is necessary and we can usually obtain this for you through our Automated Certificate of Eligibility system or we can assist you in obtaining a copy from the Department of Veterans Affairs
- Active Duty Statement of Service
- Veteran’s DD214 copy if you are no longer in military
- W2 statements from last 2 years
- Most recent pay or LES stubs covering 30 days
- Banks statements covering the last 2 months
- Tax returns from last 2 years
The above documents are necessary in addition to the 1003 disclosures and application form. There may be other documents necessary depending on personal circumstances or situation. We will provide you with a checklist of any necessary information needed after our review.
What is the Difference between a Texas Veteran and VA Mortgage Loan?
These two loan types are quite similar. The Texas Veteran loan typically offers a better interest rate and is the best choice for a vet who is looking for a home in Texas. For any vet refinancing, a VA loan is probably the best choice.
Texas Vet Loan Highlights:
- Texas Veteran Land Board sets the interest rates at very competitive levels
- This loan can be used only to purchase a personal home and not utilized for refinancing, investment property or a second home
- Loan amounts are up to $417,000
- This loan type can be underwritten as a VA, conventional or FHA loan
- Any vet with 30 percent or higher disability can receive .5 percent interest rate discount and have the VA funding fee waived if underwritten as VA loan
- No down payment is required when written as a VA loan
- There is no private mortgage insurance necessary
- There are no penalties regarding pre-payment
- This loan type is only available to Texas residents
VA Mortgage Highlights:
- Interest rates are based on the market and are better in comparison to conventional loan types
- Loan can be used for refinancing or home purchases on existing FHA, VA or conventional mortgages
- Conventional loan amounts can go up to $417,000. There are certain situations where loan amount can be higher with incremental down payment with VA Jumbo loan program
- Veterans can have VA funding fee waived if there is a 10 percent or higher service connected disability
- No down payment is required
- No private insurance is necessary
- No penalty regarding pre-payments
- VA loans are available nationwide