VA Loans in Texas
You earned the strongest mortgage benefit available. Buy a Texas home with $0 down and no monthly mortgage insurance — and pair your benefit with Texas Veterans Land Board financing and disabled veteran property tax exemptions.
Texas VA Loan at a Glance
VA loans are originated by private lenders and guaranteed by the U.S. Department of Veterans Affairs. Because the VA guarantees up to 25% of the loan amount, lenders can offer $0 down and no monthly mortgage insurance.
| Feature | VA Loan in Texas |
|---|---|
| Down Payment | $0 down as long as the sales price does not exceed the appraised value |
| Credit Score | VA sets no minimum credit score requirement; individual lenders may set their own overlays |
| Mortgage Insurance | None — no private mortgage insurance (PMI) or mortgage insurance premiums (MIP) |
| Entitlement & Loan Limit | With full entitlement, there is no VA loan limit. Basic entitlement is $36,000 (for loans up to $144,000), and bonus entitlement covers loans above $144,000. With partial entitlement, remaining bonus entitlement is based on 25% of the county one-unit conforming limit minus entitlement already used |
| VA Funding Fee | 0.5%–3.3% one-time fee (can be financed on a purchase loan); waived for borrowers receiving VA service-connected disability compensation, active-duty Purple Heart recipients, DIC surviving spouses, and other listed exemptions |
| Underwriting & Residual Income | Residual income is the primary underwriting test (Texas is in the VA South region). Debt-to-income (DTI) is secondary, with a 41% benchmark |
| Property Types | A home you will live in as your primary residence that meets VA and lender standards; ask a lender about eligible condos |
| Occupancy | Must be occupied as the borrower's primary residence |
| Seller Concessions | Seller concessions are capped at 4% of the home's reasonable value |
| Who's Eligible | Borrowers with a Certificate of Eligibility (COE) who meet VA and lender credit and income standards and will live in the home |
Current VA Funding Fee Table & Exemptions
The VA funding fee is a one-time charge that helps fund the VA home loan program. On a purchase loan, the funding fee is the only closing cost that can be financed into the loan amount. These published rates took effect April 7, 2023, and remain current on VA.gov.
| Loan Type / Down Payment | First Use | After First Use |
|---|---|---|
| Purchase or construction, less than 5% down | 2.15% | 3.3% |
| Purchase or construction, 5% or more down | 1.5% | 1.5% |
| Purchase or construction, 10% or more down | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.3% |
| Interest Rate Reduction Refinance Loan (IRRRL) | 0.5% | 0.5% |
| Loan assumption | 0.5% | 0.5% |
| Manufactured home (not permanently affixed) | 1% | 1% |
| Native American Direct Loan (NADL) | 1.25% purchase / 0.5% refinance | 1.25% purchase / 0.5% refinance |
| Vendee loan | 2.25% | 2.25% |
| Funding Fee Exemptions ($0 Fee) | Exempt on first use | Exempt after first use — applies to borrowers receiving VA compensation for a service-connected disability; borrowers eligible for disability compensation who receive retirement or active-duty pay instead; surviving spouses receiving DIC; service members with a proposed or memorandum rating issued before closing; and active-duty members with evidence of a Purple Heart on or before closing |
How VA Underwriting Works in Texas (South Region)
According to the VA Lenders Handbook (VA Pamphlet 26-7, Chapter 4), the VA does not set a minimum credit score requirement, though individual lenders may apply their own credit score overlays. Instead, residual income is the primary test, and the published residual income figures are a guide. An inadequate residual income alone can be a basis for disapproving a loan. Debt-to-income (DTI) is secondary: a DTI above 41% requires close scrutiny and a supervisor-signed justification unless your residual income exceeds the guideline by at least 20%. Texas is in the VA's South region.
| Family Size | Loans of $79,999 and Below (South Region) | Loans of $80,000 and Above (South Region) |
|---|---|---|
| Family of 1 | $382 | $441 |
| Family of 2 | $641 | $738 |
| Family of 3 | $772 | $889 |
| Family of 4 | $868 | $1,003 |
| Family of 5 | $902 | $1,039 |
| Each additional member (up to 7) | Add $75 per member | Add $80 per member |
Texas Veterans Land Board (VLB) Home Loans & Disabled Veteran Tax Exemptions
Texas backs up your federal VA benefit with state-level programs, including VLB home and land loans and property tax exemptions for disabled veterans. In addition to the Texas Veterans Land Board (VLB) and Texas Tax Code exemptions below, veterans and military members may also qualify for Homes for Texas Heroes. Buyers apply for VLB and state programs through a participating lender; our team helps you check eligibility, compare options, and get connected.
| Texas Benefit | Who Qualifies | Key Rules & Amounts |
|---|---|---|
| VLB Veterans Housing Assistance Program (VHAP) | Bona fide Texas residents (18+) who are active-duty members, Texas National Guard members, reservists with 20 qualifying years, veterans with 90+ active-duty days (fewer if discharged for a service-connected disability) and an honorable, general, or medical discharge, or eligible surviving spouses (any prior VLB loan must be repaid) | Fixed-rate primary-residence purchase loans up to $832,750 (current published limit; confirm with a participating lender) with 15-, 20-, 25-, or 30-year terms. Offered in conjunction with a VA, FHA, or conventional loan through a VLB participating lender. The VLB base rate is adjusted on the first business day of each week; a participating lender can quote today's rate. Single-family homes, townhomes, and condos qualify, and duplexes or multi-family units must have been built at least 5 years before closing. Must occupy within 60 days for at least 3 years; no refinancing and cannot be used as a down payment |
| VLB Veterans with Disabilities Discount | Veterans with a compensable VA service-connected disability rating of 30% or greater, shown by a VA Award Letter or DoD Disability Retirement Orders | Qualifies for a discounted interest rate below the VLB base rate on a VHAP home loan. Rates and discounts are set by the VLB and can change at any time |
| VLB Veterans Land Loan | Eligible Texas veterans and military members buying at least 1 net acre of land | Up to $200,000 ($275,000 for two eligible veteran spouses buying the same tract) with a minimum 5% down payment, 30-year fixed term, $325 appraisal/contract service fee, and no prepayment penalty |
| 100% Disabled Veteran Homestead Exemption (Tax Code §11.131) | Disabled veterans awarded 100% disability compensation for a service-connected disability with a 100% disability rating or individual unemployability (and unremarried surviving spouses on the same homestead, or a dollar-capped exemption if the spouse moves); §11.133 also provides a total homestead exemption for unremarried surviving spouses of members killed in the line of duty | Exempt from property taxes on 100% of the total appraised value of the residence homestead |
| Partial Disabled Veteran Property Tax Exemption (Tax Code §11.22) | Texas residents with a service-connected disability rating of at least 10% (may be designated on any one property the veteran owns, not only a homestead) | 10% to less than 30%: $5,000 off assessed value; 30% to less than 50%: $7,500; 50% to less than 70%: $10,000; 70% and over: $12,000. The $12,000 exemption also applies if the veteran is 65+ with at least a 10% rating, is totally blind in one or both eyes, or has lost the use of one or more limbs. Unmarried surviving spouses keep the veteran's amount ($5,000 if the member died on active duty) |
| Donated Homestead Exemption (Tax Code §11.132) | Partially disabled veterans whose residence homestead was donated by a charity at no cost or at no more than 50% of market value | Property tax exemption equal to the veteran's disability-rating percentage |
| General Texas Homestead Exemption (Tax Code §11.13) | Texas homeowners occupying the home as their principal residence | $140,000 school district exemption on appraised value, plus an additional $60,000 exemption for homeowners age 65 or older or disabled |
Texas VA Situations We Help With
Pairing VA with Texas VLB (VHAP)
Combine your VA loan benefit with the Texas Veterans Land Board Veterans Housing Assistance Program for financing up to $832,750 (current published limit) — and qualify for a discounted VLB rate if you have a compensable VA disability rating of 30% or greater.
Homes for Texas Heroes Eligibility
Veterans and active-duty military members are eligible professions under TSAHC's Homes for Texas Heroes program. Compare whether a down payment assistance grant or a VLB loan fits your numbers best.
Using Partial Entitlement on Your Next Home
Still have entitlement tied to another VA loan? Your next VA-financed home must still be your primary residence. We estimate your remaining bonus entitlement using 25% of your Texas county's one-unit limit minus the entitlement already in use.
Residual Income & DTI Above 41%
VA underwriting puts residual income first. A debt-to-income ratio above 41% gets close scrutiny and needs a supervisor-signed justification unless your South region residual income beats the VA guideline by at least 20%.
Assuming a Seller's VA Loan
VA lists a 0.5% funding fee for a loan assumption (unless you are exempt). We help you review the existing loan's terms and the equity you would need to cover.
Maximizing Texas Property Tax Exemptions
If you are awarded 100% disability compensation with a 100% rating or individual unemployability, Tax Code §11.131 exempts the total appraised value of your Texas residence homestead from property tax, which can lower your monthly housing payment.
Eligible for Homes for Texas Heroes?
Texas veterans and military members can also qualify for down payment and closing cost assistance through the Homes for Texas Heroes program. See how it compares with a traditional VA or VLB loan.
Explore Homes for Texas HeroesHow to Get a VA Loan in Texas
- 1
Confirm Your Certificate of Eligibility (COE)
Your COE verifies your qualifying service and shows whether you have full or partial VA entitlement. We can help you retrieve it and check whether you also meet Texas VLB residency and service rules.
- 2
Review Residual Income, DTI & Program Options
We review your income, debts, and South-region residual income, check whether your VA funding fee is waived, and compare standard VA financing against pairing with a VLB home loan or Homes for Texas Heroes.
- 3
Lock Your Home & Complete the VA Appraisal
Once you are under contract on an eligible Texas primary residence, the VA appraisal confirms the property's value. Remember that no down payment is required as long as the price does not exceed appraised value.
- 4
Close & File Your Texas Property Tax Exemptions
Move into your primary residence and file your Texas residence homestead exemption — plus your §11.22 or §11.131 disabled veteran property tax exemption if you have a qualifying VA disability rating.
Related Texas Guides
Homes for Texas Heroes
See how Texas veterans and active-duty military can qualify for down payment assistance.
Read Guide
Texas Conforming Loan Limits by County (2026)
Check the county one-unit limits used to calculate remaining partial VA entitlement.
Read Guide
58 Texas First-Time Home Buyer Grants & Programs (2026)
Compare statewide and local assistance programs available to Texas homebuyers.
Read Guide
Requirements to Buy a House in Texas
Credit, income, down payment, and closing cost rules for buying a home in Texas.
Read GuideFrequently Asked Questions
Quick answers to the questions Texas homebuyers ask us most. Can’t find what you’re looking for?
Talk to an ExpertIf you have full VA entitlement, there is no VA loan limit — the lender still approves you based on your credit, income, debts, and assets, and the loan is capped at the lower of the appraised value or the purchase price. If you have partial entitlement (for example, entitlement still tied to another VA loan), your remaining bonus entitlement equals 25% of your Texas county's one-unit conforming loan limit minus the entitlement you have already used.
You are exempt from the VA funding fee if you receive VA compensation for a service-connected disability, or if you are eligible for that compensation but receive retirement or active-duty pay instead. Exemptions also apply to surviving spouses receiving Dependency and Indemnity Compensation (DIC), service members with a proposed or memorandum disability rating issued before closing, and active-duty members who provide evidence of a Purple Heart on or before closing.
The VA itself does not set a minimum credit score requirement, though individual lenders may set their own credit score overlays. Instead, VA underwriting focuses primarily on residual income for the South region (which includes Texas) — requiring $441 to $1,039+ per month for loans of $80,000 and above depending on family size — while treating the 41% debt-to-income (DTI) ratio as a secondary guide.
The VLB Veterans Housing Assistance Program (VHAP) offers fixed-rate primary-residence mortgages up to $832,750 (current published limit; confirm with a participating lender) on 15-, 20-, 25-, or 30-year terms in conjunction with a VA, FHA, or conventional loan. The VLB adjusts its base interest rate on the first business day of each week, and veterans with a compensable VA service-connected disability rating of 30% or greater qualify for a discounted rate through a participating lender.
Under Texas Tax Code §11.131, a veteran awarded 100% disability compensation for a service-connected disability with a 100% rating or individual unemployability is exempt from property taxes on 100% of the appraised value of their residence homestead. Texas-resident veterans with a service-connected rating of 10% or more qualify for a partial assessed-value exemption under §11.22 ranging from $5,000 (10% to under 30%) up to $12,000 (70% and over, or age 65+ with at least a 10% rating) on any one property they own and designate.
Yes, veterans and active-duty military members are eligible under the Homes for Texas Heroes program, which provides mortgage financing and down payment assistance through participating lenders. Because income limits apply (purchase price limits apply to some options) and rates are set daily by the program, our team can help you check your eligibility, compare it alongside a standard VA or VLB loan, and get connected with a participating lender.
Put Your VA Benefit to Work in Texas
Check your eligibility in a few minutes, and we'll help you review your VA entitlement, funding fee status, VLB options, and Texas property tax exemptions.