Sorting through state and federal military homebuying benefits can feel overwhelming when you are trying to figure out whether a state program actually beats a standard mortgage.
This guide breaks down the 2026 Texas Veterans Land Board home loan, including the current $832,750 loan limit, weekly interest rate rules, disability discounts, and land loan options.
Check Your Texas VA Loan Eligibility
You will walk away knowing exactly who qualifies, how the VLB program works alongside VA, FHA, and conventional loans, and how to compare your options before you buy.
What Is the Texas Veterans Land Board Home Loan?
The Texas Veterans Land Board home loan is a state-administered mortgage program created by the Texas Legislature in 1983 to help Texas veterans and military members purchase a primary residence. Formally known as the Veterans Housing Assistance Program (VHAP) and run by the Veterans Land Board, whose program pages are on the Texas General Land Office (GLO) website, it provides fixed-rate financing with 15-, 20-, 25-, or 30-year terms and little or no down payment.
According to the GLO, all VLB programs are self-funded and use no public taxpayer money. Instead, the programs are financed with bonds, which are serviced by loan payments from veteran and military member participants.
How VLB Loans Work With VA, FHA, and Conventional Mortgages
You do not borrow directly from a state office window when using a Texas VLB home loan. According to VLB program materials, the home loan is offered through a VLB participating lender in conjunction with a VA loan in Texas, one of the FHA loans in Texas, or a conventional loan (certain restrictions apply, so you should contact your participating lender for specifics).
According to the GLO's home loan page, the VLB is in first lien position on the primary residence. Texas statutes and administrative rules describe a structure where a mortgage or deed of trust to the board may be a participation in a lien securing another loan for the purchase of the home, and refer to the participating lender's portion of the loan and the board's portion of the loan. However, current official VLB pages do not state the exact percentage split between VLB funds and lender funds, so ask your participating lender how your loan will be structured.
2026 Loan Limits, Interest Rates, and the Disability Discount
For buyers looking at a Texas Veterans Land Board loan in 2026, two key features to understand are the loan size ceiling and the way the board sets its interest rates.
Current Maximum Loan Amount ($832,750)
As of October 2026, the VLB states that eligible veterans, military members, and their spouses may receive up to $832,750 for a home purchase. Two eligible spouses may jointly purchase one home if they qualify together with the lender, though their combined VLB loan still cannot exceed the federal VA home-mortgage maximum.
By Texas statute and administrative rule, the VLB maximum loan amount is set by board resolution and may not exceed the maximum allowable loan amount under the U.S. Department of Veterans Affairs Home Loan Guaranty Program. That $832,750 figure also matches the 2026 baseline Texas conforming loan limits by county set by the Federal Housing Finance Agency (up from $806,500 in 2025), though the VLB rules officially tie their cap to the VA limit rather than naming the FHFA. Because loan limits adjust periodically, always confirm the current published figure with a participating lender.
How VLB Interest Rates Are Set
Under Texas statute, the Veterans Land Board sets interest rates to provide a margin over the rate the board pays on its bonds, which helps cover the cost of administering the program. According to the GLO, the VLB base interest rate is subject to adjustment on the first business day of each week, and all VLB interest rates and discounts are subject to change at any time.
Because VLB rates change weekly and can adjust at any time, we never quote a specific interest rate here. It is also important to know that getting your VLB Certification of Eligibility does not lock in or guarantee an interest rate. To find out today's live VLB rate and learn how to lock it in, you will need to contact a participating lender.
Discounted Rate for Veterans Rated 30% or Higher
Through the VLB Veterans with Disabilities Program, veterans who have a compensable VA service-connected disability rating of 30% or greater qualify for a discounted interest rate on their VLB home loan.
The official VLB program materials do not set a fixed size for this discount, noting that both VLB interest rates and the disability discount are subject to change at any time. A participating lender can tell you the current discount and today's rate.
To get the discount, you must verify your 30% or higher compensable rating with an Award Letter from the VA or Department of Defense Disability Retirement Orders. All completed documentation supporting your request for the disability discount must be submitted to your participating lender at the time of loan application.
Check Your Texas VA Loan Eligibility as a Veteran
Who Qualifies for a Texas VLB Home Loan?
To qualify for the Veterans Housing Assistance Program, an applicant must be at least 18 years old, be a bona fide and legal resident of Texas on the date of credit loan application, and meet military service, discharge, and state credit standing rules.
| Eligibility Category | Texas VLB Requirement |
|---|---|
| Minimum Age | At least 18 years old |
| Texas Residency | Bona fide and legal resident of Texas on the date of credit loan application |
| Active Duty | Currently serving active duty military member |
| Texas National Guard | Member of the Texas National Guard (with initial active duty training completed, per statute) |
| Military Reserves | Reserve component member who has completed 20 qualifying years for retirement |
| Veterans | Served at least 90 active duty days (unless discharged sooner due to a service-connected disability) |
| Surviving Spouses | Unmarried surviving spouse of a veteran listed as missing in action or whose death was service-connected |
| Discharge Status | Honorable, general, or medical discharge (dishonorable is not eligible; other discharges require a USVA Certificate of Eligibility) |
Military Service and Discharge Requirements
If you received an honorable, general, or medical discharge, you meet the discharge requirement. Dishonorable discharges are not eligible. If you have another discharge type—such as bad conduct, other than honorable, or an entry-level separation—you are not eligible unless you provide a Certificate of Eligibility or similar document from the U.S. Department of Veterans Affairs showing that you qualify for a federal VA loan based on your service history and duty status.
Texas Residency and Home of Record Rules
Residency rules can be nuanced depending on where you entered the military and where you are currently stationed:
- Home of Record Check: According to the VLB certification application, the board checks whether your DD214 (or similar document) shows Texas as your home of record at the time of entry into active duty. Note that "Place of Entry" on a DD214 is not considered proof of "Home of Record."
- Veterans Who Moved to Texas Later: Under the statutory definition of a veteran in the Texas Natural Resources Code, a veteran must be a bona fide Texas resident when applying and must either have been a Texas resident at enlistment/induction or have lived in Texas for at least one year immediately before applying (though the board may change this definition by rule). Because the VLB application instructions emphasize checking for a Texas home of record while the statute provides the one-year residency path, veterans whose home of record was outside Texas should confirm their exact documentation requirements directly with the VLB.
- Active Duty Stationed in Texas: Active-duty members stationed in Texas may establish eligibility after filing a DD2058 Change of Residency form and providing a letter from their military personnel office confirming the filing.
- Active Duty Stationed Outside Texas: Members stationed outside Texas may be eligible if they show proof that their home of record is Texas, or by submitting a filed copy of a DD2058 establishing bona fide Texas residency (living in Texas with the intent to remain).
- Accepted Proof of Residency: You can document residency using a Texas driver's license, a utility bill, military transfer orders, or a letter from a relative.
Surviving Spouses and Prior State Obligations
Unmarried surviving spouses of veterans who are listed as missing in action or who died from a service-connected injury or cause can qualify by submitting the veteran's discharge documents, a death certificate, and a VA award letter confirming the service-related death (the 90-day active duty minimum is waived for the deceased or MIA veteran if they were a Texas resident at entry). In addition, if an eligible veteran passes away after filing a VLB loan application, the surviving spouse is allowed by statute to complete the transaction.
Finally, you must have successfully paid off any previous VLB loan in full, and any active VLB loan you hold in another program (such as a land loan) must be in good standing. By Texas law, no state loan may be granted to anyone who is delinquent on child support or debts owed to the state—such as state taxes or a guaranteed student loan—until the debt is paid or payment arrangements are made.
Property, Occupancy, Down Payment, and Refinancing Rules
Before shopping for a home, make sure both the property and your timeline fit the VLB's lending rules and the general requirements to buy a house in Texas.
Eligible Property Types
The home must be located in Texas, sit on a permanent foundation, and serve as your primary residence. Eligible property types include:
- Single-family detached or attached homes
- Townhomes
- Condominiums (if you are buying a unit in a condo community, it helps to understand how Texas condo loans are underwritten)
- Duplexes or other multi-family units, provided they were built at least five years before closing
- HUD-code manufactured homes on a permanent foundation that meet Fannie Mae (FNMA) or Freddie Mac (FHLMC) guidelines (mobile homes are not eligible)
- New construction homes that meet local, county, state, and/or federal building standards
The 60-Day Move-In and 3-Year Primary Residence Rule
Borrowers must move into the home within 60 days after closing and must keep the property as their primary residence for at least three years.
You cannot lease or transfer the home during that three-year window. If you lease or convey the property before three years are up, the VLB may escalate the interest rate on your loan or accelerate the full principal and interest due. By statute, the board has the authority to waive this three-year requirement in cases of death, bankruptcy, financial incapacity, divorce, a job-related move, condemnation, or when a waiver is in the program's best interest.
Down Payment, Fees, and Repeat Use
While the VLB describes the program as requiring little or no down payment, the exact down payment is determined by your participating lender (and the board retains statutory authority to require a down payment at closing). In addition, VHAP funds cannot be used to cover a down payment on a home.
The VLB does not publish a fixed schedule of origination or participation fees on its website; under Texas statute, all fees charged to a veteran must be approved by the board and may be rolled into the veteran's payments.
Once you have paid off a VLB home loan in full, you can use the program again to buy another home. You can only finance one home at a time through the VHAP, though it is possible to have one active VLB home loan and one active VLB land loan at the same time. Reservists and National Guard members who hold a VLB home or land loan may also be able to defer interest payments when called up for active duty under the Service Members Civil Relief Act (SCRA).
Why You Cannot Refinance With a VLB Loan
The VLB does not offer refinancing. Program rules require a VLB home loan to be a new purchase mortgage, meaning you cannot use the VLB to refinance an existing mortgage to lower your interest rate. However, the home you purchase with a VLB loan does not have to be newly built.
Check Your Eligibility for Texas Veteran Home Loans
Other VLB Programs: Land Loans and the Discontinued Home Improvement Program
Beyond buying a house, the Veterans Land Board has historically run two other financing programs. In 2026, the land loan remains available while the home improvement program has been discontinued.
The VLB Land Loan Program
If you want to buy Texas acreage now and build or hold for the future, the VLB land loan in Texas (the Veterans Land Loan Program) is described by the GLO as the only program of its kind in the nation. Eligible veterans and military members who meet the same age, residency, service, and discharge rules as the home loan can apply.
Here are the current rules for a VLB Land Loan:
- Maximum Loan Amount: Up to $200,000 for an individual eligible buyer, or up to $275,000 for two eligible veteran spouses purchasing the same tract together.
- Down Payment and Term: Minimum 5% down payment with a 30-year fixed-rate term, subject to credit approval.
- Fees: A $325 appraisal and contract service fee is collected after you submit your application, along with a small administrative fee on each loan (exact amount not stated on the GLO page). There is no prepayment penalty.
- Interest Rate: The VLB sets the land loan interest rate, which is subject to change at any time (contact the VLB or check their site for the current live rate; the land loan page does not state whether a disabled-veteran rate discount applies).
- Tract Requirements: The land must be wholly within Texas and be at least one net usable acre (excluding land under a public road or navigable waterway, land subject to frequent inundation, or otherwise unusable land). It must have legal, usable access to a public road at least 60 feet wide (or the county minimum, if greater) that is drivable by a passenger car in bad weather.
- Condition and History: The parcel must have surveyed field notes or a recorded subdivision plat, cannot be zoned strictly commercial, and cannot have been owned by the veteran or spouse in the prior three years. All trash and dilapidated structures must be removed before closing, and no value is given to any existing improvements on the tract.
- Assumptions and Repeat Use: VLB land loans may be assumed after three years, and you can take out another land loan once your current one is paid off in full. Land loans are serviced by Dovenmuehle Mortgage, Inc. (DMI). Note that the board also adopted updates to its land selection and land description rules (40 TAC §175.3 and §175.4) effective May 27, 2026, to facilitate land program transactions.
Discontinuation of the Veterans Home Improvement Program (VHIP) in 2026
If you have read older articles mentioning the VLB Veterans Home Improvement Program (VHIP), be aware that the program is no longer offered. At its July 28, 2026 Special Called Meeting, the Veterans Land Board voted unanimously to discontinue offering loans under the Veterans Home Improvement Loan Program.
In the August 21, 2026 issue of the Texas Register, the board published proposed rule changes to remove the home-improvement provisions from the Texas Administrative Code, though final adoption of those rule changes is not yet confirmed. As of October 2026, the old VHIP program page and credit application on the GLO website are no longer available, and the VLB's main loans page lists only Land Loans, Home Loans, and SCRA Assistance.
If you are buying a fixer-upper and need to finance repairs into your purchase mortgage, you may want to explore FHA 203(k) loans in Texas instead. If you already own your home and want to tap your equity for renovations, review our guide to Texas home equity loan rules and HELOCs.
Texas VLB Home Loan at a Glance
Because the VLB home loan is offered in conjunction with a VA, FHA, or conventional loan, it helps to see the VLB's own rules in one place before you compare options with a lender:
| Feature | Texas VLB Home Loan (VHAP) |
|---|---|
| How It Is Offered | Through a VLB participating lender, in conjunction with a VA, FHA, or conventional loan (certain restrictions apply) |
| Maximum Loan Amount (2026) | Up to $832,750 (cannot exceed the federal VA maximum allowable loan amount) |
| Interest Rate Pricing | Base rate set by the VLB and subject to adjustment on the first business day of each week; discounted rate for a 30% or higher VA disability rating |
| Loan Terms | Fixed rate, with 15-, 20-, 25-, or 30-year terms |
| Texas Residency Rule | Must be a bona fide Texas resident on the application date (plus home of record or residency history rules) |
| Primary Residence Commitment | Must occupy within 60 days of closing and keep as primary residence for at least 3 years |
| Refinancing Allowed? | No; the VLB does not offer refinancing |
If you qualify for the 30% or higher VLB disability rate discount, or the VLB rate compares well with your other options when you are ready to lock, the VLB home loan may be worth a close look, provided you plan to stay in the home without leasing or selling it for at least three years. You can also compare these benefits against other Texas home loan options, including state programs like Homes for Texas Heroes and the broader list of 58 Texas first-time home buyer grants and programs.
Check Your Texas VA Loan Eligibility and Compare Options
How to Apply for a Texas VLB Home Loan Step by Step
Buyers apply for a VLB home loan through a participating lender. Our team at Make Texas Your Home helps veterans check their eligibility, compare a standalone VA loan against state programs, and get connected with the right path.
According to the VLB's application instructions and "Seven Simple Steps" guide, here is how the process works:
- Request Your VLB Certification of Eligibility: Complete Form 41 (Request for Certification) and Form 42 (Declaration of Eligibility) from the VLB Certification of Eligibility Application packet.
- Gather Your Service and Residency Documents: Attach your proof of military service (such as your DD214 Member-4 copy or statement of service) and proof of Texas residency (such as a Texas driver's license, utility bill, military transfer orders, or filed DD2058). If you are applying as a surviving spouse, include the veteran's discharge documents, death certificate, and VA award letter showing a service-related death.
- Submit Your Certification Packet to the VLB: Send your forms and supporting documents to the VLB by email, fax, or mail as listed on the VLB application form. Allow up to three business days for the VLB to process your request and notify both you and your lender.
- Select a VLB Participating Lender: Use the VLB "Find A Lender" tool on the GLO website to search by Texas county under the "Housing" loan type.
- Submit Your Disability Discount Documentation at Application: If you have a compensable VA service-connected disability rating of 30% or higher, give your VA Award Letter or Department of Defense Disability Retirement Orders to your participating lender at the time of loan application.
- Get Pre-Qualified and Lock Your Rate: Your participating lender will review your credit, determine your down payment requirement, explain how the VLB loan is offered with a VA, FHA, or conventional loan, and give you information on locking your interest rate. All VLB loans are subject to credit approval.
Don't Forget Texas Disabled Veteran Property Tax Exemptions
The VLB home loan page does not mention property taxes or homestead exemptions, and we found no source linking a VLB loan to them. Even so, veterans buying a home in Texas should also make sure they claim every property tax exemption they have earned. Note that the VLB's 30% disability threshold for a mortgage rate discount is a VLB rule, while property tax exemption tiers are set separately by the Texas Tax Code.
Under the Texas Tax Code and Texas Comptroller rules, there are two main property tax exemptions for disabled veterans:
- Partial Exemption on Any One Property (Tax Code §11.22): Texas residents with a service-connected disability rating from the VA or their service branch can exempt a flat dollar amount from the assessed value of any one property they own and designate: $5,000 for a 10%–29% rating, $7,500 for 30%–49%, $10,000 for 50%–69%, and $12,000 for 70% and over. A veteran also gets $12,000 if he or she is 65 or older with a rating of at least 10%, is totally blind in one or both eyes, or has lost the use of one or more limbs. You apply with your county appraisal district using Comptroller Form 50-135.
- Total Residence Homestead Exemption for 100% Disabled or Unemployable Veterans (Tax Code §11.131): A veteran who receives 100% disability compensation from the VA for a service-connected disability and has a rating of 100% disabled or individual unemployability (IU) qualifies for an exemption of the total appraised value of their residence homestead. Under Tax Code §11.42(e), if you qualify after January 1 (such as in the year you buy your home), you can receive the §11.131 exemption immediately upon qualification for the remaining portion of that tax year by filing Comptroller Form 50-114 with your county appraisal district.
- New for 2026—Surviving Spouses Under the PACT Act (Tax Code §11.136): Effective January 1, 2026 (following the passage of HB 2508 and voter approval of Proposition 7 in November 2025), the unremarried surviving spouse of a veteran who died from a qualifying condition or disease presumed to be service-connected under the federal PACT Act of 2022 qualifies for a total property tax exemption on their residence homestead, regardless of the veteran's disability rating at death.
Homeowners who live in the home as their principal residence can also claim the general school-district homestead exemption—which rose to $140,000 (with an additional $60,000 for homeowners age 65 and older or disabled) following 2025 legislation—and an eligible disabled veteran may receive both the §11.131 homestead exemption and the §11.22 exemption on another property. For a complete walkthrough of filing deadlines, forms, and surviving spouse carryover rules, read our Texas Disabled Veteran Property Tax Exemption (2026) guide and our Texas Homestead Exemption Guide (2026).
Next Steps for Texas Veteran Homebuyers
Whether a Texas VLB home loan or a standalone VA mortgage gives you the better monthly payment comes down to today's live rates, whether you hold a 30% or higher VA disability rating, and how long you plan to keep the home as your primary residence. Our team can help you check your VA loan eligibility, compare your monthly payment scenarios side by side, and map out your best move in the Texas housing market.
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