Guide to VA Home Loans in Texas | Best VA Mortgage Lenders in Texas 2023 – VA Home Loans for Veterans and military families

If you’re a veteran or active-duty service member of the military, you might be considering getting a VA home loan to settle down in Texas. Texas is known as a diverse state, and newcomers or existing residents have access to different kinds of home loans, including VA home loans, VA construction loans, and VA renovation loans. Veterans in Texas also have access to the Texas Veterans Land Board.

If you’re a veteran, active-duty service member, or the surviving spouse of a veteran, Texas is a great place to live with a VA loan. Take a closer look at the requirements and other things you need to know about getting a VA loan in Texas.

The VA Loan program guarantees mortgage and refinancing loans for eligible service members and active duty military in Texas.

There are different types of VA home loans that you can get as an active-duty service member, veteran, and surviving spouse. You can apply for a VA construction loan if you want to build your home in Texas. The one-time construction loan does not require you to give a down payment, and if you have land equity, you can benefit even more.

If you don’t own land in Texas, the one-time construction loan can cover both the construction and the land. Texas veterans and active-duty service members that already own a home can apply for a VA renovation loan. Texas VA loans offer you all the funds you need to get the house fixed up, and you can start living in it.

You can also buy a home with the VA-backed home loan in Texas. The VA loan in Texas is available to military veterans, active-duty military service members, and reservists who want to buy a primary residence. The Department of Veterans Affairs will guarantee the top 25% of the loans made by the private lender, so you can apply for a home loan with no down payment or private mortgage insurance, and the seller would pay all the closing costs.

There are different benefits to veterans, active service members, and National Guard personnel getting VA mortgage loans. For one, you don’t have to pay the mortgage insurance fee. It can be very costly to pay private mortgage insurance, and it does not reduce your principal balance, but you can prevent paying this with Texas VA loans. The Veterans Affairs Department also ensures that buyers can pay very low-interest rates compared to a conventional loan.

Texas VA Loan Requirements

If you want to check if you’re eligible for a VA loan in Texas, you need to meet the minimum service requirements. Eligible veterans stay under these categories:

·   You must have served for 90 consecutive days of active service during wartime or 181 days of active service during peacetime.

·   You must have served for 6 years in the National Guard of Reserves.

·   You are the spouse of a service member who passed away in the line of duty or due to a service-connected disability.

Also, if you want to get a VA jumbo loan in Texas, you also need to consider some factors. The VA jumbo loan allows you to borrow more than the specific VA loan limit for that county, and in Texas, this can be over a million dollars. If you have full entitlement, there are no Texas VA loan limits for you, but one of these three statements must be true:

·   You have never used the VA loan benefits.

·   You have used your VA home loan benefit but had a short sale or foreclosure and repaid the loan in full.

·   You have paid a previous VA home loan in full and sold your home, allowing you to have your entitlement restored.

You can go over the requirements with private lenders before you apply for the Texas VA loans.

Why Veterans Choose to Settle in Texas

There are different reasons why Texas should be considered as one of the places to live as a veteran. Texas has been named as the overall best state for veterans to live in 2023 by VA Claims Insider for different reasons, which is why you might want to get a VA loan.

It comes with a generous property tax exemption for veterans and military members, and there is no state income tax. It also exempts military retirement pay, VA disability compensation, and Survivor Benefit Plan payment from taxes. Texas has the Hazelwood Act, which provides veterans, surviving spouses, and dependent children with up to 150 hours of college education at state schools for free.

Veterans with a 60% VA disability rating in Texas get a free driver’s license and Veteran plates, and with a 50% VA rating or higher, they even get a free hunting and fishing license.

If you’re a young veteran, Texas is known as a job growth hub, especially in the following areas: hospitality, finance, government, education and health, ad trade. There are also big companies residing in Texas, like Dell, AT&T, and ExxonMobil. Plus, Texas has very low taxes, so veterans that are looking to start a business can benefit from that.

All in all, Texas comes with different benefits like property tax exemption for young and old veterans, surviving spouses, and dependent children of veterans. This is why many veterans choose to settle in Texas, and you can work with reliable private lenders to get a VA loan that makes it possible.

Texas VA Loans With No Down Payments

It might be difficult to save enough money for a down payment if you are a veteran or an active duty service member that is moving from base to base. But the Texas VA mortgage loans don’t require a down payment, allowing veterans to get a home with little or no money at all.

Keep in mind that there are some situations where you would need a down payment. For instance, if the home that you want to buy is appraised and the value is less than the amount of the VA loan that you were approved for, you would have to give a down payment.

Texas VA loan certificate of eligibility

Suppose you want to get a Texas VA loan, whether home, construction, or renovation, you would need a certificate of eligibility. This is a certificate that shows that you are eligible for VA loans. You can easily get the COE through the Veterans Affairs portal.

If you’re working with Security America Mortgage, you can directly access the portal from their website and pull your COE. You can also ask one of the representatives to do it for you and save time.

Texas VA Construction Loans

Texas VA construction loans provide you with a one-time construction loan that you can use to purchase a house. Mortgage payments won’t start until the house has been fully constructed, and you get a single VA loan that covers all the costs of building your home.

With the VA construction loan, there is no-money-down financing, and the interest rates are low. There is no second closing required either. Instead, the VA loan program finances the lot purchase, construction, and permanent mortgage. The loan comes with 15-year and 30-year fixed-term options, and the interest rate is protected during construction.

There are no payments due during construction and no requalification once the construction of your home is complete. Also, you can finance the funding fee into the loan. Some of the houses you can build in Texas include a one-unit stick-built house, multi-wide house, new manufactured house, or modular house. It must be your primary residence too.

When getting a Texas VA construction loan, you would need the following:

·   A VA-approved builder.

·   A Certificate of Eligibility.

·   A VA appraiser.

Texas VA Renovation Loan

If you already have a home in Texas that needs to be fixed up, you can apply for a VA renovation loan in Texas. The VA renovation loan requires no down payment and would cover the cost of remodeling and repairs in your home. Veterans can finance the necessary renovations to their houses with the help of a home improvement loan VA, such as the VA Renovation Loan, while benefiting from favorable terms and rates. Keep in mind that it is intended for minor updates and work that is absolutely necessary.

It is for your primary residence and ideal for repairs like repainting, accessibility upgrades, fixture swaps, and structural components. The VA loan program comes in different term options, including 10 years, 15 years, 20 years, 25 years, and 30 years.

The benefits of the Texas VA renovation loan include 100% financing and a low mortgage rate. You can use the loan to make your home comfortable to live in without worrying about down payments or expensive mortgage rates.

Texas Veterans Land Board – VLB

There are no land loans in Texas, but you can add the cost of the land purchase to the VA construction loan. Despite this, the Texas Veterans Land Board provides veterans with land, home, and home improvement loans. The VLB land loan allows veterans and military personnel in Texas to purchase land tracts or non-commercial properties that are one acre or more.

If you want to own land in Texas, you can purchase at least one acre with the loan. Even if you have lived in Texas for a single day, as long as you have the intention to remain, you were not dishonorably discharged, and you served at least 90 days in active duty, you can apply for the VA loan.

Conclusion: Best Lender for VA Home Loan in Texas?

Start working with Security America Mortgage for your VA home loan today. SAM is one of the few VA lenders that would provide you with VA home, construction, and renovation loans, so you can choose the one that works for you. If you’re looking to settle down in your Texas dream home after or during your military service, start working with us to get a loan that would make it possible.