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Texas may have the most to gain from VA loans compared to any other state: There are more veterans here than anywhere else in the country, numbering over 1.4 million¹ plus another 116,000 active duty service members.² For these individuals, using a VA loan could be an important step towards buying a house in Texas.

VA loans are backed by the Department of Veterans Affairs (VA) but issued by private lenders. If you can navigate the eligibility requirements and application process, VA loans offer some of the most affordable rates and terms for homebuyers. The following offers a guide to VA loans in Texas for all service members and spouses living there.

What is a VA loan?

VA mortgages are home loans that are guaranteed or backed by the Department of Veterans Affairs (VA). The VA agrees to insure a portion of the loan which lowers the lender’s financial risk. In return, lenders offer more affordable financing options than traditional loans — like low-to no down payment required and some of the lowest interest rates on the market.

VA guaranteed loans have been around since 1944 when President Franklin D. Roosevelt signed the original Servicemen’s Readjustment Act (also known as the GI Bill of Rights) into law. The bill was designed to help veterans achieve the dream of homeownership by offering them a federally-backed loan with no down payment. Today, active-duty service members, veterans, and certain military spouses are entitled to these benefits, provided they meet eligibility requirements.

How do VA loans work in Texas?

VA loans work the same in Texas as they do elsewhere. Qualified veterans start by shopping for VA-approved lenders and getting pre-approved. Once they find a house and sign a purchase agreement, they go through the VA home appraisal and inspection process. After the home passes, they undergo mortgage underwriting and close on their new home.

Qualified veterans can also use a VA loan for a cash-out refinance or a “streamline refinance” to reduce their interest rates.

VA loans at 91�ƽ��

At 91�ƽ��, we’ve created a real estate solution to bring certainty to buying and selling your home at the same time. We’re experienced in working with VA loan buyers and our service can be especially helpful for active duty service members dealing with a permanent change of station (PCS). Our Move First service helps you move out on your schedule and line up closing dates to avoid the potential delays and costs that can come with a PCS.

— our estimates are 30% more accurate.

Advantages of a VA loans in Texas

VA loans are a powerful tool for veterans and active-duty service members to reap the benefits of homeownership. Here are some of the advantages of VA loans over other types of mortgages:

• ‍No down payment required: The VA allows you to finance up to 100% of the home’s purchase price, as long as it isn’t greater than the home’s appraised value.‍
• No private mortgage insurance (PMI): Lenders typically require that borrowers who put down less than 20% must pay mortgage insurance. However, this isn’t a requirement for VA loans since the government is backing the loan.‍
• No minimum credit score: The VA loan does not have a minimum credit score requirement. However, you’ll want to check with your individual lender to see if you meet their own requirements.‍
• Limit on certain closing costs: With VA loans, you can’t be charged for certain closing costs like lender application fees, escrow fees, or prepayment penalties. The VA also has a cap on lender origination fees, which can be no more than 1% of the loan amount.‍
• No maximum loan limit: The VA doesn’t have a cap on how much you can borrow for your home purchase. However, there is a limit on how much the VA will guarantee without a down payment, which usually affects the maximum loan amount your lender will be willing to offer.

VA loan limits in Texas

There is no limit to VA loans in Texas, but that doesn’t mean that lenders are willing to write a blank check. VA loan borrowers are subject to lender evaluation and limits, which can cap the amount that they’re able to qualify for.

Typically, though, borrowers with their full VA loan entitlement — the amount of money veterans are entitled to by the VA — are eligible for loans up to four times the entitlement amount, as long as their income and credit are in good shape.

The exact amount of entitlement depends on the county loan limits where you’re purchasing the home. As of 2023, the conforming loan limit for borrowers in Texas was .��

Texas VA home loan requirements and eligibility

Just like with a standard mortgage, you’ll need to show your lender that you have sufficient income and satisfactory credit to afford a home. In order to do so, you’ll usually have to provide financial documentation including:

• Credit score
• Tax returns
• Pay stubs
• Account summaries for any assets or debts

Who is eligible?

In addition to these typical requirements, VA loan applicants must also submit a . This document helps verify that you have met the necessary service requirements to be eligible for a VA loan. The requirements are as follows:

Requirements for VA homes

In addition to eligibility requirements guidelines for veterans, there home must meet the following requirements:

• The home must be the veteran’s primary residence.
• It must be a single-family home, townhome, or approved condo unit, including new construction homes.
• The eligible individual or an immediate family member must occupy the home within 60 days of closing.
• The residence must pass VA appraisal and inspection requirements.

When can you sell a VA loan home in Texas?

Active service members may wonder if buying a house will tie them down. After all, more than 400,000 service members make a PCS move every year.³��

There’s typically no requirement for how long you have to live in the VA loan home before selling. VA loans also don’t have any prepayment penalties (a fee if you end your mortgage early), so there’s no need to worry about that if you’re considering selling.��

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However, if you end up getting a PCS order, you may have to deal with the task of selling your home in a short period of time. Luckily, 91�ƽ�� can help. Our service offers you a guaranteed offer and stress free listing prep with Concierge service that can make value-boosting updates at no upfront cost to you. We’ll help you list on the open market to sell for top dollar with the peace of mind of a guaranteed home sale.

Learn more about how 91�ƽ�� works.

Selected sources

1. Published by Erin Duffin, & 5, O. (2022, October 5). U.S. veterans, by state 2021. Statista.
2. Published by Statista Research Department, & 21, D. (2022, December 21). Stationing of Active Duty Armed Forces personnel by state U.S. 2021. Statista.
3. Military permanent change of station (PCS): What to know. Military Money. (2022, September 8).