Home Loans For Veterans

 

When Veterans in Texas decide to purchase a home they have the options to use a VA loan or Texas Vet Loan. Our Veterans now question how they should finance their next home. Being an eligible veteran, besides comparing rate and fees when trying to determine whether to finance a home purchase using regular VA loan or a Texas Vet loan, you should also consider the following items:

·         Am I a legal resident of the state of Texas?

o   You must be a legal resident of Texas for at least 12 months (consecutive months) immediately prior to filling an application or have listed Texas as the home of record at the time of entry into the military or be on active military duty station in Texas, and have change your state of legal residence to Texas.

·         Is the property located in Texas?

o   VA loans are available to any veterans that qualifies and for any property in the US. It doesn’t matter what state you live in!

o   The Texas Vet loan, administered by the Texas Veterans Land Board (VLB), is available only to qualified veterans buying in Texas and those who want to reside in Texas when leaving active duty.

·         Loan Amounts:

o   VA loan amounts in the secondary market normally limit it to $417,000 for loans with $0 down and the maximum of $1,000,000 for loans with a down payment in Texas.

o   Texas Vet Loan maximum loan amount is $325,000.

·         Are you currently using your VA eligibility?

o   Texas Vet Loan program are State of Texas programs and are not associated with federal VA; so with that said, if you currently have a VA loan out that has not been paid in full, you may still be eligible for a Texas Vet Loan.

·         Do you currently have a Texas Vet Loan?

o   Veterans are entitled to have only one loan in each VLD program at the same time. Any other active VLB loans in programs other than the one for which application must be in good standing.

·         New Construction:

o   The VA does not have any additional requirements for new construction

o   Texas Vet Loans requires ALL new construction be Energy Star Labeled and Certified.

·         What’s the length of time you plan on living in the residence?

o   VLB requires that the home must remain the veteran primary residence for a period of three years. In the event the veterans fail to comply with these requirements, the VLB may require the acceleration of all money due on the VLB loan or the escalation of the interest rate on the program loan to prevailing markets rates.             

 

When considering which option is best for you, consider how much time you have to close on your purchase. Texas Vet Land Board (VLB) take a bit longer to close so make sure you have accommodated for the time in your purchase contract. VLB can sometimes take up to 60 days to close. Typically, one can close a VA loan within 30 days. Apply Today!!!