Texas Veterans Land Board Increased Land Loan Limit

Texas Veterans are now eligible for low-interest land loans up to $125,000. Texas Land Commissioner George P. Bush increased the land loan limit in his first act as Chairman of the Texas Veterans Land Board (VLB). The previous land loan limit was $100,000.

“Texas Veterans have more than earned this benefit,” said Bill McLemore, Executive Director of the VLB. “This will make it easier than ever for Veterans to achieve the American dream they fought and sacrificed so much for through their service.”

Benefits for Texas Veterans are already the best in the nation. To qualify for VLB benefits, Veterans must be honorably discharged, have served at least 90 days on active duty and reside in Texas.

Texas has always taken care of her Veterans. In 1836, the Texas General Land Office was formed, in part, to make sure Veterans of the Texas Revolution were given the land rights they were promised in exchange for their role in liberating Texas. In 1946, the Texas Veterans Land Board was created to do the same for Texas Veterans who helped to liberate the world. Today, the VLB serves more than 1.7 million Texas Veterans of all ages.

The VLB’s ability to offer below-market interest rate loans for land and home purchases, and home improvements, is the cornerstone of Texas Veteran benefits. The VLB operates eight Texas State Veterans Homes that serve more than one thousand Veterans and their families needing skilled, long-term, high-quality care. The VLB also provides free burial of Veterans with full military honors at Texas State Veterans Cemeteries in Abilene, Corpus Christi, Killeen andMission.

“No other state can match the benefits that the VLB offers exclusively to Texas Veterans, military members and their spouses,” McLemore said. “Additionally, all of our programs are self-funding, which is good news for Texas taxpayers.”

In 1983, the Legislature created the VLB Veterans Housing Assistance Program to assist Texas veterans in purchasing a home. Through this program, eligible Texas veterans have an opportunity to purchase a home with an unbeatable, low-interest loan with little or no money down.

The VLB can make a Home Loan for most types of homes, but check to make sure.

Home Requirements: A VLB Home Loan may be used to purchase a home that meets these requirements:

The Environmental Protection Agency’s (EPA) guidelines for ENERGY STAR® qualified homes, and must be ENERGY STAR® labeled and certified; OR
A HERS Index Score of 75 or less following the RESNET National Home Energy Rating Standards and must have an energy rating Certificate that documents the HERS Index score of 75 or less

• Must be the veteran’s primary residence
• Must be located in Texas
• Must be a single family attached or detached home, town home, or condominium
• Duplexes or other multi-family units must have been constructed at least five years prior to the closing date of the loan.
• Manufactured / modular homes may be eligible. Contact the VLB or participating lender to confirm.
• All new construction homes must meet:

Texas veterans must find a lender participating in the Veterans Housing Assistance Program (VHAP), and request a Texas Veterans Home Loan application to start the process. Once the application has been completed, it must be returned to the lender.

Find A Lender: Land and Home Improvement loans are originated directly by the VLB.  For Home loans, Texas veterans are now able to search for lenders in their area through the VLB Participating Lenders Database.  This database is updated by the VLB and represents the most current information as provided. Any information is subject to change without advance notice. Listing of a lender on this site is not an endorsement by the VLB of any particular lender or the information provided by the lender.

Ready to Find A Participating Home Loan Lender? Search Database

The veteran must occupy the home within 60 days after the closing of the loan, and the home must remain the veteran’s primary residence for at least three years.

Efficient homes at great rates . . .

All new construction homes must meet:

The Environmental Protection Agency’s (EPA) guidelines for ENERGY STAR® qualified homes, and must be ENERGY STAR® labeled and certified;

OR

A HERS Index Score of 75 or less following the RESNET National Home Energy Rating Standards and must have an energy rating Certificate that documents the HERS Index score of 75 or less.

Disabled veteran?

The VLB offers an interest rate reduction to qualifying veterans with disabilities:

The VLB offers several discounts to the available base rate for Home and Home improvement Loans.  NOTE: All Texas Veterans Land Board loans are subject to credit approval.

Disabled Veterans Discount

Veterans with disabilities may qualify for an interest rate reduction on their VLB Home or Home Improvement Loans. The veteran must have a compensable service-connected disability of 30 percent (30%) or greater as verified by an Award Letter from the Department of Veterans Affairs (VA). The reduction is a full 50 basis points, or one-half of one percent on the available VLB loan interest rate. If you have any questions about the required documentation, please contact the VLB.

Of course, the veteran must also meet all other eligibility requirements for these loans to qualify for the discount.

Unmarried Surviving Spouse Discount

To honor our Texas veterans, the VLB offers a substantial interest rate reduction on Home and Home Improvement Loans to the unmarried surviving spouse of any service member who was killed in the line of duty (service member must have been a legal resident of Texas at the time of death). The reduction is a full 50 basis points, or one-half of one percent on the available VLB loan interest rate.

An unmarried surviving spouse of a veteran who is missing in action, or who died in the line of duty, or died from a service-connected cause and had a compensable service-connected disability rating of 30% or greater (as verified by an Award Letter from the VA) at the time of death and was a legal resident of Texas is also eligible for the discount.

This reduction can result in a savings of tens of thousands of dollars for qualifying applicants.  The surviving spouse must meet all other eligibility requirements for the Home and Home Improvement Loan programs.  Please contact the VLB if you have any questions.

Called up? We can help…

Texas Reservists and National Guard troops called to active duty in support of Operation Iraqi Freedom have one less thing to worry about if their home or home improvement loan is through the VLB.  The VLB has a special way to help.  Learn More

Building a house?

While the VLB cannot provide interim construction financing, Texas veterans can work with participating lenders to use a “take-out” loan when the home is complete.

The VLB cannot lend interim construction money to build a home. However, a veteran may obtain interim financing from another source to build, and upon completion, finance up to $417,000 of the home through the VLB. This is known as a take-out loan.

A take-out loan may be made to finance a home that qualifies as new construction under the following conditions:

• The VLB home loan must be used to pay off the construction loan (interim financing).

• The term of the interim loan cannot exceed 24 months, and the original indebtedness must have taken place within 24 months of the closing date of the VLB home loan.

IMPORTANT: Please note the following:

1.       A veteran may occupy the newly constructed residence during the term of the interim loan and still qualify for a take-out loan.

2.      Two-to-four family units are not eligible for take-out loans.

3.      All new construction homes must meet:

• The Environmental Protection Agency’s (EPA) guidelines for ENERGY STAR® qualified homes, and must be ENERGY STAR® labeled and certified; OR
• A HERS Index Score of 75 or less following the RESNET National Home Energy Rating Standards and must have an energy rating Certificate that documents the HERS Index score of 75 or less.

Today, hundreds of thousands of Texas veterans have taken advantage of these unbeatable benefits.

Best of all, because the loan program is funded by issuing bonds authorized by the voters, they are self-supporting and costs the taxpayers nothing. The bonds are paid for by veterans who participate in the programs. Veterans are a great credit risk so these bonds are rated highly and remain strong.

For more information on the VLB loan programs, Texas State Veterans Homes or Cemeteries, please call 1-800-252-8387, visit www.texasveterans.com or send us an email.