Applying for VA loans in Texas can be a daunting experience. It can also be a very beneficial one given that these funding products can help you get into a home with absolutely no money down. Designed to promote stability and self-sufficiency among veterans and to reward servicemen and women for their sacrifice and contributions, VA loans have incredibly low interest rates and very lenient terms. Following is everything you need to know about these funding products and the related application process.
Who This Funding Is Designed To Help
The VLB Veterans Housing Assistance Program was created by the Legislature in 1983 to help Texas Veterans purchase their own homes. This program aids property shoppers with military service histories by providing them with competitive, low-interest loans and the ability to invest in property with little or even no down-payment. Active military members, veterans and their spouses may be qualified to receive loans of up to $417k that come with 15, 20, 25 and even 30-year terms. Veterans who have sustained disabling injuries while in the line of duty that have resulted in a disability rating of 30 percent or higher are also qualified to receive even deeper discounts on their loan interest rates.
The Service Requirements For VA Loans In Texas
There are several factors that will determine whether or not you’re qualified to receive a Texas VA loan. Foremost among these are the federal service requirements which exist to ensure that these monies are being used to support the purchasing decisions of people who have served in the military for a notable amount of time. If you have served in the National Guard or reserves, the mandatory, minimum service time for qualifying for these products is six years. Services members in all other branches of the U.S. military must have served at 181 during peacetime or at least 90 days during active wartime. These loans are also available to the spouses of servicemen and women who have died in the line of duty. All applicants who are determined to have met this requirement will then need to complete Certificates of Eligibility. This must be done before pursuing the next step in the application process.
Texas Property Requirements
In addition to meeting the federal requirements for a minimum service time, veterans in Texas must also choose specific property types. The parameters that these requirements establish are intended to ensure both long-term affordability and habitability. Moreover, they ensure that no veteran is taking advantage of these funding opportunities to secure investment properties if they already have primary residences within the state of Texas. These requirements include:
– The home must be used as the primary residence of the loan applicant. Moreover, the home must be owner-occupied within 60 days of closing and the home must be used as the applicant’s primary residence for no fewer than 3 years
– Texas VA loans must be used to purchase single-family homes, condominiums, or townhouses
– Multi-family units of any type must be no more than five years old at the time of application
– All new construction must have a HERS index score of 75 or lower or they must be Energy-Star Rated
The Texas VLB currently offers three types of these loans. Veterans can secure these funding products for the purchase of land, the purchase of a primary residence and for the completion of home improvement projects. Moreover, Veterans can have active loans from each of these three categories at the same time, provided all related requirements are met.
Are You Living In Texas Already?
VA loans in Texas aren’t just for Texas resident. The Federal government knows that property values can vary greatly from state to state. Moreover, they understand that veterans can get more for their money and an find more feasible options in residential property in mid-west states like Texas, than they can on the east or west coast. Thus, you may be qualified to receive this funding if you plan on relocating to this area.
It’s important to note, however, that the Texas Veterans Land Board (TVLB), currently makes no provisions for veterans who are looking to refinance their existing home loans for more flexible repayment terms or more affordable interest rates and loan payments. Veterans who wish to finance will need to consult with traditional lending institutions. In certain instances, however, having a active duty or veteran status can allow for more lenient requirements for loan qualification even when working with conventional mortgage companies.