Texas Veterans Land Board (TVLB) Loan

How the Housing Assistance Program Works

The Veterans Housing Assistance Program (VHAP) provides financing up to $325,000 toward the purchase of a home to qualified Texas veterans. Loans for $45,000 or less may be originated through the Texas Veterans Land Board's (VLB) direct loan program.

There is no maximum sales price with the VHAP; however, the VLB can only loan up to $325,000 towards the purchase.

The VHAP is not a refinancing program. If you have an existing loan on your home, you cannot use the VHAP to lower your interest rate, nor can the VHAP be used as a down payment on a home. The loan can only be used as a first lien on your primary residence.

All VLB loans require an escrow account be set up for taxes and insurance. Cosigners and guarantors may be accepted on the veteran's behalf if the veteran has sufficient income to qualify for at least 60 percent of the monthly payments on the mortgage loan, including taxes and insurance. The term of the loan can be 15, 20, 25 or 30 years.

The Land Board offers free VLB Public Information Seminars that are conducted throughout Texas. Details about all VLB programs are discussed at these informative meetings. Check the Seminar Schedule to find the location nearest you.

Texas Land Board Eligibility Requirements

• To be eligible to participate in the Texas Veterans Loan Programs, you must:
  • Have served no fewer than 90 continuous days on active duty (including active duty for training) in the Army, Navy, Air Force, Marines, Coast Guard or United States Public Health Service (unless discharged sooner by reason of a service-connected disability), or a reserve component of one of the listed branches of service; OR
  • Have enlisted or received an appointment in the Texas National Guard after completing all initial active duty training requirements as a condition of enlistment or appointment; OR
  • Have completed 20 years in a reserve component so as to be eligible for retirement.
• Have served after September 16, 1940. (For housing or home improvement loans, certain interest rate incentives may be available to Texas veterans who entered the armed services before January 1, 1977, and who have been discharged from active duty less than 30 years.)
• Not have been dishonorably discharged. A person who has been discharged from the branch of the service in which the person served or from the Texas National Guard is considered not to have been dishonorably discharged if the person: (1) received an honorable discharge; (2) received a discharge under honorable conditions; or (3) received a discharge and provides evidence from the United States Department of Veterans Affairs, its successor, or other competent authority that indicates that the character of the person's discharge has been determined to be other than dishonorable.
• Have listed Texas as the home of record at the time of entry into the military OR must have been a legal resident of Texas for at least twelve consecutive months immediately prior to filing an application. You must also be a bona fide resident of Texas at the time the application is made. (A "bona fide resident" is someone who is living in Texas with the intent to remain in Texas.) Presence in Texas due solely to military service may not establish bona fide residency.
• Have successfully repaid any previous VLB loan. A loan is considered repaid when the account has been paid in full by the original veteran purchaser or last approved assignee. Any other active VLB loans in programs other than the one for which application is being made must be in good standing. Veterans are entitled to have only one loan in each VLB program at the same time.
• NOTE: The unmarried, surviving spouse of a Texas veteran who is missing in action, or who died in the line of duty, or died from a service-connected cause may be eligible to participate in the programs. The veteran's home of record must have been Texas at the time of entry into the military.

The Texas Veteran Eligibility Chart can give you a preliminary indication of whether you may be eligible to participate in VLB programs. Final determination must be made by the VLB from supporting documentation you submit with a certification application.

All VLB loans are subject to credit approval. Interest rates and interest rate incentives are subject to change.

Veterans with Disabilities Program

The Veterans Housing Assistance (VHAP) and Home Improvement (VHIP) Programs offer an interest rate reduction of .35% to qualifying veterans with disabilities. The Veterans with Disabilities Discount applies to veterans with a compensable disability rated at 50% or greater by USDVA. The veteran must also meet all other eligibility requirements for the VHAP and VHIP.