Buyer guide · Texas

Texas veterans: the VA loan, the Land Board loan and Heroes, explained

How Texas veterans and service members can use a VA loan, the Texas Veterans Land Board home loan, Homes for Texas Heroes and disabled-veteran property tax exemptions.

Bottom line:

Texas veterans have more tools than most buyers. The VA loan needs no down payment. The Texas Veterans Land Board offers its own fixed-rate first mortgage up to $832,750, with a lower rate for veterans rated 30% or more disabled. Homes for Texas Heroes counts veterans and service members as an eligible group. And a veteran rated 100% disabled can get a total property tax exemption on the homestead.

More doors than any other Texas buyer

A teacher or deputy in Texas gets one statewide hero program. A veteran can qualify for that same program plus a federal loan with no down payment, a state-run mortgage and some of the strongest property tax breaks in the Tax Code. The trick is knowing which pieces can go together.

The VA loan: the federal foundation

Per the Department of Veterans Affairs, a VA purchase loan needs no down payment and carries no PMI or MIP. Most buyers pay a one-time funding fee, which can be rolled into the loan:

Down payment	First use	After first use
Less than 5%	2.15%	3.3%
5% or more	1.5%	1.5%
10% or more	1.25%	1.25%

The fee is waived for veterans who receive, or are eligible for, service-connected disability compensation, for surviving spouses receiving DIC, for service members with a pre-discharge rating and for active-duty Purple Heart recipients. VA caps seller concessions at 4% of the home's reasonable value. Ask each lender what credit score it needs on a VA file.

The Texas Veterans Land Board home loan

The Legislature created the Veterans Housing Assistance Program in 1983. It is run by the Texas General Land Office's Veterans Land Board. The basics, per the GLO:

A fixed-rate first-lien loan of up to $832,750, with 15, 20, 25 or 30-year terms.
A discounted interest rate for veterans with a VA service-connected disability rating of 30% or more.
You must be at least 18 and a legal Texas resident when you apply.
Eligible: active-duty members, Texas National Guard members, reservists with 20 qualifying years, veterans with at least 90 days of active duty (or fewer if discharged for a service-connected disability), and certain surviving spouses.
Honorable, general and medical discharges qualify; dishonorable does not.
You must move in within 60 days of closing and keep it as your main home for at least three years.

Two limits to know: the GLO says the program can't be used for a down payment, and it doesn't refinance existing loans. The Land Board holds the first lien. Rates change, and the GLO posts current rates and a lender list.

Homes for Texas Heroes: the veterans category

TSAHC's Heroes program counts veterans and service members as eligible, separate from the job-based categories. Per TSAHC, that includes:

Active duty assigned to a Texas base with Texas as home of record.
Veterans with 90 or more days of active duty who were not dishonorably discharged.
Members with 20 or more years of active or reserve service.
Texas National Guard members who completed initial training.
Vietnam-era veterans who served between Feb. 28, 1961, and May 7, 1975.

Texas residency rules apply, certain unmarried surviving spouses may qualify, and the lender checks your DD214. Heroes pays up to 5% of the loan amount as a grant or a loan forgiven after three years, on a 30-year fixed loan. Heroes has no first-time buyer rule. The income limit is up to 170% of area median family income.

Which pieces stack?

Combination	Works?
VA loan + Homes for Texas Heroes	TSAHC offers government loans with Heroes; your TSAHC lender confirms VA is available on your file.
VA loan + TDHCA My First Texas Home	Yes. TDHCA pairs its assistance with FHA, VA or USDA loans, and qualified veterans are exempt from its first-time buyer rule.
Land Board loan + VA, FHA or conventional	The GLO page doesn't say. It is its own first lien. Ask a Land Board lender.
Land Board loan + state down payment help	Not confirmed. TSAHC and TDHCA assistance comes with their own first mortgage, so you would generally choose one path.

The honest answer: in most cases you pick a first mortgage path, then see what assistance rides with it. A veteran with 0% down on a VA loan may not need 5% for a down payment at all. The assistance then goes toward closing costs, which VA buyers still pay.

The first-time buyer rule bends for veterans

Several Texas programs require that you haven't owned a home in three years. Veterans often get a pass:

TSAHC waives the first-time rule on its mortgage credit certificate for qualified veterans.
TDHCA's My First Texas Home makes an exception for qualified veterans.
TDHCA's Texas Mortgage Credit Certificate lists veterans as eligible too.

If you sold a house when you got orders and are buying again in Texas, this is worth asking about.

Property tax: where disabled veterans save the most

The Texas Comptroller lists a total homestead exemption under Tax Code Section 11.131 for veterans with a 100% service-connected disability rating or a rating of individual unemployability. Partial exemptions under Section 11.22 vary with the rating. Certain surviving spouses of service members and veterans have total exemptions under Sections 11.133 and 11.136 if they haven't remarried.

A total exemption changes the math more than any rate drop. With no property tax on the homestead, the monthly payment falls by the full tax escrow. File the exemption paperwork with your county appraisal district as soon as you own the home. The seller's exemptions don't transfer to you; yours start when you file.

Near a base? A few practical notes

Orders can move you before the Land Board's three-year occupancy period ends. Read that rule carefully.
Heroes' forgivable option is forgiven after three years. Selling or refinancing before then can mean paying it back; ask TSAHC's lender how a move under orders is handled.
If you are active duty, the homestead application has a driver's license address waiver for military members.
Use the VA's 4% seller-concession room to ask for closing costs.

Veterans have the widest menu in Texas. Check your eligibility to see which mix fits your service record and your budget.

Readers also ask

Can Texas veterans use Homes for Texas Heroes?

Yes. TSAHC lists veterans and service members as an eligible group, including veterans with 90+ days of active duty who were not dishonorably discharged, 20-year service members, Texas National Guard members and Vietnam-era veterans. The lender checks your DD214.

What is the Texas Veterans Land Board home loan?

The Veterans Housing Assistance Program is a fixed-rate first mortgage of up to $832,750 for eligible Texas veterans, military members and spouses, with a discounted rate for veterans rated 30% or more disabled. It can't be used for a down payment.

Do disabled veterans pay property tax in Texas?

A veteran rated 100% service-connected disabled, or individually unemployable, can get a total exemption on the homestead under Tax Code Section 11.131. Partial exemptions for lower ratings vary.

Is the VA funding fee waived for disabled veterans?

Yes. VA waives it for veterans receiving or eligible for service-connected disability compensation, among others. Otherwise the first-use fee is 2.15% with less than 5% down.

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