See if you qualify, free, 60-second check.
A VA home loan lets eligible veterans and active-duty service members buy a house with no down payment, no private mortgage insurance, and rates that typically track close to conventional pricing. The loan itself comes from a private lender. The Department of Veterans Affairs guarantees a portion of it. That guarantee is why lenders will drop the down payment requirement and skip PMI entirely.
Here is how every piece of it works.
Eligibility falls into a few categories. You don't need to check all of them, just one.
These categories have nuances. A discharge Under Other Than Honorable Conditions, for example, typically disqualifies you, though you can request an upgrade through the VA's discharge review process. If you're unsure whether you qualify, the fastest check is asking a lender to pull your Certificate of Eligibility. It takes a few minutes and tells you exactly where you stand.
No down payment is the headline benefit, and it's real. An eligible veteran can borrow up to the conforming loan limit for their county with zero down. You can put money down if you want to. Many veterans put 5% or 10% down to reduce the funding fee or lower their monthly payment. But you don't have to.
What you do pay: the VA funding fee. This is a one-time fee charged at closing (or rolled into the loan balance) that partially offsets the government's cost of backing the guarantee program. It is not a lender fee. It goes to the VA. The amount depends on two things: whether this is your first VA loan and how much you put down.
Three things to know about the fee. First, veterans with a VA-rated service-connected disability are exempt. You pay nothing. Second, the subsequent-use rate is higher, 3.3% with less than 5% down, so if you've already used a VA loan and still have a balance on it, run the math against a conventional loan. Third, the fee can be financed into the loan balance, so it doesn't have to come out of pocket at closing if cash is tight.
Compare that to private mortgage insurance on a conventional loan. PMI typically runs 0.5% to 1.5% of the loan amount per year until you reach 20% equity. On a $400,000 home, that's $2,000 to $6,000 annually, every year, for several years. The one-time VA funding fee, at 2.15% of $400,000, is $8,600. That looks like a lot until you realize PMI catches up with it in two to four years and keeps going. For veterans planning to stay more than a few years, the VA loan almost always wins on total cost.
You need a Certificate of Eligibility (COE) before any VA purchase can close. It proves to the lender that you've met VA service requirements. It also shows your available entitlement.
The fastest way to get one: ask your lender to request it through the VA's WebLGY system. Most lenders can pull it in minutes for veterans with a clean service record. You can also get it yourself through VA.gov or by mailing VA Form 26-1880, but both are slower than the lender route.
Entitlement is the dollar amount the VA guarantees on your behalf. Full entitlement means no loan limit and no down payment requirement (up to what the lender will approve based on your finances). Reduced entitlement means you've used some of it on a prior loan that isn't fully paid off. You can still buy, but you may need a down payment once the loan amount exceeds a calculated threshold. The COE will show exactly where you stand, and a lender who does VA loans regularly can walk you through what it means for your specific situation.
Every VA purchase requires a VA appraisal. This is different from a standard home inspection. The VA assigns an appraiser from its own approved panel, and that appraiser does two things: estimates market value and checks whether the home meets the VA's Minimum Property Requirements (MPRs).
MPRs are the conditions the VA requires before it will back a loan on a property. The list covers things like: functioning electricity and plumbing, no active roof leaks, no peeling lead paint in homes built before 1978, safe heating for the local climate, no crawl space drainage problems that could threaten the structure. Most well-maintained homes clear MPRs with no issues. The problems show up on fixer-uppers, distressed properties, and anything with deferred maintenance.
If the appraiser flags MPR problems, someone has to fix them before the loan closes. Usually the seller, since the buyer can't close on a property that hasn't cleared. Some sellers, especially in competitive Texas markets, prefer not to deal with that and reject VA offers. It's less common than it was a decade ago, because educated sellers know VA buyers are serious, but it still happens. If you're eyeing a property that needs work, ask your lender to assess MPR risk before you make an offer.
The appraisal value also caps what the VA will guarantee. If the home appraises below the contract price, you either need the seller to reduce the price or you cover the gap in cash. VA loans don't protect you from this.
Your COE proves eligibility. Lender approval requires something else: proof that you can repay the loan.
Credit score. The VA sets no official floor, but most Texas lenders want 620. Some go to 580 with strong residual income and compensating factors. If you're at 610 or 615, don't assume you're out. Ask before you assume. A few lenders specialize in VA loans for borrowers who need a little credit rebuilding.
Debt-to-income ratio. The VA benchmarks back-end DTI at 41%, meaning all monthly debt obligations shouldn't exceed 41% of gross monthly income. Lenders can go above that. The VA's underwriting guidelines allow exceptions when compensating factors are present, such as significant residual income, substantial assets, or a low loan-to-value ratio. Residual income matters a lot in VA underwriting. It's the money left after paying all debts and living expenses, and the VA requires lenders to verify it. The threshold varies by family size and region. Texas is in the South census region, and the VA tables show specific minimums by household size. A lender familiar with VA lending will walk you through where you land.
Income documentation. For a W-2 employee, this is standard: two years of tax returns, recent pay stubs, 60 days of bank statements. For self-employed veterans, it gets more complicated. VA loans use tax return net income, not deposits, which means heavy write-offs can make qualifying income look low even when cash flow is solid. If you're self-employed and your net income on paper doesn't support the purchase price, ask your lender to run a bank-statement scenario. A bank-statement loan might actually qualify you on better terms, even though you'd give up the VA benefit. It depends on your specific numbers.
Texas veterans have access to a state program through the Texas Veterans Land Board (VLB) that often gets confused with the federal VA loan. They're separate. Different funding source, different application, different rules.
The VLB runs three programs: a home loan, a home improvement loan, and a land loan. The home loan program offers below-market fixed rates to qualifying Texas veterans, with a loan limit of $832,750 as of recent program updates. The VLB is funded by bonds the state issues, not federal funds. Veterans must have qualifying Texas residency and military service history.
The VLB home loan can sometimes be combined with a VA guarantee through specific lender arrangements, giving you the VLB's competitive rate and the VA's zero-down capability together. Not all lenders offer this combination, but the ones who specialize in Texas veteran lending know it well.
One key point: the VLB is not affiliated with the Department of Veterans Affairs, is not a government loan in the federal sense, and this site is not affiliated with the VLB or the VA. We connect Texas veterans with licensed mortgage professionals who know both programs inside out.
VA loans don't have zero closing costs. What they do have is a cap on what the lender can charge you. The origination fee is limited to 1% of the loan amount. Some fees that are common on conventional loans, like document prep fees or underwriting padding, the VA doesn't allow lenders to charge VA borrowers.
What you can ask the seller to cover: all closing costs, up to 4% in seller concessions. In buyer-friendly markets, that's often negotiable. A seller who wants to close fast may agree to pay your costs to keep the deal together.
What you can roll into the loan: the funding fee, and in certain refinance scenarios, allowable closing costs. You can't typically roll purchase closing costs into the loan itself beyond the funding fee, so plan for some out-of-pocket costs even with a zero-down purchase.
A lot of veterans don't realize the VA benefit is reusable. If you sell your current home, pay off the VA loan, and restore your entitlement, you can use a VA loan again on the next purchase. Full stop. You can also have two VA loans open at once if you have enough remaining entitlement and you're using the second home as your primary residence (common when PCS orders move a service member who can't sell quickly).
Entitlement restoration isn't automatic. You request it after the prior loan is paid off. If you've used a VA loan and sold the home but never restored entitlement, it's likely sitting there waiting. Check your COE. Many Texas veterans discover available entitlement they forgot about.
After you close on a VA loan, you're not locked in forever. The Interest Rate Reduction Refinance Loan (IRRRL), sometimes called the VA streamline refinance, lets you refinance into a lower rate with minimal paperwork. No new appraisal in most cases, no income reverification in most cases. The main requirement: the new loan has to save you money (lower rate or moving from adjustable to fixed). The funding fee for an IRRRL is 0.5%, much lower than a purchase.
If rates on the Texas rate tracker drop meaningfully below your current rate, an IRRRL is usually worth a conversation. The streamlined nature makes it fast. Many veterans who bought at higher rates in recent years are already refinancing as rates move.
A few limits worth keeping clear:
For most eligible Texas veterans buying a primary home, this is the best mortgage product available. No PMI, no down payment, competitive pricing, and a reusable benefit. The funding fee is real, but it's a one-time cost that usually pays for itself within a few years compared to PMI. Run the numbers with a lender who does VA loans full time, not as an occasional product. The difference in experience shows.
Start with the free 60-second eligibility check, no credit pull required, and see where you stand today. Current Texas mortgage pricing is on the rate tracker.
See what you qualify for in 60 seconds, free and no credit check. Use the eligibility check at the top of this page.
Yes. VA loan entitlement resets after you sell the property and pay off the loan, or you can use remaining entitlement on a second loan while the first is still open. Many Texas veterans are on their third or fourth VA loan.
No. Veterans with a VA-rated service-connected disability are exempt from the funding fee entirely. Active-duty recipients of the Purple Heart are also exempt. Your lender will confirm your status through the COE.
No. VA loans require the borrower to occupy the home as their primary residence. You cannot use one to buy a pure investment property, though you can rent out rooms in a home you live in.
The VA sets no official minimum, but most Texas lenders require a 620 credit score. Some lenders go down to 580 with strong residual income or compensating factors. A score under 620 is worth a conversation, not an automatic no.
Most VA purchases in Texas close in 40 to 50 days from contract. The VA appraisal is the biggest variable. Working with a lender who already has your COE and income documents verified cuts that time noticeably.
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