Banks famously dislike lending on raw land — buyers without a construction plan often face big down payments and short terms. Texas veterans get a different deal entirely. The Texas Veterans Land Board's land loan program, the only one of its kind in the country, finances Texas acreage on a long fixed term with as little as 5% down. If you've dreamed of owning a piece of Texas, this is the benefit that makes it practical.
What the land loan covers
The VLB land loan finances tracts of at least one acre anywhere in Texas. The land must be usable — acreage under a dedicated public roadway or navigable waterway, or subject to frequent flooding, doesn't count toward the one-acre minimum. The program currently finances up to $200,000 with a minimum 5% down payment on a fixed-rate term, and two married veterans who each qualify can apply together for a higher combined amount.
Why it beats a bank land loan
Conventional land lenders typically want much larger down payments, shorter terms, and higher rates, because raw land is harder to resell than a house. The VLB program is state-backed, so eligible veterans get a long fixed term at the VLB's posted rate — and veterans with a 30% or greater VA disability rating qualify for the program's additional rate discount, the same benefit offered on VLB home loans.
Buy the land now, build later
A popular path: use the VLB land loan to lock down acreage today, then build when you're ready — using a construction loan, a VA one-time-close construction loan, or the VLB home loan once a home exists to finance. Because you can hold one active loan in each VLB program at the same time, your land loan doesn't use up your VLB home loan benefit.
Eligibility and how to start
The requirements mirror the VLB home loan: you must be a legal Texas resident, at least 18, with qualifying service and an eligible discharge. Members of the Texas National Guard and Reserves may qualify, and so may certain surviving spouses. The application runs through the VLB with a loan officer guiding the appraisal and survey steps — checking your eligibility takes only a few minutes.
See what you qualify for in 60 seconds — free and no credit check. Use the eligibility check at the top of this page.