The Texas Vet loan's signature advantage is its rate: set by the Texas Veterans Land Board every week, frequently below what the open market offers, and discounted further for disabled veterans. Here's how it works and how to use the weekly reset to your advantage.
Who sets the rate, and when
The VLB publishes its base rate the first business day of each week. Because the program is state-backed, it isn't priced like a retail mortgage — which is why it so often lands below market averages.
The disabled-veteran discount
Veterans with a VA service-connected disability rating of 30% or greater receive an additional discount off the published base rate — typically half a percent — which compounds into serious savings over a 30-year term.
When to lock
Since the rate resets weekly, a quote from last Tuesday may not hold. When you're within contract range, watch the Monday reset and lock on a favorable week. Your loan officer can track it for you.
Rate vs. APR
The advertised rate is the interest you pay; APR folds in fees to show the true yearly cost. Compare APRs across options, not just rates — especially when weighing VLB against a standard VA loan.
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