If you've started looking into home loans as a Texas veteran, you've probably run into two terms that sound similar but aren't: the Texas Vet loan (run by the Texas Veterans Land Board, or VLB) and the federal VA loan. They're separate programs with separate benefits — and the savviest move is often to use them together. Here's the plain-English breakdown.
What is a Texas Vet (VLB) loan?
The Texas Veterans Land Board offers below-market, fixed-rate financing to eligible Texas veterans and military members. The VLB sets its interest rate weekly, and it's frequently lower than what you'd get on the open market. It covers home purchases, land, and home improvements — and veterans with a 30% or greater service-connected disability rating qualify for an additional discounted rate.
What is a federal VA loan?
A VA loan is made by a regular lender and guaranteed by the U.S. Department of Veterans Affairs. Its headline benefits are $0 down payment and no monthly mortgage insurance (PMI), which can save you hundreds of dollars a month compared to a conventional loan. Unlike the Texas Vet program, a VA loan can also be used to refinance.
The smart play: use them together
Many Texas veterans pair the two — the VLB program for its discounted fixed rate, and the VA benefit for $0 down and no PMI. You get the best of both: a lower rate AND no money down. The right structure depends on your situation, which is exactly the kind of thing a Texas veteran loan specialist can map out for you in a few minutes.
Which one is right for you?
If you're buying a primary home in Texas, combining VLB + VA is usually the strongest option. If you're refinancing, you'll lean on the VA program, since the Texas Vet loan is for purchases only. If you're buying raw land, the VLB land loan is in a class of its own. The fastest way to know is to check your eligibility — it takes about a minute.
See what you qualify for in 60 seconds — free and no credit check. Use the eligibility check at the top of this page.