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The Texas Vet program is the everyday name for the loan benefits run by the Texas Veterans Land Board (VLB), and no other state offers anything like it. It's really three programs in one: a home loan, a land loan, and a home improvement loan, each at a below-market interest rate the state sets weekly.
That state-set rate is the whole point. Because Texas funds these loans through bonds, veterans borrow at rates that often run below what the open market charges, and disabled veterans get an extra discount on top. You can use one of each program at the same time, and you can pair the Texas Vet home rate with the federal VA loan's zero-down, no-PMI benefits.
Here's the complete picture: what's inside the program, who qualifies, how the rate advantage works, and exactly how to apply.
People say "the Texas Vet loan" as if it's one thing. It's three distinct loan products, each with its own rules and limits.
Finances a primary residence anywhere in Texas at the weekly VLB rate. It can be combined with a federal VA loan so you get the state's rate and the VA's zero-down structure in the same mortgage. Loan amounts go up to the conforming limit, currently $832,750.
The rare one. The VLB will finance raw Texas land, at least one acre, with as little as 5% down. Very few lenders finance bare land at all, let alone on these terms. It's popular with veterans who want to buy acreage now and build later. Read the full Texas Vet land loan guide for how it works.
Funds alterations, repairs, and improvements to an existing primary residence, again at the below-market VLB rate. Think a new roof, an accessibility remodel, or energy upgrades.
Each is a separate benefit with its own application. You can hold one active loan in each category at once if you qualify for each.
The VLB sets its own eligibility, which overlaps with federal VA rules but isn't identical. You generally qualify if you meet all of these:
The program is genuinely broad, and many veterans who assume they don't qualify actually do. Our eligibility guide walks through the details, and the fastest way to know for sure is the free 60-second check. Credit and income still matter, since a participating lender underwrites the loan; see what the credit score requirements really look like.
The reason the program exists is the rate. The VLB sets a single interest rate every week that applies to all loans locked that week, no matter which participating lender you use. Two lenders can't undercut each other on the base Texas Vet rate; it's the same statewide.
Because the state raises the money through tax-exempt bonds, that rate frequently lands below conventional market pricing. It resets each Tuesday, so the rate you get depends on the week you lock. We don't publish the live number here because it changes weekly, but our rates explainer shows how the weekly rate is set and what moves it.
One more layer: veterans with a VA-rated service-connected disability of 30% or more receive an additional discount off the weekly rate. That stacks on top of an already below-market number, which is why the program is such a strong deal for disabled Texas veterans.
Each of the three programs carries its own ceiling.
| Program | Maximum | Minimum down |
|---|---|---|
| Home loan | Up to $832,750 | $0 when paired with VA entitlement |
| Land loan | Up to $200,000 | 5% |
| Home improvement loan | Up to $50,000 (term-dependent) | Varies |
The $832,750 home-loan ceiling tracks the federal conforming loan limit, so it moves over time. The land loan currently finances up to $200,000 with 5% down and requires at least one acre. Home improvement amounts and terms depend on the scope of work and the loan term you choose. Our VLB loan limits page keeps the current figures.
This is the move that confuses people, and it's the most valuable one to understand. The Texas Vet program and the federal VA loan are two separate benefits, and for a home purchase you can combine them.
Here's what that looks like in practice. The VLB provides the below-market weekly interest rate. The federal VA guaranty provides zero down payment, no private mortgage insurance, and limits on the fees a lender can charge. Put them together and you get a state-subsidized rate on a no-down-payment mortgage, a combination that simply doesn't exist outside Texas.
Not sure which benefit does what? Our Texas Vet loan vs. VA loan comparison lays out where they overlap, where they differ, and when combining them beats using either one alone. For many veterans, combining is the right answer.
Numbers make the stacking benefit obvious. Say a first-time-use veteran with full VA entitlement buys a $350,000 home in San Antonio and finances it through the Texas Vet home loan combined with the VA guaranty.
| Item | Amount |
|---|---|
| Purchase price | $350,000 |
| Down payment (full VA entitlement) | $0 |
| Base loan amount | $350,000 |
| Interest rate | Weekly VLB rate (below-market) |
| Private mortgage insurance | $0 (VA loan) |
| VA funding fee (2.15%, first use) | $7,525, or waived if disability-rated |
The veteran puts nothing down, pays no monthly mortgage insurance, and borrows at the state's below-market weekly rate. If they carry a 30%+ disability rating, they also skip the $7,525 funding fee entirely and get the extra rate discount on top. Over a 30-year term, even a small rate advantage compounds into real money. We don't quote the live rate here since it resets weekly; model your own numbers with the payment tools and check the rates page.
The Texas Vet program is a rate benefit, not a fee-free program. Expect standard mortgage costs, with a few specifics.
The point of the program isn't to erase closing costs. It's to lower the interest rate you pay for the life of the loan, which is where the bigger money lives. A rate that runs even half a point under market on a 30-year mortgage adds up to thousands of dollars over the life of the loan.
A few myths keep eligible Texas veterans from using this benefit.
Set the program next to the loans a Texas veteran would otherwise use, and the differences stand out.
| Feature | Texas Vet + VA | Conventional | FHA |
|---|---|---|---|
| Interest rate | Below-market, state-set weekly | Market | Market |
| Down payment | $0 (with VA entitlement) | 3-20% | 3.5% |
| Mortgage insurance | None | PMI under 20% down | MIP, often for the loan's life |
| Disability discount | Yes, 30%+ rating | No | No |
| Finances raw land | Yes, VLB land loan | Rarely | No |
The standout lines are mortgage insurance and the disability discount. A conventional borrower under 20% down pays PMI every month, and an FHA borrower usually pays mortgage insurance premiums for the life of the loan. A veteran combining the Texas Vet rate with the VA guaranty pays neither, on top of a below-market rate. There's no conventional or FHA equivalent to any of that.
The home loan gets the attention, but the land and improvement programs are where the Texas Vet benefit is genuinely rare.
Conventional lenders treat raw land as risky collateral, so they either won't finance it or demand 20-50% down at high rates. The VLB finances Texas land of at least one acre with 5% down at the below-market weekly rate. Veterans use it to lock in acreage now and build later, then finance the eventual home separately. Details are in our land loan guide.
This one funds work on your existing primary residence, roofing, HVAC, accessibility remodels, energy upgrades, at the VLB rate instead of the higher rates typical of home-improvement or personal loans. For a veteran already in a home who needs repairs, it's often the cheapest money available. Because it's a separate benefit, you can carry it alongside a VLB home or land loan.
For most eligible Texas veterans, yes, and the case is strongest for two groups.
First, disabled veterans. A 30%+ VA disability rating means an extra discount on an already below-market rate, plus a waived VA funding fee when paired with the VA loan. That's the best mortgage deal available in the state, full stop.
Second, anyone buying land or improving a home. Almost no conventional lender will finance raw acreage on the terms the VLB offers, and the below-market improvement loan is hard to beat for a roof, a remodel, or accessibility work.
The honest counterpoint: the advantage is the rate, so the benefit is biggest when market rates are high and the state's subsidized rate opens a wide gap. When market rates fall close to the VLB rate, the edge narrows, though the land and improvement programs still stand on their own. The only way to know your gap is to compare the current weekly rate against what you'd otherwise pay.
Applying is simpler than most veterans expect, because you don't deal with a government office. A participating Texas lender does the work.
See the full process overview for what each step involves. When you're ready, start your application or run the free eligibility check. It takes about a minute, comes with no obligation, and tells you which of the three programs you can use.
See what you qualify for in 60 seconds, free and no credit check. Use the eligibility check at the top of this page.
It's the Texas Veterans Land Board's package of below-market home, land, and home-improvement loans for eligible Texas veterans and their surviving spouses. The state sets the interest rate weekly, and it's the only program of its kind offered by any state.
You apply through a participating Texas lender, not a government office. The lender pulls the current weekly VLB rate, confirms your eligibility with the Veterans Land Board, and underwrites your loan. A free 60-second eligibility check is the easiest first step.
No. It's a separate state benefit run by the Texas Veterans Land Board. Many veterans combine the below-market Texas Vet rate with the federal VA loan's zero-down, no-PMI benefits on the same home purchase.
Up to $832,750 for a home, currently up to $200,000 for land with as little as 5% down (one acre minimum), and a smaller amount for home improvements depending on the scope and term.
Yes. A VA-rated service-connected disability of 30% or more earns an additional discount off the already below-market weekly VLB rate, and the VA funding fee is waived when the loan is paired with a VA loan.
Yes. You can hold one active loan in each category, home, land, and home improvement, at the same time, provided you qualify for each individually.
Texas funds these loans through tax-exempt bonds issued by the Veterans Land Board, which lets the state offer rates that often run below conventional market pricing. The rate resets weekly and is the same statewide.
Free, no-obligation. See what you qualify for in about a minute.