The Basics of the VA Home Loan Program
For Texas residents involved with the military, there are many opportunities to save on a home loan and all the expenses that come with owning and maintaining a home - ranging from the federal
VA Home Loan Program to the Veterans Housing Assistance Program to the Veterans Home Improvement Program.
First there is the federal VA Home Loan Program, available to all veterans and service members who meet the eligibility, occupancy and other requirements of the program, which allows individuals and families to obtain a federally guaranteed home loan without a down payment. The program allows potential homeowners to borrow the reasonable value of the property or the purchase price, whichever is less, as well as the funding fee. They also save homeowners from the added expense of private mortgage insurance, a condition of conventional mortgages
There are also several funding options specific to the state of Texas. Since 1946, the
Texas Veterans Land Board has offered funding to more than 200,000 veterans in need of low-interest, long-term land loans. The state later created the Veterans Housing Assistance Program, which uses bonds to provide veterans with special, low-interest loans for home purchase. And for those who need to maintain their existing home, the program was expanded in the mid-80s to add the Veterans Home Improvement Program. This program provides below-market interest rate loans to qualified veterans in the state in need of money for home repairs and improvements.
Added benefits for the Texas programs include an interest rate reduction to qualifying veterans with disabilities and an opportunity for those building a home to use a "take-out" loan from participating lenders when their home is complete.
Both state and federal programs come with their own sets of rules and requirements, but provide great money-saving opportunities for veterans seeking to purchase a home with little to no money down and a below-market interest rate.
Guest post provided by Matt Puettmann. Matt is a Content Manager at
Veterans United Home Loans, the nation’s number one dedicated VA lender.