Everything that You Would Want to Know About Texas Veterans Home Loan

The Texas Veterans home loan is meant solely for veteran residents of Texas and is a great means for them to purchase a home in the state. It is also for people who are still in active duty and once eligible the borrower gets to enjoy competitive interest rates are lower than the market rates and nil or a negligible amount of down payment. If you are veteran with a service-connected 30% disability or more, you can get further reductions in interest rates.

Here’s everything that you would want to know more about the Texas Veterans home loan: -

· It is run by the Texas Veteran Land Board (VLB). The VLB Housing Assistance Program was created in 1983 to support veterans and serving Military members from the state to buy their own homes. The VLB has the first right of possession of the home. Since VLB offers loans of different types to veteran and military members, it permits an active loan on each category to the members — in purchasing land, home or home improvement. Once the member or his inheritors pay off one VLB home loan then they can apply for another VLB home loan. This form of home loans is all self-funded financed with bonds and serviced by payments received from Veteran and participating Military personnel.

· The home in question must be the veteran or the military personnel’s primary residence in the state.

· It must be a single-family home — attached or detached; townhome or condominium.

· If multi-family units are added or a duplex constructed, it must have been done five years prior to the loan’s close date.

· For new homes, it is mandatory that the home is certified ENERGY STAR or has a score of 75 or less on the HERS index.

· The military personnel or the veteran is required to start staying at the home within 60 days of loan closure.

· It must remain as the military personnel’s or veteran’s primary place of residence for a minimum of three years after the closure of loan.

Important Points for Applying for the Texas Veterans Home Loan

a. The veteran, military personnel or their better half need to be 18 years of age while applying for the Texas Veterans Home Loan.

b. The applicant needs to be a resident of Texas when applying for the loan.

c. The applicant also needs to meet any one of the following criteria: -

· Be serving actively in the Military.

· Is a serving member of the Texas National Guard.

· A veteran should have served actively on a continuous basis for a minimum of 90 days. In case he has not been able to serve for the requisite period then he must have been discharged from service honorably or due to a service-connected disability.

· Is the widow or widower of a veteran whose death was service-connected or who has been listed as missing-in-action.

Steps to get a Texas Veterans Home Loan

a. The first step undoubtedly is to walk through the eligibility criteria and once thoroughly satisfied that you are an eligible move to the next step.

b. Get a pre-approval letter or a pre-qualification has done so that you get to know the price range you are qualified for.

c. Next look for a home to buy.

d. Once you have decided the home, you will fill in a formal application. With the online form, you will be required to submit a copy of the contract.

e. Once the application and the supporting documents are received the appraisal, processing and the underwriting is done so that the final loan documents can be prepared, signed and the deal closed.

I hope this blog would have helped you gain a better insight on VA mortgage and everything you would want to know about it.