VA loans from a private lender help veterans to get back on their feet after a life in military service or the National Guard. Eligible Texas veterans can leverage these kinds of loans and other benefits to help build a civilian life for themselves and their families.
Owning a home is not necessarily something only the wealthy can afford anymore, especially when it comes to VA loans in Texas . The Department of Veterans’ Affairs ensures veterans and their surviving spouses get what they need to keep a roof over their heads.
What is a VA Loan?
A VA loan is a loan from private lenders, but backed by the Department of Veterans Affairs. The VA guarantees around 25 percent of the loan, depending on how much a veteran has in terms of entitlement. Most veterans who have not taken out a VA loan in the past have full entitlement on a VA loan.
Loan Benefits for a VA Mortgage
A VA home loan is one of the best ways to use the VA loan program, because it makes owning a home possible. This home loan comes with many more perks than a conventional loan, and service members will not have to make a down payment on the loan, nor will they have to pay private mortgage insurance on the loan.
For service members and former active duty members looking for financial stability and a route to a secure future, these loans can help build equity quickly by keeping monthly payments affordable.
The Best VA Loans for Veterans
Many former and active duty service members are eligible for VA loans that can help them renovate, build, or purchase a home, even if they already have a VA loan. Here are the types of loans that private lenders will offer in Texas:
VA Home Loan, or a VA loan that helps a first-time home buyer, veteran, or someone who is ready to move make a home purchase
VA Construction Loan, or a VA loan that helps veterans build a home to suit their needs
VA Renovation Loan, or a VA loan that helps families get the upgrades and renovations they need for a better quality of life
VA Streamline Refinance Loan, or a VA loan that helps active duty homeowners with a VA loan already refinance to get a more attractive interest rate and potentially reduce their monthly payment.
Anyone looking to apply for a VA loan in Texas must make sure they have their certificate of eligibility from the VA before speaking to a lender. This certificate will let buyers know how much entitlement they have.
Why Should Veterans Move to Texas?
More than a million veterans have moved to Texas to find their dream home and take advantage of the many advantages the state has to offer.
Texas has a booming economy since many tech corporations are moving their headquarters to major cities. Reliable long-term jobs are available in Houston, Austin, and San Antonio. A veteran can stay close to communities and maintain a reliable income.
Good Housing Market
In addition, more houses are being built in Texas. Once the pandemic ended, more and more people began to see the wisdom in owning a home. Since Texas had affordable prices, a stable economy, and room to grow, many began building homes in the state, upwards of 88,000 in suburban areas. With these new projects came construction jobs for those who preferred to build.
Texas VA Loan Benefits
In addition, veterans can take advantage of several other benefits to keep their communities united. Home loans like VA mortgages allow veterans to get the funds they need for a new home.
Texas veterans can also apply for a loan of up to $150,000 from the Texas Veterans Land Board as a part of the Texas Veterans Land Loan Program. VA buyers and eligible Texas Veterans can acquire land to build their homes on at more favorable terms.
How Do VA Loans Work in Texas
VA home loans in Texas can be better than the kind of loans you can get from mortgage companies. A loan officer will need your current income, the amount of money you will need to make a home purchase or renovation, and your certificate of eligibility.
If some veterans have acquired disabilities while serving the US government, they will be eligible for a property tax exemption of some kind. Those with 100 percent disability will not have to pay property taxes, but those with a partial disability will have to check your eligibility requirements with loan officers.
While the VA loan will not require a minimum credit score, certain VA buyers will have to provide their credit score so that lenders can get the whole financial history to determine how much they will qualify for.
How to Use a VA Home Loan for Renovation
VA loans can also be used to make improvements on a home. Military families who may already have a Texas VA loan can apply for a renovation loan that comes with all the perks of a VA loan: no down payment, a competitive interest rate, no private mortgage insurance, and no prepayment penalty.
Any remaining entitlement on your certificate of eligibility can be used to apply for this kind of loan in Texas.
In addition, this kind of VA home loan can be used to purchase a home that needs some work at a cheaper price and cover the costs of making that home habitable. A lender can help you determine how much purchasing power you have and what kind of contractor can help you meet the renovation requirements set by the Texas VA.
Is There Anything a VA Home Loan Can’t Do?
While VA loan perks work to keep communities of veterans united, home loans backed by the Department of Veterans Affairs cannot be used towards certain things. Furthermore, Texas cash out refinance loans aren’t available in the state, due to state regulations.
A VA mortgage cannot be used for investment properties. These homes must be your primary residence for at least a year. Former and active service members can still qualify for conventional loans in Texas that will help them. just not VA home loans.
What Do Private Lenders Need for a Texas VA Loan?
Private lenders will need credit score, proof of income, certificate of eligibility, proof of disability (if any), and how much money you will need for a purchase agreement or for a renovation.
While there is not mortgage insurance needed for a VA home loan, military members do have to pay a VA funding fee, based on their loan and their service. The payment for the funding fee can wrapped into the monthly payment, which includes interest rates and closing costs as well.
While no down payment is necessary for a home loan if you are a member of the United States military, a down payment can be put towards creating home equity, paying off your VA mortgage sooner, or lowering your monthly payment. Your lender can help you determine how much of a down payment can make a difference in a home loan.
How many VA loans can you have in Texas? Speaking to a VA approved vendor can can help you determine your eligibility for additional loans, if you already have one.
Call Security America Mortgage if You Are Former Military Personnel Today!
If you’re looking to refinance your current VA loan, if you’d like to see the types of loans you’re eligible for, or if you need a reliable lender to help you find a competitive interest rate and an attractive monthly payment, look no further.
Security America Mortgage has helped those in active service to make the purchase of a home in Texas many times. Any veteran will be treated with the best customer service and can rely on our knowledgeable experts to see if they are eligible for a VA loan.