CHAPTER 9 VA & Texas VLB
As a veteran, you have special benefits when it comes to buying a home, whether it’s your first time as a homeowner or you are sizing up to meet the needs of your growing family or sizing down as an empty nester. The state of Texas has additional benefits through the Texas Veteran Land Board for veterans that live in Texas. Veterans like yourself have access to resources offered by the U.S. Department of Veterans Affairs, including VA home loans and VA-backed home loans which can be used to help you buy, build, or even improve or refinance a home, as long as you meet minimum eligibility requirements.
WHAT IS A VA LOAN?
A VA home loan is a mortgage issued by a traditional private lender, but partially guaranteed by the U.S. Department of Veterans Affairs. VA loans are not typically funded by the VA itself. Most are not direct loans from the government to you, the veteran. A majority of VA loans are offered by U.S. banks, credit unions, and mortgage lenders to veterans and eligible surviving spouses. The VA also does not set mortgage rates for VA loans. Those rates are set by each individual lender and are typically lower than conventional mortgage rates by 25 basis points (.25%). Since the rates vary, you can shop around and choose the lender with the rates and terms that are best for you. Applying for a VA-backed mortgage is much like applying for any 74
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