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Texas Veteran FAQs
Question
What happened to the Service Era Discount offered to Vietnam Era veterans? Answer
The Service Era Discount, as well as the 15-year Discount, were discontinued in September 2008 in order to bring a lower base rate to a larger number of eligible veterans.
Question
Will the Texas Vet program delay my closing date?
Answer
No, it will not, as long as you apply for your Texas Vet certification early in your financing process. Call us and we will help you get started.
Question
Can I use more than one Texas Vet program?
Answer
Qualified Texas veterans can use all three Texas Vet loan programs at one time. Multiple eligibility simply means you can receive a land loan and a housing loan and a home improvement loan, all at the same time. When requesting application materials, please be sure to specify the program(s) in which you are interested.
Question
How is my interest rate determined?
Answer
Interest rates are determined by the rate the Texas Veterans Land Board pays on applicable bond proceeds. The rates are updated the first business day of every week. Contact us to get today's Texas Vet rates.
Question
What if I am not eligible for Federal VA programs?
Answer
Texas Vet loan programs are not associated with Federal VA programs; therefore, even if you have used your VA benefits, or are otherwise not eligible for VA, you may still be eligible for the Texas Vet state loan programs.
Question
How did the Texas Vet programs get started?
Answer
Unlike many other states, Texas has been historically a "cash poor" but "land rich" state. Since the days of the Texas Republic, Texas has given its veterans land in recognition of their military service. In the days of Sam Houston, that debt for service was paid to Texas veterans in grants of land. Following World War II, this tradition was continued with the creation of the Texas Veterans Land Board (VLB) in 1946 to administer a new program which would provide low-interest, long-term loans to Texas veterans for the purchase of land.
In 1983, the Legislature created the Veterans Housing Assistance Program to assist Texas veterans in purchasing a home. Texas voters overwhelmingly approved a constitutional amendment authorizing the issuance of bonds to fund the program.
In 1986, the VLB expanded the Veterans Housing Assistance Program, adding the Veterans Home Improvement Program to provide below-market interest rate loans to qualified Texas veterans for home repairs and improvements to their existing homes.
Question
Who pays for this state program?
Answer
Since its inception, more than 120,000 Texas veterans have taken advantage of this self-supporting program without costing the taxpayers a single penny. The program is funded by issuing bonds authorized by the voters; the bonds, as well as the cost of administering the program, are paid for by the veterans who participate in the program.
Question
Can I use the Texas Vet program to refinance my current mortgage?
Answer
Unfortunately, no, the VHAP is not a refinancing program. If you have an existing loan on your home, you cannot use the VHAP to lower your interest rate, nor can the VHAP be used as a down payment on a home. It can only be used as a first lien on your primary residence at the time of purchase. Please contact us for alternative refinancing options.
Question
What mortgage terms are available for the Texas Vet Housing Assistance Program (VHAP)?
Answer
The term of the loan can be 15, 20, 25 or 30 years. Unfortunately, the additional interest rate discount for 15-year terms is no longer available.
Question
Am I required to have an escrow account for property tax and insurance?
Answer
Yes. You are required to have an escrow account for taxes and insurance; however, if you make a down payment of at least 20% on a Conventional Texas Vet loan (not VA), you may be able to waive an escrow account by paying a 0.25% fee at closing.
Question
If my spouse and I are both veterans, can we have two VHAP loans?
Answer
Two married, eligible veterans may have only one active VHAP loan at one time. But they can still have a VLB land loan and home improvement loan at the same time as well.
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