For Texas veterans, active-duty service members, and eligible surviving spouses, the VA loan is one of the most powerful home financing benefits available. Zero down payment, no monthly mortgage insurance, and flexible credit standards make it a strong choice for those who qualify.
This guide walks through who is eligible, what makes a VA loan different from other mortgages, and how the application process works in Texas.
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. The VA doesn’t lend the money directly — private lenders like TexasLending do — but the VA guarantees a portion of the loan, which allows lenders to offer better terms than a comparable conventional mortgage.
Because of that guarantee, VA loans can be offered with zero down payment, no monthly mortgage insurance, and generally more flexible credit standards than conventional loans.
Who Is Eligible?
VA loan eligibility depends on your military service. In general, you may qualify if you meet one of these categories:
• Active-duty service members — with a minimum of 90 continuous days of service during wartime, or 181 days during peacetime.
• Veterans — with a qualifying length of service and an honorable or general discharge.
• National Guard and Reserves — typically with six years of service, or 90 days of active duty during wartime.
• Surviving spouses — of service members who died in the line of duty or from a service-connected disability, or missing-in-action or prisoner-of-war spouses (in certain cases).
The formal proof of eligibility is a Certificate of Eligibility (COE) from the VA. Most lenders can pull the COE electronically as part of the application — you don’t need to obtain it separately.
The Core VA Loan Benefits
No Down Payment Required
Most VA loans can be structured with 0% down payment — one of the few remaining zero-down mortgage programs. For eligible borrowers, this can meaningfully reduce the cash needed to buy a Texas home.
No Private Mortgage Insurance (PMI)
Conventional loans typically require PMI when you put less than 20% down. FHA loans require monthly mortgage insurance (MIP) regardless. VA loans have no monthly mortgage insurance, which can meaningfully reduce your monthly payment.
Flexible Credit Standards
VA loans generally accept lower credit scores than conventional loans, though individual lender requirements vary. This makes homeownership accessible to more service members and veterans.
Reusable Lifetime Benefit
Your VA loan benefit is not a one-time thing. You can use it multiple times over your life, though the amount of guarantee available depends on your entitlement. If you have already used a VA loan, your loan officer can help you understand what remaining entitlement is available.
→ Basics of FHA Home Loans in Texas — Compare VA loans to FHA loans and see which fits your situation.
The VA Funding Fee
In place of monthly mortgage insurance, VA loans include a one-time VA funding fee. This fee helps sustain the VA loan program for future service members. It can typically be rolled into the loan amount rather than paid at closing.
The funding fee percentage varies based on whether it is your first VA loan, whether you make a down payment, and whether you are a National Guard/Reserve member. Some borrowers — including veterans receiving VA disability compensation and eligible surviving spouses — are exempt from the funding fee entirely.
VA Loan Limits in Texas
As of 2020, VA loans no longer have county-based loan limits for eligible borrowers with full entitlement. That means qualified borrowers can potentially finance higher-priced Texas homes without needing to bring a down payment.
Borrowers with reduced entitlement — usually because they have an active VA loan or previously defaulted — do have limits tied to conforming loan limits in their county.
→ How to Get Pre-Approved for a Mortgage — Get pre-approved for your VA loan before you start house hunting.
How to Apply for a VA Loan in Texas
• Confirm eligibility — Your lender can pull your Certificate of Eligibility electronically.
• Get pre-approved — This tells you how much home you can afford and shows sellers you are a serious buyer.
• Find your home — Work with a real estate agent familiar with VA loan requirements.
• Sign a contract — Make sure the contract includes standard VA appraisal contingencies.
• Complete underwriting and appraisal — VA loans require a VA-approved appraisal, which also verifies the home meets VA minimum property requirements.
• Close — Sign final documents at the title company. In Texas, standard closing procedures apply.
→ 10 Steps to Buying a House in Texas — The full home buying process — from pre-approval to closing.
Common VA Loan Uses
VA loans can be used for:
• Purchasing a primary residence (single-family, condo, multi-unit up to 4 units if owner-occupied).
• Refinancing an existing mortgage into a VA loan (Cash-Out Refinance).
• Reducing the rate on an existing VA loan (VA IRRRL — Interest Rate Reduction Refinance Loan, sometimes called a VA streamline).
• Building a new home on land you own or purchase with the loan.
The property must be your primary residence — VA loans generally cannot be used for investment properties or vacation homes.
Ready to Explore a VA Loan?
Texas is home to one of the largest veteran populations in the country, and TexasLending has been serving Texas veterans and active-duty service members for more than 25 years. A licensed mortgage consultant can walk you through your eligibility, explain what a VA loan would look like at current mortgage rates, and help you get pre-approved.
→ Get Started with TexasLending.com ←
Want to run some numbers first? Use our purchase calculator to see how a zero-down VA loan compares to other options.
→ Try Our Purchase Calculator ←
Frequently Asked Questions
Do I have to use a VA loan for my first home?
No. Your VA loan benefit is available whenever you are ready to use it, whether it’s your first home or later in life. Some service members use conventional loans early on and their VA benefit later — the eligibility doesn’t expire.
Can I use a VA loan more than once?
Yes. Your VA loan benefit is reusable. As long as you have available entitlement, you can use a VA loan for multiple homes over your lifetime. Once you pay off one VA loan or sell a home financed with a VA loan, your entitlement generally returns.
What is a VA IRRRL?
A VA Interest Rate Reduction Refinance Loan (IRRRL) — sometimes called a VA streamline refinance — is a simplified refinance of an existing VA loan into a new VA loan at potentially better terms. It generally requires less documentation and no new appraisal in many cases.
Can I buy a fixer-upper with a VA loan?
VA loans require the home to meet minimum property requirements at closing. Significant fixer-uppers may not qualify unless repairs are completed before closing. The VA Renovation loan is a specialized program that can be used for some improvements, though availability varies by lender.
Do surviving spouses qualify for VA loans?
In many cases, yes. Surviving spouses of service members who died in the line of duty, from a service-connected disability, or as prisoners of war may be eligible for the VA home loan benefit. Eligibility rules are specific — your loan officer can help confirm.
Texaslending.com is a DBA of Aspire Financial, Inc. NMLS #2297. Equal Housing Lender.
Loan programs, rates, terms, and conditions are subject to change without notice. All loans are subject to credit approval and applicable federal and state regulations. VA loan eligibility and terms are determined by the U.S. Department of Veterans Affairs. VA funding fee amounts vary by military category and prior VA loan use.
