We get it, navigating veteran benefits can feel overwhelming, especially when you’re looking to buy a new home in Texas. The good news? As a Texas veteran, you have access to some exceptional home loan benefits that can make homeownership more accessible and affordable. 

What Are VA Home Loans? 

VA home loans are mortgage loans backed by the U.S. Department of Veterans Affairs, designed specifically to help veterans, active-duty service members, and eligible surviving spouses become homeowners. Think of them as the government’s way of saying “thank you” for your service. 

Why VA Loans Make Sense for Texas Veterans 

REASON #1: Say Goodbye to Down Payments Unlike conventional loans that typically require 3-20% down, VA loans often need $0 down. That means you can start building equity immediately without emptying your savings account. 

REASON #2: Skip the PMI, Keep Your Money With conventional loans, down payments under 20% trigger Private Mortgage Insurance costs. VA loans eliminate this entirely, potentially saving you hundreds each month. 

REASON #3: Lower Interest Rates, More Affordable Payments VA loans typically offer interest rates 0.5-1% lower than conventional loans. On a $300,000 home, this could save you thousands over the life of your loan. 

REASON #4: Limited Closing Costs Keep more money in your pocket on closing day as VA loans limit the types of fees lenders can charge you, including restrictions on origination fees, processing fees, and underwriting costs.  

REASON #5: Pre-pay is ok! Unlike other loan types, you can make extra payments, pay off chunks of your principal, or even pay off your entire loan ahead of schedule without being penalized. Gain more control over your homeownership and save thousands in interest with a VA loan. 

Property Tax Exemptions for Disabled Veterans 

Here’s something that might blow your mind: Texas has one of the most generous property tax exemption systems in the country, and it’s scaled based on your VA disability rating. 

Here’s the breakdown: 

  • 10% to 29% disability: $5,000 exemption from property value 
  • 30% to 49% disability: $7,500 exemption from property value 
  • 50% to 69% disability: $10,000 exemption from property value 
  • 70% to 99% disability: $12,000 exemption from property value 

But here’s the really impressive part: veterans with 100% service-connected disability ratings get complete property tax exemption on their homestead. That’s right – no property taxes at all. And if you’re a surviving spouse of a disabled veteran or someone killed in the line of duty, you can keep these exemptions as long as you don’t remarry. 

Texas-Specific Veteran Home Benefits 

Texas goes above and beyond the federal VA program with additional benefits through the Texas Veterans Land Board (TVLB): 

  1. The Veterans Housing Assistance Program 
    1. State-Set Interest Rates: Competitive rates updated weekly 
    2. Disability Discounts: Veterans with 30% or higher disability ratings receive a rate discount – something many other states don’t offer 
    3. No Prepayment Penalties: Borrowers can pay off their land, home, or home improvement loans early without incurring extra fees. 
  2. Property Tax Relief That Hits Home 
    1. Substantial Exemptions: Receive partial or 100% tax exemptions on your residence homestead based on your disability rating 
    2. Long-Term Savings: These exemptions can save you thousands annually, making higher-value homes much more affordable 
  3. Additional TVLB Advantages 
    1. Exclusive Land Financing: This loan program is the only one of its kind in the U.S., allowing veterans to purchase 1-20 acres of land with just 5% down. 
    2. Increased Loan Limits: In 2026, standard land loans increased to $200,000 from $150,000 in 2025. 
    3. Dual-spouse land loans increased to $275,000 for two eligible veteran spouses buying the same tract. 
    4. The maximum limit for home loans raised to $832,750 compared to last year’s $806,500. 

Are You Eligible? 

If you think of eligibility as a pie, there are a few slices to consider: 

  • You’ve served 90 consecutive days of active duty during wartime 
  • You’ve served 181 days of active duty during peacetime 
  • You’ve served 6 years in the National Guard or Reserves 
  • You’re the surviving spouse of a service member who died in the line of duty 

How to Get Started 

Ready to turn your dream of Texas homeownership into reality? The process is simpler than you might think: 

  1. Obtain your Certificate of Eligibility (COE) through the VA 
  2. Connect with a lender experienced in VA loans 
  3. Get pre-approved to understand your budget 
  4. Find your perfect Texas home 
  5. Close on your new home with reduced closing costs 

With every mortgage payment you make, your home becomes more valuable, and you build equity. Meanwhile, those who rent are essentially throwing money down a sinkhole with nothing to show for it. 

Want to learn more about your Texas veteran home loan benefits? Give us a call at 325-238-6645 or contact us today to explore your options! 

Last Updated on February 20, 2026