Texas VLB Loans Offer Land and Home Benefits
The Texas Veterans Land Board is a state program that offers land loans, home loans, and home improvement loans for eligible Texas Veterans. VLB loans are separate from the federal VA loan benefit, but they can complement it, especially when you want to buy land, finance improvements, or compare state set rates with market based options.
The three main VLB loan programs
- Land loans: VLB can finance the purchase of at least one acre in Texas with a low down payment structure and a maximum loan amount set by the program.
- Home improvement loans: VLB offers improvement loans for repairs or upgrades to an existing primary residence, and smaller loan amounts can have simplified equity requirements.
- Home loans: VLB can fund home loans for eligible borrowers, and the loan amount limits and underwriting are tied to program rules and property type.
- Separate from VA: These programs are not the same as a federal VA mortgage, so eligibility and fees are set by the state program.
Texas disability discount on VLB rates
- Half point reduction: Veterans with a 30% or higher service connected disability rating can receive a 0.50% rate reduction on certain published VLB interest rates.
- Applies to multiple programs: The discount can apply to both land and home loan programs, depending on current VLB pricing and eligibility.
- Document your rating: You typically prove the rating with VA benefit documentation so the discount is applied correctly during underwriting.
- Check current rates: VLB publishes current interest rates, so confirm the discount effect on the exact product you want before you lock in a plan.
Eligibility requirements in 2026
- Texas residency: You generally must be a bona fide Texas resident at the time you apply, since VLB is a state benefit tied to residency.
- Service requirement: Many applicants qualify with at least 90 days of active duty service, with exceptions for service connected disability discharges.
- Primary residence rule: Home and home improvement loans are designed for primary residences located in Texas, not out of state property or second homes.
- Program specific rules: Each VLB product has its own property and underwriting requirements, so land eligibility can differ from home improvement eligibility.
VLB home loan versus a federal VA loan
| Feature | VLB program | Federal VA loan |
|---|---|---|
| Land only purchase | Yes, land loan program | No, home must be included |
| Down payment | Home can be low down, land often uses 5% | Often 0% for a primary home |
| Interest rate source | State set program rates | Market set lender rates |
| Fees | Program fees can apply | VA funding fee may apply if not exempt |
- Use the right tool: If you want land without a home, VLB is one of the few Veteran focused options in Texas that directly addresses that need.
- Compare total cost: For home purchases, compare rate, fees, and monthly cost rather than assuming one program always wins.
FAQs
Is a Texas VLB loan the same as a federal VA loan?
No. VLB is a Texas state program and its loans are separate from the federal VA home loan benefit. VLB can fund land and other products that VA does not, while VA loans are federally backed mortgages for primary residences.
Can I use VLB to buy land only in Texas?
Yes. VLB has a land loan program that can finance the purchase of at least one acre in Texas. This is a key difference versus a VA loan, which requires a home and does not finance land only purchases.
Do disabled Veterans get a rate discount with VLB?
Often yes. Veterans with a 30% or higher service connected disability rating can qualify for a 0.50% rate reduction on certain VLB loan products. You will need VA documentation so the discount is applied correctly during underwriting.
What Is the Texas Veterans Land Board, and What Does It Offer?
The VLB offers Texas based home, land, and home improvement loans for eligible Texas Veterans and Military Members. These programs can complement a VA Loan, but they follow Texas program rules, not the national VA home loan program rules. This section establishes the baseline so you choose the right lane and avoid applying for the wrong product.
- The VLB home loan program is designed for a Texas primary residence with fixed rate terms and a published maximum loan amount, so it fits buyers who want predictable boundaries and a clear occupancy plan.
- The VLB land loan program finances Texas acreage, which matters because a VA Loan generally cannot finance land only purchases, so this lane is often used for future build planning.
- The VLB home improvement program helps fund eligible repairs or upgrades to an existing primary residence, which can be useful when you want to improve safety or efficiency without using a cash out refinance.
- Pick the lane first, home, land, or home improvement, because each lane has different eligibility proof and different closing timelines, and switching lanes mid process creates avoidable delays.
- Confirm the program boundaries, Texas residency, Texas property location, and primary residence requirements, because these rules control eligibility regardless of your credit strength or cash reserves.
- Set a payment ceiling and a reserve floor before you apply, because the best program is the one that leaves you with breathing room after taxes, insurance, and normal homeownership costs.
VA Loan Resources
- Complete VA Loan Guide – Eligibility, core benefits, and how VA mortgages work.
- VA Loan Requirements – Credit, income, and service rules you need to qualify.
- VA Funding Fee Explained – Rates, exemptions, and how to roll it into your loan.
- VA Loan Closing Costs – Typical fees and how sellers can help pay them.
- VA Minimum Property Requirements (MPRs) – What homes must have to pass the VA appraisal.
- Compare 2–3 VA Lenders – Get personalized rate quotes from vetted VA-approved lenders.
How Do VLB Home Loans Work in 2026?
A VLB home loan is a fixed rate mortgage for a Texas primary residence, offered through participating lenders with a stated maximum loan amount. The program is built for little or no down payment, but it requires strict occupancy and property rules. This section covers the limit, the term options, and the rules that most often slow approvals.
- The program allows eligible Texas Veterans and Military Members to receive up to $832,750 on a fixed rate loan with 15, 20, 25, or 30 year terms, which creates a clear ceiling for home shopping.
- Occupancy is a hard gate, the home must be your primary residence in Texas, you must occupy within 60 days after closing, and you must keep it as your primary residence for at least three years.
- Property rules are specific, eligible homes include single family attached or detached homes, townhomes, and condominiums, and duplexes or other multi family units must have been constructed at least five years before closing.
- Refinancing is not part of this program, so if you expect to refinance soon, you should plan around that constraint before you commit to the VLB home loan structure.
- Start with a participating lender and request a VLB home loan checklist, because the fastest approvals happen when you submit the correct residency and service proof in one clean packet.
- Shop properties that fit the program rules from day one, especially condo approval status and multi family age requirements, because the wrong property type can force a restart late in escrow.
- Write the contract with realistic timelines for appraisal and documentation, then keep your file stable through closing, because new debt or large unsourced deposits can trigger a re review.
Texas Veterans Land Board Home Loan Program Details
When Should You Choose a VLB Home Loan Instead of a VA Loan?
Choose a VLB home loan when you are buying and staying in Texas and want the VLB program structure and stated cap. Choose a VA Loan when you want nationwide flexibility and broader VA loan refinance options. The right choice is driven by your move horizon, equity strategy, and the contract timeline you can realistically meet.
| Decision Factor | VLB Home Loan | VA Loan | Why It Matters |
|---|---|---|---|
| Where you can buy | Texas only, primary residence required | Primary residence nationwide where eligible | Relocation risk changes which program stays workable long term |
| Maximum loan amount | Program maximum applies | Full entitlement is not capped by county limits | A higher price may be easier in one lane depending on entitlement and cap |
| Refinance flexibility | The program does not offer refinancing | Refinance options include streamline and cash out paths | Future rate drops and equity plans matter for total cost over time |
| Best fit profile | Texas residents with a stable stay put plan | Buyers who expect moves or want refinance tools later | The best decision is the one that survives your next life change |
- Pick the VLB home loan when the cap covers your target price range and you can meet the three year primary residence requirement, because the program is built around long term Texas occupancy compliance.
- Pick a VA Loan when you want portability and refinance options, especially if you may PCS or change markets, because flexibility matters more than a headline rate if your timeline changes.
- Stress test both options against taxes, insurance, HOA, and reserves, because the cheapest interest rate is irrelevant if the monthly cash flow is tight after escrow changes and routine repairs.
- Get side by side payment quotes using the same home price and conservative taxes and insurance, because lenders can make either program look cheaper with optimistic assumptions that do not survive underwriting.
- Confirm your move horizon and refinance plan, because a program with limited refinance options can be a constraint if you expect to change rate, term, or cash flow soon.
- Choose the option that leaves you with stronger reserves after closing, because reserves are the real safety net for first time owners when repairs, escrow changes, or job transitions hit.
2026 Conforming Loan Limit Values for One Unit Properties
How Do VLB Land Loans Work for Buying Acreage in Texas?
A VLB land loan finances eligible Texas land, typically for tracts of one acre or more with a minimum five percent down payment. The program can finance up to $200,000, and eligible Veteran spouses may be able to borrow more together. This section explains the land rules that most often stall closings, especially access and survey requirements.
- The program can finance up to $200,000 with a minimum five percent down for tracts of one acre or more, which is a rare long term land financing option compared with most private land loans.
- The land must be wholly within Texas and must have legal, usable access to a public road, because access and drivability requirements are underwriting gates, not optional preferences.
- The program does not give value to improvements on the tract, so utilities, structures, and other improvements do not increase the financed value, which changes how you should price a deal.
- Spouses who are both eligible Veterans may be able to apply together on the same tract and borrow up to $275,000, which can expand options for buyers targeting larger tracts.
- Verify acreage, access width, and road condition with documentation, because land loans fail most often when access is not legally recorded or not drivable by a standard passenger car in bad weather.
- Order or obtain a survey description that meets program requirements, because incomplete legal descriptions and missing plats create title and appraisal delays that are hard to fix under contract deadlines.
- Budget for the down payment and program fees early, because land transactions often require cash for fees and closing costs even when the down payment is only five percent.
- Plan your next step, build timeline and construction financing, before you close, because a land loan is not a construction loan and you should avoid holding costs without a realistic build plan.
Texas Veterans Land Board Land Loan Program Requirements
How Does the VLB Home Improvement Loan Work for Repairs and Upgrades?
The VLB home improvement loan helps eligible Texas Veterans and Military Members finance repairs and improvements on an existing primary residence. Loans can be up to $50,000 with terms up to 20 years, and no down payment is required. The catch is process control, you must use a general contractor and cannot start work before closing and funding.
- The program offers loans up to $50,000 for a 2 to 20 year term, and smaller loans between $7,500 and $10,000 for a 2 to 10 year term, which lets you match payment to scope.
- Loans of $25,000 or less are insured by the Federal Housing Administration, and loans above $25,000 require the VLB to be in a first lien position, so existing liens and equity matter more on larger projects.
- No down payment is required, but you will pay required application fees and closing costs, so you should plan cash to close and keep a reserve cushion for unforeseen repairs during construction.
- You cannot start construction, advance funds, or buy materials before closing and funding, and loan proceeds are available after closing, so contractor scheduling must match the program timeline.
- Define the project scope and collect contractor bids that match building codes, because vague bids are the number one cause of delays when underwriters must confirm eligibility of the work.
- Apply with a complete income and mortgage document packet, because underwriting will verify ability to repay and confirm lien position rules before approving the final loan amount.
- Schedule required inspections and follow the no work before funding rule, because starting early can disqualify costs and force a rework that delays the entire project timeline.
Texas Veterans Home Improvement Program Loan Details
Who Qualifies for VLB Programs, and How Does the Disability Discount Work?
Eligibility requires Texas residency, qualifying service status, and a Texas property. A VA service connected disability rating of 30 percent or greater can qualify for a discounted interest rate on certain VLB loans. This section explains what underwriting verifies so you can stage documents once and avoid repeated proof requests.
- Texas residency is a hard gate, the program requires you to be a bona fide and legal resident of Texas on the date of application, so residency proof needs to be clean and current.
- Service eligibility includes active duty Military Members, Texas National Guard members, certain Reserve component retirees, and Veterans with qualifying service and acceptable discharge types, which is why service records must be complete.
- Discharge type matters, the program lists eligible discharge types and treats dishonorable discharge as ineligible, so underwriting will reconcile the discharge narrative with the program criteria.
- The disability discount is documentation driven, if you want discounted pricing, provide the rating proof early so the lender prices the correct rate structure and avoids a closing week correction.
- Build a one page eligibility packet with proof of Texas residency, service documents, and identification, because complete submissions clear faster than piecemeal uploads.
- Provide disability rating documentation at application, not after approval, because pricing and program discounts are set during underwriting and late changes can trigger redisclosures and delays.
- Confirm property type eligibility before you sign a contract, because duplex age rules and efficiency certification requirements on new construction can block approval if discovered late.
Can You Use VLB Programs Alongside a VA Loan?
Yes, the VLB can complement a VA Loan when you use the programs in the right sequence. The most common pairing is using a VLB land loan to buy Texas acreage, then using a VA Loan later for a primary residence build or purchase. The key is keeping lien position and occupancy rules clean, because mixing programs without a plan creates underwriting friction.
- Land first, home later is the cleanest pairing. A VLB land loan can secure acreage that the VA Loan would not finance as land only, and later you can pursue a VA Loan for a primary residence strategy.
- Home improvement can be a separate tool. When you already own a home, the VLB home improvement loan can address repairs and upgrades, while you keep your VA Loan strategy focused on a future primary residence purchase.
- Entitlement planning still matters. If you keep a VA Loan active on another home, partial entitlement can change your next VA Loan structure, so map entitlement and cash flow early.
- Map your timeline, how long you will live in Texas, whether you plan to build or buy, and whether you might move, because the right program depends on real occupancy and relocation risk.
- Confirm lien position expectations with your lender, because VLB programs can require first lien position in certain cases, and conflicting liens are a common reason projects stall.
- Run the full monthly budget for every housing payment you will carry, because underwriting approvals are based on sustainable cash flow, not on a headline rate or a maximum approval number.
What Other Benefits Does the VLB Manage Beyond Loans?
The VLB also manages Texas State Veterans Cemeteries and supports related Veterans services in Texas. These programs are not mortgage products, but they matter for long term family planning and where you choose to live. If you are buying with multi generation planning in mind, proximity to these resources can be part of your location decision.
- Texas State Veterans Cemeteries provide burial benefits and support, and the program is managed by the Texas Veterans Land Board, which can matter for families planning long term care and end of life decisions.
- Texas State Veterans Homes provide long term care options for eligible Veterans and qualified family members, and proximity can reduce travel burden for caregivers during extended care periods.
- These resources do not replace financial planning, but they can reduce stress and cost during major life transitions, which is why many families factor them into relocation and housing decisions.
- Identify which services matter to your household, loans, land, home improvement, cemeteries, or long term care, because different life stages change which benefits are most valuable.
- Plan location with logistics in mind, commute, medical access, and family support, because a lower mortgage payment is not a win if it creates a long term caregiving burden.
- Keep your service and residency documents organized, because the same proof often supports multiple programs, and clean documentation reduces friction when you apply for benefits later.
Texas State Veterans Cemeteries Program Overview
The Bottom Line
The VLB can be a strong option for Texas Veterans and Military Members, but only when you match the right program to your goal and run a disciplined checklist.
Use the VLB home loan when you want a Texas primary residence within the program cap and you can meet occupancy rules. Use the VLB land loan when you want acreage that a VA Loan would not finance as a land only purchase. Use the VLB home improvement loan when you need repairs and upgrades without turning your mortgage into a cash out refinance. The approval path is predictable: confirm Texas residency and service eligibility, choose an eligible property, submit a complete document packet, and protect reserves so the payment stays comfortable after taxes and insurance.
If you plan for those gates up front, the VLB can be a clean tool in a long term homeownership strategy.
Frequently Asked Questions
Is a VLB home loan the same as a VA Loan?
No. A VLB home loan is a Texas program with Texas residency and property rules. A VA Loan is a national program tied to the VA guaranty. They can complement each other, but they are not the same product.
What is the VLB home loan maximum in 2026?
The VLB home loan program states eligible Texas Veterans and Military Members may receive up to $832,750 on fixed rate terms. Your final approval still depends on credit and income, and the home must meet program property rules.
Do I have to be a Texas resident to use VLB loans?
Yes. The VLB programs generally require you to be a legal Texas resident at the time of application and to use the loan on property located in Texas. Residency proof is a common underwriting condition.
Can I use a VLB land loan and then use a VA Loan to build?
Often yes as a sequence. The VLB land loan can finance eligible Texas land, and later you can pursue a VA Loan for a primary residence build or purchase strategy. Confirm lien position and timing rules with your lenders.
How much down payment is required for a VLB land loan?
The land loan program typically requires a minimum five percent down payment for tracts of one acre or more. Closing costs and program fees can add to total cash needed, so you should budget a buffer beyond the down payment.
Can eligible spouses borrow more on a VLB land loan together?
Yes in many cases. The land loan program states that two eligible Veteran spouses may apply together for the same tract and may be eligible to borrow up to $275,000 with the required minimum down payment.
Does the VLB offer refinancing for its home loans?
No. The VLB home loan program states it does not offer refinancing. If you want to change rate or term later, you typically refinance through another loan program, so plan around that reality before you commit.
What types of repairs qualify for the VLB home improvement loan?
The VLB home improvement loan can be used for eligible alterations, repairs, and improvements tied to FHA Title I guidelines. You must use a general contractor and cannot begin work before closing and funding.
How does the 30 percent disability discount work?
The VLB program pages state that Veterans with a VA service connected disability rating of 30 percent or greater qualify for a discounted interest rate on certain VLB loans. Provide disability documentation early so pricing is correct.
Can I have more than one VLB loan at the same time?
Yes in many cases. The VLB program pages state it is possible to have one active loan in each VLB program, land, home, and home improvement, at the same time, assuming you qualify and meet program rules.
