VA Home Loan Guide for Veterans in Frisco, Texas
Frisco, Texas, located just north of Dallas, is one of the fastest-growing and most Veteran-friendly cities in the state. With award-winning schools, master-planned communities, and a booming local economy, Frisco offers an exceptional lifestyle for military families.
Veterans will find that Frisco’s modern amenities, proximity to VA services, and strong job market make it an excellent place to use their VA loan benefits. Whether you’re buying your first home or upgrading to a newer build, Frisco delivers long-term value and community appeal.
This guide covers VA loan eligibility, home price trends, loan limits, and Veteran-specific programs to help you buy with confidence in this dynamic North Texas city.
In this Article
Frisco Housing Market Outlook for 2025
Frisco, Texas continues to be a top destination for Veterans seeking suburban comfort near Dallas. With master-planned neighborhoods, ample job opportunities, and quality schools, the city offers a high quality of life. As of 2025, the median home price in Frisco is approximately $560,000. While home prices are rising, VA buyers can still purchase competitively with zero down and no PMI.
Frisco vs. Nearby Cities: 2025 Housing Comparison
| City | Median Home Price (2025) | Cost of Living Index | Population |
|---|---|---|---|
| Frisco | $560,000 | 114.3 | 230,000 |
| McKinney | $500,000 | 110.7 | 215,000 |
| Plano | $540,000 | 112.8 | 290,000 |
| Little Elm | $440,000 | 105.5 | 58,000 |
| The Colony | $485,000 | 108.3 | 45,000 |
VA Loan Limits for Frisco in 2025
For 2025, the VA loan limit in both Collin and Denton counties (which include Frisco) is $806,500. Veterans with full entitlement can purchase homes up to this amount with no down payment. For higher-priced homes, only the portion above $806,500 requires a small down payment.
Why Choose a VA Loan in Frisco?
VA loans offer powerful advantages in a high-value housing market like Frisco. With no PMI, flexible credit standards, and lower interest rates, VA loans help Veterans compete with conventional buyers without needing a large upfront investment.
- No Down Payment: Purchase homes with $0 down up to county limits
- PMI-Free: VA loans do not require private mortgage insurance
- Lower Interest Rates: Save 0.5%–1% vs conventional mortgage rates
- Flexible Credit: Most VA lenders approve down to 580 credit score
- No Prepayment Penalty: Pay off your loan early with no extra fees
Who Qualifies for a VA Home Loan?
To be eligible for a VA home loan, applicants must meet certain criteria established by the U.S. Department of Veterans Affairs. These qualifications are based on your service duration, duty status, and the character of your discharge.
- Wartime Service: At least 90 consecutive days of active duty during a period of war.
- Peacetime Service: A minimum of 181 continuous days of active duty during peacetime.
- National Guard/Reserves: Six years of honorable service, or 90 active days under Title 32 (with at least 30 served consecutively).
- Veterans: Must have completed qualifying service and received an honorable or general discharge.
- Active-Duty Military: Current service members may be eligible based on time in service.
- Guard and Reserve Members: Eligibility applies with sufficient years of service or specific active-duty stints.
- Eligible Surviving Spouses: Spouses of service members who passed away in service or from service-connected causes may also qualify.
VA Loan Eligibility Calculator
VA Loan vs. Conventional Loan: 2025 Comparison
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Down Payment | 0% | 5%–20% |
| PMI | Not Required | Required under 20% |
| Interest Rate | Lower (avg. 6.2%) | Higher (avg. 6.8%) |
| Credit Score | 580–620 typical | 620+ minimum |
| Funding Fee | 2.3% (first use) | None |
| Prepayment Penalty | None | Possible |
VA Loan Eligibility and Obtaining Your COE
To use a VA loan in Frisco, eligible Veterans and service members must meet minimum service criteria set by the Department of Veterans Affairs. These guidelines ensure the benefit is extended to those who have served honorably. The first step is obtaining a Certificate of Eligibility (COE), which verifies entitlement and unlocks access to the VA loan program.
Who Qualifies for a VA Loan in Frisco?
- Wartime Active Duty: At least 90 consecutive days of service during wartime
- Peacetime Active Duty: At least 181 continuous days of service
- National Guard or Reserve: 6 years of service, or 90 days active duty under Title 32 (minimum 30 consecutive days)
- Veterans: Must have received an honorable discharge after meeting the required service length
- Surviving Spouses: Eligible if receiving Dependency and Indemnity Compensation (DIC)
Getting Your Certificate of Eligibility (COE)
There are three fast and easy ways to get your COE:
- Online: Use the VA’s eBenefits portal
- Through a Lender: Most VA-approved lenders in Frisco can retrieve it instantly
- By Mail: Submit VA Form 26-1880; processing typically takes 4 to 6 weeks
Credit and Income Requirements
VA loans are known for flexibility when it comes to credit and income. Most Frisco lenders prefer scores of 580–620, but approvals are possible below that with strong residual income. Stable employment and acceptable debt-to-income ratios ensure Veterans can qualify without the stricter standards of conventional loans.
- Minimum Credit Score: 580–620 typically required by lenders
- Debt-to-Income Ratio: Preferred under 41%, exceptions allowed with residual income
- Income Verification: W-2, tax returns, retirement or disability income accepted
- VA Residual Income Test: Used instead of rigid DTI rules for added flexibility
Occupancy Guidelines
VA loans require the home to be your primary residence. In Frisco, you must occupy the home within 60 days of closing. Multi-unit properties are eligible as long as you live in one unit. Vacation and investment properties are not allowed under VA guidelines.
- Occupancy Requirement: Must move in within 60 days of closing
- Primary Residence: Home must be your full-time residence
- Multi-Unit Eligibility: 2–4 unit properties allowed if one unit is owner-occupied
- No Vacation or Rentals: Property cannot be used solely for income purposes
VA Funding Fee in 2025
The VA funding fee supports the program and replaces PMI. This one-time fee is typically rolled into your loan. The amount varies based on down payment and prior usage, but Veterans with service-connected disabilities are exempt.
- First-Time Use (2.3%): Applies to 0% down purchases using VA benefits for the first time
- Repeat Use (3.6%): Applies if using VA loan benefit again with no down payment
- Reduced Fee: 1.65% with 5% down; 1.4% with 10% down or more
- Exemptions: Veterans with disability compensation or Purple Heart recipients pay 0%
| Down Payment | First-Time Use | Subsequent Use |
|---|---|---|
| 0% | 2.3% | 3.6% |
| 5%–9.99% | 1.65% | 1.65% |
| 10% or more | 1.4% | 1.4% |
| VA Disability/Purple Heart | 0% (Exempt) | |
Using Your VA Loan Entitlement in Frisco
Entitlement is the VA’s guarantee to lenders, which allows you to buy without a down payment. In Frisco, most borrowers have full entitlement and can finance homes up to $806,500. Partial and restored entitlements are also common for second-time users or those who’ve repaid a prior VA loan.
- Basic Entitlement: $36,000 VA guarantee up to $144,000 in loan value
- Bonus Entitlement: Extends coverage above $144,000 up to county loan limits
- Full Entitlement: Enables 100% financing up to $806,500 with no cap
- Partial Entitlement: Still allows buying again if you haven’t restored full benefit
- Entitlement Restoration: Available after selling or paying off a previous VA loan
- Concurrent Loans: May be possible in some PCS or relocation scenarios
- Lender Check: Your lender calculates how much entitlement you can use
- Restoration Form: Submit VA Form 26-1880 to regain full benefit
VA Appraisal and Property Standards
All VA-financed homes must pass an appraisal to verify value and compliance with the VA’s Minimum Property Requirements (MPRs). These ensure the home is safe, sanitary, and structurally sound. While not a full inspection, it protects Veterans from major issues before closing.
- Structure: Foundation, roof, and framing must be sound
- Systems: Functional plumbing, heating, and electrical required
- Utilities: Must have working water, sewer, and HVAC systems
- Safety: No lead paint, mold, or asbestos hazards
- Access: Property must have safe public or private road access
- Ingress/Egress: Every room must have proper exit access
- Pest-Free: No termite or dry rot problems; pest inspection may be needed
- Working Kitchen/Bath: Must have basic fixtures in good condition
VA Refinance Options in Frisco
VA Streamline Refinance (IRRRL)
The VA IRRRL, or Streamline Refinance, helps existing VA loan holders lower their interest rate without re-qualifying. There’s typically no income check or appraisal required, making it one of the fastest ways to reduce your monthly mortgage payment.
- Only for existing VA loans
- No appraisal or income check required
- 0.5% funding fee unless exempt
- No cash back allowed
VA Cash-Out Refinance
The VA Cash-Out option allows you to refinance any loan type and access your home equity. Whether you’re funding renovations, paying off debt, or covering expenses, it provides flexibility—just be ready for full underwriting and appraisal.
- Available for VA or non-VA loans
- Requires new appraisal and income docs
- Funding fee of 2.3% (first use), 3.6% (repeat use)
- Cash may be used for any purpose
The Bottom Line
Frisco’s booming economy, high-end communities, and excellent school districts make it a premium location for Veterans to use their VA loan benefit. With no down payment required, no PMI, and lower interest rates, Veterans can comfortably compete in a hot market while building long-term equity. Whether you’re buying new construction in Phillips Creek Ranch or refinancing to a lower rate, VA loans in Frisco give you the flexibility and savings to make a smart move in North Texas.
Check VA Rates and Get Pre-Approved Today
Frequently Asked Questions About VA Loans in Frisco
1. What is a VA loan and how does it work in Frisco?
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs that allows eligible Veterans to buy homes in Frisco with no down payment, no private mortgage insurance, and favorable loan terms.
2. What is the VA loan limit in Frisco for 2025?
The VA loan limit in both Collin and Denton counties is $806,500 in 2025. Veterans with full entitlement can finance up to this amount without a down payment.
3. Can I use a VA loan for new construction in Frisco?
Yes. VA loans may be used for new construction in Frisco, but the builder must be VA-approved and the home must meet Minimum Property Requirements (MPRs).
4. Can I refinance with a VA loan in Frisco?
Yes. You can use a VA Streamline (IRRRL) to lower your interest rate or a VA Cash-Out Refinance to access equity or convert a conventional loan into a VA loan.
5. What credit score is required for a VA loan in Frisco?
Most VA lenders prefer a minimum credit score of 580–620, but approvals are possible with compensating factors like strong income or low debt.
6. Are there property restrictions with VA loans?
Yes. VA loans must be used for primary residences and the property must meet VA’s safety and structural standards. Investment or vacation homes are not eligible.
7. How do I get my Certificate of Eligibility (COE)?
You can apply for a COE online at the VA eBenefits Portal, through a VA-approved lender, or by submitting Form 26-1880 by mail.
8. Can I use my VA loan benefit more than once?
Yes. Your VA entitlement can be restored after selling or refinancing your previous VA-backed home, allowing you to use your benefit again.
9. What closing costs should I expect with a VA loan?
VA loans limit the fees you can be charged. Common closing costs include the VA funding fee, appraisal fee, title charges, and lender fees—some of which may be paid by the seller.
10. Are there Veteran homebuyer assistance programs in Frisco?
Yes. Frisco-area Veterans may qualify for state-backed assistance through the TSAHC Homes for Texas Heroes program and the Texas Veterans Land Board.
