Veterans Guide to VA Loans in Killeen
In this Article
With a variety of local programs, veteran-friendly neighborhoods, and proximity to Fort Hood, Killeen offers unique advantages for veterans looking to settle down.
This guide covers everything you need to know about using a VA loan in Killeen, from eligibility and benefits to local resources and housing options tailored for veterans.
Why Choose Killeen for a VA Loan?
Killeen has long been recognized as a top city for veterans, with a significant veteran population due to its proximity to Fort Hood, one of the largest military installations in the world.
The city provides a range of veteran-focused services and support, making it a great place for veterans looking to use their VA loan benefits to purchase a home.
Local Housing Market Overview
As of 2024, Killeen’s housing market remains one of the most affordable in Texas. The median home price in the area is approximately $230,000, making it an attractive option for first-time homebuyers using VA loans.
The city’s lower cost of living and community-oriented neighborhoods offer veterans and their families a strong foundation for homeownership.
VA Loan Limits and Eligibility in Killeen
VA Loan Limits for 2024
For veterans purchasing a home in Killeen, the VA loan limit is currently set at $766,500 for Bell County. This allows veterans to finance up to this amount without requiring a down payment. Veterans can also borrow more than this limit, but they will need to make a down payment on the amount exceeding $766,500.
Eligibility Requirements
To qualify for a VA loan, veterans must meet certain service requirements, which include:
- Active-duty service members with at least 90 continuous days of service.
- Veterans who served a required minimum number of active-duty days during wartime or peacetime.
- National Guard and Reserve members with at least six years of service or 90 days of active service.
- Surviving spouses of veterans who died in the line of duty or due to a service-related disability.
Benefits of Using a VA Loan in Killeen
- No Down Payment: VA loans eliminate the need for a traditional down payment, making it easier for veterans to afford a home without having to save up a large lump sum.
- No Private Mortgage Insurance (PMI): Save money each month by avoiding PMI, which is required for most conventional loans with less than 20% down.
- Competitive Interest Rates: VA loans typically offer lower interest rates compared to conventional loans.
- Flexible Credit Requirements: Veterans with lower credit scores can still qualify for a VA loan, thanks to more lenient credit standards and the lack of a minimum credit score requirement.
- No Prepayment Penalties: VA loans do not have prepayment penalties, which allows veterans to pay off their loans early without incurring extra fees.
Benefits of VA Loans vs. Conventional Loans
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Down Payment | No down payment required | 5% – 20% |
| PMI | Not required | Required if down payment <20% |
| Interest Rates | Typically lower | Varies based on credit and down payment |
| Minimum Credit Score | None (Lenders prefer 620+) | 620+ |
| Funding Fee | Required (2.3% for first-time use) | None |
| Prepayment Penalty | None | May have penalties |
Top Veteran-Friendly Neighborhoods
Killeen is home to several neighborhoods that are popular among veterans for their affordability, community support, and proximity to military installations. Here are some of the best areas to consider:
- Harker Heights
- Description: A growing community with great schools, parks, and family-friendly amenities. Harker Heights offers a suburban feel and is close to Fort Hood.
- Median Home Price: $245,000
- Proximity to Fort Hood: 10 miles
- Copperas Cove
- Description: Known as the “City Built for Family Living,” Copperas Cove is a small town adjacent to Killeen, offering affordable homes and a close-knit community atmosphere.
- Median Home Price: $200,000
- Proximity to Fort Hood: 8 miles
- Nolanville
- Description: A small, peaceful community ideal for veterans looking for a quieter living environment. Nolanville has affordable homes and convenient access to nearby Killeen and Fort Hood.
- Median Home Price: $220,000
- Proximity to Fort Hood: 12 miles
- Killeen Proper
- Description: Killeen’s central location offers easy access to shopping, dining, and entertainment options. The city’s affordability makes it a popular choice for first-time homebuyers using VA loans.
- Median Home Price: $230,000
Local Killeen Programs and Resources for Veterans
Killeen offers a variety of local resources and support programs specifically designed for veterans. These programs provide assistance in areas such as home buying, healthcare, employment, and more:
- Central Texas Veterans Health Care System
- Offers comprehensive healthcare services, including primary care, mental health support, and specialty services for veterans in the Killeen area.
- Address: 1901 Veterans Memorial Dr, Temple, TX 76504
- Phone: (254) 778-4811
- Bell County Veterans Service Office
- Assists veterans with filing VA benefits claims, accessing healthcare, and navigating employment opportunities.
- Address: 550 E 2nd Ave, Belton, TX 76513
- Phone: (254) 933-5915
- City of Killeen Veterans Affairs Office
- Advocates for veteran-friendly policies and works to increase employment opportunities for veterans within the city.
- Address: 101 N College St, Killeen, TX 76541
- Phone: (254) 501-7840
How to Apply for a VA Loan in Killeen
Applying for a VA loan in Killeen follows the same steps as in other regions, but it’s essential to work with a local lender who understands the Killeen housing market and can offer guidance tailored to veterans. Here’s how to get started:
- Obtain a Certificate of Eligibility (COE): You can get your COE through the VA’s eBenefits portal or by working with your lender.
- Get Pre-Approved by a Local VA Loan Specialist: Pre-approval shows sellers that you are a serious buyer and helps you determine your budget.
- Find a VA-Savvy Real Estate Agent: Choose an agent experienced in working with veterans to help you find homes that meet VA standards.
- Submit Your Application and Close the Loan: Once you’ve found the right home, your lender will guide you through the closing process.
FAQ About VA Loans
What are the current VA loan limits in Killeen?
The VA loan limit for Killeen (Bell County) is $726,200 for 2024. Veterans can borrow up to this amount without a down payment.
Can I use a VA loan for a second home in Killeen?
VA loans are primarily for primary residences, but in some cases, you may be able to use your loan benefit for a second property if it meets specific criteria.
What are the eligibility requirements for a VA loan in Killeen?
To qualify for a VA loan, veterans must meet certain service requirements, such as active-duty service for at least 90 continuous days or six years in the National Guard or Reserves.
How do VA loans differ from conventional loans in Killeen?
VA loans don’t require a down payment or PMI and offer more lenient credit standards compared to conventional loans. They also typically come with lower interest rates.
Are there any local homebuyer programs for veterans in Killeen?
Yes, Killeen offers several local programs, including down payment assistance and grant programs through the Bell County Veterans Service Office and other veteran-focused organizations.
What are the best neighborhoods for veterans in Killeen?
Top neighborhoods for veterans include Harker Heights, Copperas Cove, Nolanville, and Killeen Proper, each offering unique amenities and proximity to Fort Hood.
Can I refinance my VA loan in Killeen?
Yes, veterans in Killeen can refinance their VA loans through the VA Interest Rate Reduction Refinance Loan (IRRRL) or the VA Cash-Out Refinance Loan.
What is the VA funding fee, and how much is it in Killeen?
The VA funding fee is a one-time payment required by most borrowers to help fund the VA loan program. For first-time use, the funding fee is typically 2.3% of the loan amount if no down payment is made.
What property requirements must be met for a VA loan in Killeen?
The property must meet the VA’s Minimum Property Requirements (MPRs), which include safety, sanitation, and structural integrity standards.
How do I find a VA-savvy lender in Killeen?
Look for lenders who specialize in VA loans and have experience working with veterans in the Killeen area. Check the VA’s list of approved lenders or ask for recommendations from local veteran organizations.
Local Killeen VA Resources and Contacts
Killeen has several local VA facilities and veteran support services that cater to the needs of the local veteran community:
- Central Texas Veterans Health Care System
- The Central Texas Veterans Health Care System offers a range of healthcare services for veterans in the Killeen area, including primary care, mental health support, and specialty services.
- Address: 1901 Veterans Memorial Dr, Temple, TX 76504
- Phone: (254) 778-4811
- Killeen Vet Center
- The Killeen Vet Center provides counseling services, employment assistance, and VA benefits support for veterans and their families. It’s a valuable resource for veterans transitioning to civilian life or seeking additional support.
- Address: 302 Millers Crossing, Suite 6, Harker Heights, TX 76548
- Phone: (254) 953-7100
- Bell County Veterans Service Office
- The Bell County Veterans Service Office assists veterans with accessing their VA benefits, including home loans, healthcare, and employment services.
- Address: 550 E 2nd Ave, Belton, TX 76513
- Phone: (254) 933-5915
The resources and support provided by these local organizations make Killeen an ideal location for veterans to use their VA loan benefits and purchase a home.
