The Complete Guide to VA Loans in Houston, Texas
VA.gov Home Loans
VA Lender’s Handbook (M26-7)
Texas VLB Home Loans
FHFA Conforming Loan Limits
Houston Veterans should budget around the total payment, especially insurance and taxes that can swing escrow quickly.
Federal VA loans are lender-made and VA-guaranteed, often allowing 0% down and no monthly mortgage insurance once your
Certificate of Eligibility (COE) is confirmed. Texas VLB programs can add separate fixed-rate options for eligible Texas residents.
Use this hub to compare program rules, lender overlays, and the cash-to-close reality before you write an offer.
VA Home Loans
- VA doesn’t lend directly; approved private lenders do. The VA guaranty can reduce risk, which is why 0% down is often possible.
- Full entitlement: Typically means no VA loan limit, but you still must qualify under lender underwriting (income, DTI, residual income, credit, appraisal).
- Partial entitlement: Uses conforming limits for entitlement/down-payment math if you have another VA loan tied up.
Texas Veterans Land Board (VLB) Programs
- Texas-only benefit: Separate from federal VA loans; commonly requires Texas residency and primary-residence use for VLB housing loans.
- VLB Housing: Fixed-rate terms (often 15–30 years) up to program maximums; disability-related discounts may be available under program rules.
- VLB Land + Home Improvement: May be available with program-specific down payment, limits, and lender participation requirements.
Eligibility + COE
- COE required: Confirms entitlement and eligibility category; your lender can usually pull it or you can request it through VA systems.
- Service: Common baselines include 90 wartime days or 181 peacetime days; Guard/Reserve often qualify with 6 years or qualifying active duty.
- Primary residence: Purchase loans require owner-occupancy. Lender overlays vary even when the VA rulebook is the same.
Houston Property Taxes + Local Costs
- Insurance matters: In Houston, premiums and flood-zone requirements can change affordability fast, so get quotes early before you lock a price.
- Texas disabled Veteran exemptions: A 100% disabled Veteran may qualify for a full homestead property tax exemption; lower ratings can reduce taxable value.
- Tax variability: County and city tax rates vary, and reassessment after purchase can change escrow, so budget with a cushion.
FAQs
Do I need flood insurance for a Houston VA loan?
Sometimes. Flood insurance is typically required when the property is in a Special Flood Hazard Area and the loan is federally related. Even when it isn’t required, it can still be smart risk management. Get quotes early because insurance can change your approval math.
What is the biggest payment surprise for Houston VA buyers?
Escrow. Insurance and property taxes can be higher than buyers expect, and reassessment can change the monthly payment after closing. Underwrite the deal using realistic taxes and insurance, not best-case numbers, and keep reserves for an escrow increase.
What happens if the VA appraisal requires repairs?
Repairs tied to safety and habitability must usually be completed before closing. That can mean negotiating with the seller, extending timelines, or choosing a different home. If you need a fast close, prioritize homes with low condition risk and clean utilities.
Verify current limits and program rules
Loan limits, rates, and eligibility rules can change. Confirm federal VA rules with VA.gov and the VA Lender’s Handbook, and confirm VLB program limits, rates, and requirements with Texas VLB and your lender. Verify exemptions with your county appraisal district.
Houston Housing Market Outlook for 2026
As one of the largest metro areas in the U.S., Houston offers an incredibly diverse housing market for Veterans. As of 2026, the median home price is approximately $345,000, making most properties fully eligible for VA financing with zero down. Houston’s steady job growth, strong Veteran population, and expansive geography create multiple opportunities for homebuyers using VA benefits.
Houston vs. Nearby Cities: 2026 Housing Comparison
| City | Median Home Price (2026) | Cost of Living Index | Population |
|---|---|---|---|
| Houston | $345,000 | 94.8 | 2,300,000 |
| Pearland | $395,000 | 96.5 | 135,000 |
| Katy | $420,000 | 98.2 | 35,000 |
| Spring | $340,000 | 93.6 | 62,000 |
| Baytown | $295,000 | 92.1 | 77,000 |
VA Loan Limits for Houston in 2026
The VA loan limit in Harris County—and all of Texas—is $832,750 for 2026. Veterans with full entitlement can finance a home up to this amount with no down payment. For homes priced above this limit, you may still qualify with a down payment on the excess portion only.
Why Use a VA Loan in Houston?
Houston’s home values and widespread housing options make it one of the best markets for Veterans to leverage their VA home loan benefits. Local lenders are experienced with VA transactions, and many builders and sellers understand the process.
- 0% Down: With a VA loan, you can buy a home in Houston without making a down payment—saving you $17,000 or more upfront on a typical $345,000 home.
- No PMI: VA loans do not require private mortgage insurance, saving Veterans up to $300 per month compared to FHA or conventional financing with low down payments.
- Lower Interest Rates: VA mortgage rates are typically 0.5% to 1% lower than conventional loans, potentially saving you tens of thousands over the life of the loan.
- Credit Flexibility: Many lenders accept credit scores as low as 580, making VA loans more accessible for those who have had past financial challenges.
- No Prepayment Penalty: You can pay off your mortgage early or make extra payments toward your principal at any time with no penalty fees or restrictions.
Check Your VA Loan Eligibility for 2026
The first step toward your VA loan is confirming you meet the basic service requirements. For an instant estimate, use the eligibility calculator on the right. For a detailed breakdown of the guidelines, review the criteria below.
- Veterans: You must have met minimum active-duty service requirements, which are typically 90 consecutive days during wartime or 181 days during peacetime. Your discharge must be under conditions other than dishonorable.
- Active-Duty Service Members: You are generally eligible after serving 90 continuous days on active duty.
- National Guard & Reserve Members: Eligibility typically requires six years of service. However, if called to active duty during wartime, you may qualify after just 90 days.
- Surviving Spouses: You may be eligible if you are the spouse of a service member who died in the line of duty or from a service-related disability.
VA Loan Eligibility Calculator
Local Houston Veteran Assistance Programs
Local Houston Veteran Assistance Programs provide comprehensive support for Veterans and their families, offering resources such as housing assistance, career development, healthcare services, and educational opportunities.
Housing Assistance Programs
- Texas Veterans Land Board (TVLB) Housing Assistance Program – Offers low-interest loans for Veterans to purchase homes or land in Texas.
- Contact: (800) 252-8387
- Website: Texas Veterans Land Board
- City of Houston Homebuyer Assistance Program
Provides financial support for Veterans looking to buy a home in Houston, including down payment assistance and closing cost help.- Contact: (832) 394-6200
- Website: Houston Homebuyer Assistance
Employment and Career Resources
- Texas Veterans Commission (TVC) Employment Services – Provides job placement, career counseling, and resume-building assistance for Veterans.
- Contact: (512) 463-6564
- Website: Texas Veterans Commission Employment Services
- Workforce Solutions – Bay Area Office
Offers job search support, training programs, and career development resources specifically for Veterans.- Contact: (281) 335-1000
- Website: Workforce Solutions
Healthcare and Mental Health Support
- Michael E. DeBakey VA Medical Center – Provides comprehensive healthcare services, including primary care, mental health support, and specialty services for Veterans in the Houston area.
- Address: 2002 Holcombe Blvd, Houston, TX 77030
- Phone: (713) 791-1414
- Website: Houston VA Health Care System
- Clear Lake Vet Center
Offers counseling services, employment assistance, and VA benefits support for Veterans and their families.- Address: 1431 E Nasa Pkwy #101, Houston, TX 77058
- Phone: (281) 333-1433
- Website: Clear Lake Vet Center
Education and Training Resources
- University of Houston Veterans Services
Offers academic advising, peer mentoring, and career counseling for student Veterans.- Address: 4800 Calhoun Rd, Houston, TX 77004
- Contact: (713) 743-9104
- Website: UH Veterans Services
Top Veteran-Friendly Cities Near Houston
Houston is home to many Veteran-friendly neighborhoods that offer a range of amenities, affordability, and proximity to resources. Here are some of the best neighborhoods in Houston for Veterans:
- Sugar Land, Texas
- Veteran Population: 6,500+
- Description: Sugar Land is a vibrant suburb of Houston known for its strong community spirit, excellent schools, and beautiful neighborhoods. The city provides various Veteran services and support programs, making it an attractive location for Veterans and their families.
- Sugar Land VA Loan Guide
- Pearland, Texas
- Veteran Population: 7,200+
- Description: Pearland offers a suburban lifestyle with proximity to Houston’s resources. The city is home to several parks, recreational facilities, and Veteran-friendly amenities, making it a great place for Veterans looking to settle near the Houston metro area.
- Pearland VA Loan Guide
- Katy, Texas
- Veteran Population: 5,000+
- Description: Katy is a family-oriented community with a variety of housing options, top-rated schools, and local Veteran support services. The city’s affordable housing and welcoming atmosphere make it a popular destination for Veterans seeking a suburban lifestyle.
- Katy VA Loan Guide
- The Woodlands, Texas
- Veteran Population: 8,000+
- Description: The Woodlands is a master-planned community offering scenic beauty, excellent healthcare facilities, and a high quality of life. It’s an ideal place for Veterans who appreciate outdoor activities, upscale amenities, and strong community support.
- The Woodlands VA Loan Guide
- Conroe, Texas
- Veteran Population: 4,500+
- Description: Conroe is known for its affordable housing, proximity to Lake Conroe, and easy access to Houston. The city has a growing Veteran population and provides local resources and support services tailored for Veterans and their families.
- Conroe VA Loan Guide
- League City, Texas
- Veteran Population: 6,800+
- Description: Located along Clear Lake, League City offers a mix of suburban and coastal living with access to Veteran support services and recreational activities. The city’s strong sense of community makes it a desirable location for Veterans.
- League City VA Loan Guide
- Baytown, Texas
- Veteran Population: 3,500+
- Description: Baytown provides a lower cost of living and a relaxed atmosphere, making it a great option for Veterans seeking affordable housing and proximity to Houston’s resources. The city is also home to Veteran organizations and support services.
- Baytown VA Loan Guide
- Pasadena, Texas
- Veteran Population: 7,300+
- Description: Pasadena is a diverse community known for its family-friendly environment and strong local economy. The city offers a variety of Veteran support services and programs to help Veterans transition into civilian life.
- Pasadena VA Loan Guide
- Tomball, Texas
- Veteran Population: 2,800+
- Description: Tomball offers a small-town feel with easy access to Houston. The city is known for its historic charm and community-focused events, making it a welcoming place for Veterans and their families.
- Tomball VA Loan Guide
- Friendswood, Texas
- Veteran Population: 3,000+
- Description: Friendswood is a peaceful suburban community with a strong sense of community and proximity to Veteran support services. The city’s excellent schools and safe neighborhoods make it an ideal place for Veterans to call home.
- Friendswood VA Loan Guide
VA Loan vs. Conventional Loan: 2026 Comparison
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Down Payment | 0% | 5%–20% |
| PMI | Not Required | Required under 20% down |
| 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 | May apply |
VA Loan Eligibility and Obtaining Your Certificate of Eligibility (COE)
To use a VA loan in Houston, you must meet certain service requirements set by the Department of Veterans Affairs. Once verified, you’ll need a Certificate of Eligibility (COE) to move forward with your lender.
- Wartime Service: At least 90 consecutive days of active-duty service during wartime qualifies you for VA loan eligibility, regardless of where you were stationed.
- Peacetime Service: 181 days of continuous active-duty service is required if you served during peacetime without a deployment or war designation.
- Guard or Reserve: Must serve 6 total years or complete 90 days of active-duty Title 32 orders, with at least 30 consecutive days for eligibility.
- Surviving Spouses: You may be eligible if your spouse passed in service or from service-connected injuries and you receive Dependency and Indemnity Compensation (DIC).
How to Obtain Your COE
- Online: The fastest method is through the VA’s eBenefits portal. You can log in with your DS Logon credentials to get it instantly.
- Lender Access: Most VA-approved lenders in Houston can pull your COE electronically through the VA’s WebLGY system—usually within minutes of application.
- By Mail: Send VA Form 26-1880 to the Department of Veterans Affairs if you need manual processing. Expect 4–6 weeks for delivery.
Credit and Income Requirements
VA loans are more flexible than conventional mortgages when it comes to qualifying income and credit history. This makes them ideal for transitioning service members or Veterans with limited credit.
- Minimum Credit Score: Most Houston-area lenders accept 580–620 credit scores, although approval is based on the full application profile.
- Debt-to-Income Ratio (DTI): The target DTI is 41% or lower, but exceptions can be made if you exceed the VA’s residual income requirements.
- Income Types: W-2 wages, VA disability, military retirement, self-employment income, Social Security, and even BAH (Basic Allowance for Housing) can be used to qualify.
- Residual Income Test: The VA uses a unique method of calculating remaining income after expenses to ensure you can afford your home and living costs in Texas’s South region.
VA Occupancy Requirements
VA loans are designed for primary residences only, which means you must intend to occupy the home as your full-time residence shortly after closing.
- Primary Residence Only: Vacation homes, short-term rentals, and investment properties are not eligible under VA loan guidelines.
- Occupancy Timeline: You must move into the home within 60 days of closing unless active-duty orders justify an extension.
- Multi-Unit Eligible: You can use a VA loan to purchase a 2-, 3-, or 4-unit property as long as you live in one unit full-time.
VA Funding Fee in 2026
The VA funding fee is a one-time fee that helps sustain the VA loan program. You can finance it into your mortgage or pay it upfront. Exemptions apply for Veterans with service-connected disabilities.
- First-Time Use (2.3%): This applies if it’s your first VA loan and you’re putting 0% down. For example, a $300,000 loan would include a $6,900 funding fee.
- Subsequent Use (3.6%): If you’ve used your VA loan benefit before, the fee increases unless you make a down payment or qualify for an exemption.
- Discounted Rates: The funding fee drops to 1.65% if you put down 5%, and to 1.4% with 10% down, helping reduce total loan costs.
- Exempt (0%): Veterans with a VA disability rating or Purple Heart recipients do not pay this fee, saving thousands in upfront cost.
| 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 Houston
VA entitlement refers to the portion of your loan backed by the Department of Veterans Affairs. It affects how much you can borrow without needing a down payment. In 2026, full entitlement covers up to $832,750 in Texas.
- Basic Entitlement: The VA provides a $36,000 guarantee on loans under $144,000, often paired with bonus entitlement for larger purchases.
- Bonus Entitlement: Allows you to buy homes above $144,000 without a down payment, covering up to 25% of the loan.
- Entitlement Restoration: Available after paying off or selling a VA-financed home. You can reuse your benefit repeatedly.
- Partial Entitlement: If you’ve used part of your entitlement but haven’t restored it, you may still be able to buy again with a reduced benefit or small down payment.
VA Refinance Options in Houston
VA Streamline Refinance (IRRRL)
- This refinance helps existing VA loan holders reduce their interest rate or switch to a fixed loan with minimal paperwork and no appraisal required in most cases.
- The VA funding fee is just 0.5%, and you do not need a new Certificate of Eligibility if it’s already on file.
VA Cash-Out Refinance
- Convert a non-VA loan into a VA-backed mortgage or access equity for renovations, debt consolidation, or emergencies. This is a full refinance with underwriting and appraisal.
- Funding fees range from 2.3% to 3.6% unless you qualify for an exemption. Loan-to-value (LTV) can be up to 90% or higher depending on lender guidelines.
The Bottom Line
With affordable prices, a large military population, and extensive VA resources, Houston is one of the best cities in America to use a VA loan. Whether you’re buying, refinancing, or restoring entitlement, your benefit goes farther in Houston. Avoid PMI, skip the down payment, and secure a low fixed rate in one of Texas’s fastest-growing housing markets.
Check Houston VA Rates and Start Your Pre-Approval Today
Frequently Asked Questions About VA Loans in Houston
1. What is the 2026 VA loan limit in Houston?
In 2026, the VA loan limit for all of Texas—including Houston—is $832,750. Veterans with full entitlement can finance homes up to this amount with no down payment required.
2. Can I buy a new construction home in Houston with a VA loan?
Yes. Many new construction homes in the Houston area qualify for VA loans, provided the builder is VA-approved and the property meets VA Minimum Property Requirements.
3. What credit score is required for a VA loan in Houston?
Most VA lenders in the Houston metro area prefer a minimum credit score between 580 and 620, though flexible guidelines may allow approval with compensating factors like steady income or low debt.
4. How do I get my VA Certificate of Eligibility (COE) in Houston?
You can get your COE online via the VA eBenefits Portal, through your lender, or by submitting VA Form 26‑1880 by mail.
5. Can I refinance into a VA loan in Houston?
Yes. You can use a VA Streamline Refinance (IRRRL) to reduce your rate on an existing VA loan, or a Cash-Out Refinance to access equity or convert a non-VA loan into a VA loan.
6. Are there local assistance programs for Veterans buying in Houston?
Yes. Houston-area Veterans may qualify for down payment assistance through the TSAHC Homes for Texas Heroes program or competitive financing from the Texas Veterans Land Board.
7. Can I use a VA loan to buy a duplex or fourplex in Houston?
Yes. VA loans can be used to purchase up to 4-unit properties, provided the Veteran occupies one of the units full-time as their primary residence.
8. Do VA loans require mortgage insurance in Houston?
No. One of the biggest advantages of using a VA loan is that there’s no monthly PMI, which significantly reduces your total mortgage payment.
9. What fees do I pay with a VA loan in Houston?
VA loan closing costs typically include the funding fee (if not exempt), appraisal, title charges, and lender fees. These can often be rolled into the loan or covered by seller concessions.
10. Can I use my VA loan benefit more than once?
Yes. You can restore your VA entitlement after selling or refinancing a previous VA-financed home and reuse your benefit for another purchase in Houston or elsewhere.
