VA Home Loan Guide for Veterans in Richardson, Texas
Richardson, Texas, a thriving suburb just north of Dallas, blends high-tech job growth with small-town charm and exceptional schools. With easy access to major highways, light rail stations, and employers in the Telecom Corridor, Richardson is a smart choice for Veterans looking to settle in North Texas.
The city offers a diverse mix of older neighborhoods and newer developments—many of which are priced well within the VA loan limit. Whether you’re buying your first home, upgrading, or refinancing, Richardson provides a strong long-term investment opportunity with access to top-tier amenities and Veteran-friendly resources.
This guide explains how to use your VA loan in Richardson in 2025, including current loan limits, eligibility requirements, local home prices, and valuable tips for Veterans purchasing in the Dallas metro.
In this Article
Richardson Housing Market Outlook for 2025
Richardson continues to attract families and professionals seeking proximity to Dallas with a suburban feel. With excellent schools, established neighborhoods, and job opportunities in the Telecom Corridor, the city remains in high demand. As of 2025, the median home price in Richardson is around $465,000—well within the VA loan limit and competitive for North Texas.
Richardson vs. Nearby Cities: 2025 Housing Comparison
| City | Median Home Price (2025) | Cost of Living Index | Population |
|---|---|---|---|
| Richardson | $465,000 | 98.2 | 120,000 |
| Plano | $510,000 | 101.3 | 290,000 |
| Garland | $355,000 | 94.7 | 240,000 |
| Dallas | $420,000 | 100.2 | 1,300,000 |
| Addison | $485,000 | 100.5 | 17,000 |
VA Loan Limits for Richardson in 2025
The VA loan limit for Dallas and Collin Counties—including Richardson—is $806,500 in 2025. Veterans with full entitlement can buy up to this amount with no down payment, provided they meet lender qualifications.
Why Use a VA Loan in Richardson?
Richardson’s home values and school districts make it a high-demand market—making your VA benefits especially powerful. VA loans eliminate PMI and offer below-market interest rates, which can help you compete with conventional buyers even when offering 0% down.
- 0% Down: Buy without saving for a down payment
- No PMI: No private mortgage insurance required
- Lower Rates: Rates 0.5%–1% below conventional
- Flexible Credit: Credit scores as low as 580 may qualify
- No Prepayment Penalty: Pay off early with no penalty
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 | May apply |
VA Loan Eligibility and Certificate of Eligibility (COE)
To use a VA loan in Richardson, you must meet service requirements set by the VA. Once eligible, you’ll need to request a Certificate of Eligibility (COE) from the Department of Veterans Affairs or your lender.
- Wartime Service: 90 consecutive days of active duty
- Peacetime Service: 181 days
- Guard/Reserve: 6 years or 90 days Title 32 (30 consecutive)
- Surviving Spouses: Eligible if receiving DIC
How to Get Your COE
- Online: eBenefits portal
- Through a Lender: Many VA lenders retrieve COEs instantly
- By Mail: Submit VA Form 26-1880
Credit and Income Requirements
VA loans offer relaxed guidelines compared to conventional loans, helping more Veterans qualify. While the VA doesn’t set a minimum score, most lenders in Richardson prefer at least 580–620.
- Credit Score: 580–620 preferred by most lenders
- DTI Ratio: Typically 41% or less (exceptions allowed)
- Income Sources: Employment, retirement, disability, Social Security
- Residual Income Test: Required to ensure financial stability
VA Occupancy Rules
- Primary Residence Required: VA loans can’t be used for investment properties
- Occupancy Deadline: You must move in within 60 days
- Multi-Unit OK: Up to 4 units allowed if you live in one
VA Funding Fee in 2025
The VA funding fee is a one-time cost for most Veterans using the benefit. It helps sustain the VA program. Disabled Veterans and Purple Heart recipients are exempt.
- First-Time Use: 2.3% (no down payment)
- Subsequent Use: 3.6%
- Reduced Fee: 1.65% (5% down), 1.4% (10% down)
- Exempt: 0% for eligible Veterans
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% | 2.3% | 3.6% |
| 5%–9.99% | 1.65% | 1.65% |
| 10%+ | 1.4% | 1.4% |
| Disability Exempt | 0% | |
VA Entitlement and Reuse in Richardson
- Basic Entitlement: $36,000 for loans under $144,000
- Bonus Entitlement: Extends coverage up to $806,500
- Partial Entitlement: Allows additional VA use with small down payment
- Restoration: Available after selling/refinancing your VA loan
VA Refinance Options in Richardson
VA Streamline Refinance (IRRRL)
- Refinance existing VA loans with ease
- No appraisal or income documentation typically needed
- 0.5% funding fee (unless exempt)
- Lower your rate or switch from ARM to fixed
VA Cash-Out Refinance
- Convert equity to cash or refinance non-VA loan
- Full underwriting and appraisal required
- Funding fee: 2.3%–3.6%
- Funds can be used for home repairs, debt, or personal expenses
The Bottom Line
Richardson offers Veterans strong home value, exceptional schools, and access to top employers—making it a strategic choice for VA homebuyers. Whether you’re buying your first home, refinancing, or restoring entitlement, the VA loan makes homeownership more affordable and achievable in this fast-growing North Texas market.
Check VA Rates and Start Your Pre-Approval Today
Frequently Asked Questions About VA Loans in Richardson
1. What is the 2025 VA loan limit in Richardson?
The VA loan limit for all of Texas, including Richardson, is $806,500 in 2025. Veterans with full entitlement can purchase up to this amount with 0% down.
2. What credit score is needed for a VA loan in Richardson?
Most lenders accept a minimum credit score between 580 and 620. Some may approve lower scores with strong income or low debt ratios.
3. Can I buy a new construction home in Richardson with a VA loan?
Yes. VA loans can be used to purchase newly built homes if the builder is VA-approved and the property meets VA property standards.
4. Are there income limits for VA loans in Richardson?
No specific income cap exists, but you must show sufficient stable income and meet the VA’s residual income test.
5. Can I refinance a non-VA loan into a VA loan?
Yes. You can use a VA Cash-Out Refinance to convert a conventional or FHA loan into a VA loan and tap into home equity.
6. Do VA loans in Richardson require PMI?
No. VA loans do not require private mortgage insurance (PMI), even with 0% down.
7. Can I use a VA loan more than once?
Yes. You can restore your entitlement after selling a previous VA-financed home or through a one-time restoration request.
8. What are typical VA loan closing costs?
Typical closing costs include the funding fee, appraisal fee, title charges, and lender fees. These can be financed or covered by the seller.
9. What types of homes qualify for a VA loan?
VA loans can be used for single-family homes, VA-approved condos, townhomes, and 2–4 unit properties if the Veteran lives in one unit full-time.
10. Are there assistance programs for Veterans buying in Richardson?
Yes. Look into the TSAHC Heroes Program and Texas Veterans Land Board for grants and affordable financing.
