For Veterans living in the great state of Texas, the Texas Veterans Land Board has an unbelievably good home loan program that is effectively an enhancement of the VA Home Loan program. The loans are commonly known as Texas Veterans Loans, or Tex Vet Loans
The Texas Veterans Housing Assistance Program (VHAP) is made available to Texas Veterans through participating lenders. And it’s not one of those programs where just a few lenders offer it. You can find it available from almost every major bank and hundreds of regional mortgage banking companies. The Veterans Land Board sets the interest rates for the programs, updated each Friday after 5:00 for the following week. There is no other way to describe the rates other than “unbeatable”. For instance, as of this writing current rates on VA Loans are around 3.625% on a 30 year fixed rate, which is a pretty good rate for a no money down – 100% financing – flexible credit score loan. Well The Texas Vet loan rate trumps it by over 0.5% as it is currently at 3.07% for a 30 year fixed rate loan.
For Veterans with a service connected disability rating of 30% or greater, the Veterans Land Board gives them and additional 0.5% discount, making their current rate 2.57% on a 30 year fixed – that’s a seriously low rate!! This isn’t related to the loan program, but did you know that in Texas Veterans who have received 100 percent disability compensation from the VA and received either a 100 percent disability rating or been classified unemployable by the VA are exempt from paying property taxes. The state of Texas takes care of its wounded warriors!
OK back to the loan program, you might be asking with such low rates what’s the catch? The answer is there really isn’t one, it actually only gets better and here is why: The Texas Veteran loans are usually underwritten as VA loans, so you get all the same benefits of a VA loan, plus the discounted interest rates. That’s right, 100% financing/no money down, flexible credit, seller paid closing costs, etc. Everything you get with a VA loan you can get with a Texas Vet Loan. And in the rare cases where it doesn’t make sense to have the loan underwritten as a VA Loan, a Texas Vet loan can be underwritten and a conventional or FHA loan. So even if you are putting 20% or more down payment down, it might make a lot of sense to get a Texas Veteran Loan underwritten with conventional financing, and still get that seriously low Texas Vet Loan rate.