Texas veterans are eligible for special loan programs that make purchase and land ownership in the state more affordable. The Texas Veterans Land Board (VLB) offers land loans only to veterans and their families. The one-of-a-kind of loan program provides veterans living in Texas an opportunity to purchase land at competitive low rates, in any part of the state.
The Texas VLB has been financing veterans to purchase land in Texas since 1949. Although, in the initial period, veterans were allowed to borrow less than $10,000 and repay the amount within 40 years; a lot has changed over the years. So, here are a few transformations that veterans need to know, before proceeding with their application.
- A veteran doesn’t need to reside in Texas for many years to be eligible for the loan. Even if a veteran lives in the state for only one day, has served for at least 90 days in the past, and is not dishonorably discharged, he is eligible for the loan.
- The Texas VLB has a quick turnaround time and it normally takes up to 30 days to clear the loan.
- A veteran needs to purchase at least one acre of land to apply for the veteran land loan.
- Initially, the State of Texas retained the ownership of the land that was financed by VLB, but, later it was realized that the policy kept the veterans landowners away from accessing the equity built-up over time. The current program states that a veteran owns the land outright at the time of closing and State of Texas holds a first lien on the land till the entire loan amount is paid off.
- A veteran can apply for another Texas VLB after he has paid off for the previous purchase. There’s no limit to the number of times a veteran can purchase a land in the state.
One of the biggest advantages of Texas Veteran land loans is that a veteran needs to make only 5 percent down payment. The loan rates remain fixed for 30 years, and the land loan value should not exceed $1,25,000 to be eligible for the loan. A veteran with disabilities or an unmarried spouse of servicemen killed in the line of duty is also eligible to get more discount on the interest rate of loan. Texas VLB loan has many benefits and to know more about them one needs to contact an agent who is well-informed about the latest enhancements in the rules.