Texas Veterans Land Loans: All You Need to Know

The Veterans Land Board was formed in 1946 after the  World War II, through the creation of Texas Legislature. The purpose of the program has been to help war veterans purchase a land or home in Texas, allowing loans of up to $100,000 at lower rates compared to other types of mortgages. In addition, The Department of Veterans Affairs guarantees the loan, so that if borrowers default on their payment, lenders don’t end up losing money. This guarantee also encourages lenders to offer more competitive interest rates to borrowers.

Eligibility Requirements

The basic eligibility criteria to receive a loan through the Texas Veterans Land Loans Program, applicants need to be minimum 18 years of age, and on the date of application, an applicant should be a bona fide and legal resident of Texas.

They also need to meet one of the following service criteria:

  • The applicants need to be active duty military member.
  • A Texas National Guard member.
  • A member of the reserve component military who has completed 20 years that qualify them for retirement.
  • Applicants should have served at least 90 days of active duty days. The only exception would be the veterans who were discharged because of a service-related disability.
  • A surviving spouse of a Veteran whose death was service-connected or a veteran who is missing in action.

It is also important to remember that, applicants need to pay upfront appraisal and application fees. The loan interest rate may vary, which is regularly published. There are additional reductions in interest rates for veterans with disability or spouses who lost a husband or wife while on service.

Land Requirements

Texas Veterans Land Loans are available for any piece of land that qualifies the following requirements:

  • The land must be within the state of Texas.
  • The land must have at least one acre of area, excluding any area that is subject to frequent inundation, dedicated to a public roadway, or falls beneath a navigable waterway.
  • The land must have legal, usable* access to a public road that meets the minimum requirement of 60 feet or the road width requirement of a public county road, whichever is greater.
  • The land must not fall into “Strictly for commercial use” category.
  • The land must not have been owned by veterans or their spouse within the last three years.

*The term “usable” implies that the access road must be commutable using any standard passenger vehicle.

All these requirements may seem confusing to the applicants; this is why they need to consult a specialty mortgage company. Such a firm guides and facilitates through the mortgage application process and makes the process seamless for veterans.

Last Few Words

It is true that nothing can repay the sacrifice military veterans make for the nation; however, the Texas Veterans Land Loan Program is one of the nation’s sincere gestures to thank and honor its war heroes for their selfless services. Contact a specialty mortgage consultant to get more information on Texas Veteran Land Loans.


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