The Texas Veteran Land Board (VLB) was formed in 1946 by the Texas Legislature. The board was established for offering land loans to veterans and active military members. The state government purchased land from the proceeds of $25 million issued in bonds, after the enactment of Veterans’ Land Act in November 1946 and resold it to the veterans of World War II at a low interest of 3 percent and for a period of 40 years. Over the years, a lot of changes were made to the VLB Program. Here are some of the facts that you should be aware of, when applying for a Texas Veterans Land Loan in today’s scenario. Let’s begin.
- When applying for a Texas Veteran Land Loan, you would be approved the lesser of the following three amounts.
- 95 percent of appraised value of the land
- 95 percent of selling price of the land
- Maximum loan amount of $125,000
- When obtaining a Texas Veteran land loan, you are required to pay a minimum down payment of 5 percent. The difference between the purchase price and the net amount financed is to be paid at the time of closing.
- You or the seller must pay some or all of the following closing costs.
- Mortgage Title Insurance Policy premium
- Owner’s Title Insurance Policy premium
- If a survey is required then surveying cost
- Any standard real estate transaction fee you owe to the title company
- Cost of clearing the title to the tract and also the cost associated with establishing the status of mineral estate
- If a tract that does not contain at least one acre, the VLB will not approve it. The VLB will also not allow inclusion of any portion of the tract that is unusable, or subject to frequent inundation, or lies below a navigable waterway or a dedicated public roadway, when calculating the total area of the tract.
- If you are engaging the services of a professional surveyor, they must fully comply with the current Professional Land Surveying Practices Act and the Standards of Responsibility and Rules of Conduct, Professional and Technical Standards (Texas Administrative Code, Title 22, Part 29, Chapters 661 – 665).
- Applicants who owe any debt to the state government (such as a guaranteed student loan) or are reported delinquent in paying child support are not eligible for the loan unless they pay the delinquent amounts or make appropriate arrangements for the same.
Last Few Words
The Texas Veterans Land Loan program is the only land program in the US that offers Texas veterans the opportunity to obtain land loans at competitive rates. To find out if you are eligible for this loan, get in touch with a Texas Veteran Land Loan consultant who can inform you with the eligibility criteria and also help you with the process of obtaining it.