4 Lesser Known Facts About Texas Veterans Land Loans

The Texas veterans land loan program, first introduced in 1949 aims at assisting Texas veterans to secure a land in Texas. In the beginning days of the program, veterans could borrow only $10,000 with up to 40 years to repay the loan. The Veteran land loan program went through multiple modifications over the years and many facts that were true then, hold no relevance today. Having said that, the blog post discusses lesser known facts about the Texas veterans land loans program every veteran must know.

1. One Day Texas Residency is Good Enough to Apply

Yes, that’s true! Previously, veterans were supposed to begin military duty within Texas borders  to be eligible for the VLB program. Many guidelines have changed since then and as per the latest guidelines, any veteran or military member who is a Texas resident even for a day, served 90 days continuously on active duty and is honorably discharged is eligible to apply under the Texas Veteran Land Board (VLB) program.

2. The Land Belongs to the Veteran at the Closing

Since the introduction of the VLB program, the state of Texas used to hold the financed land until the entire loan is successfully repaid by the veteran borrower. This particular rule kept many borrowers from enjoying the equity benefits built over time and therefore program administrators sensed the need for a change. Under current guidelines, the land belongs to the veteran at the time of closing and Texas government holds the first lien until the loan is paid off.

3. VLB Loan Benefits Can be Availed More than Once in a Lifetime

If veterans repay an existing VLB loan, they can secure another VLB loan for an unlimited number of times in their lifetime. In other words, as long as a veteran clears the first VLB loan, they would find no difficulty in securing the next VLB loan. On top of that, veterans can always have one active loan at the same time under the VLB sub-loan programs namely land, home and home improvement.

4. The Minimum Land Size Required is One acre

Under the VLB program, veterans can buy a land that is at least one acre in size; however, the total value of the land must not exceed $125,000 as per the latest norms. Goes without saying that the land must be located within Texas boundaries and  minimum 5 percent is required as down payment. Among all the veteran programs so far, VLB requires the least down payment that makes it one of the most lucrative programs in the state.

Wrapping It Up

During the initial days of the VLB program, veterans were supposed to repay the loan within 40 years; however, the rule is no longer applicable. Today, veterans can pay the loan within 30 years with no penalty on early payments, that means more savings on interest. The entire process from application to loan closing takes close to 30 days, but the entire process requires a veteran to fulfill a number of eligibility requirements and submit multiple documents that may be confusing. Instead of relying on DIY approach, veterans can seek assistance from leading loan officers and mortgage firms in Texas for hassle-free loan filing and sanction process.


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