Introduced in 1949, Texas Veteran Land loan program is one of its kind and helps Texas veterans buy land in the state. Eligible veterans can borrow up to $150,000 at a fixed-rate 30 year term. Among other requirements, the land must have legal,accessible use to a public road and should not be zoned for commercial use. Additionally, the borrower or their spouse must not have owned the land within the previous three years. Texas veterans land loans have been around for quite some time, however, over the years there have been various amendments, which is why there is some confusion regarding the program. To help clear the smokescreen, the post lists some lesser known facts about Texas veteran land loans. Take a look.
1. Texas Veterans Even With a Single day Residence are Eligible
When the program was first introduced, only veterans who were deployed in Texas were eligible for the loan. With time, this rule was modified and today veterans with even single day residence can be eligible. That said, the veteran must fulfill basic requirements which includes completing 90 days on active duty. The veteran should also not have been dishonourably discharged.
2. The Land Belongs to The Veteran From Day one
Earlier, the land was not instantaneously transferred to the borrowing veteran and was held by the state of Texas till the borrower repaid the loan. This rule dissuaded many veterans from applying for the loan. The administrators realized this problem, and modified the rule. According to the modified rule, the land belongs to the borrowing veterans right from day one and the government only holds the first lien.
3. Eligible Veterans can Avail the Benefit Multiple Times
The Texas veterans land loan program does not restrict the number of times a veteran can vail the benefit, given the condition that they have repaid their previous loans. Eligible veterans, in addition to availing Texas veteran land loans multiple times can also have an active loan under a sub-loan program.
4. The Minimum Land Size Must be one Acre
Texas VLB does not finance lands below one acre in size. It is the borrower’s responsibility to ensure that the land size is or exceeds one acre. If any part of the land falls beneath a navigable waterway or a public roadway, the borrower must measure and deduct the area of the part from the land’s total area.
These are some lesser known facts about Texas veterans land loans. If you are a Texas resident and have served in the U.S. army, talk to an experienced lender and learn about the requirements including paperwork. You can also benefit by availing the services of a consultant who will walk you through the entire process.