Texas Veteran Home Loans: Who is eligible for it?

If you are a veteran in the US, then you are entitled to various benefits. There are various programs for veterans and one such program of the Department of Veteran Affairs is initiated to help them own a home with ease. As part of the program, the department provides loans to veterans. These housing loans are divided into eight regions and each region has a couple of jurisdictions under it.

Having said that, in this article we will talk about Texas veteran home loans only. Texas falls under the Houston region. If you are a veteran living in Texas and want to buy your own house, read further to know the eligibility criteria for Texas veteran home loans and how to apply for it.

What are Texas veteran home loans?

The legislature introduced Veteran Housing Assistance Program (VHAP) in 1938. This program enables many Texas veterans and military members to buy their own house with market competitive and low-interest loans. The amount of the loan is that veterans can avail is $510,400, which is provided on the fixed rate for either fifteen, twenty, twenty-five, or thirty years.

Moreover, the usual home loan base rate is 2.91%. However, Texas veterans with a service-connected disability with 30% ratings can borrow the loan at the discounted base rate of 2.41%.

If you are a Texas veteran and wish to buy a house of your own, see the eligibility criteria below. Following it, we will also tell you what kind of home you can buy via Texas veteran home loans.

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Eligibility criteria for Texas veteran to avail texas veteran home loans

There are two primary eligibility criteria for Veteran Housing Assistance Program.

For starters, you must be at least eighteen years old or above. Secondly, you must be a bona fide and legal resident of Texas when you apply for the program. Moreover, you must also be one of the following:

An active military member

A member of Texas National Guard

A reserve component military member who has qualified for retirement after twenty years of qualifying service

A veteran who served ninety days at least without being discharged. The discharge is acceptable only if it happened due to a service-connected disability and not by dishonor.

A spouse of a veteran; the veteran must be missing, be active, or have accepted martyrdom for the country.

If you fulfill above mentioned criteria, you can apply to avail the benefits of the program. However, when you get the loan money, you will only be able to buy the house that fits the requirements bill.

What are the house requirements?

The house must be the veteran’s primary residence.

The home must be either a single-family attached or detached house, townhouse, or a condominium.

If the house has duplex or multi-family units, they must exist for at least five years by the time you close the date on the loan.

If it is a new home, then you must submit an Energy Star certificate or HER’s index with a 75 score or less.

The home must be the primary residence of the veteran for at least three years or only a military member can borrow. Moreover, one must occupy the house under sixty-day after the loan closing date.

Other than these requirements, if you have already borrowed a loan and haven’t paid it in full yet, you will not qualify for refinancing. Moreover, you can have one active loan in each home loan benefit program. However, you can reapply for a loan only if you have cleared your previous dues.

How to apply for Texas veteran home loans program?

If you want to apply for the program, you are just seven steps back. To apply, first review the terms and conditions of the program online. After review, see if you meet the eligibility and residency criteria. If you meet the requirements, gather your bank details, including your income statement, IRS filings, DD214, and other documentation.

Once you have gathered your documentation, choose a program participating leader by county and get pre-qualified for the loan. Search for the house and complete all the required documentation process. As soon as you are done with this, you can pick up your new house keys at the closing and start your life in your dream residence.

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