The Texas Veterans Land Board home loan, officially the Veterans Housing Assistance Program (VHAP), is a state program that lets eligible Texas veterans and military members buy a primary residence in Texas with a fixed-rate loan of up to $832,750 for 15, 20, 25, or 30 years. It's paired with a VA, FHA, or conventional loan through a VLB participating lender, and veterans with a VA service-connected disability rating of 30% or more qualify for a discounted interest rate. It doesn't refinance, and it isn't down payment assistance.
I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage Corporation (The Wood Group) in Belton, near Fort Hood. As of October 17, 2026, the VLB's own Participating Lender Search lists Fairway Independent Mortgage at our Belton branch address for Bell, Coryell, Williamson, and Travis counties. Everything below comes from the Texas General Land Office (GLO), which runs the VLB.
Wondering if you're eligible? Get Pre-Approved or Book a Free Consultation.
What the VLB Home Loan Is
The Texas Legislature created VHAP in 1983 to help Texas veterans buy homes. A few things make it different from other programs:
- The VLB loan sits in first lien position on your primary residence.
- It works alongside a VA, FHA, or conventional loan made by a VLB participating lender. The VLB notes that "certain restrictions apply."
- The lender sets the down payment. Veterans who combine VA home loan benefits with VHAP may be eligible for a loan with no down payment and no private mortgage insurance, according to the GLO.
- It's self-funded. VLB programs are financed with bonds repaid by participants' loan payments, with no public taxpayer funding.
Sources: GLO Home Loans page and the GLO's January 5, 2026 announcement.
Who Is Eligible
You must be at least 18 and a bona fide, legal resident of Texas on the date you apply. You also need to meet one of these service criteria:
- An active-duty military member
- A member of the Texas National Guard
- A reserve component member who has completed 20 qualifying years for retirement
- A veteran with at least 90 days of active duty, unless discharged sooner because of a service-connected disability
- A surviving spouse of a veteran listed as missing in action or whose death was service-connected
Discharge Type
The VLB accepts honorable, general, or medical discharges. A dishonorable discharge isn't eligible. Other types, such as bad conduct, other than honorable, or an entry-level separation, aren't eligible unless you provide a certificate of eligibility or similar document from VA showing you qualify for a VA loan.
Prior VLB Loans and State Debts
Any previous VLB loan must be repaid in full, and any active VLB loans in other programs must be in good standing. The VLB's application also notes that Texas law bars state loans to people who are delinquent on child support or on other debts owed to the state, such as state taxes or a guaranteed student loan, until those are paid or arranged.
Residency for Active-Duty Members Stationed in Texas
This matters a lot around Killeen and Fort Hood. The VLB's certification packet says:
- Your DD-214 home of record at entry to active duty is how the VLB checks Texas residency. "Place of Entry" doesn't count as proof of home of record.
- Presence in Texas due solely to military service may not establish residency. A filed DD Form 2058 changing your legal residence to Texas may, with a letter on letterhead from your military personnel office confirming it was filed.
- Members stationed outside Texas may be eligible if their home of record is Texas.
If you're at Fort Hood and Texas isn't your home of record yet, sort this out before you shop.
Loan Amount, Terms, and the Disability Discount
- Maximum loan: up to $832,750. The VLB raised it from $806,500 in an announcement dated January 5, 2026.
- Terms: fixed rate for 15, 20, 25, or 30 years.
- Rates: the VLB base rate can adjust on the first business day of each week, and the GLO says all VLB rates and discounts are subject to change at any time. I don't quote rates in articles. Ask me for today's numbers.
- Credit approval is required on every VLB loan, and certification doesn't guarantee a rate.
Veterans With Disabilities Discount
Veterans with a compensable service-connected disability of 30% or greater may qualify for a lower rate. You'll need a VA Award Letter or Department of Defense Disability Retirement Orders, submitted to your lender at the time of loan application. The VLB posts current discount information on its website and notes it can change, so ask your lender or call the VLB at 1-800-252-8387 for the current figure.
Property Rules
- The home must be your primary residence in Texas.
- Eligible types: single-family attached or detached homes, townhomes, and condominiums.
- Duplexes or other multi-family units must have been built at least five years before closing.
- New construction must meet local building standards.
- You must move in within 60 days of closing and keep it as your primary residence for at least three years.
That three-year rule has teeth. In the Declaration of Eligibility, you agree not to lease or convey the home before three years. If you do, the VLB may raise the interest rate or accelerate the loan.
How VHAP Pairs With VA, FHA, and Conventional Loans
| Pairing | What the Official Sources Say | Read More |
|---|---|---|
| VLB + VA | Combining VA benefits with VHAP may mean no down payment and no private mortgage insurance. VA eligibility rules still apply | VA loans and VA loan limit in Texas |
| VLB + FHA | Offered through participating lenders; FHA's own credit, down payment, and mortgage insurance rules apply | FHA loans |
| VLB + conventional | Offered through participating lenders; the down payment is set by the lender | Conventional loans |
Sources: GLO Home Loans page, GLO announcement (Jan. 5, 2026), and the VLB Certification of Eligibility packet (dated October 8, 2026).
What the VLB Home Loan Doesn't Do
- No refinancing. The VLB can't refinance an existing loan to lower your rate.
- No down payment help. VHAP can't be used as a down payment on a home.
- Using it again: once you pay off a VLB home loan, you can get another one. You can also have one active VLB land loan and one home loan at the same time.
How to Get Certified and Apply
The GLO's "Seven Simple Steps" boil down to this:
- Review the VLB home loan terms on the GLO site.
- Confirm eligibility and residency.
- Gather documents: bank and income statements, IRS filings, your DD-214, and other financial records.
- Pick a VLB participating lender and get pre-qualified.
- Find your home.
- Complete the required documentation.
- Close and get your keys.
For certification itself, you send the VLB a Request for Certification (Form 41), a Declaration of Eligibility (Form 42), proof of service such as a DD-214, and proof of Texas residency (a Texas driver's license, a utility bill, military transfer orders, or a letter from a relative). The VLB accepts them by email at certs@glo.texas.gov, by fax, or by mail, and asks you to allow up to three business days. The GLO says participating lenders help with the certification application, pre-approval, and the final loan paperwork.
VLB Home Loan vs. Homes for Texas Heroes
Veterans also qualify for TSAHC's Homes for Texas Heroes program, which offers down payment assistance of up to 5% of the loan amount. The two work differently. The VLB provides the first-lien loan itself and doesn't cover a down payment. Heroes pairs its own first mortgage with assistance. Since each one supplies the first mortgage, think of them as two separate routes and compare them side by side. My Homes for Texas Heroes guide covers its rules.
After you close, disabled veterans should also look at Texas property tax exemptions. My guide on how to file the homestead exemption in Texas covers the 100% disabled veteran exemption and Form 50-135.
Questions for the VLB directly? Call 1-800-252-8387 or email VLBinfo@glo.texas.gov.
Frequently Asked Questions
Who is eligible for a Texas Veterans Land Board home loan?
You must be at least 18 and a bona fide Texas resident when you apply, and be an active-duty military member, a Texas National Guard member, a reservist with 20 qualifying years, a veteran with at least 90 days of active duty and an honorable, general, or medical discharge, or an eligible surviving spouse.
How much can I borrow with a VLB home loan?
The Veterans Land Board allows up to $832,750 on a fixed-rate loan with a 15, 20, 25, or 30 year term. The VLB raised the amount from $806,500 in an announcement dated January 5, 2026.
Can I use a VLB home loan with a VA loan?
Yes. The VLB home loan is offered with a VA, FHA, or conventional loan through a VLB participating lender. The GLO says veterans who combine VA benefits with the VLB program may be eligible for a loan with no down payment and no private mortgage insurance.
Do disabled veterans get a lower rate on a VLB home loan?
Veterans with a compensable VA service-connected disability rating of 30% or greater qualify for a discounted interest rate. You submit your VA Award Letter or Department of Defense Disability Retirement Orders to your lender at application, and the discount is subject to change.
Can I refinance with the Texas Veterans Land Board?
No. The VLB does not refinance existing home loans, and its home loan program can't be used for a down payment. It's for buying a primary residence in Texas.
Let's See If a VLB Loan Makes Sense for You
I'll compare a VLB pairing with a standard VA loan and with Homes for Texas Heroes, using your entitlement, budget, and plans for the next three years.
Get Pre-Approved | Book a Free Consultation
Related Guides
- VA Loans in Texas
- VA Loan Limit in Texas
- Homes for Texas Heroes Program
- How to File the Homestead Exemption in Texas
- Buying a Home in Killeen
Taylor Ring, NMLS #2809683 | Fairway Independent Mortgage Corporation, NMLS #2289 | The Wood Group of Fairway, 127 Lake Rd Ste 300, Belton, TX 76513 | Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval and program guidelines, and approval, rates, and program availability are not guaranteed. VLB program terms, rates, and discounts are set by the Texas Veterans Land Board and may change at any time. Not affiliated with or endorsed by the Texas Veterans Land Board, the Texas General Land Office, the U.S. Department of Veterans Affairs, or any government agency.