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The Complete Guide to VA Loans in Texas - How Veterans Can Buy a Home with Zero Down

Veteran shaking hands with real estate agent in front of sold home sign in Texas

The VA loan program provides tremendous homebuying benefits to eligible Texas veterans and service members. VA mortgages allow buyers to purchase a home with no down payment and limited closing costs.

In this comprehensive guide, we’ll cover the key benefits of VA loans in Texas, program eligibility, steps to getting a VA mortgage, and tips for choosing the best loan option for your needs.

What are the Main Benefits of VA Loans in Texas?

The VA home loan program offers significant financial perks for qualified veterans and military members buying in Texas. Key benefits include:

– Zero down payment required – VA loans provide 100% financing
– No private mortgage insurance (PMI) premiums due each month
– Flexible credit guidelines – Minimum credit score of 620
– No maximum income limits
– Competitive interest rates from lenders
– Option to roll closing costs into loan amount
– Can be used to purchase new construction homes
– Low VA funding fee can be financed into loan
– Refinancing and cash-out loans available after meeting tenure requirements

This combination of perks allows eligible buyers to obtain VA mortgage financing with minimal cash out of pocket. It creates an affordable path to homeownership for veterans across Texas.

Who is Eligible for a VA Home Loan in Texas?

To qualify for a VA mortgage, you must meet the following requirements:

– Served minimum 90 consecutive days on active duty (unless discharged early for a service-connected disability)
– Received a discharge other than dishonorable
– Have enough income and credit to qualify for the loan amount needed
– Plan to live in the house as your primary residence.

Beyond veterans, the following groups can also qualify:

– Active-duty military service members
– Surviving spouses of veterans killed in action or suffering from a service-related disability
– Certain reservists and National Guard members with six years of service
– Unmarried surviving spouses of deceased veterans

VA loans are an earned benefit available to those who served our country honorably. Contact a VA lender to confirm your eligibility status.

How Much Can You Borrow with a VA Loan in Texas?

For 2023, the baseline VA loan limit for Texas is $724,800. Maximum loan amounts go higher in pricier real estate markets like Austin, Dallas, and Houston. Your lender will know the current VA mortgage limits for surrounding counties where you want to buy.

VA loans can also be used to refinance up to 100% of your home’s value. And they can refinance up to 90% loan-to-value for cash-out refinancing once you meet the program’s seasoning requirements.

What is the VA Funding Fee?

The VA funding fee is a one-time charge paid to VA at closing to help provide the loan guarantee. For first-time buyers, the fee is 2.3% of the total loan amount. It is possible to incorporate it into the loan.

The fee is lower, at 1.65%, for any subsequent use of VA loan benefits. And it is waived for veterans receiving VA compensation for a service-connected disability.

How Do You Get a VA Mortgage in Texas?

If you determine you’re eligible, follow these steps:

1. Check your credit and scores. Take time to improve any issues before applying.

2. Get pre-approved with multiple lenders to compare VA loan terms and rates.

3. Shop for homes within your pre-approval amount and make an offer when you find the right one.

4. Submit documents for the full underwriting process and approval.

5. Complete the final walkthrough inspection and sign paperwork at closing.

6. You get the keys once VA requirements are met at closing!

Work with a knowledgeable VA mortgage lender to streamline the process. As leading VA loan experts, Zapa Mortgage delivers unmatched guidance and the lowest rates to Texas veterans. Contact us to start your VA loan process today!

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