| You sat across from a lender, got a rate quoted, and nobody mentioned that Texas runs its own loan program for veterans. Trinidad Aguirre, CEO of VetsForever and a Texas veteran himself, only learned about it recently.The Texas Veterans Land Board (TVLB) is a state agency that loans money for land and homes. You qualify on your service, your discharge, and your Texas residency. Combat service is not required. The Texas General Land Office publishes the rules on glo.texas.gov, and Trinidad sat down with TVLB’s Travis Willis to get the rest. |
Watch: Beyond the Rating | Texas Veteran Land Board Benefits Explained with Travis Willis
Chapters:
- 00:13 Introduction to Texas Veteran Benefits
- 02:47 Understanding the Texas Veterans Land Board
- 04:55 Exploring Land Loans for Veterans
- 07:26 Home Loans and the Veterans Housing Assistance Program
- 09:50 Eligibility and Disqualifications for Loans
- 12:28 Navigating the Application Process
- 14:43 Key Takeaways from Military REIcon
- 17:22 Final Thoughts and Community Engagement
What is the Texas Veterans Land Board?
It sits under the Texas General Land Office, an agency created in 1836 after the Texas Revolution. The Veterans Land Board followed in 1946, built for World War II veterans coming home. Travis says it now runs land loans, home loans, state veterans homes, state veteran cemeteries, and an oral history program where you can record your story for the Texas archives.
This is a state program that runs next to your federal VA benefits. Travis says the two work together.
Who qualifies for a TVLB loan?
You have to be 18 and a legal Texas resident on the day you apply. Then you need one of these: you are on active duty, you serve in the Texas National Guard, you have 20 qualifying years in the reserve, or you served at least 90 days on active duty. A surviving spouse can qualify if the veteran is missing in action or died of a service-connected cause. You did not have to enlist in Texas.
Your discharge has to be honorable, general, or medical. Dishonorable does not qualify. If your DD-214 shows something else, like uncharacterized, Travis calls that a hurdle, not an automatic bar. Call the VLB before you assume you are out, and bring your VA certificate of eligibility or your disability awards letter.
How do TVLB land loans work?
You can borrow up to $200,000 for land of at least one acre, typically with 5% down, on a 30-year fixed rate. The GLO land loan page lists that rate at 7.25%, without an effective date, so confirm the current rate with the VLB before you plan around it. If you and your veteran spouse buy a tract together, the limit is $275,000.
You do not have to build on the land. A VA construction loan makes you build. This one does not.
If you do build, the TVLB will not fund the construction loan. Travis says you can roll your interim construction loan and the land loan into one TVLB home loan, as long as the project stays under the home loan limit.
How do TVLB home loans work?
The home loan program is the Veterans Housing Assistance Program, which lenders and realtors often call “Texas Vet.” You can borrow up to $832,750 on a fixed-rate loan with a 15, 20, 25, or 30-year term. You apply through a participating lender, which Travis puts at more than 80 across Texas, and you pick which one.
Travis says you can pair the TVLB rate with a VA, FHA, or conventional loan when you close, and that the two do not stack on each other. He also says the TVLB base rate usually runs about a point under market. The GLO page does not spell out either point, so ask your lender to confirm how your loan would be structured.
Your VA rating can lower your TVLB rate
Rated 30% or higher, you qualify for a discounted interest rate, according to the GLO. Travis says the standard discount is a half point, and some weeks it runs a point and a half. The GLO page does not state the amount, so the TVLB website is where you see this week’s number.
You do not need a service-connected rating to use the program, and active-duty members do not have one. Never filed? Travis says plenty of veterans who never filed have something to claim.
Two pieces of paperwork decide how this goes at the lender’s desk: the characterization on your DD-214 and the rating on your VA award letter. A wrong characterization or a rating sitting under 30% shows up there.
Where do you start with the TVLB?
Travis says to search for the Texas Veterans Land Board website, open the veterans tab, and pick the land loan or home loan page. The land loan page has a checklist of prequalification documents and a five-step process. The home loan page shows the current rates and the property rules, which allow condos, single-family homes, and multi-unit dwellings of up to four doors.
Travis is on a panel at Military REIcon in San Antonio, October 23 to 25, and VetsForever will be there too, according to the episode description. He suggests stopping by the TVLB booth and the Texas Veterans Commission booth with your questions.
Frequently Asked Questions
Does a TVLB loan use taxpayer money?
No. Travis says state bonds fund the programs, and the interest you pay goes back into funding the state veterans homes and state veteran cemeteries.
How do TVLB land sales work?
Travis describes two kinds. Forfeited land sales are exclusive to veterans and happen quarterly, and you can apply for TVLB financing if you win or if the winner walks and the tract goes to the next bidder. The public land sale has about 30 tracts open to veterans and non-veterans, and non-veterans can apply for TVLB financing there only. Travis says some promotional tracts require zero down for veterans.
How often do TVLB home loan rates change?
Travis says the rates change every Friday at 5:00 p.m., if they change at all, and the TVLB website shows that week’s base rate and discounted rate. The GLO states that all interest rates and discounts are subject to change at any time.
Can you pay off a TVLB land loan early?
Yes. The GLO land loan page says there is no prepayment penalty, so you can pay the loan down or pay it off ahead of the 30-year term without a fee.
Who do you call with questions about the TVLB?
The Texas Veterans Land Board has a toll-free line at 800-252-8387. Call it if you are not sure you qualify or you need the certification paperwork explained. Travis says an unclear discharge characterization, like uncharacterized, is a hurdle you can work through and not an automatic bar, so ask the VLB what it needs from you before you assume you are out.
Where VetsForever fits in
If your discharge characterization or your VA rating stands between you and a TVLB loan, that is our work. Once you appoint VetsForever, our VA-accredited representative can see what VA sees in your claim file.
VetsForever is a veteran-founded organization. We provide legal representation through VA-accredited representatives for VA disability claims, appeals, and military discharge upgrades. Our VA-accredited representative has direct VBMS access to your VA file. Serving veterans nationwide.
