VA Loans in Texas: Benefits Most Veterans Miss

If you served, you earned the VA home loan. Most veterans know the headline: no down payment. Almost nobody knows the rest, and the rest is where the real value lives. Here are the benefits Texas veterans miss most, plus one state program most veterans have never heard of.

The headline benefits, stated plainly

The VA does not lend you the money. A private lender makes the loan and the Department of Veterans Affairs guarantees part of it. That guarantee is why the terms look the way they do. With full entitlement you can finance 100 percent of the purchase price. There is no monthly private mortgage insurance. There is no prepayment penalty. You prove eligibility with a Certificate of Eligibility, called a COE, and your lender can usually pull it electronically in minutes.

The funding fee is one time, and it may be zero

The tradeoff for no down payment and no monthly insurance is the VA funding fee. It is a one time fee stated as a percentage of the loan amount, and you can finance it into the loan or pay it at closing. Per the VA funding fee charts on VA.gov, effective April 7, 2023, the purchase loan figures are: first use with less than 5 percent down, 2.15 percent; 5 percent or more down, 1.5 percent; 10 percent or more down, 1.25 percent. After first use with less than 5 percent down, 3.3 percent. A streamline refinance, called an IRRRL, carries 0.5 percent.

Here is the part veterans miss: many borrowers never pay the fee at all. You owe no funding fee if you receive VA compensation for a service connected disability, if you are eligible for that compensation but receive retirement or active duty pay instead, if you receive Dependency and Indemnity Compensation as a surviving spouse, if you hold a proposed rating from a claim filed before discharge, or if you provide evidence of a Purple Heart on or before closing. If your disability rating arrives later but is retroactive to before your closing date, you may be eligible for a refund of the fee.

Full entitlement means no VA loan limit

Since the law changed in 2020, veterans with full entitlement face no VA imposed loan limit. The county caps that used to apply are gone for these borrowers. With partial entitlement, county limits still apply, which is one more reason to know your entitlement status before you shop. Contrast that with FHA, where county loan limits still shape every file. I break down the current Texas FHA limits in my post on FHA loan limits in Texas for 2026.

It is not a one time benefit

You can use the VA loan more than once. Sell the home and pay off the loan and your entitlement is restored in full. Even without selling, remaining entitlement can support another purchase. Most veterans treat the benefit like a single use ticket. It is not, and assuming it is has kept plenty of veterans renting when they could have been buying again.

The VA appraisal protects you

Every VA purchase gets a VA appraisal that checks Minimum Property Requirements for safety and structure, and your lender receives a Notice of Value. If the appraised value comes in below the price, you have a built in checkpoint before you overpay for a home with problems. VA also caps seller concessions at 4 percent of the reasonable value of the home. These are buyer protections written into the program, not favors from your lender.

Surviving spouses may be eligible too

Unmarried surviving spouses of veterans who died in service or from a service connected disability, and spouses of service members listed as missing in action or prisoners of war, may be eligible for the VA home loan in their own right. This is one of the least known parts of the program, and it matters to families who assume the benefit ended with their spouse.

Texas adds its own program on top

Texas runs the only state level veterans home lending program in the country, through the Texas Veterans Land Board. The Veterans Housing Assistance Program offers home loans up to $832,750, per the Texas General Land Office announcement in January 2026, with a competitive rate and a discounted rate for veterans with a VA disability rating of 30 percent or greater. Used alongside your VA benefits, it can mean no down payment and no private mortgage insurance, and you can use it more than once. It covers single family homes, townhomes, and condominiums.

The VLB also runs a land loan program, the only one of its kind in the nation: up to $200,000 for a single veteran, or $275,000 when two veteran spouses buy together, typically with a minimum 5 percent down payment on tracts of one acre or more. Those limits took effect February 9, 2026, per the General Land Office.

Texas also has down payment assistance that pairs with VA loans. TSAHC runs a program called Homes for Texas Heroes that serves veterans specifically, and the assistance can cover closing costs too. I walk through every structure in my guide to down payment assistance in Texas.

What the VA does not decide

The VA does not set your interest rate, your discount points, or most of your closing costs. Your lender does. That comes straight from VA.gov, and it is why comparing lenders still matters even with a government guaranteed loan. If you are shopping the Dallas market, start with my breakdown of how much house you can afford in Dallas so you know your target before you talk to anyone.

Sources

VA funding fee and loan closing costs, VA.gov, funding fee charts effective April 7, 2023. Texas General Land Office press releases: VLB home loan amount increase to $832,750, January 2026; VLB land loan amount increase, effective February 9, 2026 (glo.texas.gov).

Want to know what your entitlement supports and which programs stack for your purchase? Start your application and I will map your options with you, or call (954) 655-5676.

Arlicia Jones, NMLS 1550570
Elite Lending Solutions, Inc., Company NMLS 1829246

T (954) 655-5676
F (800) 852-2175
E LoansByArlicia@gmail.com
A 1525 HWY 380 STE 500-173, Frisco, Texas 75034

Most first time buyers in Texas think down payment assistance is one program. It is not. It is a menu of state programs with different rules, and the part buyers miss is not that the money exists. It is how the money is structured. A grant you never repay, a lien that is forgiven after three years, and a second loan you pay back when you sell are three very different things. Pick the wrong structure and you leave money on the table or sign up for a surprise later.

The two agencies behind the money

Almost every statewide program in Texas runs through one of two agencies. The Texas Department of Housing and Community Affairs, called TDHCA, runs the Texas Homebuyer Program. The Texas State Affordable Housing Corporation, called TSAHC, runs its own programs for homebuyers. You will never apply to either agency directly. You work with a participating lender, and the lender pairs the assistance with your mortgage.

The three ways the money arrives

First, the grant. TSAHC offers down payment assistance as a grant in amounts of 2 to 5 percent of the total loan amount, per its program guidelines revised September 9, 2026. A grant never has to be repaid, no matter how long you stay in the home. It is available with government loan types, and the minimum credit score is 620.

Second, the deferred forgivable second lien. This is a loan with zero interest and no monthly payments, and it is forgiven in full on the third anniversary of the note. The catch is the conditions. If you sell, refinance, pay off the first mortgage, or move out of the home before that date, the full amount comes due. TSAHC offers this structure at the same 2 to 5 percent levels, with a 640 minimum credit score for its conventional options. TDHCA offers a similar 3 year deferred forgivable second lien at 2 to 5 percent of the loan amount, per its rate notice dated July 2, 2026.

Third, the deferred repayable second lien. TDHCA offers this version too: zero interest, no monthly payments, but you repay it when you sell, refinance, or pay off the first mortgage. Same 2 to 5 percent assistance levels. This option usually pairs with a slightly lower rate on the first mortgage than the forgivable version, which is the tradeoff worth understanding before you choose.

Which program fits which buyer

TSAHC runs two flagship programs. Homes for Texas Heroes serves teachers, firefighters, EMS personnel, police officers, correctional officers, and veterans. Home Sweet Texas serves low to moderate income buyers. You do not have to be a first time buyer for the Heroes program, which is the detail veterans miss most.

TDHCA runs My First Texas Home for first time buyers, meaning buyers who have not owned a home in the past three years, and My Choice Texas Home for buyers who have owned before, including repeat buyers. Both pair with FHA (see the 2026 Texas loan limits), VA, USDA, or conventional mortgages depending on the option you choose. TDHCA also offers a Mortgage Credit Certificate, which is a federal tax credit on a portion of your mortgage interest each year you own the home. It does not lower your payment, but it can lower your federal tax bill, which frees up room in your budget.

If you are shopping the Dallas market, start with my breakdown of how much house you can afford in Dallas so you know your target price before you match it to a program.

What buyers miss

You must use a participating lender. A lender who is not approved for these programs cannot get you the money, no matter how good they look on paper. Ask before you apply.
Income limits are set by county. Every program has maximum income limits that vary by county and household size. Being over the limit for one program does not mean you are over for all of them.
There are purchase price limits too. The home has to fall under the program’s maximum price for your county.
Most programs require a homebuyer education course. It is a few hours, usually online, and you want it done before you write an offer.
The money is not unlimited. Funding can pause when a program’s allocation runs out. Confirm the program is open before you count on it.
Assistance can cover closing costs, not just the down payment. Many buyers think DPA only covers the down payment, and then scramble for closing costs. The programs are built for both.
Local programs can stack with state programs. Many Texas cities and counties run their own grants and assistance. Ask your lender what layers in your area.
The forgivable lien only forgives if you stay put. Sell or refinance before the third anniversary and the full amount is due. Know your timeline before you choose this structure.

The part nobody tells you

Down payment assistance covers the down payment and often the closing costs, but it does not replace your emergency fund. I tell every buyer to keep reserves. Homeownership brings repairs and surprises, and starting with zero savings is how a small problem becomes a big one.

Sources

TSAHC Program Guidelines for Down Payment Assistance and MCC, revised September 9, 2026 (tsahc.org). TSAHC homebuyer FAQ: Loans and Down Payment Assistance (tsahc.org). TDHCA Borrower Down Payment Assistance rate notice, dated July 2, 2026 (welcomehome.tdhca.texas.gov).

Want to know which programs you qualify for and which structure fits your timeline? Start your application and I will map your options with you, or call (954) 655-5676.

Arlicia Jones, NMLS 1550570
Elite Lending Solutions, Inc., Company NMLS 1829246

T (954) 655-5676
F (800) 852-2175
E LoansByArlicia@gmail.com
A 1525 HWY 380 STE 500-173, Frisco, Texas 75034

Every wealthy portfolio I have ever seen owns real estate. That is not an accident. Housing is something people always need, which makes a rental property one of the most durable investments you can own. If you have been wondering whether you should buy an investment property, here is my honest take from years of financing them: yes, if you buy with a plan.

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Rents keep climbing and housing is not optional

Rent is climbing in most states. That matters, because it tells you something simple about the demand side of this investment. People need a place to live. When budgets get tight, housing is the last thing they cut, which is why rental income holds up even when the rest of the economy gets noisy.

You only need one good purchase

People get stuck on the idea that they need twenty or thirty doors before they count as an investor. You do not. One good purchase is enough to start a real portfolio. You do not need an apartment complex for your first investment. You need one property, bought well, in a market where the numbers work. Start small and build from there.

How first time investors actually finance the purchase

Most first time investors I work with qualify off their W2 income and buy with a regular conventional mortgage. I recently closed a client on her fourth home, all of them qualified off taxable W2 income. It is the most common path into your first rental, and it works because the underwriter treats the purchase as a transaction built on income you already prove.

There is also the DSCR path. A DSCR loan qualifies you off the rent the property is expected to earn instead of your personal income. It usually asks for a larger down payment, but it opens the door for borrowers whose income picture is harder to document.

Do not forget the house hack. You can buy with an FHA mortgage, live in the home for a year, then convert it to a conventional property and keep it as a rental while you use FHA again on the next home. It is slower, but it lets you move through the journey with a smaller down payment each step. If Texas limits are on your mind, check my post on 2026 Texas FHA loan limits.

Another path is the HELOC or cash out refinance on your current home. Many of my clients own homes with equity they built years ago and a monthly payment they do not want to touch. Pulling a HELOC lets them fund the next purchase without disturbing the first mortgage. I recently had a client use a large HELOC from their primary home to fund new construction projects. For the full comparison of these two tools, read HELOC vs cash out refinance.

Look past your own zip code

Do not shop only your local market. Be market specific. If the numbers do not work where you live, expand. The closer the property is to where you live, the easier it is to manage, but a great deal two states away beats a bad deal across the street. A local property manager or a sharp real estate agent in that market can handle a home in a state you never set foot in.

Know your numbers before you buy

Run your numbers like a business, because that is what you are building. Know your rent. Know your market. Know your mortgage, your taxes, and your insurance. Then pressure test the plan. If the home sits vacant for a few months, can you comfortably carry the payment? What do repairs look like? What does property management cost? Even after one or two purchases you are still early in this game, so keep the math honest.

Rookie mistakes that cost money

Two of the biggest are trying to time the market and overimproving the property. You cannot know the future, so waiting for the perfect moment usually costs more than it saves. The best time to buy is when you can afford to buy. Once you own it, resist the urge to renovate it like you live there. Keep it clean, safe, and livable for your tenant. You are not living there, and a tenant will never care for a property exactly the way you would. That is okay. It is an investment, not a personal project.

Becoming a landlord is becoming a business

Decide whether the property will sit in your name or in an LLC. Know the tenant law where the property lives, because it changes from state to state. What Florida allows is not what Georgia or New Jersey allows. You do not want to learn housing rules from a lawsuit. Run the numbers, pull your credit, and know where you stand before you make an offer.

Ready to run the numbers on your first rental? Start your application and I will walk through the financing options with you, or call (954) 655-5676.

Arlicia Jones, NMLS 1550570
Elite Lending Solutions, Inc., Company NMLS 1829246

T (954) 655-5676
F (800) 852-2175
E LoansByArlicia@gmail.com
A 1525 HWY 380 STE 500-173, Frisco, Texas 75034

If you are self employed, your tax return might be costing you your mortgage.

That sounds dramatic, but the math is simple. A lot of my self employed buyers earn strong money and still get told their income is too low. The reason sits in the tax return. Your CPA did exactly what you hired them to do. They found every legal deduction and kept your taxable income as low as possible. Great in April. Not great with an underwriter, because a conventional loan qualifies you on the income your tax return shows, not the money your business actually brings in.

A bank statement loan fixes that. Instead of tax returns, the lender qualifies you on the deposits in your bank statements. It is built for people whose real cash flow is strong but whose paperwork looks thin.

How the lender builds your qualifying income

You provide 12 or 24 months of bank statements. Usually business statements, sometimes personal statements too, depending on the lender.
The lender totals your deposits and removes anything that is not real income. Transfers between your own accounts do not count. One time windfalls do not count. What counts is business revenue showing up on a regular basis.
The lender applies an expense factor, because running a business costs money. This is how they estimate the income that actually stays with you after business expenses.
The result is averaged into a monthly figure. That figure is your qualifying income.

Who this is for

Business owners, freelancers, consultants, realtors, commission earners, 1099 contractors, and gig workers. If your deductions hide your cash flow, this program was made for you.

What lenders look at besides the statements

A clean banking history matters. Frequent overdrafts or large unexplained deposits raise questions. Lenders like deposits that are steady or growing, not one big month surrounded by quiet ones. They also want proof you are actually self employed, usually a business license or a letter from your CPA confirming your ownership.

What surprises my borrowers

The down payment usually runs larger than what a conventional loan asks for. The rate usually runs higher too, because the lender takes on more risk and these loans are not sold to Fannie Mae or Freddie Mac. For a borrower who cannot qualify conventionally at all, that trade is often worth it.

Buying a rental instead?

If the property you are buying is an investment, there is another path worth knowing. A DSCR loan qualifies you on the rent the property is expected to earn, not your personal income.

A note for Texas buyers

Property taxes play a big role in what you qualify for here, so it helps to model your full picture early. If you are shopping the Dallas market, start with my breakdown of how much house you can afford in Dallas.

Mistakes to avoid

Mixing personal and business money in one account. Clean books make a clean application.
Moving big money around right before you apply. Every large deposit gets questioned, so be ready to document it.
Waiting until the last minute. Gathering 12 or 24 months of statements takes time, so start pulling them early.

Ready to see what your statements say you qualify for? Start your application and I will review your deposits with you, or call (954) 655-5676.

Arlicia Jones, NMLS 1550570
Elite Lending Solutions, Inc., Company NMLS 1829246

T (954) 655-5676
F (800) 852-2175
E LoansByArlicia@gmail.com
A 1525 HWY 380 STE 500-173, Frisco, Texas 75034

When homeowners tell me they want to tap their equity, the first thing I ask is what the money is for and what their current mortgage rate looks like. The answer decides everything. Here are your two main paths.

A cash out refinance replaces your current mortgage with a brand new one for a larger amount. You get the difference as cash at closing. One loan, one payment, usually a fixed rate. The downside: you give up your current rate. If you locked in a low rate years ago, refinancing the entire balance at today’s rate can cost you far more than the cash you take out.

A HELOC (home equity line of credit) is a second lien that sits behind your first mortgage. Your current rate stays untouched. You get a credit line you can draw from as needed during the draw period, and you only pay interest on what you actually use. The tradeoff: the rate is usually variable, and it is a second monthly payment to manage.

So which one costs less? It depends on your situation:

Your first mortgage rate is low: a HELOC almost always wins. Do not refinance a great rate just to access equity.
You need one large lump sum: a cash out refinance can make sense, especially if your current rate is already near market rates.
You want flexibility over time: a HELOC works like a safety net for renovations done in phases or ongoing expenses.
Closing costs matter: HELOCs typically cost less to set up than a full refinance.

The wrong choice here can cost you tens of thousands over the life of the loan, so run both scenarios before you decide. I do this comparison with homeowners every week.

Curious what your equity can do? Check out my HELOC page or start your application and I will run your numbers both ways.

If you are self employed or your tax returns do not show your real income, a DSCR loan might be the product that finally makes your investment purchase simple. Here is the idea in plain language.

DSCR stands for debt service coverage ratio. It is one fraction: the property’s monthly rental income divided by the property’s monthly PITIA payment (principal, interest, taxes, insurance, and association dues). If the rent covers the payment, the property qualifies itself.

Here is what makes DSCR loans different from a standard mortgage:

No personal income docs. No tax returns, no pay stubs, no W2s. The property’s income does the talking.
For investment properties. These are for non owner occupied homes, so plan on living elsewhere.
Larger down payment. Expect to put down more than you would on a primary home. Plan on 20% or more in most cases.

Lenders generally want to see the rental income cover the full monthly payment, and stronger coverage gets you better pricing. The exact ratio a lender requires varies, which is why shopping this product with a broker who knows the investor space matters.

What counts as rental income? An existing lease on a tenant occupied property is the cleanest. For a vacant property, lenders typically use an appraiser’s market rent opinion. Short term rental income can work with some lenders if you have a history of it.

If you have been sitting on the sidelines because your tax returns do not reflect what you actually earn, this is your lane. Start your application and I will run your deal through the DSCR math.

A 2/1 buydown is one of my favorite tools when the rate conversation gets tense, because it gives you breathing room while you settle into your new payment. Here is exactly how it works.

With a 2/1 buydown, your interest rate starts 2% below your note rate in year one, then 1% below in year two, then moves to the full note rate in year three and stays there. So if your note rate is 7%, you pay 5% the first year and 6% the second year.

The most common question I get: who pays for that discount? Usually the seller, through a seller credit at closing. The money goes into an escrow account upfront and covers the difference each month. Sometimes a lender credit or your own funds can fund it too. Either way, the buydown is paid for before you make your first payment.

When does it make sense?

You expect your income to grow. If a raise or a new role is coming, the lower early payments bridge the gap.
You plan to refinance. If rates drop in the next couple of years, you refinance out and you enjoyed lower payments in the meantime.
You need a softer landing. New homeowners face moving costs, furniture, and repairs all at once. Lower payments in year one help.

The catch you need to know: your payment will go up in year three. And you still have to qualify at the full note rate, not the discounted one. A buydown is a strategy, not a way around qualifying.

Thinking about a buydown on your purchase? Start your application and I will model your payments year by year so you can see exactly what it looks like.

“How much house can I afford?” is the first question almost every buyer asks me, and it is the right one to ask before you start touring homes in Dallas. Here is how lenders actually run the math.

It starts with your debt to income ratio. Lenders look at two numbers: your housing payment compared to your income, and all your monthly debts compared to your income. A common guideline is keeping your housing payment around 28% of your gross monthly income and total debts around 36%, though many loan programs allow higher ratios with strong credit and reserves.

In Dallas, three costs catch buyers off guard:

Property taxes. Texas has no state income tax, and property taxes carry part of that load. They are a real line item in your monthly payment here, so budget for them honestly.
Homeowners insurance. Get a quote early. Texas premiums vary widely by area and carrier.
HOA dues. Many Dallas area communities have them. Lenders count HOA dues in your housing payment.

Your monthly payment is really four pieces: principal and interest, taxes, insurance, and HOA if there is one. When I preapprove a buyer, I run all four so there are no surprises at the closing table.

One more thing. A prequalification is an estimate. A preapproval means your income, assets, and credit were actually reviewed. In a competitive market like Dallas, sellers take preapprovals far more seriously.

If you are buying your first home in Texas, this guide to down payment assistance in Texas could change what you think you can afford.

Want your real number? Start your application and I will run your full picture and give you a price range you can shop with confidence.

If you are buying in Texas with an FHA loan this year, there is one number you need to know first. For 2026, the FHA loan limit floor for a one unit home is $541,287. Most Texas counties sit right at that floor.

What does that number actually mean? It is the maximum mortgage amount FHA will insure in your county, not the maximum price of the home. Your down payment sits on top of it. So with the standard 3.5% down, that limit supports a purchase price a good bit higher than $541,287.

A few things that make FHA popular with first time buyers:

3.5% down with a 580 credit score or better
10% down if your score is between 500 and 579
Gift funds from family are allowed for your down payment
Sellers can contribute toward your closing costs

The tradeoff is mortgage insurance. FHA loans carry an upfront mortgage insurance premium plus an annual premium built into your monthly payment. On a positive note, that insurance is exactly what lets you buy with a smaller down payment and a lower score.

Your county might allow more than the floor. HUD sets limits county by county based on local home prices, and some Texas counties land above $541,287. Before you fall in love with a price range, check the limit for the county where you want to buy.

Texas also offers down payment assistance in Texas programs that can layer with an FHA loan. Here is what first time buyers miss.

Want to know what you qualify for with real numbers? Start your application and I will map it out with you.