VA Loan or Texas VLB Loan? How Houston Veterans Can Get the Best Rate

If you are a veteran buying a home in Deer Park, Pasadena, Baytown or anywhere in Greater Houston, you have two powerful programs on your side: the federal VA home loan and the Texas Veterans Land Board (VLB) home loan. Most veterans only hear about the first one. Here is why you should ask about both.

The VA Loan: Zero Down and No PMI

A VA loan lets eligible veterans buy with no down payment and no monthly mortgage insurance. Rates are competitive, sellers can help with closing costs, and veterans who receive VA disability compensation do not pay the VA funding fee. That alone can save thousands at closing.

The Texas VLB Loan: A Texas-Only Rate Advantage

The Texas Veterans Land Board offers home loans to qualified Texas veterans, often at below-market interest rates. Veterans with a service-connected disability may qualify for an additional rate discount. The VLB program is used through a participating lender like New American Funding, and it can be combined with a VA loan.

Why Compare Both?

A slightly lower rate can mean hundreds of dollars a month and tens of thousands over the life of the loan. When I build a VA plan, I run the standard VA loan and the VA plus VLB option side by side, then add any down payment assistance or Mortgage Credit Certificate you qualify for.

Don’t Forget Your Property Taxes

Texas offers property tax exemptions for disabled veterans, from a partial exemption up to a full homestead exemption for veterans rated 100% disabled. That can change your monthly payment more than the interest rate does.

Read the full guide: Texas VA Home Loans for Houston Veterans.

Let’s Run Your Numbers

Call or text me at 281-978-2106 or get started on your pre-approval. I will show you every option side by side so you can choose with confidence.

Clifton Saunders, The Mortgage Mentor

Clifton Saunders, NMLS #230688 | New American Funding, NMLS #6606 | Equal Housing Opportunity. Subject to credit approval; not all applicants will qualify. Programs and guidelines change; call or text 281-978-2106 for current details. This article is general information, not tax or legal advice.