Texas VA Loan Eligibility Requirements

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Texas Veteran Loans

The state of Texas has a large military and veteran population. As a result, there are a lot of home buyers in the state who could benefit from using the Department of Veterans Affairs’ VA loan option to buy a house. Signature Lending Services is ready to assist borrowers that are seeking to obtain a Texas vet loan.

This unique program offers many benefits for eligible borrowers, including 100% financing. Continue reading below to find out about the basic eligibility requirements for veterans home loans Texas lending options.

Eligibility Requirements for Texas VA Loans

Home buyers who wish to use a Texas vet loan must have sufficient income, suitable credit, and a valid Certificate of Eligibility. These are the minimum eligibility requirements for veterans home loans Texas-mortgages.

There are property-related requirements as well. The home you are buying must be used for personal occupancy. It must be your primary residence. Generally speaking, a Texas vet loan cannot be used to purchase vacation properties or second homes. When using this program, you are expected to reside in the house being purchased.

Texas VA loans can be used to:

  • Purchase a home
  • Purchase a condo unit that’s part of a VA-approved project
  • Build a new home
  • Buy and improve a property simultaneously
  • Improve an existing property by adding energy-related features
  • Buy a manufactured home and/or lot

Obtaining Your Certificate of Eligibility

The Certificate of Eligibility, or COE, is a key requirement for Texas VA loans. This official government document tells mortgage lenders that you are, in fact, eligible for a VA-guaranteed home loan. Military service members can request this document from Signature Lending Services.

Most military members and veterans in the state are eligible for the Texas vet loan program, and can easily obtain a Certificate of Eligibility.

This program is available to the following groups:

  • Active duty military who have served or at least 90 days continuously.
  • Veterans who have served for at least 90 consecutive days during wartime or 181 days during peacetime.
  • National Guard and Selected Reserve with at least six years of service. (Exception: Those who served in the Gulf War may be eligible with at least 90 days of service.)
  • Military spouses are eligible for Washington State VA loans in some cases. According to official guidelines, this applies to the “Unremarried spouse of a Veteran who died while in service or from a service connected disability, or spouse of a Servicemember missing in action or a prisoner of war.”

Other Eligible Groups

In addition to the military service members and veterans listed above, there are other groups that might be eligible for a Texas vet loan.

This includes the following:
  • Certain U.S. citizens who served in the armed forces of a government allied with the U.S. during World War II.
  • Individuals who have served with certain organizations such as:
    • Public Health Service officers; cadets at the United States Military, Air Force, or Coast Guard Academy; midshipmen at the United States Naval Academy; officers of National Oceanic & Atmospheric Administration; merchant seaman with World War II service; and others.

Residual Income Requirements

VA loans do not require a certain income level or threshold. Borrowers who apply for this program, however, are expected to have sufficient income to repay their loan obligation. When you apply for a Texas vet loan, the lender will examine your current income and debt situation. The goal is to ensure that you have the ability to cover your monthly expenses going forward.

There’s also a “residual income” requirement with a Texas vet loan. The Department of Veterans Affairs requires borrowers to have a certain amount of money left over each month after all major debt obligations have been paid. This includes the mortgage payment.

The idea is that homeowners should be able to cover their monthly housing costs and still have money for basic necessities like food and transportation. It’s a sensible financial safeguard designed to protect borrowers. Residual income requirements vary based on location and family size.

Please contact us if you have questions about these or other Texas vet loan requirements.

VA Loan Limits for Texas

In addition to the eligibility requirements for a Texas vet loan, there are limits to how much you can borrow with this program. The VA does not set a cap on the amount you can borrow, though they do limit the size of loans they are willing to guarantee. This directly affects the amount you are able to borrow.

These VA loan limits, as they are known, vary by county. Elsewhere on our website, you’ll find a list of limits for all counties in Texas. The current limit for most counties in the state is $424,100.

Want to Apply for the Program?

Do you have questions about Texas vet loan eligibility requirements or other aspects of this program? Want to get pre-approved for a home loan, or request a mortgage rate quote? Contact us today! We are veterans home loans Texas-specialists.

What They Say About Signature Lending Services

The team at Signature Lending were wonderful, outstanding, helpful and very respectful mortgage company. My experience with a prior servicer was terrible and I am glad I chose Signature Lending to help me on my purchase.

Amy Sanders

Mark has been very detailed, hardworking and knowledgeable throughout this whole process. My husband and I are expecting so we are very anxious to make sure our first home purchase is a positive experience. We appreciate Mark and his staff's superb effort and we have the fullest amount of faith in Signature Lending Services.

Mary Ann Kelly

The team at Signature Lending were wonderful, outstanding, helpful and very respectful mortgage company. My experience with a prior servicer was terrible and I am glad I chose Signature Lending to help me on my purchase.

Amy Sanders

Mark has been very detailed, hardworking and knowledgeable throughout this whole process. My husband and I are expecting so we are very anxious to make sure our first home purchase is a positive experience. We appreciate Mark and his staff's superb effort and we have the fullest amount of faith in Signature Lending Services.

Mary Ann Kelly