Texas Mortgage Guides
Texas VA Loan Requirements 2026
VA loan limits, eligibility requirements, property tax savings for Texas veterans, and how VA financing compares across Dallas, Houston, San Antonio, and every major Texas market.
IN THIS GUIDE
VA Loan Eligibility in Texas
VA loan eligibility is determined by the Department of Veterans Affairs based on service history. Texas installations include Joint Base San Antonio (JBSA), Fort Hood, NAS Corpus Christi, NAS Joint Reserve Base Fort Worth, and Fort Bliss in El Paso.
| Service Category | Minimum Service Requirement |
|---|---|
| Active-duty service members | At least 90 continuous days |
| Veterans | Depends on when you served |
| National Guard | 90 days of non-training Title 10 active duty, or 6 creditable years |
| Reserve | 90 days of non-training active duty, or 6 creditable years in the Selected Reserve |
| Surviving spouses | Receiving or eligible for certain DIC, or spouse of a service member missing in action or held as a prisoner of war |
Full service rules, discharge exceptions and COE requests are on the VA home loan eligibility page. You can request your Certificate of Eligibility (COE) on VA.gov, or your lender can request it for you in most cases.
VA Loans in Texas Military Markets
Texas is one of the most active VA loan states in the country. The large military presence creates high VA loan volume in several major markets:
| Market | Installation(s) | VA Market Notes |
|---|---|---|
| San Antonio | Joint Base San Antonio (JBSA) — Lackland, Randolph, Fort Sam | Highest VA loan volume in TX; strong VA-familiar lender and real estate market |
| El Paso | Fort Bliss | Very affordable market; VA loans common; median prices well within limits |
| Killeen / Temple | Fort Hood | One of the largest Army bases in the US; strong VA loan market |
| Corpus Christi | NAS Corpus Christi | Coastal market; VA loans well-understood by local lenders |
| Fort Worth | NAS JRB Fort Worth (Carswell) | Part of DFW metro; strong conventional market too |
| Dallas-Fort Worth | Multiple reserve facilities | Higher price points; VA’s no-limit benefit most valuable here |
VA buyers are competitive in Texas. Texas sellers and agents are well-familiar with VA loans due to the large military population. VA appraisal delays are rare with an experienced VA lender. Do not let sellers tell you VA loans are difficult — with a strong pre-approval and an experienced team, VA buyers compete effectively.
VA Loan Requirements
| Requirement | VA Standard | Texas Notes |
|---|---|---|
| Credit score | No VA minimum | Lenders may set their own minimum; TDHCA requires 620 |
| Down payment | 0% (full entitlement) | No down payment required in virtually all TX markets |
| DTI ratio | 41% guideline (flexible) | Residual income also evaluated (38 CFR 36.4340); Texas property taxes (est. 1.49%) raise your payment |
| Funding fee | 1.25–3.3% of loan | Financed into loan; waived for veterans receiving VA disability compensation |
| Property type | Primary residence only | Investment properties and vacation homes do not qualify |
| Property condition | Must meet VA MPRs | VA appraisal required; property must be safe, structurally sound, and sanitary |
| Occupancy | Must intend to occupy the home | Standard requirement; exceptions for active duty with PCS orders |
VA Funding Fee in Texas (2026)
| Loan Type | First Use | Subsequent Use |
|---|---|---|
| Purchase (less than 5% down) | 2.15% | 3.30% |
| Purchase (5% to less than 10% down) | 1.50% | 1.50% |
| Purchase (10%+ down) | 1.25% | 1.25% |
| IRRRL (refinance) | 0.50% | 0.50% |
Veterans with VA disability ratings, surviving spouses receiving DIC, and active-duty Purple Heart recipients are exempt from the funding fee. Cash-out refinance funding fees are 2.15% for first use and 3.30% for subsequent use; IRRRLs carry a 0.5% fee. Confirm current rates at the VA’s official funding fee page.
VA Loan Limits in Texas
Veterans with full entitlement (no active VA loans and no prior foreclosed VA loan) have no VA loan limit — they can borrow as much as a lender will approve with zero down payment. Veterans with remaining entitlement (existing VA loan or prior loss of entitlement) are subject to county loan limits when borrowing above the limit without a down payment.
| Area | Conforming / VA Loan Limit | Notes |
|---|---|---|
| Most Texas counties | $832,750 | Standard conforming limit statewide |
| Dallas-Fort Worth MSA | $832,750 | Full entitlement = no limit in practice |
| Austin MSA | $832,750 | Full entitlement = no limit in practice |
| Houston MSA | $832,750 | Full entitlement = no limit in practice |
| San Antonio (JBSA area) | $832,750 | Largest military market in TX; active VA loan volume |
VA vs. FHA for Texas Buyers
| Factor | VA Loan | FHA Loan |
|---|---|---|
| Down payment | 0% | 3.5% |
| Monthly mortgage insurance | None | 0.55%/year (life of loan if <10% down) |
| Funding fee / Upfront MIP | 2.15% (first use, 0% down) | 1.75% upfront MIP |
| Loan limit (most TX counties) | No limit (full entitlement) | $541,287 (most counties) |
| Credit score minimum | No VA minimum (lenders may set one) | 580 |
| Property condition | Must meet VA MPRs | Must meet FHA standards (similar) |
| Best for Texas buyers | Veterans with VA eligibility — almost always the better loan | Non-veterans; buyers with 580–619 credit |
VA almost always wins for eligible veterans. In Texas, where home prices frequently exceed the FHA limit of $541,287, VA’s unlimited loan amount with no down payment and no monthly mortgage insurance is a decisive advantage. Veterans receiving VA disability compensation also skip the funding fee entirely.
Texas Veterans Land Board (VLB)
In addition to federal VA loans, Texas veterans have access to the Texas Veterans Land Board (VLB), a state agency that provides low-interest home loans, land loans, and home improvement loans for eligible Texas veterans and military members.
| VLB Program | Details |
|---|---|
| VLB Home Loan | Fixed rate; 15-, 20-, 25- or 30-year terms; up to $832,750; discounted rate with a VA service-connected disability rating of 30% or more |
| Land Loan | Up to $200,000 to buy Texas land of at least one acre; 30-year fixed rate; 5% minimum down (VLB land loans) |
| Home Improvement Loan | Up to $50,000 for a 2–20 year term (VLB home improvement loans) |
| Eligibility | Veterans and military members who are bona fide Texas residents when they apply; the home must be your primary residence in Texas |
VLB loans can often be combined with federal VA loan benefits. Contact the Texas Veterans Land Board at 1-800-252-8387 or on its home loans page to explore the combination that gives you the most benefit.
Texas VA Loan FAQs
Can I use a VA loan in San Antonio near JBSA?
Absolutely. San Antonio is one of the busiest VA loan markets in the country due to Joint Base San Antonio — which includes Lackland AFB, Randolph AFB, and Fort Sam Houston. Local real estate agents and lenders are experienced with VA transactions. With full entitlement, there is no limit on your VA loan amount, and the Bexar County market is well within ranges where VA offers a decisive advantage over FHA.
Is the VA funding fee waived for Texas veterans with a disability rating?
Yes, if you receive VA compensation for a service-connected disability, or are eligible for it but receive retirement or active-duty pay instead — no minimum rating applies. On a $350,000 purchase with less than 5% down, that saves $7,525 (the 2.15% first-use fee). Surviving spouses receiving DIC, service members with a pre-discharge proposed or memorandum rating, and active-duty Purple Heart recipients are also exempt. Source: VA funding fee page.
How do Texas property taxes affect VA loan qualification?
Significantly. Texas’s estimated effective property tax rate is 1.49%. On a $350,000 home, annual taxes of about $5,215 add roughly $435 per month to your PITI payment. This directly increases your DTI ratio. Many Texas veterans qualify for a smaller loan than they expect because of the property tax escrow requirement. The $140,000 school district homestead exemption helps but does not eliminate this issue. Work with a lender who understands Texas property taxes when calculating what you can afford.
What is the VA loan limit in Texas?
There is no VA loan limit for veterans with full entitlement. With remaining (partial) entitlement, the county conforming limit applies: $832,750 in all 254 Texas counties in 2026.
