VA loans are one of the best mortgage programs available, offering zero down payment, competitive rates, and no private mortgage insurance. If you’re a veteran or active military member looking to buy a home in Texas, understanding your VA benefits can save you thousands. This guide covers everything you need to know about VA loans in Texas.
Key Takeaways
- VA loans require $0 down and no PMI, saving tens of thousands compared to conventional loans
- Veterans with service-connected disabilities (10%+) are exempt from the VA funding fee
- Texas offers property tax exemptions for disabled veterans—100% disability = full exemption on primary residence
- VA loan limits are $766,550 in most Texas counties (2025), but you can buy above this with a down payment
- Processing times are now comparable to conventional loans (30-45 days)
What is a VA Loan?
VA loans are backed by the Department of Veterans Affairs and designed to help military members, veterans, and eligible surviving spouses buy homes with favorable terms. Unlike conventional loans, VA loans don’t require a down payment or mortgage insurance.
Who Qualifies for a VA Loan?
You may be eligible if you meet one of these criteria:
- Active duty service members who have served 90 continuous days
- Veterans who served 90 days during wartime or 181 days during peacetime
- National Guard or Reserve members who served at least 6 years
- Surviving spouses of service members who died in the line of duty or from a service-related disability
You’ll need a Certificate of Eligibility (COE) to prove your service record. Most lenders can obtain this for you electronically in minutes.
Want to see what your monthly payment would be with $0 down? Try the mortgage calculator to estimate your costs.
Key Benefits of VA Loans in Texas
1. Zero Down Payment You can finance 100% of the home’s purchase price. In the DFW market where median home prices are around $350,000, that means you don’t need $70,000 saved for a traditional 20% down payment.
2. No Private Mortgage Insurance (PMI) Conventional loans with less than 20% down require PMI, which can add $100–$300+ to your monthly payment. VA loans don’t have this requirement, saving you thousands over the life of the loan.
3. Competitive Interest Rates VA loans typically offer lower interest rates than conventional loans because they’re backed by the government. Even a 0.25% rate difference can save you tens of thousands over 30 years.
4. Flexible Credit Requirements While conventional loans often require credit scores of 620–680+, VA loans are more forgiving. If you’ve had credit challenges, VA financing may still be available.
5. No Prepayment Penalty You can pay off your VA loan early without penalty, whether you’re selling, refinancing, or making extra principal payments.
Understanding the VA Funding Fee
The VA funding fee is a one-time cost that helps offset the program’s cost to taxpayers. It ranges from 1.4% to 3.6% of the loan amount depending on:
- Whether it’s your first VA loan or a subsequent use
- Your down payment amount (if any)
- Your military category (active duty, reserve, etc.)
Good news: The funding fee can be rolled into your loan amount, so you don’t pay it out of pocket at closing.
Better news: If you have a service-connected disability (10% or higher), you’re exempt from the funding fee entirely.
Schedule a Discovery Call to review your VA loan eligibility and calculate your exact costs.
Texas Property Tax Exemptions for Veterans
Texas offers some of the best property tax benefits for disabled veterans:
- 100% disability rating: Full exemption from property taxes on your primary residence
- 70-90% disability rating: $12,000 exemption from property value
- 50-69% disability rating: $10,000 exemption
- 30-49% disability rating: $7,500 exemption
- 10-29% disability rating: $5,000 exemption
These exemptions can save you thousands per year. If you qualify, apply through your county appraisal district after purchasing.
What This Means for Texas Veterans
A 100% disabled veteran in Dallas County buying a $300,000 home would pay $0 in property taxes annually—a savings of $6,000-$7,500 per year compared to non-exempt homeowners.
Even partial exemptions provide significant savings. A veteran with a 70% disability rating would save roughly $2,400-$3,000 annually in the DFW area.
Common Questions About VA Loans
Can I use my VA loan more than once? Yes. You can use your VA loan benefit multiple times as long as you’ve paid off previous VA loans or have remaining entitlement.
Do sellers prefer conventional buyers over VA buyers? VA loans used to have a reputation for slow processing, but that’s outdated. Processing times are now comparable to conventional loans (30-45 days). In competitive markets, a strong pre-approval can overcome any hesitation.
Can I buy a fixer-upper with a VA loan? VA loans require the home to meet minimum property requirements (MPRs). If the property has major issues like roof damage, foundation problems, or safety hazards, these must be repaired before closing. For turnkey homes, this isn’t an issue.
What if I’m relocating to Texas for work? Many of my clients are military members relocating to DFW bases (Fort Worth Naval Air Station, Dyess AFB) or veterans moving to Texas for civilian jobs. I work with out-of-state buyers regularly and can coordinate inspections, appraisals, and closing remotely.
Explore more guides on the blog or check the FAQ page for additional mortgage questions.
VA Loan Limits in Texas
For 2025, there’s no maximum loan amount if you have full entitlement and are putting $0 down. However, if you have reduced entitlement or are making a down payment, loan limits vary by county:
- Dallas, Fort Worth, Tyler: $766,550
- Most other Texas counties: $766,550
If you’re buying a home above these limits, you may need to make a down payment to cover the difference.
Real-World Example: VA Loan vs. Conventional
Let’s compare a $350,000 home purchase in the DFW area:
VA Loan ($0 down):
- Down payment: $0
- Loan amount: $350,000
- VA funding fee (2.15%): $7,525 (rolled into loan)
- No PMI
- Total financed: $357,525
- Monthly P&I + taxes + insurance: ~$2,600
Conventional Loan (5% down):
- Down payment: $17,500
- Loan amount: $332,500
- PMI: ~$200/month
- Total financed: $332,500
- Monthly P&I + taxes + insurance + PMI: ~$2,700
This is an example for illustration only. Actual rates, payments, and costs vary based on credit, income, and market conditions.
The VA loan eliminates the need for a $17,500 down payment and saves you PMI, even with the funding fee rolled in.
How to Get Started
If you’re ready to explore VA loan options:
- Obtain your Certificate of Eligibility (COE)
- Get pre-approved to understand your budget
- Find a lender experienced with VA loans to ensure smooth processing
- Apply for property tax exemptions if you’re a disabled veteran
I work with veterans and active military members throughout Dallas-Fort Worth, Tyler, Rockwall, Heath, Forney, and East Texas. I’ll walk you through your VA benefits, calculate your true monthly cost (including Texas property taxes), and help you understand what you qualify for.
Schedule a Discovery Call to discuss your VA loan options, or try the calculator to estimate your monthly payment with $0 down.
This article is for general education and is not financial advice. Loan terms, rates, requirements, and property tax exemptions are subject to change and individual qualifications.