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VA Home Loans in Texas: Complete Guide for Military Families (2025)
Everything active duty service members, Veterans, and their families need to know about using VA loans to buy a home in North Texas.
Jaclyn Peace
Licensed Texas Realtor & VA Loan Specialist
As a VA Loan Specialist serving the North Texas area, I've had the honor of helping hundreds of military families, Veterans, and surviving spouses achieve homeownership. The VA home loan is one of the most powerful benefits available to those who've served our country—and in Texas's competitive real estate market, it can make all the difference. This comprehensive guide will walk you through everything you need to know about using your VA loan benefit in the Lone Star State.
What is a VA Home Loan?
A VA home loan is a mortgage loan program backed by the U.S. Department of Veterans Affairs, designed to help Veterans, active-duty service members, and eligible surviving spouses buy, build, improve, or refinance a home. The VA doesn't actually provide the loan—private lenders do—but the VA guarantees a portion of the loan, which allows lenders to offer you better terms than conventional mortgages.
Key Benefits of VA Loans
- No Down Payment Required: Nearly 90% of VA loans are made with $0 down
- No Private Mortgage Insurance (PMI): Save hundreds per month
- Competitive Interest Rates: Often lower than conventional loans
- Limited Closing Costs: The VA limits what you can be charged
- No Minimum Credit Score: VA doesn't require one (though lenders might)
- Reusable Benefit: You can use your VA loan benefit multiple times
Who is Eligible for a VA Loan?
To use a VA home loan, you must obtain a Certificate of Eligibility (COE) that proves you meet the service requirements. Here's who qualifies:
Veterans
You may qualify if you served and meet one of these requirements:
- 90 consecutive days of active service during wartime
- 181 days of active service during peacetime
- 6 years of service in the National Guard or Reserves
- Discharged due to a service-connected disability (regardless of length of service)
Active-Duty Service Members
If you're currently on active duty and have served at least 90 continuous days, you may be eligible for a VA loan. This is an incredible benefit for those stationed at or near military installations in North Texas like Naval Air Station Fort Worth Joint Reserve Base (NAS Fort Worth JRB).
National Guard and Reserve Members
You may qualify if you've completed at least 6 years of service in the Selected Reserve or National Guard, or if you were discharged honorably.
Surviving Spouses
You may be eligible if you are:
- The surviving spouse of a Veteran who died in service or from a service-connected disability
- The spouse of a service member missing in action or a prisoner of war
- Receiving Dependency and Indemnity Compensation (DIC)
How to Get Your Certificate of Eligibility (COE)
You'll need a COE to show lenders you qualify. You can get it three ways:
- Online: Apply through the VA's eBenefits portal (fastest method)
- Through your lender: Most VA-approved lenders can obtain it for you
- By mail: Complete VA Form 26-1880 and mail with required documents
Processing time: Online applications are often instant; mail applications can take several weeks.
Understanding VA Loan Limits and Entitlement in Texas
As of 2020, the VA eliminated loan limits for Veterans with full entitlement, meaning there's technically no cap on how much you can borrow. However, your lender will still determine your loan amount based on your income, credit, debts, and assets.
What is Entitlement?
Entitlement is the amount the VA will guarantee to your lender if you default on your loan. There are two types:
- Basic Entitlement: $36,000 (for loans up to $144,000)
- Bonus Entitlement: Additional guarantee for loans over $144,000 (typically 25% of the loan amount)
Texas County Loan Limits for 2025
While there's no longer a cap for those with full entitlement, county loan limits still matter if you're using your benefit for a second time or have reduced entitlement. In North Texas, conforming loan limits vary by county:
| County | 2025 Conforming Loan Limit |
|---|---|
| Dallas County | $806,500 |
| Tarrant County | $806,500 |
| Collin County | $806,500 |
| Denton County | $806,500 |
Note: These are standard conforming limits. Check with the Federal Housing Finance Agency (FHFA) for the most current county limits.
VA Funding Fee: What You Need to Know
The VA funding fee is a one-time payment that helps offset the cost of the VA loan program for taxpayers. The fee amount depends on several factors including your service category, down payment amount, and whether it's your first time using a VA loan.
2025 VA Funding Fee Rates
| Loan Type | Down Payment | First-Time Use | Subsequent Use |
|---|---|---|---|
| Purchase/Construction | Less than 5% | 2.15% | 3.3% |
| Purchase/Construction | 5% to 9.99% | 1.5% | 1.5% |
| Purchase/Construction | 10% or more | 1.25% | 1.25% |
| Cash-Out Refinance | N/A | 3.3% | |
| Interest Rate Reduction Refinance (IRRRL) | N/A | 0.5% | |
Who is Exempt from the Funding Fee?
You won't have to pay the VA funding fee if you:
- Are receiving VA compensation for a service-connected disability
- Are eligible to receive compensation but receiving retirement or active-duty pay instead
- Are a surviving spouse receiving Dependency and Indemnity Compensation (DIC)
- Have a service-connected disability rating (Purple Heart recipients are exempt)
Pro Tip: Rolling the Funding Fee Into Your Loan
You can finance the VA funding fee into your loan amount, meaning you don't have to pay it out of pocket at closing. For example, on a $300,000 home with a first-time funding fee of 2.15%, the fee would be $6,450. You can add this to your loan balance and pay it off over the life of your mortgage.
Using Your VA Loan in North Texas: Local Advantages
North Texas offers unique advantages for VA loan users, making it an ideal place for military families to put down roots.
Military Installations and Communities
- Naval Air Station Fort Worth Joint Reserve Base (NAS Fort Worth JRB) - Located in western Fort Worth, this installation makes nearby communities like Benbrook, White Settlement, and Lake Worth popular with military families.
- Texas Army National Guard facilities throughout the DFW area provide convenient access to service.
- Military-friendly communities like Burleson, Cleburne, and Benbrook offer strong support networks for service members.
No State Income Tax
Texas is one of the few states with no state income tax, which means more of your BAH (Basic Allowance for Housing) and salary stays in your pocket. This can significantly increase your buying power compared to other states.
Texas Property Tax Exemptions for Veterans
Texas offers generous property tax exemptions for disabled Veterans:
- 10-29% disability rating: $5,000 residence homestead exemption
- 30-49% disability rating: $7,500 exemption
- 50-69% disability rating: $10,000 exemption
- 70-100% disability rating: $12,000 exemption
- 100% disabled or unemployable rating: Total property tax exemption on your residence
- Surviving spouse exemption: Full exemption if spouse was 100% disabled at time of death
Important: Apply for Your Texas Veteran Property Tax Exemption
These exemptions aren't automatic! You must file an application with your county appraisal district. Bring your DD-214, VA disability award letter, and proof of residency. This can save you thousands of dollars annually.
Common VA Loan Myths Debunked
Let's clear up some misconceptions that might be holding you back from using your hard-earned benefit:
Myth #1: "VA loans take longer to close than conventional loans"
Reality: With an experienced VA-approved lender and realtor (like me!), VA loans typically close in 30-45 days—the same as conventional loans. The key is working with professionals who know the VA loan process inside and out.
Myth #2: "Sellers won't accept VA loan offers"
Reality: In North Texas, most sellers and listing agents are familiar with VA loans and welcome them. With proper representation, your VA offer can be just as competitive as any other—sometimes more so since you're pre-approved and have strong backing.
Myth #3: "The home has to be in perfect condition"
Reality: While the VA does require the home to be safe, sound, and sanitary (meeting Minimum Property Requirements), this doesn't mean it has to be brand new or perfect. Most homes on the market meet these standards. I help my clients understand what to look for.
Myth #4: "You can only use your VA loan once"
Reality: Your VA loan benefit is reusable! Once you pay off your VA loan or sell the property, your entitlement is restored and you can use it again. Some Veterans even use their benefit simultaneously on multiple properties.
Myth #5: "VA loans are only for first-time homebuyers"
Reality: VA loans aren't limited to first-time buyers. Whether you're buying your first home, moving up to a larger property, or purchasing a second home, you can use your VA loan benefit.
The VA Loan Process: Step by Step
Get Your Certificate of Eligibility (COE)
Apply online through eBenefits, through your lender, or by mail. This proves to lenders you're eligible for VA loan benefits.
Get Pre-Approved by a VA-Approved Lender
Not all lenders participate in the VA loan program. Find a lender experienced with VA loans who will verify your income, credit, and debt-to-income ratio to determine how much you can borrow.
Find a VA-Experienced Real Estate Agent
Work with an agent (like me!) who specializes in VA loans and understands the unique aspects of the process. We'll help you find homes that meet VA requirements and negotiate effectively.
Make an Offer
When you find the right home, we'll submit a competitive offer. With your pre-approval letter and COE, sellers will take your offer seriously.
VA Appraisal
The lender will order a VA appraisal to ensure the home meets Minimum Property Requirements (MPRs) and is worth the purchase price. This protects both you and the VA.
Underwriting
Your lender's underwriter will review all your documentation and the appraisal to make a final lending decision.
Clear to Close
Once underwriting approves your loan, you'll get "clear to close" status. Schedule your closing date!
Closing Day
Review and sign all documents, pay any closing costs, and get your keys. Welcome home!
Best North Texas Neighborhoods for Military Families
Based on proximity to military installations, quality schools, amenities, and affordability, here are my top recommendations:
Benbrook
Close to NAS Fort Worth JRB, excellent schools, and Benbrook Lake for outdoor recreation. Strong military community.
Median Home Price: $315,000
Burleson
Growing city south of Fort Worth with excellent schools, family-friendly amenities, and strong community feel.
Median Home Price: $330,000
Weatherford
Charming county seat west of Fort Worth with top schools, great for those who want quality of life and community.
Median Home Price: $340,000
Cleburne
Historic downtown, affordable housing, family-oriented community with good schools and local amenities.
Median Home Price: $290,000
Aledo
Top-rated schools, safe neighborhoods, and strong sense of community. Great for families prioritizing education.
Median Home Price: $550,000
Granbury
Beautiful lake community with historic downtown, excellent schools, and peaceful living near the water.
Median Home Price: $350,000
Tips for Using Your VA Loan in a Competitive Market
North Texas real estate can be competitive. Here's how to make your VA loan offer stand out:
Show sellers you're a serious, qualified buyer.
Share your military service and why you love the home. Many sellers appreciate supporting those who've served.
Accommodating the seller's preferred timeline can make your offer more attractive.
While not required, a strong earnest money deposit shows you're committed to the purchase.
We know how to position your offer competitively and educate listing agents about VA loans.
If you're confident in the home, consider waiving minor contingencies (but keep your inspection contingency!).
Frequently Asked Questions About VA Loans in Texas
Can I buy a fixer-upper with a VA loan?
Generally, no. The home must meet VA Minimum Property Requirements at the time of purchase. However, the VA Renovation Loan program allows you to finance both the purchase and renovations in one loan for homes that need work.
Can I use a VA loan to buy a rental property or investment property?
No. VA loans require you to occupy the home as your primary residence within 60 days of closing and live there for at least one year. However, you can rent out the property after you've met the occupancy requirement, and you can buy a multi-unit property (up to 4 units) as long as you live in one unit.
What if I'm stationed overseas but want to buy in Texas?
You can still use your VA loan even if you're stationed elsewhere. The 60-day occupancy requirement can be met by your spouse or dependent. I work with many buyers remotely through video calls and digital signatures.
Can I buy a home with my spouse who isn't a Veteran?
Yes! Your non-Veteran spouse can be a co-borrower on the loan. However, you'll still need to meet VA eligibility requirements, and the lender will consider both incomes and credit scores.
How long does VA loan approval take?
With a complete application and all required documents, the VA loan approval process typically takes 30-45 days from contract to closing. Getting your COE ahead of time and working with an experienced team can expedite this.
What credit score do I need for a VA loan?
The VA doesn't set a minimum credit score, but most lenders require at least 620. Some lenders may work with scores as low as 580. If your credit needs improvement, I can connect you with resources to help.
Additional Texas Benefits for Veterans
Beyond the VA loan program, Texas offers numerous benefits for Veterans:
- Texas Veterans Land Board (VLB) Loans: Additional loan programs for land, home improvement, and home purchases with competitive rates
- Property tax exemptions: As detailed earlier, significant savings on property taxes based on disability rating
- Veteran Employment Services: Priority job placement and training programs
- Education benefits: Hazlewood Act provides up to 150 credit hours of tuition exemption at Texas public colleges
- Vehicle registration fee exemption: Disabled Veterans may qualify for free vehicle registration
- Free hunting and fishing licenses: For Veterans with service-connected disabilities
Why Work With a VA Loan Specialist?
Not all real estate agents understand the nuances of VA loans. As a VA Loan Specialist with over six years of experience helping military families in North Texas, I provide:
Expert knowledge of VA loan requirements and processes
Strong relationships with VA-approved lenders
Experience negotiating with sellers on behalf of VA buyers
Understanding of military lifestyle and unique needs
Knowledge of military-friendly neighborhoods and schools
Commitment to serving those who've served our country
Ready to Use Your VA Loan Benefit?
As a VA Loan Specialist and licensed Texas Realtor, I'm honored to help military families, Veterans, and surviving spouses achieve homeownership in North Texas. Let's put your hard-earned benefits to work and find you the perfect home!
Sources and Additional Resources
Research and Official Sources:
- U.S. Department of Veterans Affairs: VA Housing Assistance - Home Loans
- VA Home Loan Benefits: VA Home Loan Program
- VA Funding Fee Information: VA Funding Fee and Closing Costs
- VA Loan Limits: VA Home Loan Entitlement and Limits
- Texas Veterans Commission: TVC Benefits and Services
- Texas Veterans Land Board: VLB Loan Programs
- Federal Housing Finance Agency: Conforming Loan Limits by County
All information current as of October 2025. VA loan requirements, funding fees, and benefits are subject to change. Consult with your VA-approved lender and VA regional office for the most current information.
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Jaclyn Peace
Licensed Texas Realtor & VA Loan Specialist
With over a decade of experience in Fort Worth area real estate, I specialize in helping military families, first-time buyers, and investors find their dream homes. As a VA Loan Specialist, I'm passionate about serving those who've served our country.