4 Texas Veteran Land Loan Facts You May Not Know
The Texas Veteran Land Loan program was introduced in 1949 to help Texas veterans secure a land in Texas. During the first few years, the programs offered loans up to $10,000 with a repayment period of up to 40 years. The program, however, changed over time and today the eligible veteran borrowers can obtain loans up to $150,000 at a fixed-rate 30 year loan term. In addition to this change, the land loan program went through various other modifications, too. Having said that, the post lists some lesser-known facts about Texas Veteran Land Loans. Let’s take a look.
1. Texas Veterans with a Single Day Residency Can Also Apply
When the program first came into being, only those veterans who began their duty in Texas were eligible for the Texas Veteran Land loans. The guidelines, however, changed over time and according to the latest guidelines all veterans who were, or are, a resident of Texas, even for a single day, are eligible for a Texas Veteran Land Loan. The only condition being that the veterans should have been on active duty for 90 days continuously, and should have been honorably discharged from duty
2. The Land Belongs to the Veterans From Day One
Previously, when a veteran borrower took a land loan, the financed land was held by the state of Texas. The state held the land till the time borrowers repaid the loan amount in full. The program administrators, however, realized that this clause was dissuading a lot of home buyers from obtaining Texas Veteran Land loans. As a result, the program was modified and according to the new rule, the land now belongs to the borrowers at the time of closing and the Texas government only hold the first lien.
3. Veteran Borrowers Can Obtain The Benefit More Than Once
As long as a veteran borrower has repaid their previous Texas Veteran Land (VLB) loan, they can apply for a fresh VLB loan. There is no limit to the number of times one can obtain a VLB loan. Most importantly, in addition to an existing VLB loan, an eligible veteran borrower can have an active loan under VLB sub-loan program.
4. The Minimum Land Size Should be One Acre
The VLB does not approve of lending loan for a land that is less than an acre in size. According to the US Department of Veteran Affairs, it is the borrower who needs to ensure that the land size is one acre or more. If the land has an area that falls beneath a navigable waterway or a dedicated public roadway, the VLB expects the veteran borrower to exclude it at the time of calculating the area of the land.
Last Few Words
While the good thing about Texas Veteran Land Loan Program is that it provides loans at competitive rates with relaxed terms and conditions, they are not available to everybody. These loans are available only to the veterans or their surviving spouses. If you are a veteran looking to buy a land in Texas, the Texas veteran land loan is a great option for you. If you aren’t a veteran, and therefore, aren’t eligible to obtain a Texas Veteran Land Loan, you can consult a mortgage expert who can help you find the best available loan option based on your requirement.