Guide to VA Home Loans in Texas | Best VA Mortgage Lenders in Texas [2024]

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Whether you’re currently part of the United States military, or are a United States veteran, you and your family should take advantage of VA Loans for purchasing a home. 

Our government earnestly backs VA Loans, which means that the rates for these loans are lower than a conventional loan, providing better and more affordable opportunities for you and your family. 

But, what mortgage lender should you use to get the best VA Home Loan in Texas? 

Though VA Loans can be notoriously harder to close, choosing a Texas mortgage lender that makes the process simple–like Hero Loan and The Home Loan Expert–will make getting VA funding for your dream home that much easier! 

What are VA Loans? 

The VA Loan is an option for a mortgage that requires no down payment at all. Some of the people who are eligible for this kind of loan are: 

  • Active-duty service members
  • Select military spouses 
  • Military veterans

What’s the difference between VA Loans and conventional loans? For starters, VA Loans are issued by private lenders, which are mortgage companies and banks. As a general rule of thumb, they bend to be backed by our government. 

VA Loans were conceived in 1944 by the US Government as initiatives for our military personnel. The goal was to aid our returning service members by helping them purchase a respectable primary residence for themselves–but without needing to be encumbered by the requirements of having a good line of credit or large down payments.

To date, this loan program has resulted in more than 25 million houses for active-duty service members, veterans, and their families. In the wake of the Great Recession, numerous prospective military and veteran homeowners found it significantly difficult to get decent home financing. 

Similarly, after the 2020 economic recession, many of the mortgage lenders tightened up their guidelines to the point where getting a home loan has become increasingly challenging. And that’s where VA Home Loans step in.

Texas VA Loan Requirements 

VA Loans aren’t provided by the Department of Veteran Affairs. Instead, they’re put together by private lenders–and then guaranteed by the Department of Veteran Affairs. This guarantee makes them attractive to both lenders and borrowers alike. 

What this means is that you will have to find a suitable lender in your state to offer a VA Loan. Let’s say, for instance, you’re purchasing a nice home in Galveston. This means that you’ll need to find a VA mortgage lender who is licensed in Texas to do the loan for you. 

That said, prospective VA Loan borrowers in Texas should also keep in mind the funding fee, as well as the impact of the VA Loan limits and property taxes during their home purchase. This can take a relatively affordable home and make it somewhat steeper in price, so you’ll want to be mindful of this consideration.

As one of the Texas VA Loan requirements, there is no VA Loan limit in Texas. What this means is that you will be free to borrow as much as the lender that you go to is willing to lend you without any down payment. 

If you’re a VA buyer in Texas, another thing you might have to consider is the included property taxes. For certain VA buyers, there will be exceptions. For instance, you might be eligible for a tax exception pertaining to a VA Home Loan in Texas if you meet one of the following requirements:

  • If you are a 10% or more disabled veteran as a result of active service, you might be eligible for a $5,000 property tax exemption.
  • If you are 100% disabled as a result of active service, you might be eligible for a full property tax exemption.
  • Your surviving spouses and yourself might be eligible for assistance in the form of a homestead exemption if you are a 65-year-old veteran or older.

VA Loan Benefits:

  • No down payment is needed
  • No requirement for mortgage insurance premiums or private mortgage insurance
  • Lower average interest rates 
  • Absence of prepayment penalty
  • Lower closing costs
  • Large variety of purchase and refinancing options
  • VA Loans are reusable for veterans who have entitlement remaining
  • VA home appraisals are tougher to ensure the safety of military families when purchasing a home 

VA Loan Limitations:

  • Each subsequent use might increase the VA Loan funding fee
  • Only viable for people associated with the armed forces of the country
  • VA Loans are not offered by all mortgage lenders

How to Choose the Best VA Loan for You

  1. Use a VA Home Loan affordability calculator and crunch the numbers.
  2. Check and verify your credit score.
  3. Keep all your documentation organized and ready.
  4. Get your VA Certificate of Eligibility. Hint: if you’re working with a great VA Loan lender, they’ll do this part–and all other paperwork–for you!  
  5. Compare different VA Loan lenders and what each of them are offering. Texas mortgage lenders can vary, so look for ones that don’t require an appraisal fee, have faster closing times, and underwrite the loans in-house. 
  6. Choose the mortgage company that suits your needs. 
  7. Find the house of your dreams! 

Best VA Mortgage Lenders in Texas

Hero Loan

Hero Loan–one of the fastest growing lending platforms in the country–serves active- duty military, veterans, and their families. Their mission is to provide fast, personalized service while supporting Veteran-Owned businesses and events. 

As a direct-endorsed VA Lender, Hero Loan can close VA Loans in as little as 14 days–compared to most lenders that take up to 60 days. They underwrite all VA Loans in house, meaning lower mortgage rates and no upfront or out of pocket costs, including the appraisal. 

How It Works: 

Hero Loan has an enticing roster of loans and services that they offer. Apart from the standard VA Loan, some of these also include: 

  • VA Streamline Refinancing
  • Conventional Loan Refinancing
  • VA Cash-Out Refinancing 
  • FHA Loans

After you’ve made your choice, you can use their website to fill out a quick preliminary application, and then a loan officer will be assigned to you who will explain the details of the loan options and what will be the best fit. 

They also help you get the all-important VA Loan Certificate of Eligibility and fill out all the VA paperwork for you. After you’ve sorted out the necessary details, all that remains for you to do is wait till the loan is closed. But don’t worry–with Hero Loan that take as little as 14 days (compared to the standard two months)!

Pros: 

  • Complete all VA paperwork for clients 
  • Underwrite all VA Loans in-house
  • Can close VA Loans in as little as 14 days
  • No appraisal fees or out-of-pocket fees

Cons: 

  • Services are for active-duty military, veterans, and their families only

The Home Loan Expert 

If you’re looking to get a VA Home Loan in Texas, then you can’t go wrong choosing the team of professionals at The Home Loan Expert. 

Apart from assistance with VA Home Loans in Texas, the Home Loan Expert features an easy-to-use website with a variety of financially attractive options for home loans and mortgages. The Home Loan Expert was founded on the knowledge that the process of getting first mortgages can be tough–especially given the long list of requirements and checks that you have to pass. 

That’s why it keeps everything as straightforward and painless as possible, from their 5-Minute Loan Approval* application and competitive interest rates to unparalleled customer service and community-based loan officers. 

How It Works:

Through a multitude of programs like its Hero Loan program, The Home Loan Expert is more than well-equipped to provide assistance to the budding veteran and active-duty service homeowners. To qualify for VA Loan benefits, certain things are taken into consideration to ensure that you fulfill the Texas VA Loan eligibility requirements.

These might include:

  • Status of duty
  • Service length
  • Character of service

For service members and veterans who are on active duty, their history of active duty should ideally look like this:

  • At least 2 years if you are a regular service member
  • At least 6 years if you are a member of the National Guard or a Reservist
  • During times of war, at least 90 days of active-duty service
  • During times of peace, at least 181 days of active-duty service

Something that might affect the final decision is a service-related disability. Furthermore, interested veterans will need to apply or qualify for:

  1. Certificate of Eligibility: This document allows a lender to know that you satisfy either the military service or the surviving spouse requirements to be approved for the VA Home Loan that you’re looking for.
  2. Lending Requirements: While the qualifying guidelines vary from individual lender to individual lender, generally a credit score of around 620 is satisfactory, along with a debt to income (DTI) ratio of around 41% or lower. If you have more than enough residual income, exceptions to the DTI rule apply.

Pros: 

VA Interest Rate Reduction Refinance Loans and Cash-Out Refinancing options available

  • A robust Native American Direct Loan program at your disposal, if you need it
  • In case you need to accommodate a disability, house grants can be adapted
  • Includes a nifty VA Home Loan calculator, among others

Cons: 

  • You might be tempted to consider other types of loans from their varied roster, instead of the VA Home Loan that you wanted in the first place

Veterans United Home Loans

Veterans United Home Loans is a prime direct mortgage lender which is known for specializing in VA mortgages. It also offers FHA, USDA, conforming, and jumbo mortgages, as well.

How It Works:

Suppose you are looking to refinance a VA mortgage home loan in Texas. This means that you have a choice between:

  • VA IRRRL (Interest Rate Reduction Refinancing Loan), which is used to reduce the interest of the borrower, or to convert an ARM to FRM
  • Cash-Out Refinancing

Unlike a lot of different finance corporations, Veterans United Home Loans has provisions which allow you to apply for mortgage credit data. However, this is not to be confused with your primary credit data.

 For example, you could potentially show proof that you usually repay your bills on time. This makes this particular lender a decent option if you have a lower than optimum credit score. 

Pros: 

  • Provision to apply at a brick and mortar location or online 
  • Has other loan options apart from VA Home Loans 
  • Can use alternative forms of credit (like utility bills) because you have a lower than optimum credit score

Cons: 

  • No loan types like the home equity loan, home equity line of credit loan, or construction loan
  • Customized rates are not available online

Navy Federal Credit Union

Navy Federal Credit Union is a historic institution that has around 200 branches throughout the US, as well as nine in overseas locations and on US military bases. 

At Navy Federal, even if you have exhausted all of your VA Loan benefits, you just might qualify for a Military Choice Loan. This is a 30-year mortgage with no minimum down payment.

How it Works:

Apart from the standard Texas VA Loan requirements, you can also be eligible for a VA Home Loan if you live with a Navy Federal member. You will be able to qualify for Navy Federal membership even if you don’t fulfill all of the eligibility requirements for a VA Loan.

Also, you might qualify for a Homeowners’ Choice Loan, which bears a striking resemblance to Military Choice. Keep in mind that it’s made for people who do not meet the eligibility requirements for a VA Home Loan in Texas.

You will also be able to refinance any:

  • VA Loans
  • Conventional loans
  • Military Choice Mortgages
  • Homeowners Choice Mortgages

Navy Federal’s website has a relatively straightforward interface that allows for online pre-approval applications, making it somewhat easier to get financial assistance.

Pros: 

  • Option for a no-down-payment mortgage
  • Option to apply with alternative credit data
  • Smooth and simple online application process
  • More competitive rates than the other lenders

Cons: 

  • Certain loans like the USDA, FHA, home equity, construction loans, home equity line of credit, and reverse mortgages not available 
  • Membership is not easily available
  • Does not include a VA Home Loan calculator
  • You won’t be able to see the personalized rates before applying for the pre-approval process

PenFed Credit Union

As one of the older financial institutions, PenFed Credit Union was founded in 1935 in McLean, Virginia – just outside of Washington, D.C. The PenFed in their name refers to Pentagon Federal. 

For people delving into homeownership for the first time, PenFed offers a few options, like their First-Time Home Buyer Advantage program. This states that when the borrower completes their 60th on-time loan payment, they will be given $500 as a reward.

How It Works:

To join the bank, you don’t necessarily have to be associated with the military. As long as you open a savings account with a minimum of $5 as a deposit. 

However, you’ll also need to have a decent credit score to apply for a loan. 

Pros: 

  • Keeps VA, jumbo, conforming, or home equity line of credit as loan options
  • Refinancing options available for conventional and VA mortgages
  • Offers up to $2,500 in credit for people who apply for conventional or VA Loans

Cons: 

  • Doesn’t offer FHA, USDA, or new construction loans
  • Will not accept alternative forms of credit
  • You will need to be a member of the bank to get a home loan

Conclusion: Best Lender for VA Home Loan in Texas?

While you have your choice of VA Home Loan lenders across Texas, none of them compare to the friendliness and service offered by Hero Loan which includes: 

  • Incredible rates
  • Unmatched customer service
  • Extremely fast closing times (with their VA Hero Loan closing in as little as 14 days)
  • Years of experience in the industry
  • User-friendly website (full of amazing resources)

To get started now, you can begin the Hero Loan application today and learn your custom rate options.