Guide to VA Home Loans in Houston | Best VA Mortgage Lenders in Houston [2022]

Guide to VA Home Loans in Houston

Houston, Texas: home to the Space Center, Grand Opera, and Southern hospitality. If you’re a veteran looking to purchase a home in Houston, you’re probably researching VA Home Loans and the best VA mortgage lenders in Houston. 

VA Home Loans help veterans and active-duty military members acquire a home loan with great mortgage rates, no PMI, and no down payment. Sounds too good to be true? Let’s review exactly what a VA Loan can do for you in Houston–and the best VA mortgage lenders in the area. 

Want to learn about the best VA mortgage lenders in all of Texas? Head here!

What are VA Loans? 

The VA Loan is a mortgage option that requires zero down payment. With backing by the U.S. Department of Veterans Affairs, VA Loans are issued by a mortgage company or a bank, which are private lenders. To date, the VA Loan program has resulted in more than 25 million houses for active-duty service members, veterans, and their spouses and families.

Created in 1944 by the United States government in the wake of the Great Recession, the VA Loan was designed to assist returning service members looking to buy a home without necessarily having built up good credit or having the savings for a down payment. 

With a VA Loan, retired, active service-members and surviving spouses get competitive interest rates while putting no money down. You also won’t be required to pay private mortgage insurance, which would be the case if you didn’t put 20% down on a conventional loan.

VA Home Loan Benefits:

  • No down payment needed
  • No private mortgage insurance (PMI) or mortgage insurance premiums
  • Average interest rates are lower
  • Absence of prepayment penalty
  • Lower closing costs
  • Large selection of purchase and refinancing options
  • For veterans who have entitlement remaining, VA Loans are reusable

VA Home Loan Limitations:

  • The VA Loan funding fee might be higher in each subsequent use if the previous loan is not paid off 
  • Only viable for people associated with the armed forces of the country
  • VA Loans are not offered by all mortgage lenders (but they are at Hero Loan)

How do I qualify for a VA Loan in Houston, Texas? 

A common misconception is that the VA Loan is put together by the Department of Veterans Affairs, but they’re actually offered by private lenders and then guaranteed by the Department of Veterans Affairs. This means that you’ll need to find a qualified lender in your state to put together a VA Loan for you. For example, Hero Loan offers VA Loans for states all across the country–including Texas. 

To qualify for VA Loan benefits, you need to know if you fulfill the VA Loan eligibility requirements or not. These include:

  • Duty status
  • Length of service
  • Character of service

For service members and veterans who are on active duty, their history of active-duty service should 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

Qualified veterans will then need these documents to further determine eligibility

  1. Certificate of Eligibility (CEO): 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.

Houston VA Regional Loan Center

A VA Regional Loan Center can help VA loan borrowers by offering the tools needed to assist a VA loan borrower with the VA loan assigned to the particular regional loan center. VA Regional Loan Center’s help veterans understand their home loan benefits as well as help in the procurement of eligibility documents.

The following VA home loan and housing benefits/services are available at the Houston VA Regional Loan Center:

  • Adapted Housing Grants
  • Interest Rate Reduction Refinance Loan
  • Cash Out Refinance
  • Purchase Loans
  • Native American Direct Loan Program

Jurisdiction of the House VA Regional Loan Center is as followed:

  • Arkansas
  • Louisiana 
  • Oklahoma
  • Texas

Address

Department of Veterans Affairs

VA Regional Loan Center

6900 Almeda Road

Houston, TX 77030-4200

What are VA Mortgage Lenders? 

VA mortgage lenders are (as it might sound) mortgage lenders that offer VA Loans. Not all mortgage lenders offer VA Loans because they must be approved by the Department of Veteran Affairs, who guarantees the loan. 

Steps to finding the best VA mortgage lender in Texas

  1. Check your eligibility. Not all veterans and service members are eligible for a VA home loan. You must have served in the military for a certain amount of time and meet other requirements. You’ll be required to produce a Certificate of Eligibility which is dependent on total time of service and which branch you are in. At Hero Loan, we work with you every step of the way to obtain this paperwork and apply for your COE. But if you’ve already got it, that’s great!
  2. Get your documentation ready to go for your mortgage company, like tax documents, pay stubs, W2s, bank records, and more. Check out our handy guide on How to Acquire a VA Loan here.
  3. Compare lenders and what each respective lender is offering. 
  4. Choose the Houston VA mortgage lender that suits your needs. 

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. And you can get started with their 5-Minute Loan Approval* application right now! 

Best VA Mortgage Lenders in Houston, Texas

When you’re looking for a VA Home Loan in Houston, you want the best VA mortgage lender to suit your needs. 

Hero Loan

Hero Loan–one of the fastest growing lending platforms in the country–serves active- duty military, veterans, and their families to provide fast, personalized loan services.

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. We underwrite all VA Loans in house, meaning lower mortgage rates and no upfront or out of pocket costs—that includes 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 the website to fill out a few preliminary details and apply for the loan or service that you have chosen. From there, a loan officer will be assigned to you who will take you through the minutiae and explain the details of the loan that you are about to borrow.

In addition, we’ll 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 takes 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 (we pay for appraisal) 

Cons: 

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

[Get Started with Hero Loan]

The Home Loan Expert 

If you’re looking to get a VA Home Loan in Texas then you can’t go wrong with The Home Loan Expert. The Home Loan Expert keeps everything as hassle-free as possible, featuring a seamless online experience and a plethora of options for mortgages and home loans. 

The best part is: they understand that the process of getting your first mortgage can feel like a lot. That’s why they work to ensure that the process of getting a VA home loan in Houston is as straightforward and approachable as possible. 

In addition to VA Loans, The Home Loan Expert also offers Adjustable-Rate Mortgages, Bank Statement Mortgages, Cash-Out Refinances, Conventional Loans, Debt Consolidation, FHA Loans, a First Responder Program, and a lot more. You can see them all here. 

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

Ready to learn more? To find out what rates you could qualify for, start 5-Minute Loan Approval* application right now!

Veterans United Home Loans

Veterans United Home Loans is a prime direct mortgage lender which specializes in VA mortgages, but also offers FHA, USDA, conforming, and jumbo mortgages. You can choose between: 

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

Unlike many other lenders, Veterans United Home Loans allows you to apply for mortgage credit data, which is not your primary credit data. For instance, you could potentially show proof that you usually take care of your bills on time. This makes this particular lender a good option if you have a lower than optimum credit score.

Pros: 

  • Convenient application online or at a brick and mortar location
  • Has other loan options apart from VA Home Loans 
  • Can use alternative forms of credit (like utility bills) because you have a low or no credit score

Cons: 

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

Texas Premier Mortgage

Texas Premier Mortgage offers home equity loans, purchase and refinancing in Houson and other surrounding areas. Texas Premier Mortgage offers conventional, FHA, VA, Jumbo and USDA mortgage loans. 

Pros: 

  • A local company so familiar with requirements in Texas 

Cons: 

  • Mortgage rates are not readily available online for easy access
  • Unclear if they are a mortgage broker or lender

Guaranteed Rate

Founded in 2000, Guaranteed Rate is a Chicago-based lender that provides services all over the US. Guaranteed Rate offers several different loan options which include conventional, Jumbo, FHA, VA, interest-only, personal, fixed and ARM loans. Guaranteed Rate requires a minimum credit score of 620 for all loans except VA loans which require a minimum credit score of 580. 

Pros: 

  • Available in all U.S states, not just Texas
  • Advanced digital capabilities for an easy application process

Cons: 

  • Limited loan options
  • High credit score requirements may not be ideal to some borrowers 

Texas United Mortgage

Texas United Mortgage provides services in Houston as well as across Texas. They offer conventional, FHA, VA, USDA, reverse mortgage and jumbo loans. Aside from home loans they also offer refinancing services in the Houston area. 

Pros: 

  • Easy to use online application
  • Texas company so familiar with Texas requirements 

Cons: 

  • Common loan types like home equity and construction not available 

Conclusion: Best Mortgage Lender for VA Home Loans in Houston

The best VA mortgage lenders in Houston should not only offer great VA Home Loan options, but also guide you through the entire VA Home Loan process. At Hero Loan, we built our Hero Loan program from the ground up to serve the needs of those who have so bravely served our country. 

And that’s why we complete your VA paperwork for you, help with your COE, pay your appraisal fees…and then close in as little as 14 days. Get started with our 5-Minute Loan Approval* application right now!