Free educational tools for Texas home buyers · Identify federal, state, and local homeownership assistance programs you may qualify for. Educational information only - not a loan offer or guarantee of eligibility.
BluebonnetBuyer
← All programs
FederalVA Loan

VA Home Loan Guaranty

Zero down payment loans for eligible Veterans, active-duty service members, and surviving spouses. No private mortgage insurance (PMI) required.

Assistance0% down

Overview

The VA Home Loan is a benefit for eligible veterans, active-duty service members, National Guard, Reserves, and certain surviving spouses. It offers 0% down, no private mortgage insurance, and competitive rates underwritten with veteran-friendly guidelines.

How it works

  • The VA guarantees a portion of the loan, allowing lenders to offer 100% financing.
  • A one-time VA funding fee is charged (waived for disabled veterans).
  • Stackable with the Texas VLB rate discount and most Texas DPA programs.

Application process

  1. 1
    Take a HUD-approved homebuyer education course
    Required by nearly every Texas assistance program. Free or low-cost online. The certificate is good for two years.
  2. 2
    Get pre-qualified with a participating lender
    Not every lender is approved for VA Home Loan Guaranty. Ask directly: "Are you an approved lender for VA Home Loan Guaranty?" before submitting documents.
  3. 3
    Confirm income, price, and area limits
    Limits are set by household size and county. Have recent pay stubs, W-2s, and tax returns ready so the lender can verify in writing.
  4. 4
    Submit a complete loan + program application
    Your lender packages the underlying mortgage application and the program reservation together. Funding is first-come, first-served.
  5. 5
    Lock your funds and proceed to closing
    Once reserved, the assistance is held for a fixed window (typically 60-90 days). Coordinate the inspection, appraisal, and closing inside that window.

Eligibility at a glance

  • ✓Eligible service per VA Certificate of Eligibility (COE)
  • ✓Most lenders look for 580-620+ credit score
  • ✓Primary residence only
  • ✓Property must pass VA appraisal and minimum property requirements

Frequently asked questions

Does VA Home Loan Guaranty require me to be a first-time buyer?▾

Some programs are first-time-buyer only (no ownership in the prior 3 years); others serve repeat buyers within income limits. Confirm the rule with your approved lender before applying.

Can I combine this with other Texas programs?▾

In most cases, yes - one statewide program plus a local city/county program and an MCC tax credit is a common stack. State programs (TDHCA and TSAHC) usually cannot be combined with each other on the same loan.

Is this a grant I never repay, or a second loan?▾

It depends on the program and the option you choose. Many Texas programs offer a grant (never repaid) or a forgivable second lien (forgiven after 5-10 years of owner occupancy). Selling or moving early may trigger partial repayment.

How long does the application take?▾

From lender pre-qualification to closing, typical timelines are 30-60 days when documents are complete. Program reservation must stay active through closing.

Will using this program raise my interest rate?▾

Some assistance programs use a slightly higher base rate to fund the assistance. Compare the total cost with and without the program over your expected holding period before deciding.

Official source

U.S. Department of Veterans Affairs. Program details, income limits, and funding availability change. Always confirm current rules at the official program site before applying.

https://www.va.gov/housing-assistance/home-loans/ ↗