Understanding the difference between a VA Loan and a Texas Vet Loan
It is important for you to understand that a VA Loan and Texas Vet loan
are two different entities. Below is a brief explanation. You can get more
detailed information by clicking the links or by contacting a
Nelms Team representative.
VA Loans
The
U.S. Department of Veteran's Affairs offers a loan to veterans
up to $417,000 with little or 0 money down. The main purpose of the
VA home loan program is to help veterans finance the purchase
of homes with favorable loan terms and at a low rate of interest. For VA
housing loan purposes, the term "veteran" includes certain members of the
Selected Reserve, active duty service personnel and certain categories of
spouses. (Click this link:
VA-Guarantee Home Loans for Veterans to view the entire pamphlet.)
- Veterans may use this program more than once
- 100% financing without mortgage insurance
- Interest rates are not determined by credit scores provided the
Veteran has at least a 620 minimum score
- A co-borrower must be the legal spouse under VA program
parameters Widows of veterans may be eligible under the program
- The VA funding fee is waived for many disabled veterans
- The VA funding fee may be reduced by making a down payment
- Seller contributions may be negotiated to pay most or all of of your
closing costs
- There is no prepayment penalty
- Loan terms are based on a fixed rate mortgage
Texas Vet Loans
The
Texas Vet Loan program was created by The Texas Veterans
Land Board (VLB) in 1983. The Veterans Housing Assistance Program assists
Texas veterans in purchasing a home. In 1986, the VLB expanded the Veterans
Housing Assistance Program and added the Veterans Home Improvement Program
to provide below-market interest rate loans to qualified Texas veterans
for home repairs and improvements to their existing homes. To find out more
click this link:
How the Texas Veteran Housing Assistance Program Works.
