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How To Buy a Home With a Texas Vet loan in The Woodlands

By Henry D

Mortgage and Lending NMLS #209419

November 12, 2010 01:41 AM

The Texas Veteran Land Board Mortgage program is one of the best mortgage programs for Texas veterans.

This fantastic program should not be confused with a VA or Veterans Association Home loan or mortgage. The Texas Veterans Land Board or TVLB Program is otherwise know as the Veterans Affordable Housing program or VHAP. Texas is one of only five states with such a Veterans Mortgage Loan Program. This program is for the benefit of over 1.7 million Veterans in Texas and whose who when leaving active duty want to reside in Texas. Did you know that Texas has the third largest Veteran Population and over 130,000 National Guard members and Reservists?

First I will clarify probably the biggest point of confusion with a VHAP loan. That is that you must qualify for a VA, FHA or conventional loan first. You see the VHAP program only guarantees your interest rate and not the loan itself. In addition you must qualify for participation in the TVLB/VHAP. It sounds complicated but it requires only one additional form so it is not something that will complicate the loan process. In addition all TVLB/VHAP loans are subject to credit approval.

What the program is:

Allows you to purchase a primary new or existing residence of up to $325,000
TVLB/VHAP mortgage loan may be used to pay off a construction loan
Mortgage Loans available with 15, 20, 25 or 30-year terms
Loans are originated ONLY through authorized land board participants.
Separate from the VA so you may qualify for either a FHA or Conventional loan and utilize the VHAP to obtain a lower rate
All new-construction homes financed through the Texas Veterans Housing Assistance Program (VHAP) must meet the U.S. Environmental Protection Agency's (EPA) guidelines for ENERGY STAR® qualified homes. This includes completion of the Thermal Bypass Checklist, by a certified Home Energy Rating System (HERS) Rater, prior to wallboard being installed. The guidelines and Thermal Bypass Checklist may be found at: www.energystar.gov

What the TVLB or VHAP program is NOT:

Is not a refinancing program and may only be used as a first mortgage loan on your primary residence
Is not a construction loan program - Note: you may buy a newly constructed home but you may not finance the construction of that home with this loan
Contrary to the name this is not a exclusively a Land Loan Program. The land board has a separate program located here.
The loan must be for a minimum of $50,000. Loans below this amount are handled by the land board directly
Is not a home improvement program. These loans are handled by the land board directly. More information is located on their web site.
Financing for two or more unit properties.

What are the benefits

Mortgage Interest rates may be at or below market
Mortgage Fees are restricted by the Veterans Land Board
Disabled Vets: Veterans with compensable service-connected disability of 30% or greater as verified by an Award Letter from the Department of Veterans Affairs (VA) may receive an additional 0.50% discount in the interest rate. Disabled vets also get a break on their property taxes.
Interest Rates are set weekly and are posted here.

Now that I have covered the basics of a Texas Veterans Land Board Mortgage Loan otherwise known as Veterans Affordable Housing program or VHAP in my next post I will cover the details on qualification and expected fees that the TVLB specifies. Until next time I leave with the same greeting that I give all of my veteran clients and that is "Thank you and your Family for your service" we owe each and every one of you a great debt of gratitude for our freedom.

-Henry