Today is a sad day for those of us who have made Tex Vet Loans a regular part of our program offerings. The Texas Veteran's Land Board has ended the rate discounts which were available on 15 year terms and for "service era" veterans (served during the Vietnam War and have been retired/discharged less than 30 yrs). Up until now there was no lower interest rate on a fixed term than a Texas Veterans subsidized loan to a "service era" veteran. The rates on these loans were almost always in the 4 percent range.
But the news isn't all bad. Texas Veteran's Land Board still has below market base rates, still has a rate reduction for veteran's with a service connected disability rating of 50% or higher, and VA still waives the funding fee for diabled veterans. Also, it is strongly rumored that in lieu of the "service era" discount, TX VET Land Board will lower the base rate significantly. This would help a much larger number of veterans, since the number of eligible "service era" veterans decreases significantly each year (mostly due to the <= 30 yrs since retirement/discharge requirement). TX Vet Land Board publishes the TX Veterans Housing Assistance rates (www.texasveterans.com, then "housing assistance", then "interest rates") every Friday at approximately 5pm (officially it's at the beginning of the first business day of the week). I'll post again, once we know what the policy rate change is going to be.
This program is still a fantastic benefit which Texas provides for our veterans, and I am unaware of any program like it in any other state. For almost all qualified veterans, the deal still doesn't get much better than what Texas Vet Financing affords to our TX Veterans.
If you are a Texas Veteran or know someone who is and could benefit from a below market rate loan for the purchase of a home, please call Marshall @ 210-274-3037 for more information.
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