Southlake, Texas has repeatedly been named one of the best places to live in the United States, and with close proximity to Fort Worth, residents are able to enjoy the comforts of suburban living while being part of a major metropolitan area. Fort Worth’s Naval Air Station is also close by which makes Southlake the first choice for many military families looking to buy a home.
For Texas veterans desiring to buy a home in Southlake and other North Texas communities, the state offers the Texas Veteran Home Loan program, a unique and highly beneficial home financing program designed to optimize a veteran’s home buying potential.
Why Choose a TexVet Loan?
The Texas Veteran Home Loan Program was established in 1983 by the Texas Veterans Land Bureau to allow veterans the opportunity to affordably achieve homeownership. Through the program, veterans may borrow up to $325,000 to purchase a home, and can do so without a down payment. Home prices in Southlake average just above $290,000 so with a TexVet loan veterans may finance the entire purchase of their home without having to worry about seeking additional funding. In addition to high loan limits and no down payment requirement, TexVet loans offer other benefits including:
• Below market interest rates
• Lenient eligibility requirements
• Flexible loan terms
Who Qualifies for a TexVet Loan?
With the exception of a few state specific requirements, the initial qualifications for a TexVet loan are very similar to a VA home loan and are determined by a veteran or active duty member’s duration of service. The initial qualification requirements that pertain only to the TexVet loan are as follows:
• Veterans must be Texas residents
• Veterans have to purchase a home in Texas
• The home being purchased must serve as the primary residence
• The home being purchased must be Energy Star certified if the home is new
What’s the Difference Between TexVet and VA Home Loans?
VA and TexVet home loans both provide veterans with the opportunity to purchase a home with zero money down, and allow them to acquire a low interest mortgage with flexible terms. Both programs strive to help veterans achieve homeownership, and generally have higher success rates than conventional lending programs. However, there are some key differences in each program which may make them more appealing to different borrowers. Such differences include:
• TexVet loans offer reduced interest rates to disabled veterans and surviving spouses
• VA Loans generally have higher loan limits and allow borrowers the chance to refinance
Veterans should contact an approved loan specialist for a consultation before applying to either program as a specialist will be able answer any additional questions and guide borrowers through the applications process. Potential borrowers should also note that most lenders will desire a mid-range credit score of at least 620 to secure financing, but even those with an imperfect credit history are still encouraged to apply.
“This post comes to you from James Kelley, an author of vabenefitblog.com and law school student at the University of Missouri.” firstname.lastname@example.org,