Texas Veterans Land Board
In certain circumstances it may be very beneficial for Texas veterans to use a special benefit only available to Texas veterans through the Texas Veterans Land Board. Typically when a veteran has a 30% service related disability rating or when a veteran is in the reserves and has the potential to be deployed. Contact one of our Texas VA home loan specialist to see if you qualify for this unique Texas VA benefit. To contact us now call 888 295-4055 or click here to send email.
Since the days of the Republic, Texas has always supported her veterans in return for their military service. In the early days, it was in the form of land given by the state for military service in the Texas Revolution. In 1946, this tradition was formally recognized with the creation of the Texas Veterans Land Board (VLB) to administer benefits exclusively for Texas veterans. Since then, more than 200,000 VLB loans have been funded for Texas veterans.
For over half a century, the VLB has been keeping the promise to serve Texas veterans, for life
A VLB Home Loan may be used to purchase a home that meets these requirements:
- Must be the veteran’s primary residence
- Must be located in Texas
- Must be a single family attached or detached home, town home, or condominium
- Duplexes or other multi-family units must have been constructed at least five years prior to the closing date of the loan.
- Manufactured / modular homes may be eligible. Contact the VLB or participating lender to confirm.
- All new construction homes must meet:
- The Environmental Protection Agency’s (EPA) guidelines for ENERGY STAR® qualified homes, and must be ENERGY STAR® labeled and certified; OR
- A HERS Index Score of 75 or less following the RESNET National Home Energy Rating Standards and must have an energy rating Certificate that documents the HERS Index score of 75 or less
The VLB offers several discounts to the available base rate for Home and Home improvement Loans. NOTE: All Texas Veterans Land Board loans are subject to credit approval.
Disabled Veterans Discount
Veterans with disabilities may qualify for an interest rate reduction on their VLB Home or Home Improvement Loans. The veteran must have a compensable service-connected disability of 30 percent (30%) or greater as verified by an Award Letter from the Department of Veterans Affairs (VA). The reduction is a full 50 basis points, or one-half of one percent on the available VLB loan interest rate. If you have any questions about the required documentation, please contact the VLB.
Of course, the veteran must also meet all other eligibility requirements for these loans to qualify for the discount.
Unmarried Surviving Spouse Discount
To honor our Texas veterans, the VLB offers a substantial interest rate reduction on Home and Home Improvement Loans to the unmarried surviving spouse of any service member who was killed in the line of duty (service member must have been a legal resident of Texas at the time of death). The reduction is a full 50 basis points, or one-half of one percent on the available VLB loan interest rate.
An unmarried surviving spouse of a veteran who is missing in action, or who died in the line of duty, or died from a service-connected cause and had a compensable service-connected disability rating of 30% or greater (as verified by an Award Letter from the VA) at the time of death and was a legal resident of Texas is also eligible for the discount.
This reduction can result in a savings of tens of thousands of dollars for qualifying applicants. The surviving spouse must meet all other eligibility requirements for the Home and Home Improvement Loan programs. Please contact the VLB if you have any questions.
Called up? We can help…
Texas Reservists and National Guard troops called to active duty in support of Operation Iraqi Freedom have one less thing to worry about if their home or home improvement loan is through the VLB. The VLB has a special way to help
Texas Reservists and National Guard troops with a VLB Home or Home Improvement Loan may be able to defer interest payments when called up for active duty, thanks to the Servicemembers Civil Relief Act (SCRA).
Participants who meet the eligibility requirements of the applicable provision of the SCRA can save thousands of dollars and don’t have to repay the interest after returning to civilian life. The VLB’s goal is to lower monthly expenses for military men and women called up for future contingencies, because their incomes are typically much lower until they return to civilian life.
This program also lets many Reservists and National Guard members defer their entire monthly payments on VLB Land loans, as long as they’re on active duty.
If participants choose to continue principal payments while on active duty or during the three-month grace period following deactivation, their payments will go toward reducing the principal balance of their loans. Veterans who have participated in the program have greatly reduced their principal balances by continuing to make payments.
- Policy for VLB Home and Home Improvement Loans: Participants pay only the principal portion of their loans and any required escrows for taxes and insurance as long as they’re on active duty, plus a three-month grace period following deactivation. For nine months following the grace period, the interest rate will be no more than 6%. After that time, the interest rate and standard payment will return to normal.
- Policy for VLB Land Loans: The entire monthly payment is deferred for most participants, however; for those loans that require escrow payments, the principal and escrow portion of the payment must continue to be paid each month, plus a three-month grace period following deactivation. For nine months following the grace period, regular payments will resume, but the interest rate will be no more than 6%. After that time, the interest rate and standard payment will return to normal. If participants choose to continue principal payments while on active duty or during the three-month grace period, their payments are applied to the principal balance of their loans.
How To Apply
Eligible Reservists and National Guard members who want to reduce or defer loan payments should send a copy of their orders showing activation date. Remember to include your loan number for proper identification. Send to:
Texas Veterans Land Board
1 Corporate Dr., Suite 360
Lake Zurich, IL 60047-8945
Additional information on the program and federal protections is available. For more info contact the VLB at
Information on this page was originally obtained from the Veterans Land Board website.