Everything You Need to Know About VA Loans in Texas: The Ultimate Guide by Merchants Home Lending

If you're a veteran, active-duty service member, or a surviving spouse looking to buy a home in the Lone Star State, you've probably heard about VA loans Texas programs. These powerful mortgage options are backed by the Department of Veterans Affairs and are specifically designed to help those who have served our country become proud homeowners—without needing a down payment or perfect credit.

At Merchants Home Lending, we’ve guided thousands of Texans through the VA loan process, and in this guide, we’ll walk you through every detail you need to know. Whether you’re wondering how to qualify, what the VA loan requirements credit score are, or just want to explore the types of VA loans in Texas, this comprehensive article has everything you need.

What Are VA Loans in Texas?

VA loans in Texas are home loans offered by private lenders like us at Merchants Home Lending, but they’re partially guaranteed by the Department of Veterans Affairs. This means reduced risk for lenders, which translates to incredible benefits for borrowers—no down payment, no private mortgage insurance (PMI), and competitive interest rates.

How Do VA Loans Work in Texas?

If you qualify, the VA loan allows you to finance 100% of the home’s value. The VA provides a guarantee to the lender, so you're not required to bring money to the table like traditional mortgages. You also benefit from relaxed credit standards and lower closing costs.

VA Home Loan Benefits That Matter in Texas

Here’s why so many military families choose VA loans Texas programs over traditional mortgage options:

• 0% Down Payment: Keep your savings intact.
• No PMI: Save hundreds every month.
• Lower Interest Rates: Compared to FHA or conventional loans.
• Flexible Credit Standards: Easier to qualify than most other loan types.
• No Prepayment Penalty: Pay it off early with no penalty.
• Reusable Benefit: Use it multiple times over your lifetime.
• Foreclosure Avoidance Advocacy: VA helps struggling borrowers.

Types of VA Loans in Texas

There are several kinds of VA loans in Texas designed to meet different needs. Here’s a quick breakdown:

1. VA Purchase Loan

The most common option. This helps you buy a primary residence without needing a down payment or PMI.

2. VA Interest Rate Reduction Refinance Loan (IRRRL)

Also known as a VA streamline refinance, this helps lower your current interest rate with minimal documentation.

3. VA Cash-Out Refinance

Want to take cash out of your home's equity? This program allows it—even if your original loan wasn’t a VA loan.

4. VA Construction Loan

Planning to build your dream home? VA construction loans can finance the entire construction process.

5. Native American Direct Loan (NADL)

If you're a Native American veteran, this specialized loan helps you buy, build, or improve homes on federal trust land.

VA Home Loan Requirements in Texas

To secure a VA loan in Texas, you must meet certain service and property qualifications. Here’s what’s typically required:

Service Requirements

• 90 consecutive days of active service during wartime
• 181 days of service during peacetime
• 6+ years in the National Guard or Reserves
• Surviving spouses of service members who died in the line of duty or from a service-related injury

Property Requirements

• Must be your primary residence
• Must meet VA minimum property requirements (MPRs) for safety, soundness, and sanitation

VA Loan Requirements Credit Score: What You Need

There’s no official VA-required credit score, but most lenders require a minimum score. At Merchants Home Lending, we work with borrowers with credit scores as low as 580, though higher scores will secure better rates.

Pro tip: Pay down debts and correct credit report errors to boost your score before applying.

Understanding the VA Funding Fee in Texas

The VA funding fee is a one-time cost that helps keep the program running. It ranges from 1.25% to 3.3% depending on:

• First-time use or repeat usage
• Down payment amount (if any)
• Military service status (e.g., active duty vs. reservist)

Some veterans are exempt from the funding fee, such as those receiving VA disability compensation.

How Do I Qualify for a VA Loan in Texas?

Great question—and one we hear daily. Here's a simplified checklist:

1. Obtain your COE (Certificate of Eligibility)
2. Meet the service and credit score requirements
3. Choose a VA-approved lender like Merchants Home Lending
4. Get pre-approved to understand your budget
5. Find your Texas dream home
6. Complete the loan process and close

How to Get Your VA Home Loan Certificate of Eligibility

You need a VA home loan Certificate of Eligibility (COE) to prove you’re qualified for the program. You can get it in three ways:

• Through the VA’s eBenefits portal
• Through your lender (we can retrieve it instantly for you)
• By mailing VA Form 26-1880

Without this document, you won’t be able to officially move forward with the process.

VA Loan Calculator for Texas Homebuyers

A VA loan calculator helps estimate:

• Monthly mortgage payments
• VA funding fee
• Taxes and insurance

You can try our free calculator tool on the Merchants Home Lending website to get a quick estimate of what your monthly payment could look like with VA loans Texas programs.

VA Loan Limits in Texas (2025)

Since 2020, there are no official loan limits for eligible veterans with full entitlement. However, lenders may impose internal limits based on factors like income, credit score, and property value.

For those with remaining entitlement, the 2025 conforming loan limit in most Texas counties is $766,550—but it may vary in high-cost areas.

VA Loans in Texas vs. Conventional Loans

Clearly, VA loans in Texas offer substantial advantages for those who qualify.

Texas Cities Popular with VA Homebuyers

Some Texas cities stand out when it comes to military-friendly communities and VA loan homeownership:

• San Antonio – Home to Joint Base San Antonio
• Killeen – Near Fort Cavazos (formerly Fort Hood)
• El Paso – Close to Fort Bliss
• Corpus Christi – Coastal living with NAS Corpus Christi
• Houston & Dallas-Fort Worth – Urban amenities, VA hospitals, job markets

How Merchants Home Lending Makes VA Loans in Texas Easy

We’re proud to specialize in VA loans in Texas and work tirelessly to help every eligible veteran, active-duty member, and surviving spouse achieve the dream of homeownership.

Here’s why Texans choose us:

• Expert VA loan officers
• Fast COE retrieval
• Flexible credit options
• Personalized guidance
• Competitive interest rates
• Local market knowledge

We don’t just do VA loans—we live and breathe them, every single day.

Final Thoughts on VA Loans Texas

If you’re eligible for VA loans in Texas, there’s truly no better way to buy a home. With benefits like zero down, no PMI, flexible requirements, and strong protections for borrowers, VA loans are one of the best tools available for military homeownership.

Let Merchants Home Lending be your trusted VA loan partner in Texas. Whether you're stationed in San Antonio, transitioning to civilian life in Houston, or retiring in Austin, we’ll walk you through the entire process from start to finish.

Frequently Asked Questions About VA Loans in Texas

1. How do I qualify for a VA loan in Texas?

To qualify for a VA loan in Texas, you must meet military service requirements (such as 90 days of active duty during wartime or 6 years in the National Guard/Reserves), have a valid Certificate of Eligibility (COE), meet the lender’s credit and income guidelines, and plan to occupy the home as your primary residence. Our team at Merchants Home Lending can guide you through this process step-by-step.

2. What is the VA loan limit in Texas for 2025?

As of 2025, there are no loan limits for veterans with full VA loan entitlement. However, for borrowers with remaining entitlement, the conforming loan limit in Texas is $766,550, although this can vary by county. Your lender will review your eligibility and entitlement to determine any limitations.

3. What are the VA loan requirements credit score in Texas?

There’s no official minimum credit score from the VA, but most lenders in Texas—including Merchants Home Lending—prefer a score of 580 or higher. A higher credit score improves your chances of getting approved and securing a better interest rate.

4. What is the VA funding fee, and do I have to pay it in Texas?

The VA funding fee is a one-time fee required by the VA to keep the loan program self-sustaining. It ranges from 1.25% to 3.3% depending on the type of loan, down payment, and whether it’s your first time using a VA loan. Some veterans, such as those receiving disability compensation, are exempt from the fee.

5. Can I use a VA loan more than once in Texas?

Yes! VA loans in Texas are a reusable benefit, meaning you can use your VA loan multiple times, provided you meet eligibility and entitlement guidelines. You can even have more than one VA loan at the same time under certain conditions. Our VA loan experts can help you determine your current eligibility status.