TEXAS VETERANS LAND BOARD
(VHAP) was created in 1846 to proudly serve Texas veterans. The agency offers a wide array of special benefits exclusively for Texa Veterans, including state veterans homes and cemeteries and below-market interest rate loans for land, housing and home improvements.
How the Housing Assistance Program Works
The Veterans Housing Assistance Program (VHAP) provides financing up to $325,000 toward the purchase of a home to qualified Texas veterans.
There is no maximum sales price with the VHAP; however, the VLB can only loan up to $325,000 towards the purchase. The VHAP must be originated in conjunction with Federal Housing Administration (FHA), Veterans Administration (VA), or conventional financing. Loans must be originated by a participating lender (see lender originated loans).
The VHAP is not a refinancing program. If you have an existing loan on your home, you cannot use the VHAP to lower your interest rate, nor can the VHAP be used as a down payment on a home. It can only be used to obtain a purchase money loan with a first lien on your primary residence.
The term of the loan can be 15, 20, 25 or 30 years.
VHAP loans typically require an escrow account be set up for taxes and insurance.
Cosigners and guarantors may be accepted on the veteran’s behalf if the veteran has sufficient income to qualify for at least 60 percent of the monthly payments on the mortgage loan, including taxes and insurance.
Two married, eligible veterans may have only one active VHAP loan at one time.
The VHAP does not guarantee an interest rate on any loan. The interest rate on the VHAP loan will be determined at the time the rate lock is secured.
*Note: If more than one rate lock is obtained in a twelve-month period, the highest locked rate will prevail.
All VLB loans are subject to credit approval.
NOTE: All new-construction housing must be ENERGY STAR® labeled and certified.
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
ENERGY STAR® Affidavit
Please contact us at 1-800-252-VETS (8387) with any questions. Also, we invite you to attend our free VLB Educational Briefings that are conducted throughout Texas. Details about all VLB programs are discussed at these informative meetings. Check the Veterans Benefits Fairs and Informational Briefings Schedule to find the location nearest you.