Program highlights
- Minimum score of 580
- Manual underwrite 580 minimum score
- Interest Rate Reduction Refinance Loan (IRRRL)
- 10% or greater disability waives the funding fee
- In Texas, 100% disabled veterans are exempt from property taxes
- VA 5/1 ARM
- Texas VLB (Conv, FHA, VA)
- One-time or two-time close construction
What is a VA loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, certain Reserve and National Guard members, and some surviving spouses. It is one of the strongest loan programs available to anyone, and it is earned through service.
How it works
VA loans typically allow 100% financing, so an eligible buyer can purchase a primary home with no down payment. There is no monthly mortgage insurance on a VA loan, which is a major difference from FHA and from conventional loans with less than 20% down.
Most VA borrowers pay a one-time VA funding fee, which can usually be rolled into the loan. If you have a VA disability rating of 10% or greater, the funding fee is waived. In Texas, veterans rated 100% disabled are also exempt from property taxes on their homestead, which can make a big difference in the monthly cost of owning a home in Travis, Williamson, or Hays County.
Our minimum credit score for VA is 580, and we can manually underwrite VA files down to a 580 score. VA also looks closely at residual income, meaning the money left over each month after major expenses, rather than relying only on debt-to-income.
Other VA options we offer:
- VA 5/1 ARM: a fixed period of five years before annual adjustments.
- One-time or two-time close construction: build a new home with VA financing.
- Texas VLB: the Texas Veterans Land Board home program can be paired with VA financing for eligible Texas veterans.
- IRRRL: once you own with a VA loan, the Interest Rate Reduction Refinance Loan is a streamlined way to refinance into a lower rate. See our refinance page for details.
Who it fits
VA loans fit nearly every eligible veteran or service member buying a primary residence. Even if you have savings for a down payment, a VA loan is often the lowest cost option. If you have used your VA benefit before, you may still have entitlement available, and we can check that for you.
What you need to apply
- Your Certificate of Eligibility (COE), which we can usually request for you
- DD-214 for veterans, or a statement of service for active duty
- Recent pay stubs or LES, and W-2s or tax returns
- VA disability award letter, if you receive disability compensation
- Two months of bank statements
How we help in Austin
Central Texas is home to many veterans and military families, with Fort Cavazos a short drive north. We know how VA appraisals and property requirements work in this market, and we help your Realtor present a VA offer that sellers take seriously. We typically issue a pre-approval letter within 24 hours, and we lend in 7 states if you are relocating.
Additional terms and conditions apply. Not all loan types are compatible with this product. Subject to underwriting conditions. Not a promise to make a loan. All borrowers must qualify.
VA Loans: common questions
Do VA loans require a down payment?
Typically, no. VA loans allow eligible veterans and service members to finance 100% of the purchase price of a primary home, subject to entitlement and underwriting. You still need to cover closing costs, although sellers can contribute toward them and some costs can be negotiated. There is also no monthly mortgage insurance on a VA loan, even with zero down.
What credit score do I need for a VA loan?
Our VA minimum is a 580 credit score, and we can manually underwrite VA loans down to 580 when the automated system does not approve the file. VA also weighs residual income, meaning what is left each month after major expenses. A manual underwrite gives an underwriter room to look at your full history instead of the score alone.
Who is exempt from the VA funding fee?
Veterans with a VA service-connected disability rating of 10% or greater are exempt from the VA funding fee. Certain surviving spouses and some other groups can also be exempt. If you have a pending disability claim, tell us early, because the timing of your rating can affect whether the fee is charged at closing. We review your award letter before you close.
Do disabled veterans in Texas pay property taxes?
Texas exempts veterans with a 100% disability rating from property taxes on their homestead. Veterans with lower ratings may qualify for partial exemptions. You apply through your county appraisal district, such as Travis Central Appraisal District. Because property taxes are a large part of a Texas house payment, this exemption can change how much home you can comfortably afford.
Can I use my VA loan benefit more than once?
Yes. VA entitlement can often be restored after you sell a home and pay off the VA loan, and in some cases you can have more than one VA loan at the same time if you have remaining entitlement. We can pull your Certificate of Eligibility and show you exactly how much entitlement you have available before you start shopping.