Texas Home Loans

VA Loans in Texas: $0 Down, Eligibility, and Limits

A VA loan lets eligible Texas veterans and service members buy a primary residence with $0 down and no monthly mortgage insurance. Here is how eligibility, the funding fee, and Texas loan limits actually work in 2026.

Tyler Allen Reviewed by

Byron Davis, NMLS #621780 1,758 words · ~8 min read

The VA loan is the strongest home-buying benefit most Texas veterans have — and one of the most underused. Backed by the U.S. Department of Veterans Affairs, a VA loan lets eligible veterans, active-duty service members, and many surviving spouses buy a primary residence in Texas with $0 down, no monthly mortgage insurance, and often a lower rate than a comparable conventional loan. With full entitlement, there is no VA loan limit — you can borrow what a lender agrees you can repay.

The one real cost unique to the program is the VA funding fee, a one-time charge that is waived entirely for veterans with a service-connected disability. We lay out the fee, the eligibility rules, the Certificate of Eligibility, and how the VA loan stacks up against FHA and conventional financing — plus the Texas-only benefits veterans can add on top.

Everything here traces back to the VA. We are not affiliated with the VA or any government agency, and these rules can change — confirm the current details at VA.gov or with a VA-approved lender before you apply.

$0 downDown payment (full entitlement)VA.gov

$0/moMonthly mortgage insuranceVA.gov

No capLoan limit, full entitlementVA.gov

1.25–3.3%One-time funding feeVA.gov

WaivedFunding fee, disabled veteransVA.gov

"I Think I Already Used My VA Loan" — Maybe Not

The beliefs that cost Texas veterans the most aren’t about whether they qualify — they’re about what they assume they’ve lost. Four that come up constantly:

"I used my VA loan once, so it’s gone." VA entitlement can usually be restored after you sell and pay off the loan, and many veterans buy with it more than once. Check your remaining entitlement on your COE.
"There’s a maximum VA loan in Texas." Not with full entitlement. Since 2020 the VA caps nothing for full-entitlement borrowers — the lender simply qualifies you on income and credit.
"I’ll still owe monthly mortgage insurance." No. VA loans never charge monthly mortgage insurance, which is one of their biggest advantages over FHA and low-down conventional loans.
"VA loans are slow and sellers won’t accept them." They close on normal timelines. The VA appraisal checks the home is safe and sound, but that’s routine — not a dealbreaker.

If one of those had you holding back, it’s worth a few minutes to see what your benefit can actually do.

What Is a VA Loan?

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. The VA doesn’t lend the money — a VA-approved lender does — but the VA guarantees part of the loan, which is why lenders can offer $0 down and no monthly mortgage insurance. It’s a benefit earned through military service, available for a primary residence (one-to-four-unit, where you live in one unit). See the VA’s home loan program overview for the full picture.

VA loans are not for investment properties or second homes, and the home must meet the VA’s property standards. For Texas veterans, the VA loan is usually the first option worth checking — and it can be combined with Texas-specific benefits we cover below.

VA Loan Eligibility in Texas

Eligibility is based on your service. In general, you may qualify if you meet one of these service requirements, per the VA’s eligibility rules:

90+ continuous days of active duty during wartime, or
181+ days of active duty during peacetime, or
6+ years in the National Guard or Reserves (or 90+ days under Title 32 with certain service), or
Surviving spouse of a service member who died in the line of duty or from a service-connected disability (and who has not remarried, with some exceptions).

You prove eligibility with a Certificate of Eligibility (COE), which your lender can usually pull in minutes; you can also request it yourself at VA.gov. You’ll also need to meet the lender’s credit and income standards — the VA doesn’t set a minimum credit score, but most Texas lenders look for around 620.

$0 Down and No Monthly Mortgage Insurance

This is the heart of the benefit. A conventional buyer putting 5% down on a $300,000 home brings $15,000 to the table and still pays monthly private mortgage insurance until they reach 20% equity. An FHA buyer pays monthly mortgage insurance that often lasts the life of the loan. A VA borrower with full entitlement puts $0 down and pays no monthly mortgage insurance at all — the savings can run well over a hundred dollars a month from day one, on top of skipping the down payment.

That doesn’t mean a VA loan is free to close. You’ll still have normal closing costs (appraisal, title, taxes, insurance), and the one-time funding fee below. Sellers can contribute up to 4% of the home’s value toward your costs, which many Texas veterans use to reach the table with very little cash.

The VA Funding Fee (and Who Skips It)

Because there’s no down payment or monthly insurance, the VA charges a one-time funding fee to keep the program self-sustaining. You can pay it at closing or roll it into the loan. The current rates for a VA-backed purchase, per the VA funding fee charts (effective April 7, 2023):

VA funding fee — VA-backed purchase loan

Down payment	First use	After first use
Less than 5%	2.15%	3.3%
5% or more	1.5%	1.5%
10% or more	1.25%	1.25%
Shown as a percentage of the loan amount. The fee can be financed into the loan.

Source: VA.gov — funding fee charts

Crucially, the funding fee is waived entirely if any of these apply, per the VA: you’re receiving (or are eligible to receive) VA compensation for a service-connected disability; you’re a surviving spouse receiving Dependency and Indemnity Compensation (DIC); or you’re an active-duty service member who received a Purple Heart before closing. For a disabled Texas veteran, that turns an already-strong loan into one with $0 down, no monthly insurance, and no funding fee.

VA Loan Limits in Texas: Is There a Maximum?

For most Texas veterans the answer is no. If you have full entitlement, the VA places no limit on how much you can borrow with $0 down — the lender qualifies you based on income, credit, and debt, per the VA’s loan limit guidance. The old county loan limits only come back into play if you have reduced entitlement — for example, you already have one active VA loan or had a prior VA foreclosure. In that case, the county conforming loan limit affects how much you can borrow with no money down, and a down payment may be required above it.

So the honest answer to "what is the max VA loan amount in Texas?" is: with full entitlement, there isn’t one. With partial entitlement, your lender will calculate it from your remaining entitlement and the county limit.

VA Construction and Other VA Loan Types

The VA program covers more than a standard purchase. VA also backs construction-to-permanent loans for building a home (though fewer lenders offer the VA construction loan, so availability in Texas varies), the Interest Rate Reduction Refinance Loan (IRRRL, a streamlined VA-to-VA refinance with a 0.5% funding fee), and VA cash-out refinances. If you’re looking to build rather than buy, ask lenders specifically whether they offer the VA construction loan, since it’s a specialized product.

VA vs. FHA vs. Conventional in Texas

Here’s how the VA loan compares with the other major loan types for a Texas buyer who qualifies for all three:

VA vs. FHA vs. conventional — at a glance

Feature	VA loan	FHA loan	Conventional
Minimum down	$0 (full entitlement)	3.5%	3%–5%
Monthly mortgage insurance	None	MIP, often for the life of the loan	PMI until 78% LTV; none at 20% down
Upfront cost	Funding fee 1.25%–3.3% (waived for disabled vets)	1.75% upfront MIP	None
Credit score	Lender-set (often ~620)	580	620–640
Who it fits	Eligible veterans & service members	Lower credit or limited savings	Strong credit, 20% down to skip PMI
For eligible veterans, the VA loan is usually the lowest lifetime-cost option because it skips both the down payment and monthly mortgage insurance.

Source: VA.gov; HUD Handbook 4000.1; Fannie Mae / Freddie Mac

Texas-Only Benefits Veterans Can Add

Texas gives veterans two benefits on top of the federal VA loan. The Texas Veterans Land Board (VLB) offers its own home, land, and home-improvement loans to qualifying Texas veterans, sometimes at competitive rates. And a veteran buying with a VA loan may also qualify for Texas down payment assistance toward closing costs through the Homes for Texas Heroes program, since veterans are an eligible profession and are exempt from the first-time-buyer rule.

Our Texas veterans home loan guide covers the VLB and the Heroes assistance in detail, and our down payment assistance guide shows how the state programs work. These are separate programs you choose among with a lender — not a single packaged product.

How to Use Your VA Loan in Texas

Get your Certificate of Eligibility (COE). Your lender can pull it in minutes, or request it yourself at VA.gov.
Get pre-qualified with a VA-approved lender. A licensed mortgage professional in our partner network confirms your entitlement, credit, and budget, and whether the funding fee is waived.
Check for Texas veteran benefits. Ask about the Texas Veterans Land Board loan and Homes for Texas Heroes assistance toward closing costs.
Find a home and get the VA appraisal. The property must meet VA minimum property requirements.
Close on your home. With full entitlement you bring $0 for the down payment; the funding fee is financed unless it’s waived.

ShopDPA is a Texas home loan referral service. We connect Texas veterans with licensed mortgage professionals in our partner network who originate VA loans. We do not originate, fund, or service loans, and we are not affiliated with the VA.

Documents You’ll Need

Certificate of Eligibility (COE) — your lender can often obtain it for you
DD-214 (for veterans) or a current Statement of Service (for active duty)
Photo ID and Social Security number
Pay stubs (last 30 days) and W-2s for the past two years
Bank and asset statements (last two months)
VA award letter if you have a service-connected disability rating (for the funding-fee waiver)

Texas VA Loan FAQ

Do VA loans really require no down payment?

Yes. With full entitlement, a VA loan requires $0 down on a primary residence, per the VA. You'll still have closing costs and a one-time funding fee (unless it's waived), but no down payment and no monthly mortgage insurance.

What is the maximum VA loan amount in Texas?

With full entitlement, there is no maximum — the VA caps nothing, so your lender qualifies you on income, credit, and debt. County loan limits only apply if you have reduced entitlement (for example, an existing VA loan or a prior VA foreclosure).

Do VA loans have mortgage insurance?

No. VA loans never charge monthly mortgage insurance. That's one of their biggest advantages over FHA loans (which charge MIP, often for the life of the loan) and low-down conventional loans (which charge PMI until you reach 20% equity).

How much is the VA funding fee?

For a VA-backed purchase, the funding fee is 2.15% of the loan for first-time use with less than 5% down, 1.5% with 5%+ down, and 1.25% with 10%+ down. Subsequent use with under 5% down is 3.3%. The fee can be financed and is waived for veterans receiving VA disability compensation.

Who is exempt from the VA funding fee?

Veterans receiving (or eligible to receive) VA compensation for a service-connected disability, surviving spouses receiving DIC, and active-duty service members who received a Purple Heart before closing are all exempt from the funding fee, per the VA.

Can I use a VA loan more than once?

Yes. VA entitlement can usually be restored after you sell the home and pay off the loan, and many veterans use the benefit multiple times. You can also sometimes hold two VA loans at once with enough remaining entitlement. Your COE shows what you have left.

Can I get a VA construction loan in Texas?

Yes, the VA backs construction-to-permanent loans, but fewer lenders offer them, so availability in Texas varies. Ask lenders specifically whether they offer the VA construction loan if you plan to build rather than buy an existing home.

Can a Texas veteran combine a VA loan with down payment assistance?

Yes. Because the VA loan already allows $0 down, veterans often direct Texas down payment assistance (through Homes for Texas Heroes) toward closing costs instead. Veterans are also eligible for the Texas Veterans Land Board loan as a separate option. A lender helps you choose the best single combination.

† ShopDPA is an independent Texas home loan referral service and is not affiliated with the U.S. Department of Veterans Affairs, the Department of Defense, the Texas General Land Office / Veterans Land Board, or any government agency. We do not originate, fund, or service loans. VA loan rules, funding-fee rates, and eligibility are set by the VA and may change; confirm current details at VA.gov or with a VA-approved lender before applying. Equal Housing Opportunity.