Veterans in Texas have a unique advantage when it comes to homeownership. They gain access to the federal VA loan, but they also qualify for financing through the Texas Veterans Land Board (VLB).
But which one actually makes more sense? Is one better than the other? Or is there a way to combine both?
The truth is that each program offers distinct benefits, depending on your goals, timeline, and budget. Here’s a clear breakdown of how they work, who they serve, and when to use one (or both).
Start an application with Salute Mortgage today.
Texas veterans have more than one home loan option
Texas takes pride in being one of the most veteran-forward states in the country. As a result, Texas veterans can tap into two powerful mortgage tools:
- VA home loans, a federal benefit available to qualifying veterans and service members
- Texas Veterans Land Board (VLB) loans, a state-run program specifically for Texas-resident veterans
Both offer strong advantages, but they serve different needs. Making the right call can save you money and align your loan strategy with your long-term mission.
What is the Texas Veterans Land Board loan?
The VLB loan is a Texas-specific home financing program run by the state’s General Land Office. It was created in 1946 to help returning World War II vets buy land, and has since expanded to include home and home improvement loans.
Here are the three types of loans the VLB offers:
- Land Loans: Buy 1–20 acres of land in Texas with as little as 5% down
- Home Loans: Used in partnership with a VA loan to purchase a primary residence in Texas
- Home Improvement Loans: Up to $50,000 in financing for repairs or renovations
The VLB doesn’t lend directly; it partners with approved lenders (like Salute Mortgage) to originate the loans. But the state sets program guidelines and offers below-market rates for qualifying borrowers.
What is a VA home loan?
The VA home loan is a federal benefit that allows eligible veterans, active-duty service members, and certain surviving spouses to purchase a primary residence with no down payment and no private mortgage insurance (PMI).
How do VA loans work in Texas?
In Texas, where property values vary widely by region, this can be a massive advantage. VA loans are also more forgiving when it comes to credit scores and income history compared to conventional mortgages.
Key features include:
- 0% down payment
- No PMI
- Flexible credit standards
- Reusable entitlement
- Streamlined refinancing options
Texas veterans can use their VA loan benefit multiple times over a lifetime and in any county across the state.
Who qualifies for each loan type in Texas?
Here’s where things get tactical. You may qualify for both, but they have distinct eligibility rules:
VA loan eligibility (nationwide):
- At least 90 consecutive days of active duty during wartime OR
- 181 days during peacetime OR
- 6 years in the National Guard/Reserve OR
- Surviving spouse of a qualifying service member
VLB loan eligibility (Texas-specific):
- Must be a legal resident of Texas
- Served at least 90 days active duty or have completed military obligation
- Not dishonorably discharged
- Must live in the home as your primary residence
- Must use a VA loan (for VLB home loan program)
In short: the VA loan is a federal benefit, while the VLB is a state enhancement for those who meet both sets of criteria.
How do rates and fees stack up?
This is often the deciding factor. Let’s compare:
VA loan through most lenders (including Salute):
- Competitive market rates
- No PMI
- One-time VA funding fee (can be waived for disabled vets)
VLB loan (paired with a VA loan):
- Interest rate is often 0.25%–0.5% lower than standard VA rates
- No additional PMI
- The same VA funding fee applies
- Origination and lender fees may vary depending on the lender partnership
If you qualify for a VLB rate reduction and are a first-time homebuyer, this can be a significant advantage.
However, some borrowers find that other lenders, like Salute Mortgage, may offer comparable or better VA rates, especially during promotional periods.
Can you combine VLB and VA loans?
Yes, and in fact, that’s how the VLB home loan program works. You can’t use a VLB home loan without also using a VA loan. The VLB does not replace the VA, but enhances it by offering a lower interest rate to qualifying Texas veterans.
You can’t use a VLB home loan with a conventional or FHA loan. VA is required.
On the other hand, VLB land loans are standalone. You don’t need to use your VA loan entitlement to buy land through the VLB; just meet their service and residency requirements.
So if you’re planning to buy land now and build later, VLB might be the better first move.
Which loan makes more sense for your mission?
Here’s a quick mission-based playbook:
- First-time homebuyer using VA loan in Texas: See if you qualify for VLB’s reduced-rate partnership. It could save thousands
- Buying raw land in Texas: VLB land loan. No VA entitlement required. Just 5% down
- Disabled veteran: VA loan may waive funding fee entirely. Compare rates. VLB may not always offer the lowest
- Refinancing later?: VA IRRRL (streamlined refinance) may be faster than going through VLB channels
- Not a Texas resident?: You’re not eligible for VLB. VA loan is your go-to
At Salute, we walk through every scenario like this before advising a path forward.
How Salute Mortgage helps you navigate both options, without bias
We’re veteran-founded, and we don’t push one program over another. Our job is to guide you through the comparison, show you the numbers, and help you choose the loan that best serves your needs.
Here’s what you get with us:
- Access to VA loans without overlays
- Guidance on VLB integration (if it makes sense)
- Fast, tech-forward process with SMS-first communication
- A real person, not a hotline, walking you through every step
Some lenders are hesitant to handle VLB paperwork. We don’t view it as paperwork, but rather as a sign of respect for your earned benefits.
Final word: One mission, two tools, choose smart
Texas gives its veterans a powerful choice: use the federal VA loan, enhance it with a VLB option, or deploy both for strategic results.
The key is clarity. You don’t need to guess or go it alone. With the right partner, you can move confidently toward your goal, knowing you’ve chosen the tool that fits your mission.Want help comparing your VA and VLB options? Start an application with Salute Mortgage now.
