Guest post from James Kelley, author of vabenefitblog.com:
In fact, Texas offers veterans interested in purchasing a home in Dallas and throughout Texas a unique lending opportunity known as the Texas Veteran Home Loan program to make home financing affordable.
What are the Benefits of a TexVet Loan?
In 1983 the Texas Veterans Land Bureau created the Texas Veteran home loan program, or TexVet loan program, to make purchasing a home affordable for veterans. With a Texas Vet loan, veterans are able to purchase a home in Texas with a sales price of up to $325,000 with zero money down. With the average price of a home in Dallas averaging around $210,000, the higher loan limit provided by the TexVet loan is highly beneficial.
In addition to high loan limits, the TexVet loan offers other benefits including:
• Below market interest rates
• No down payment
• Flexible loan terms
Who Qualifies for a TexVet Loan?
Like the VA home loan, the initial eligibility requirements for a TexVet loan are related to a veteran or active duty member’s time of service. However, the TexVet loan does have a few state specific requirements. To initially qualify for a TexVet loan for the purchase of a Dallas home, veterans must:
• Must be a Texas resident
• Be purchasing a home in Texas
• Be purchasing a home must as a primary residence
• Be purchasing a Energy Star certified home if the home is new
TexVet Loan or VA Loan?
Both the VA loan and TexVet loan offer borrowers the benefits of purchasing a home without the need of a down payment, and the ability to acquire a mortgage with low interest rates and flexible terms. However, each has specific advantages that may make either option more appealing to different borrowers. Such advantages include:
• The reduced interest rates offered to disabled veterans and surviving spouses through the TexVet loan
• The ability to refinance with a VA Loan
Before applying for either type of loan, veterans are advised to speak with an approved loan specialist to further determine which loan option is the best choice. Although the eligibility requirements are lenient for both programs, lenders will usually require a mid-range credit score of at least 620 to secure financing. Even potential borrowers with an imperfect credit history are still encouraged to apply as those with a history of bankruptcy or foreclosure have been approved in the past.
This post comes to you from James Kelley, an author of vabenefitblog.com and law school student at the University of Missouri.