Which Veteran Loan Program Is for Land in Texas?

The Texas Veterans Land Board (TVLB) Land Loan Program provides a dedicated resource for qualified veterans seeking to purchase land within the state of Texas. This program is specifically designed to support Texas veterans in achieving land ownership, making land acquisition more accessible. This initiative is a state-level commitment to supporting the veteran community in Texas.

Texas Veterans Land Board Land Loan Program

The Texas Veterans Land Board Land Loan Program differs from federal VA loan programs, which primarily focus on home purchases. This state-specific program makes raw land ownership attainable and affordable for eligible Texas veterans and military members. It finances the acquisition of undeveloped or rural land that meets specific criteria, offering competitive interest rates and requiring a relatively low down payment.

The TVLB functions as the direct lender for these land loans, distinguishing its process from federal VA loans that typically involve private lenders. This program allows veterans to finance tracts of land, with a maximum loan amount of up to $150,000 for single applicants. For married couples where both spouses are individually eligible, the program can provide up to $225,000 in financing. The program’s structure is self-funded through loan repayments and bond sales, ensuring its continued operation without relying on general taxpayer funds.

Eligibility and Property Standards

Applicants must meet specific criteria based on veteran status and Texas residency to qualify for the TVLB Land Loan Program. Individuals must be at least 18 years of age and a legal resident of Texas on the application date. Service requirements include having served at least 90 cumulative days on active duty, unless discharged earlier due to a service-connected disability. An honorable, general, or medical discharge is generally required.

Active-duty military members, members of the Texas National Guard, and reserve component members with 20 qualifying years for retirement are also eligible. Surviving spouses of veterans who were missing in action or whose death was service-connected may also qualify.

The property must also meet certain standards for TVLB financing. The land must be entirely located within the state of Texas and contain a minimum of one acre. This acreage calculation excludes any portion beneath a dedicated public roadway, navigable waterway, or areas subject to frequent inundation, ensuring the usable portion meets the minimum size. The property requires legal access to a public road, defined as a minimum of 60 feet wide or meeting greater county public road width requirements, and drivable by a standard passenger car in inclement weather. Furthermore, the land cannot be zoned strictly for commercial use and must not have been owned by the applicant or their spouse within the three years prior to the application.

Applying for a Land Loan

The application process for a TVLB Land Loan begins with pre-qualification, which takes 7 to 10 business days. After pre-qualification, the veteran identifies a property and secures a farm and ranch contract with the seller. A certified survey of the property is also required at this stage.

Once the contract and survey are obtained, these documents, along with proof of veteran eligibility and Texas residency, are submitted to the TVLB. Required documentation includes a Certificate of Eligibility (COE) or DD214. Financial documents, such as W2 statements, recent pay stubs, and the most recent two months of bank statements, are required. Applicants must also authorize a credit report, as the loan amount is based on credit approval. Loan processing and approval take 45 to 60 days.

Loan Features and Management

The TVLB Land Loan offers specific financial features and ongoing management responsibilities. Loan terms can extend up to 30 years with fixed interest rates. As of April 2025, the standard interest rate is 7.25%, with a discounted rate of 6.75% available for veterans with a service-connected disability rating of 30% or more. Interest rates are adjusted weekly, with new rates becoming effective each Monday.

A minimum 5% down payment is required. An escrow account for property taxes and insurance is required for all TVLB loans. Both an owner’s title insurance policy and a mortgagee’s title policy, paid by the buyer, are mandated. There are no prepayment penalties associated with these loans.

Ongoing responsibilities include timely payment of property taxes and maintaining insurance coverage. The TVLB does not typically release borrowers from liability on an assumption. However, the program allows combining a TVLB land loan with a federal VA loan for future home construction, enabling veterans to purchase land and later build a primary residence.