VA Loan Benefits for Texas Veterans: Eligibility, COE and Funding Fee

VA loan benefits are some of the strongest in home financing, and many eligible Texans never use them. If you've served, or you're a surviving spouse of someone who did, a VA-backed loan may let you buy with little or no money down and no monthly mortgage insurance. In this guide I'll explain who qualifies, how to get your Certificate of Eligibility, what the funding fee is, and how the Texas Veterans Land Board fits in. I've checked the details against VA.gov.

The VA sets minimum service requirements that depend on when and how you served. In summary, from VA.gov:

Those are summaries, and the rules have more detail. Check the full requirements on VA.gov or ask me, and I'll help you sort out where you stand. Meeting the service requirement is only the first step. You'll also need the credit and income the lender requires for the loan amount you want, the same as any mortgage.

Do I need a down payment for a VA loan?

Often not. VA says VA-backed loans typically allow purchase with no down payment when you have enough entitlement, though a lender may require one if your remaining bonus entitlement doesn't cover a 25 percent guaranty.

Do VA loans have monthly mortgage insurance?

No. VA states the program doesn't require monthly mortgage insurance. There is a one-time funding fee, with exemptions for some borrowers.

How do I get a Certificate of Eligibility?

You can request it online from VA, have your lender get it through VA's online system, or mail VA Form 26-1880. I can help with it.

Can a surviving spouse use the VA loan benefit?

Certain surviving spouses may qualify, for example those who receive VA Dependency and Indemnity Compensation. Check VA's eligibility page and bring your documents to me.