The Veterans Land Board (VLB) Loan Program is a unique Texas state benefit designed to assist veterans, active military members, and their spouses in securing affordable property financing. Established in 1946, the VLB originally aimed to help World War II veterans purchase land in Texas. Today, it offers three primary loan types: Land Loans, Home Loans, and Home Improvement Loans, each tailored to different property-related needs.
Unlike the federal VA loan program administered nationwide, the VLB is a Texas-specific program that complements federal benefits. Veterans can often combine VLB loans with VA loans for enhanced financial advantages.
Overview of VLB Loan Programs
- Land Loan Program:
- Enables veterans to buy land parcels of at least one acre.
- The VLB purchases the land then sells it to the veteran via a contract with competitive interest rates.
- Loan amounts up to $150,000 with a minimum 5% down payment.
- Home Loan Program:
- Assists in buying a primary residence.
- Loans are made through private lenders partnered with the VLB, offering competitive interest rate discounts.
- Veterans with a VA disability rating of 30% or higher may receive additional rate reductions.
- Home Improvement Loan Program:
- Provides financing for home repairs, renovations, or accessibility upgrades.
- Loans up to $50,000 for projects not requiring VA appraisals, or $100,000 for substantial improvements.
- Fixed rates with terms up to 20 years.
Eligibility Requirements
To qualify for VLB loans, applicants must:
- Be at least 18 years old.
- Be a bona fide Texas resident.
- Have served at least 90 days of active duty (or less if discharged due to service-connected disability) with an honorable discharge.
- Surviving spouses of veterans who died in service or due to service-related causes may also qualify.
Always verify current eligibility and program details on the official Texas Veterans Land Board website.
How VLB Loans Differ from Federal VA Loans
While VA loans are federally guaranteed mortgages available nationwide, VLB loans are state-administered benefits offering unique purchase and financing options. Veterans can often use both together to maximize their housing benefits.
Applying for a VLB Loan
- For Land and Home Improvement loans, applications start directly through the VLB online portal.
- Home Loans require coordination with VLB-approved private lenders statewide.
Additional Resources
- Texas Veterans Land Board official site: https://vlb.texas.gov/
- Detailed loan program info: https://vlb.texas.gov/loans/
Understanding the Veterans Land Board Loan Program can help Texas veterans take full advantage of state-supported financial opportunities for land and home ownership. For more on financing home renovations, explore our article on Equity Cash-Out Limitations.
