Texas VLB vs VA Loan

4 Replies

I have spoken with three separate lenders and have been told different things. Does anyone have experience with using the TX VLB to purchase property in TX (either a sfh or a mfh)? Is this loan separate of the traditional VA loan and therefore does not require remaining eligibility under the VA entitlement or must a person still have VA entitlement to use this? Thanks in advance!

@Keith Chavers yes TX VLB is separate from a traditional VA loan. One is funded by the bank and backed by the VA and the VLB is funded by the Land Board. From my knowledge and what I have read is that the TX VLB does not rely on entitlement as it tech not tied to the VA.

@Nicholas Covington ah ok. Yeah, just curious as I may be relocating to TX, and I am trying to figure out if I should refinance utilizing the VA IRRL since rates are so low or if I should Refi into a conventional that way if/when I relocate I can use the VLB if it is indeed tied to VA.

@Keith Chavers How much was your first home? Do you have extra entitlement to use still? You can have up to 510,400 out at one time. And that will go up pretty soon since new limits are coming out for next year. VLB can be a little restrictive as you have to reside in property for 3 years.