VA Loan Benefits in 2026: What Texas Veterans Should Know

The short answer: a VA loan lets eligible veterans, service members and some surviving spouses buy a home with little or no down payment (for eligible borrowers, subject to entitlement and lender approval), no monthly mortgage insurance, and limits on closing costs, and you can use it more than once. The main cost is a one-time funding fee, which many veterans with a service-connected disability don't pay. If you qualify, it's usually worth a serious look.

I'm Keith Sullivan, a mortgage broker with NXT Mortgage and an Air Force veteran. Every fact below links to an official VA or Texas Comptroller source.

What are the main VA loan benefits?

Per the VA, a VA-backed purchase loan often comes with:

• No down payment if the sales price isn't above the appraised value (for eligible borrowers, subject to entitlement and lender approval)
• No PMI or mortgage insurance premiums
• Limits on closing costs, which the seller can help pay
• No prepayment penalty
• A reusable benefit and an assumable loan
• Possible VA help if you have trouble making payments

Can I really buy a home with no down payment?

Often, yes, for eligible borrowers, subject to entitlement and lender approval. The VA backs part of your loan for the lender, which is what lets many lenders skip the down payment. That backing is your entitlement, shown on your Certificate of Eligibility (COE).

With full entitlement, the VA doesn't set a loan limit. Your lender still approves the amount based on your credit, income, debts and assets, and the loan can't exceed the lower of the appraised value or price.

If you still have a VA loan out there, you may have remaining entitlement. Then the county loan limit is used to figure out how much you can borrow with nothing down, and above that your lender may ask for some money down. I pull the COE early and do this math before you shop.

Do VA loans have mortgage insurance?

No. VA loans don't require PMI or monthly mortgage insurance premiums. Conventional loans usually require PMI with a smaller down payment, and FHA loans carry their own mortgage insurance premium. I compare those two in FHA vs. Conventional Loans.

What is the VA funding fee, and who's exempt?

The funding fee is a one-time charge, figured as a percentage of the loan amount. You can pay it at closing or finance it.

The exact percentage depends on the loan type, whether it's your first time using the benefit, and how much you put down. Putting money down lowers it. The VA publishes the current chart on its funding fee and closing costs page, and I'll walk you through what applies to you.

You don't pay the funding fee at all if any of these apply to you:

• You receive VA compensation for a service-connected disability
• You're eligible for that compensation but get retirement or active-duty pay instead
• You're a surviving spouse receiving Dependency and Indemnity Compensation (DIC)
• You're a service member with a proposed or memorandum rating, issued before closing, showing you're eligible for compensation based on a pre-discharge claim
• You're on active duty and show proof, on or before closing, that you received a Purple Heart

If you're later awarded compensation effective before your closing date, you may be able to get a refund. If you have a claim pending, tell me up front.

Are closing costs and seller concessions limited on a VA loan?

Yes. VA rules limit what a lender can charge you at closing. And the seller or builder can pay some or all of your normal closing costs, with no VA cap on those credits.

What the VA caps is seller's concessions: no more than 4% of the home's reasonable value on the VA Notice of Value. Concessions are extras like paying your funding fee, paying off debt, or prepaying your hazard insurance.

One catch: on a purchase, the funding fee is the only cost you can roll into the loan. For what Texas buyers typically pay, see my Texas closing costs guide.

Can I use my VA loan benefit more than once?

Yes. You can restore used entitlement if:

• You sold the home and paid that loan off in full
• A qualified veteran buyer assumes your loan and substitutes their own entitlement
• You paid the loan off but kept the home (you can only do this once)

Even without restoring it, you may have remaining entitlement for another home, which helps if you relocate and want to keep the first house.

What are my VA refinance options?

IRRRL (streamline refinance). Replaces your existing VA loan with a new one to lower your rate or move from an adjustable to a fixed rate. You have to certify that you live in, or used to live in, the home, and closing costs can be included in the new loan. The VA suggests dividing your closing costs by your expected monthly savings to see if it's worth it. I do that math with you.

VA cash-out refinance. Take cash out of your equity, or refinance a non-VA loan into a VA loan. You need a COE, VA and lender credit and income approval, and you have to live in the home.

The VA warns about refinance offers that promise skipped payments or terms that sound too good to be true. My refinancing guide covers when a refinance makes sense.

Can someone assume my VA loan?

Yes. A buyer can take over your existing VA loan instead of getting a new one. The buyer has to meet VA credit and income standards, the loan has to be current, and the servicer (sometimes the VA too) has to approve it.

Sellers, note this: even a non-veteran can assume your loan, but your entitlement stays tied to it unless the buyer is an eligible veteran who substitutes their own. A default by the buyer can count against your entitlement, so be picky.

Who qualifies for a VA loan, and how do I get my COE?

It's based on your service. Veterans who served from August 2, 1990, to now generally need 24 continuous months of active duty, or the full period (at least 90 days) they were called up, with exceptions such as a service-connected disability. Active-duty members generally qualify after 90 continuous days. Guard and Reserve members can qualify through active-duty service or 6 creditable years, and some surviving spouses qualify too. See the VA's eligibility page for the full rules.

Your COE proves it to the lender. You can request it online or by mail, or your lender can pull it electronically (veterans need their DD214). I usually pull it during pre-approval.

You still have to meet VA and lender credit and income standards and live in the home. The VA doesn't set a minimum credit score, but some lenders do, so shopping more than one lender helps. See my credit score guide for Texas buyers.

Are VA loans more expensive than other loans?

The VA says lenders offer competitive interest rates on VA-backed purchase loans and that its backing lets lenders offer more favorable terms. Add no monthly mortgage insurance and VA limits on closing charges, and those are real advantages.

The real added cost is the funding fee. If you're not exempt and you finance it, you pay it over the life of the loan, and depending on your down payment and credit, another loan type may come out even or ahead. The VA doesn't set your rate or most fees; your lender does, and they vary. The honest answer is to compare Loan Estimates side by side on total cost, not just rate.

What property tax breaks do disabled veterans get in Texas?

Texas has two main exemptions for disabled veterans, handled by your county appraisal district:

• Partial exemption (Tax Code Section 11.22). For Texas residents with a service-connected disability rating, on any one property you own. Per the Comptroller, it's up to $5,000 of the property's value at 10% to 29%, $7,500 at 30% to 49%, $10,000 at 50% to 69%, and $12,000 at 70% to 100%. You may also qualify for $12,000 if you're 65 or older with at least a 10% rating, totally blind in one or both eyes, or have lost use of one or more limbs.
• Total homestead exemption (Section 11.131). If you're awarded 100% disability compensation and rated 100% disabled or individually unemployable, the total appraised value of your residence homestead is exempt. An unremarried surviving spouse may qualify under certain conditions.

The usual deadline is April 30, but the Comptroller says these can be filed up to five years after the tax delinquency date. The appraisal district decides whether you qualify. If you think you do, factor it in early.

Buying in Collin County? My VA loan page for McKinney, TX covers how this plays out locally.

When might a VA loan not be the best fit?

Honestly, it may not be your best option if:

• You're not buying a primary residence. You have to live in the home, so investment and vacation properties don't qualify.
• You have a large down payment and you'd pay the funding fee. A conventional loan without PMI might cost about the same or less. Compare.
• The house needs a lot of work. The VA appraisal checks that the home is safe, sound and sanitary, so repairs may be needed before closing.
• Your entitlement is tied up and you'd need money down anyway.

If that's you, we look at other options, including Texas down payment assistance programs.

How I help Texas veterans with VA loans

I served in U.S. Air Force Security Forces from 2013 to 2017 and was honorably discharged. I've been in the mortgage business for 4 years, and VA loans are the part of the job I care about most.

• I'm a broker, not a single bank. I shop your VA loan across multiple wholesale lenders and show you the options side by side.
• I work around your schedule. Evenings and weekends are fine.
• I keep your Realtor in the loop. Your agent gets updates without having to chase them.
• I check the details early: COE, entitlement and funding fee exemption, before you write an offer.

I'm based in McKinney and serve veterans across DFW, including Frisco, Allen, Plano, Prosper and Coppell, and I'm licensed in Texas, Michigan, Louisiana and Oklahoma. Local? Start with my McKinney VA loan page.

Frequently Asked Questions