Quick Answer
In Texas, a veteran with full VA loan entitlement has no county loan limit and can buy a primary residence with 0% down. The seller is allowed to pay all of the veteran's loan-related closing costs plus up to 4% in concessions. The VA funding fee (typically 2.15% on first use) can be rolled into the loan, and veterans receiving VA disability compensation are exempt from the funding fee entirely.
VA Loan Limits in Texas (2026)
Since 2020, veterans with full entitlement have no VA loan limit — you can borrow as much as a lender qualifies you for with zero down. County loan limits only apply if your entitlement is reduced (for example, you currently have another active VA loan).
- Full entitlement: No county cap. 0% down up to the lender-approved loan amount.
- Reduced entitlement (most Texas counties): $806,500 conforming loan limit for a one-unit home in 2026.
- High-cost Texas counties: Limits may be higher in select metros; confirm with your loan officer.
Who Pays Closing Costs in a Texas VA Transaction
The VA splits closing costs into three buckets: costs the veteran can pay, costs the seller must or may pay, and the 4% concession cap. Here's how it typically plays out at a Texas closing table:
Veteran (buyer) typically pays
- Down payment (often $0)
- VA appraisal fee
- Credit report fee
- Title insurance and recording fees
- Prepaid taxes and homeowners insurance
- Origination fee (capped at 1%)
Seller may pay (up to 4% concessions)
- VA funding fee
- Veteran's prepaid taxes and insurance
- Discount points to buy down the rate
- Payoff of veteran's debts (rare, but allowed)
- All "non-allowable" fees the veteran cannot pay
Non-allowable fees include attorney fees for the lender, escrow fees on a refinance, and certain lender-imposed processing fees. In Texas, these must be paid by the seller, lender, or listing agent — never the veteran.
The VA Funding Fee in Texas
| Loan use | Down payment | Funding fee |
|---|
| First-time use | 0% down | 2.15% |
| First-time use | 5%–10% down | 1.50% |
| First-time use | 10%+ down | 1.25% |
| Subsequent use | 0% down | 3.30% |
| VA IRRRL refinance | — | 0.50% |
Veterans receiving VA disability compensation, Purple Heart recipients, and qualifying surviving spouses are exempt from the funding fee. The fee can be financed into the loan, so it does not need to come out of pocket at the closing table.
Texas-Specific Veteran Benefits
Texas veterans have access to programs not available in other states through the Texas Veterans Land Board (VLB):
- VLB Home Loan: Up to $806,500, can be combined with a federal VA loan in qualifying scenarios.
- VLB Home Improvement Loan: Up to $50,000 for repairs and improvements on a primary residence.
- VLB Land Loan: Finance up to $150,000 of raw land — unique to Texas veterans.
- 100% disabled veteran property tax exemption: Total exemption from Texas property taxes on a primary residence.
Eligibility & Credit Requirements
To use a VA loan in Texas you need a valid Certificate of Eligibility (COE), which a loan officer can pull instantly in most cases. Service requirements generally include:
- 90+ days active duty during wartime, or
- 181+ days active duty during peacetime, or
- 6+ years in the National Guard or Reserves, or
- Surviving spouse of a service member who died in service or from a service-connected disability.
The VA does not set a minimum credit score, but most lenders look for a middle score of 580–620 on a VA purchase. The home must be your primary residence and pass a standard VA appraisal for value and basic safety/habitability.
Equal Housing Opportunity