2026 VA LOAN GUIDE
Texas VLB vs. VA Loan — 2026 Side-by-Side Comparison
With Real Savings Numbers for Houston Veterans
Quick Answer
The VA loan is a federal program available to all eligible veterans nationwide — it provides $0 down payment and no PMI. The Texas Veterans Land Board (VLB) is a separate Texas state program offering below-market fixed rates for Texas residents. The critical difference for disabled veterans: the VLB provides a 0.50% interest rate reduction for veterans with a VA service-connected disability rating of 30% or greater — saving $40,000–$50,000 over a 30-year loan. The two programs can be used together in many cases.
Sources: VA.gov Housing Assistance · Texas General Land Office (glo.texas.gov) · Texas Real Estate Research Center (TRERC)
IMPORTANT: Check current VLB rates weekly
VLB base home loan rate (as of latest update)
6.35%
VLB disability-discounted rate (30%+ disability)
5.85%
Rates update every Friday at 5:00 PM at vlb.texas.gov
What is the Texas VLB?
The Texas Veterans Land Board (VLB), established by the Texas Legislature in 1946, administers home, land, and home improvement loan programs exclusively for Texas residents. It is managed by the Texas General Land Office (GLO) and is entirely self-funded — no state tax revenue is involved. VLB rates are set weekly by the Land Board and published every Friday at 5:00 PM at vlb.texas.gov.
The VLB home loan program, formally called the Veterans Housing Assistance Program (VHAP), offers fixed-rate financing at below-market rates.
VA loan vs. VLB — complete comparison
| Feature | VA Loan (Federal) | VLB Loan (Texas State) |
|---|---|---|
| Down payment | $0 for full entitlement | Little to no down payment required |
| Private mortgage insurance (PMI) | None required | None required |
| Loan limit 2026 | No cap (full entitlement) / $832,750 (partial) | Up to $832,750 |
| Interest rate | Market-based, set by lender | Below-market, state-set weekly |
| Disability discount | Funding fee waiver (10%+ rating) | 0.50% rate reduction (30%+ rating) |
| Refinancing | Yes — VA IRRRL and cash-out available | No refinancing offered |
| Occupancy required | Must occupy within reasonable time | Must occupy within 60 days; primary residence for 3 years minimum |
| Property types | Single-family, multi-unit (up to 4), condos, manufactured (primary) | Single-family, townhome, condo; new homes must be ENERGY STAR certified |
| Can be used together? | Yes — VA loan for purchase, VLB for improvements | Yes — stack for maximum savings |
| Who can use it | Veterans nationwide, active duty, surviving spouses | Texas residents only; honorable/general discharge required |
| Number of times usable | Unlimited (benefit is reusable) | One active loan per program at a time; re-eligible after payoff |
The VLB disability rate discount — how much does it actually save?
For veterans with a VA service-connected disability rating of 30% or greater, the VLB reduces the standard home loan rate by 0.50 percentage points. On the current rate schedule, the base rate of 6.35% drops to 5.85% for qualifying disabled veterans.
This sounds small. Over 30 years on a Houston-area home, it is not:
| Loan Amount (6.35% vs 5.85%) | Monthly Savings | 30-Year Savings |
|---|---|---|
| $350,000 | ~$110/month | ~$39,600 |
| $425,000 | ~$134/month | ~$48,100 |
| $550,000 | ~$173/month | ~$62,400 |
These savings are in addition to any VA funding fee waiver for veterans with a disability rating of 10% or greater. A veteran with a 30%+ rating who buys a $425,000 home in Spring, TX can save $14,000+ in waived funding fees AND $48,100 in reduced interest — a combined benefit exceeding $62,000 on a single transaction.
When to use VA alone, VLB alone, or both
Use VA loan alone when:
- • You plan to move again within 3 years (VLB requires 3-year primary residence occupancy)
- • You have a disability rating below 30% (VA funding fee waiver still applies; VLB discount does not)
- • You want to refinance in the future (VLB does not offer refinancing)
- • You are buying outside Texas
Use VLB alone when:
- • Current VLB rate is lower than what private VA lenders are offering
- • You are a Texas resident buying a long-term primary residence
- • You want land financing (VA loans do not finance land without a home)
Stack VA + VLB when:
- • Use the VA loan for the home purchase (zero down) + VLB home improvement loan for renovation/repairs after closing
- • Eligible Texas veterans may use VHAP plus VA entitlement together in certain configurations
Frequently asked questions
Is the Texas VLB the same as the VA loan?
No. The VA loan is a federal mortgage benefit backed by the U.S. Department of Veterans Affairs — available to eligible veterans in all 50 states. The Texas VLB is a completely separate state program managed by the Texas General Land Office, available only to Texas residents. They serve similar purposes but have different rules, rates, and eligibility requirements.
Can I use both a VA loan and a VLB loan at the same time?
In many cases, yes. A veteran can purchase using a VA-backed loan and simultaneously hold a VLB home improvement loan on the same property, provided both lenders approve and the veteran qualifies for both. One active loan per VLB program at a time is the rule — but you can have one home loan, one land loan, and one home improvement loan active simultaneously.
What disability rating qualifies for the VLB rate discount?
A VA service-connected disability rating of 30% or greater is required for the 0.50% VLB rate discount. This is different from the VA funding fee exemption, which requires only a 10% disability rating. Veterans with ratings between 10%–29% receive the funding fee exemption but not the VLB rate discount.
Does the VLB rate change?
Yes — the VLB base rate adjusts on the first business day of each week. The disability-discounted rate moves with it. Always check vlb.texas.gov for the current rate before running numbers or making decisions.
Sources:
Texas General Land Office (glo.texas.gov) VLB Programs · Texas Real Estate Research Center, 'VLB increases home loan amount' (Jan. 2026) · VA.gov Housing Assistance · Texas Administrative Code §175.2
Not sure whether VA, VLB, or both is right for you?
Richard Garcia is a VLB-specializing USMC Veteran REALTOR® in Houston. He'll model both programs against your specific situation — free, 15 minutes.