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VA Loans • June 19, 2025
VA Loans in Texas: A 2026 Guide for Veterans Buying or Refinancing
Texas is one of the best states in the country for VA loan buyers — no state income tax, no conforming loan limits, and a massive veteran population. Here's what you need to know.
Texas has one of the largest veteran populations in the United States, and it's one of the best states in the country to use your VA loan benefit. No state income tax, no VA loan limits for full-entitlement borrowers, and home values that — while rising — still offer significant room compared to coastal markets.
Here's what Texas veterans need to know about using their VA loan benefit in 2026.
No loan limits for veterans with full entitlement. Since 2020, veterans with full VA entitlement can borrow as much as a lender will approve with no down payment required — regardless of the purchase price. This is particularly valuable in high-growth Texas markets like Austin, Dallas-Fort Worth, and Houston, where median prices have climbed significantly.
Texas has unique property laws that affect VA loans. Texas is a community property state, which affects how lenders treat a spouse's income and debts on a VA loan application. It also has specific homestead laws and restrictions on cash-out refinancing that differ from most other states. Working with a loan officer who knows Texas real estate law matters.
Texas exempts veterans from property taxes in many cases. Veterans with a 100% service-connected disability rating are fully exempt from Texas property taxes. Partial disability ratings receive partial exemptions. This can save thousands of dollars per year and should factor into your overall affordability calculation.
VA loans in Texas cover all major markets. Whether you're buying in San Antonio (home to Fort Sam Houston, Randolph AFB, and Lackland AFB), El Paso near Fort Bliss, Killeen near Fort Cavazos, or in the Dallas-Fort Worth Metroplex — VA loans work across the entire state with no geographic restrictions.
The VA funding fee still applies in most cases. The VA funding fee for a first-time use purchase with no down payment is currently 2.15% of the loan amount. However, veterans with a service-connected disability rating of 10% or more are exempt from this fee entirely — which can save thousands at closing.
IRRRL refinancing works in Texas too. If you already have a VA loan in Texas and rates have shifted since you closed, the VA Interest Rate Reduction Refinance Loan (IRRRL) lets you refinance with minimal documentation, no appraisal in most cases, and the ability to roll closing costs into the new loan.
I'm licensed in Texas and work with veteran buyers across the state. If you have questions about using your VA benefit to buy or refinance in Texas, book a free 30-minute call. I'll walk you through exactly what's possible based on your specific situation.
Jason L. Esposito | NMLS# 308764 | Hoot Home Loans NMLS# 2532931 | CA-DFPI | TX-SML | FL-OFR | Equal Housing Opportunity. Not a commitment to lend.