The Texas Veterans Land Board (VLB), part of the Texas General Land Office, runs two loan programs for Texas veterans and military members: home loans through the Veterans Housing Assistance Program and land loans. Both limits rose in early 2026, and in July the Board voted to end its third program, home improvement loans. Here is what each program does, who can use it, and what to use instead of the home improvement loan.
Who can use VLB loans
To be eligible for VLB loan programs, you must be at least 18 and a bona fide Texas resident on the date you apply, and meet one of these service tests (GLO home loans):
- An active duty military member.
- A member of the Texas National Guard.
- A reserve component member who has completed 20 qualifying years for retirement.
- A veteran who served at least 90 days of active duty (less if discharged for a service-connected disability), with an honorable, general or medical discharge. Other discharges are not eligible unless VA has issued a certificate of eligibility or similar document showing you qualify for a VA loan based on your service.
- The surviving spouse of a veteran listed as missing in action or whose death was service-connected.
VLB home loans
- Amount: up to $832,750 on a fixed-rate loan, subject to credit approval.
- How it works: you apply through a VLB participating lender for VA, FHA or conventional financing under the Veterans Housing Assistance Program; the VLB holds the first lien on your primary residence (GLO home loans). The GLO says veterans who use VA benefits with the VLB program may be eligible for a home loan with no down payment and no private mortgage insurance (GLO, January 5, 2026).
- Disability discount: veterans with a VA service-connected disability rating of 30% or more qualify for a discounted interest rate. The VLB adjusts its base rate weekly, so ask a participating lender for the current rate and APR.
- Occupancy: the home must be your primary residence in Texas. You must move in within 60 days of closing and keep it as your primary residence for at least three years.
- Property: a single-family attached or detached home, townhome or condominium. Duplexes and other multifamily homes must be at least five years old at closing, and new construction must meet local building standards.
- Limits: the VLB does not refinance existing loans, and the program cannot be used for a down payment. You can have one active loan in each program, land and home, at the same time, and use the program again after paying off a VLB loan.
- Called to duty: the GLO says Reservists and National Guard members with a VLB land or home loan may be able to defer interest payments under the Servicemembers Civil Relief Act when called to active duty (GLO).
VLB home loan or VA loan?
They are not either-or: through a VLB participating lender, the VLB home loan can itself be a VA-guaranteed loan, or an FHA or conventional loan, with the VLB in first lien position (GLO home loans). The differences matter when you plan:
| Feature | VA home loan | VLB home loan |
|---|---|---|
| Who runs it | The U.S. Department of Veterans Affairs guarantees part of a private lender's loan | The Texas Veterans Land Board, through participating lenders |
| Who can use it | Service members, veterans and Reserve and Guard members who meet VA service rules, and some surviving spouses | Texas residents who meet the VLB service tests above, including Texas National Guard members and Reserve members with 20 qualifying years |
| How much | No VA limit with full entitlement; the lender sets the maximum | Up to $832,750 |
| Down payment | None with full entitlement, subject to lender approval | The VLB says little or no down payment; the program cannot fund a down payment |
| Occupancy | A home you will live in | Move in within 60 days; primary residence for at least three years |
| Refinancing | VA offers refinance loans | Not available |
See VA home loans in Texas and, for Reserve and Guard members, VA loans for Reserve and National Guard members.
VLB land loans
- Amount: up to $200,000, or up to $275,000 when two veterans who are spouses, each eligible on their own, buy the same tract of at least one net acre. Both limits took effect February 9, 2026 (GLO, February 5, 2026).
- The land: at least one acre, not counting any part under a public road or waterway or otherwise unusable; legal, usable access to a public road at least 60 feet wide (or the county's road width, if greater), and flagpole access drivable in bad weather; a surveyed field note description or a recorded plat; not zoned strictly commercial; not owned by you or your spouse in the past three years; and trash, tires and dilapidated structures removed before closing. The VLB gives no value to improvements on the tract (GLO land loans).
- Your share: the VLB sets a minimum down payment, subject to credit approval, and collects an appraisal and contract service fee after you apply. There is no prepayment penalty (GLO land loans).
- Veterans Land Sale tracts: the VLB finances up to the minimum bid; you pay any amount bid above it at closing. Its spring 2026 Veterans-Only Land Sale included a tract in Cameron County (GLO, March 18, 2026).
- Contact: the VLB call center, 800-252-8387.
Land loans fit buyers looking at acreage outside city limits, such as rural tracts in Starr and Willacy counties, who plan to build later. Check septic, water and flood zone questions before you bid or sign.
The end of VLB home improvement loans
At a special called meeting on July 28, 2026, the Board voted unanimously to discontinue offering loans under its Veterans Home Improvement Loan Program. It also approved amendments to 40 Texas Administrative Code §§177.3, 177.5 and 177.8 that remove the program from its rules and rename the chapter “Veterans Housing Assistance Program.” The proposal was filed August 7, 2026 and published in the August 21, 2026 Texas Register, with September 20, 2026 as the earliest possible adoption date (Texas Register, August 21, 2026).
As of October 16, 2026, no notice of final adoption for those sections had appeared in the Texas Register issues published through that date (Volume 51, Number 42), and the GLO's Loans for Veterans page lists only land and home loans. Websites that still describe VLB home improvement loans are out of date.
What to use instead
- VA adapted housing grants for qualifying service-connected disabilities: up to $126,526 for a Specially Adapted Housing grant and up to $25,350 for a Special Housing Adaptation grant, with Temporary Residence Adaptation grants of up to $50,961 or $9,100. These are VA's fiscal year 2026 maximums; VA.gov still showed them on October 16, 2026 (VA, page updated November 18, 2025).
- Renovation financing: FHA 203(k) and conventional renovation loans can finance repairs with a purchase or a refinance, and VA offers cash-out refinance loans. Ask a lender for the terms and APR.
- City and county repair programs for current homeowners: Mission's Housing Assistance Program, Pharr's owner-occupied rehabilitation program run by AHSTI, and Hidalgo County's Urban County Program list rehabilitation or reconstruction help with income limits. See city and county programs.
The VLB in the Valley
The VLB also runs the Alfredo Gonzalez Texas State Veterans Home in McAllen (GLO) and the Rio Grande Valley State Veterans Cemetery at 2520 Inspiration Road in Mission (GLO).
How to apply
- Confirm you meet the service test and Texas residency, and get your service documents. The National Archives handles DD214 requests.
- For a home loan, choose a VLB participating lender from the GLO's lender list. The lender makes your VA, FHA or conventional loan under the VLB program.
- For a land loan, apply with the VLB, which prequalifies you before you find land. Call 800-252-8387 with questions.
- Amy can help you find homes or acreage that meet the VLB's property rules and keep the contract dates in line with the VLB's timeline.
VLB loan questions
How much can I borrow with a VLB home loan in 2026?
Up to $832,750, the limit the Veterans Land Board announced in January 2026, subject to credit approval through a VLB participating lender.
Does the Texas Veterans Land Board still offer home improvement loans?
No. The Board voted on July 28, 2026 to discontinue its Veterans Home Improvement Loan Program and proposed removing it from its rules in the August 21, 2026 Texas Register. Its home and land loan programs continue.
Can I use a VLB loan with a VA loan?
Yes. You apply through a VLB participating lender for VA, FHA or conventional financing under the VLB program, so VA benefits and the VLB program can be used on the same purchase. The VLB holds the first lien.
Can National Guard and Reserve members get a VLB loan?
Texas National Guard members meet the VLB's service test, and Reserve component members meet it after completing 20 qualifying years for retirement. Applicants must be at least 18 and Texas residents when they apply.
How much land can I buy with a VLB land loan?
The VLB finances tracts of at least one acre, up to $200,000, or $275,000 when two eligible veterans who are spouses buy the same tract, effective February 9, 2026. The VLB sets the minimum down payment and approves credit.
Who wrote this
Amy Herrera is a REALTOR® and Texas real estate sales agent with RE/MAX Elite (TREC #808068) and a Captain, U.S. Army Reserve (veteran). She is not a lender, loan officer, tax adviser or housing counselor, and she does not take loan applications or VA claims. Program facts were checked against the General Land Office and the Texas Register on Oct 16, 2026. Book a call about homes or acreage in the Valley.
