The 2026 Texas VA Loan Guide
Your VA benefit in Texas, explained without the runaround: zero down, no monthly mortgage insurance, the funding fee most disabled veterans skip, and how to prove eligibility. Read it here or get it emailed.
By Mike Certo, Cornerstone First Mortgage · NMLS #260555 ·
What makes a VA loan different?
A VA loan is a mortgage the U.S. Department of Veterans Affairs backs for eligible service members, Veterans, and surviving spouses, and across Texas it is the loan Mike reaches for first. You buy with zero down and skip monthly mortgage insurance whether you are PCSing to Fort Cavazos in Killeen, retiring near JBSA in San Antonio, or claiming the benefit for the first time in a Houston suburb. It works in all 254 Texas counties, from El Paso out west to the Gulf Coast at Corpus Christi. A Fort Bliss family and a Sheppard AFB family lean on the same benefit against very different price tags. That federal guarantee is what lets a lender fund a Bexar County home with nothing down.
Who qualifies, and what's a COE?
Eligibility turns on your service era and duty status, not one blanket rule, and Texas has one of the largest Veteran populations in the country to work through. The minimum active-duty period runs roughly 90 days to 24 months depending on when you served; six years in the Texas National Guard or Reserve is its own path, as is surviving-spouse eligibility. A soldier at Fort Cavazos, an airman at Randolph, and a retiree in Georgetown all confirm the same way. Your Certificate of Eligibility (COE) from the VA is the definitive check, and Mike usually pulls it for El Paso, San Antonio, and Dallas clients the same day. You can reuse the benefit and restore entitlement after selling a Killeen or Harker Heights home.
The VA funding fee (and who skips it)
Instead of monthly mortgage insurance, VA charges a one-time funding fee you can roll into the loan. First use with zero down is 2.15% of the loan; subsequent use is 3.3%, and putting money down lowers the fee either way. Any Veteran drawing VA disability compensation is exempt from the funding fee entirely, which stacks with the Texas disabled-Veteran property-tax break for a serious cost cut. For a 100%-rated Veteran in Bell or Bexar County, that pairs no funding fee up front with a homestead property-tax bill of zero under Tax Code §11.131.
| Scenario | Funding fee |
|---|---|
| First use, 0% down | 2.15% |
| Subsequent use, 0% down | 3.3% |
| Receiving VA disability | Exempt (0%) |
VA vs. conventional
For an eligible Texas buyer, VA almost always wins: no down payment, no monthly insurance, and no loan limit with full entitlement above the 2026 conforming figure of $832,750. Conventional can still fit if you are putting 20% down in Austin to save entitlement for later, or buying a property type VA will not finance. Most Veterans buying a primary home in San Antonio, Killeen, or the Dallas, Fort Worth metroplex come out ahead on VA. Mike models both against your actual county tax rate before you decide.
Texas veteran benefits
Texas stacks more state-level Veteran benefits than most, starting with the disabled-Veteran homestead exemption. A 100%-rated or individually unemployable Veteran owes no property tax on the homestead under §11.131; ratings of 10-90% take $5,000 to $12,000 off assessed value under §11.22, filed on Form 50-114 or Form 50-135 with your county appraisal district by April 30. Proposition 13, approved in November 2025, also raised the school-district homestead exemption to $140,000 for every Texas homeowner, and it stacks on top. The Hazlewood Act, the Texas Veterans Land Board, and the Texas Veterans Commission add education and land-loan benefits alongside the loan itself. Still weighing where to buy? See which Texas metro fits your VA benefit across San Antonio, Killeen, and El Paso.
Common questions
Do VA loans really require zero down in Texas?
Yes. Eligible Veterans, service members, and surviving spouses can buy a primary Texas home with no down payment and no monthly mortgage insurance, from El Paso to Houston. With full entitlement there is no VA loan limit, so the zero-down benefit scales past the 2026 Texas conforming figure of $832,750 into VA jumbo territory in pricier Austin and Dallas markets.
What is the VA funding fee and who is exempt in Texas?
The VA funding fee replaces monthly mortgage insurance with a one-time charge you can roll into the loan, 2.15% for first use with zero down and 3.3% for later use. Any Texas Veteran receiving VA disability compensation is exempt entirely, and that break stacks with the Tax Code 11.131 homestead property-tax exemption for 100%-rated Veterans in Bexar, Bell, and El Paso counties.
How do I prove VA loan eligibility in Texas?
With a Certificate of Eligibility (COE) from the VA. Eligibility depends on your service era and duty status, whether you served at Fort Cavazos, Fort Bliss, Sheppard AFB, or JBSA, with a minimum active-duty period that varies by when you served, six years in the Texas Guard or Reserve, or surviving-spouse status. Mike can usually pull the COE for San Antonio, Killeen, and Houston clients the same day.
Figures reflect current VA guidelines; funding-fee tiers and state benefits change, confirm current details with a specialist. Sources: VA.gov, HUD. This is not a commitment to lend.