Texas is, and has always been, a state that holds its military community in the highest regard. As of July 2025, the Lone Star State is proud to be home to one of the largest populations of both active-duty service members and veterans in the nation. From the sprawling training grounds of Fort Cavazos (formerly Fort Hood) and the critical missions at Joint Base San Antonio to the dedicated veteran communities found in cities like Amarillo, the contributions of those who serve are woven into the very fabric of Texas life.
As a tangible expression of the nation's gratitude, the U.S. Department of Veterans Affairs offers the VA Home Loan Guaranty Program. This is not merely a mortgage option; it is one of the most powerful and well-earned benefits an individual can receive for their service to our country. For Texas veterans, it represents a direct and advantageous path to homeownership. Navigating this program, however, requires a level of expertise that not every lender possesses. Understanding the details and partnering with a lender that specializes in VA loans, such as the dedicated experts at Herring Bank, is the key to unlocking the full potential of this incredible benefit.
The VA loan program is famous for its zero down payment feature, but its advantages run much deeper. These core pillars work together to create a home financing tool that is unparalleled in its ability to reduce the barriers to homeownership for those who have served.
This is the flagship benefit and a true game-changer. While conventional loans often require 3-20% down and FHA loans require at least 3.5%, a qualified veteran can purchase a home with absolutely no down payment. For a $350,000 home, this means saving up to $12,250 (FHA) or more upfront, allowing service members and veterans to buy a home far sooner than they otherwise could. This feature enables them to invest in their family's future without first needing to spend years saving a large lump sum.
This is arguably the most significant long-term financial advantage. On conventional loans with less than 20% down, borrowers must pay a costly monthly Private Mortgage Insurance (PMI) premium. On FHA loans, a similar Mortgage Insurance Premium (MIP) is required. VA loans have neither. This can easily save a homeowner $100 to $300 or more every single month compared to other loan types, substantially increasing their purchasing power and lowering their total monthly housing payment.
To keep the VA loan program running for future generations of service members without costing taxpayers, most borrowers will pay a one-time VA Funding Fee. This fee varies based on service type, down payment amount, and whether it is a first-time or subsequent use of the benefit. For a first-time user with zero down payment, the fee is typically 2.15% of the loan amount. Importantly, this fee can be rolled into the total loan balance and financed over the life of the loan.
Crucially, there is a major exemption: Veterans who are receiving VA disability compensation are completely exempt from paying the VA Funding Fee. This can save a veteran thousands of dollars at closing.
The VA also protects veteran homebuyers by limiting the closing costs that lenders are permitted to charge. This prevents veterans from being saddled with excessive or uncustomary fees, ensuring a fair and transparent process.
The VA loan benefit is available to a wide range of service members, veterans, and surviving spouses who meet specific service criteria.
The key document needed to prove eligibility is the Certificate of Eligibility (COE). While a veteran can obtain this directly from the VA, an experienced, VA-approved lender like Herring Bank can often access the VA's automated system and retrieve a veteran's COE in minutes, greatly simplifying and accelerating the first step of the process.
Once eligibility is confirmed, the process largely follows a standard mortgage path, but with a few key differences where expertise truly matters.
Working with a lender who understands MPRs is crucial. The dedicated VA Loan Experts at Herring Bank can provide invaluable insight, helping buyers and their agents spot potential issues early on, ensuring a smoother appraisal process. Their extensive FAQ section can also answer many specific questions veterans may have.
The VA home loan is more than a government program; it's a promise kept. For the immense community of veterans who call Texas home, it is the nation's way of saying "thank you" and providing a tangible tool to build a secure and prosperous civilian life. Honoring this benefit means entrusting it to a lender who treats it—and the veteran—with the highest level of respect and proficiency. To learn more about how to utilize this powerful benefit, prospective homebuyers should explore their options for VA Home Loans in Texas with a lender that is truly committed to serving those who have served.
