As a military spouse, I know how valuable the VA home loan benefit can be. Here are the basics for using a VA loan in San Antonio. Your lender and the VA have the final word on your situation.
Who may be eligible for a VA loan
Veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses may qualify based on service history and duty status. You’ll need a Certificate of Eligibility (COE). You’ll also need to meet credit, income and occupancy requirements from both the VA and your lender.
Key VA loan benefits
- No down payment in most cases. The VA guaranty to your lender is what makes that possible.
- No monthly mortgage insurance.
- No VA loan limit with full entitlement. If you have full entitlement, the VA doesn’t set a loan limit. Your lender still decides how much you can borrow, based on your credit, income, debts and assets. The base loan can’t be more than the appraised value or the purchase price, whichever is lower; the VA funding fee can be financed on top of that.
- Seller help with costs. Sellers can pay your customary closing costs, and the VA also allows seller concessions, such as paying your VA funding fee or prepaid items, of up to 4% of the home’s reasonable value.
The VA funding fee
Most VA loans include a one-time funding fee. You can pay it at closing or include it in your loan. The amount depends on your loan type, your loan amount and, for some loans, your down payment and whether you’ve used the benefit before. Check the VA’s current funding fee charts for the numbers.
You don’t pay the funding fee if any of these apply:
- You receive VA compensation for a service-connected disability.
- You’re eligible for that compensation but receive retirement or active-duty pay instead.
- You receive Dependency and Indemnity Compensation (DIC) as a Veteran’s surviving spouse.
- You’re a service member with a proposed or memorandum rating, issued before closing, that says you’re eligible for compensation based on a pre-discharge claim.
- You’re on active duty and show proof, on or before closing, that you received a Purple Heart.
Good to know before you buy in San Antonio
- VA purchase loans generally require qualifying primary-residence occupancy. For active-duty borrowers unable to occupy within a reasonable time, a spouse or dependent child may satisfy the requirement under VA rules. Confirm the applicable certification with your lender.
- A VA appraisal is required on a purchase. It checks the home’s value and whether it meets the VA’s minimum property requirements. It is not a substitute for an independent home inspection.
- Private lenders make the loans, and the VA guarantees part of each one. The lender sets your interest rate and most fees.
- Texas property tax: If the VA has awarded you 100% disability compensation, with a 100% rating or individual unemployability, Texas exempts the total appraised value of your homestead. Other disabled Veterans may qualify for a partial exemption. Apply with the appraisal district for your county.
I don’t set rates or approve loans, but I’m happy to help you find a home that fits your benefit. Start with my San Antonio home search or my JBSA PCS guide.
Frequently asked questions
Can a San Antonio Realtor help me buy a home with a VA loan?
Yes. I don’t set rates or approve loans, but as a Realtor I’m happy to help you find a home in San Antonio that fits your VA benefit. Your lender and the VA have the final word on your loan.
Do I need a down payment for a VA loan?
In most cases, no. The VA guaranty to your lender is what makes that possible.
Who is eligible for a VA home loan?
Veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses may qualify based on service history and duty status. You’ll need a Certificate of Eligibility and must meet VA and lender credit, income and occupancy requirements.
Do I have to pay the VA funding fee?
Most VA loans include a one-time funding fee, but you don’t pay it if, for example, you receive VA compensation for a service-connected disability. See the full list of exemptions above.
Do disabled Veterans in Texas get a property tax exemption?
Yes. If the VA has awarded you 100% disability compensation, with a 100% rating or individual unemployability, Texas exempts the total appraised value of your homestead. Other disabled Veterans may qualify for a partial exemption.
Sources
- VA, Eligibility for VA home loan programs: https://www.va.gov/housing-assistance/home-loans/eligibility/
- VA, Purchase loan: https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/
- VA, Home loan entitlement and limits: https://www.va.gov/housing-assistance/home-loans/loan-limits/
- VA, Funding fee and closing costs: https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/
- VA, How to request a COE: https://www.va.gov/housing-assistance/home-loans/how-to-request-coe/
- VA Home Loan Guaranty Buyer’s Guide: https://www.benefits.va.gov/homeloans/documents/docs/VA_Buyers_Guide.pdf
- Texas Comptroller, 100 Percent Disabled Veteran FAQ: https://comptroller.texas.gov/taxes/property-tax/exemptions/disabledvet-100-faq.php
- Texas Comptroller, Property tax exemptions: https://comptroller.texas.gov/taxes/property-tax/exemptions/
Start Your PCS Home Search
Share your report date and JBSA location, and let's build a plan.