Veterans’ Loan Options in Plano: VA and VLB Explained

You earned benefits that can make buying a home in Plano simpler and more affordable. If you are a veteran, active-duty service member, Guard or Reserve member, or a qualifying surviving spouse, you have strong options through the federal VA loan and Texas’s Veterans Land Board programs. This guide breaks down each program, how they differ, how they can work together, and what to expect locally in Collin County. Let’s dive in.

VA home loan basics

A VA loan is a mortgage issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs. Key advantages include often no down payment, no monthly PMI, and flexible credit standards. You must use the home as your primary residence and the property must meet VA’s appraisal and Minimum Property Requirements.

Your lender will verify eligibility using a Certificate of Eligibility. Lenders can often request it for you, or you can follow the VA’s steps for how to request a COE. Most borrowers pay a one-time VA funding fee at closing unless exempt. VA explains the fee, exemption rules, and allowable seller concessions on its funding fee and closing costs page.

• Learn more: VA home loans overview at VA.gov
• Get your COE: VA’s COE instructions
• Understand costs: VA funding fee and closing costs

Texas VLB and VHAP explained

The Texas Veterans Land Board offers state-backed loans for eligible Texas residents through its Veterans Housing Assistance Program, along with land and home improvement loans. VHAP loans come with competitive, bond-funded rates and specific occupancy rules. You must occupy the home as your primary residence, typically within 60 days, and VLB loans are not used for refinancing.

As of January 6, 2025, the VLB increased its VHAP home loan maximum to $806,500, according to a state press release. The VLB also offers an interest-rate discount for veterans with a VA service-connected disability rating of 30 percent or more. Review current program details and property rules on the VLB’s home loans page.

• Program update: VLB press release on the new VHAP maximum and discounts
• Rules and property types: VLB home loans page

VA vs VLB: key differences

• Scope and eligibility: VA is a federal benefit open to eligible service members and veterans nationwide. VLB is only for bona fide Texas residents who meet state service rules.
• Down payment and PMI: VA often allows 0 percent down and does not require PMI. VLB VHAP can be paired with VA financing through participating lenders, which can help you keep cash to a minimum while accessing a VA guarantee.
• Purpose and limits: VA covers purchase, certain refinances, and construction through private lenders. VLB offers home purchase loans, land loans, and home improvement loans with state-defined limits and rules.

Can you combine VA and VLB in Plano?

Often yes. The VLB states that VHAP can be used with VA, FHA, or conventional financing through participating VLB lenders. This pairing can let you use VA’s no-PMI structure and COE eligibility while tapping VLB’s rate program. Work with a VA-approved lender and a VLB participating lender early so both approvals line up.

• See the VLB’s announcement on pairing VHAP with VA financing

Step-by-step: buying in Plano with VA or VLB

1. Get preapproved. For VA, ask your lender to pull your COE or request it yourself using the VA’s COE process.
2. Shop homes and write the offer. Make your contract contingent on VA or VLB approval as needed.
3. Complete the appraisal and certifications. For VA loans, the lender orders a VA appraisal to check value and basic property conditions. Remember, the appraisal is not a home inspection. Order a full inspection to understand repairs.
4. Clear conditions and close. Your lender finalizes underwriting, verifies occupancy and Texas residency for VLB, and collects the VA funding fee if applicable.

• VA appraisal overview: VA’s appraisal process
• COE and costs: COE instructions and funding fee details

VA appraisal and repairs in Collin County

A VA appraisal has two goals. It confirms market value and checks that the home meets VA Minimum Property Requirements such as safe utilities, a sound roof, and sanitary conditions. If the property does not meet MPRs, you and the seller can negotiate repairs, credits, or a price change.

In competitive Plano neighborhoods, plan ahead for potential repairs and timing. Build in a solid inspection contingency and discuss repair strategy before you offer. Keep in mind VA’s rules on what sellers can pay in concessions, which the VA outlines with its funding fee and closing cost guidance.

• Read more: VA funding fee and closing costs
• Appraisal basics: VA’s appraisal process

Local tax savings for disabled veterans

Collin County offers property tax relief for qualifying disabled veterans. Partial exemptions reduce your home’s taxable value based on your VA disability rating. Current Collin CAD guidance shows the following amounts: 10 to 29 percent equals 5,000 dollars, 30 to 49 percent equals 7,500 dollars, 50 to 69 percent equals 10,000 dollars, and 70 to 100 percent equals 12,000 dollars.

Veterans with a 100 percent service-connected disability rating, or those paid at 100 percent due to unemployability, may qualify for a full residence homestead exemption that covers the entire appraised value. Review eligibility and file your application with Collin CAD. You can find the homestead exemption application and disabled veteran FAQs on the Collin CAD website.

• Partial disabled veteran exemption amounts: Collin CAD FAQ
• 100 percent disabled veteran homestead exemption: Collin CAD FAQ
• Forms and filing: Collin CAD homestead application

When each program makes sense

• You want the lowest upfront cash: VA is often best because it commonly allows 0 percent down and no PMI.
• You want to leverage Texas benefits: If you are a Texas resident and qualify, VLB’s rates and disability discount can be compelling.
• You want both advantages: Using VA plus VHAP through a participating lender can pair VA’s no-PMI structure with VLB pricing and rules.
• You plan to move again soon: Consider VLB’s occupancy and time-in-residence requirements before choosing that route.

What to prepare before you apply

• Service proof: DD-214, statement of service, or information needed for a COE request
• Income and assets: recent pay stubs, W-2s, bank statements
• Benefits documentation: VA disability award letter if applicable, which can affect the VA funding fee and VLB rate discount
• Texas residency documentation: items that confirm bona fide Texas residency for VLB

Buying in Plano with VA and VLB benefits is absolutely within reach when you know the rules and line up the right team. If you want a local, veteran-led guide from search to closing, reach out to Jeremy Jordan. Start your move with trusted advice and neighborhood expertise.

Ready to take the next step? Connect with Jeremy Jordan to map your plan.

FAQs

Can I use VA and VLB together on a Plano home?

• Often yes. The VLB allows VHAP to be used with VA financing through participating lenders, so start both approvals early to coordinate timelines and terms.

Do I need a down payment with a VA loan in Texas?

• VA purchase loans commonly allow 0 percent down, but you still need to plan for closing costs and the VA funding fee unless you are exempt.

Who is exempt from the VA funding fee?

• Many veterans receiving VA disability compensation and certain surviving spouses are exempt. Provide your VA award letter to your lender so the exemption is applied.

What if the house fails the VA appraisal in Collin County?

• The appraiser will list items that must be corrected. You and the seller can negotiate repairs or credits, and if not resolved you can exit under your contingencies.

How do Collin County disabled veteran exemptions work after I buy?

• Partial exemptions reduce taxable value by set amounts based on your rating, and a qualifying 100 percent rating may receive a full homestead exemption. File with Collin CAD using its posted forms and instructions.