Homeownership opportunities for Texas veterans

Since the days of the Texas Republic and Sam Houston, Texas has given its veterans land in recognition of military service. While the state no longer gives land to veterans, there are still plenty of housing opportunities such as low interest loans for land, homes, and home improvements.

After World War II, the state created the Texas Veterans Land Board (VLB) in 1946 to administer a new program that would provide low-interest, long-term loans to Texas veterans for the purchase of land. Since then, more than 120,000 Texas veterans have taken advantage of this self-supporting program. (Issuing bonds authorized by voters fund the program. The veterans who participate pay for the bonds and the cost of administering the program.)

In 1983, the Legislature created the Veterans Housing Assistance Program to assist Texas veterans in purchasing a home, also funded by bonds. In 1986, the VLB expanded the Veterans Housing Assistance Program, adding the Veterans Home Improvement Program to provide below-market-interest-rate loans to qualified Texas veterans for home repairs and improvements to their existing homes. Needless to say, there’s a wealth of options provided by this program alone for veterans across the state.

About the Veterans Housing Assistance Program
Texas veterans can use all three Texas veteran loan programs at one time. That means, if needed, you can receive a land loan, a housing loan and a home improvement loan. And, these special loan programs for Texas veterans are not associated with the federal Veterans Administration. So, even if you’ve used your VA benefits, you may still be eligible for the state loan programs.

The Veterans Housing Assistance Program (VHAP) provides financing up to $200,000 toward the purchase of a home to qualified Texas veterans. Loans for $45,000 or less may be originated through the Texas Veterans Land Board's direct loan program.

There is no maximum sales price with the VHAP; however, the VLB can only loan up to $200,000 toward the purchase. If the purchase price is more than $200,000, the VHAP can be used in conjunction with Federal Housing Administration (FHA), Veterans Administration (VA), or conventional financing. This is known as a “two-note loan” and must be originated by a participating lender.

Keep in mind that the VHAP is not a refinancing program. If you have an existing loan on your home, you can’t use the VHAP to lower your interest rate, nor can it be used as a down payment on a home. It can only be used as a first lien on your primary residence.

Other housing benefits for veterans
The Land Board also offers other housing-related benefits for veterans. For example, through the Greenbuilding Program, veterans can reduce their interest rate even further (by as much as 0.3%) by using “green” materials and features in their homes. The TVLB assigns number values to “environment friendly” building materials and features that save energy and water.

Veterans who achieve a required minimum score when building or purchasing a new home, or remodeling an existing home, are eligible for the reduced interest rate. Kermit the frog was wrong – it IS easy being green (in Texas)!

There’s also the Veterans with Disabilities program, which offers a half-percent interest rate reduction to those veterans who have a service-connected disability of 10% or greater (as verified by the U.S. Department of Veterans Affairs).

Finally, the Veteran Teachers Program is for veterans or their spouses who are currently certified by the Texas Education Agency and who work as Texas teachers, or veterans who agree to become certified Texas teachers. Educate Texas’ children, and you could be eligible for a half-percent interest-rate deduction.

Eligibility requirements
To be eligible to participate in the Texas Veterans Loan Programs, applicants must have:

• Served no fewer than 90 continuous days on active duty (including active duty for training) in the Army, Navy, Air Force, Marines, Coast Guard or United States Public Health Service (unless discharged sooner by reason of a service-connected disability), or a reserve component of one of the listed branches of service, or have enlisted or received an appointment in the Texas National Guard after completing all initial active duty training requirements as a condition of enlistment or appointment, or have completed 20 years in a reserve component so as to be eligible for retirement as a condition of enlistment or appointment, or, if currently an active duty member of a listed service or a full-time reservist, have completed the initial service obligation;
• Served after Sept. 16, 1940 (for Texas veterans who entered the armed services before Jan. 1, 1977, and who have been discharged from active duty less than 30 years, certain interest-rate incentives may be available for housing or home improvement loans);
• Been honorably discharged;
• Been a bona fide resident of Texas at the time of entry into the military or must have resided in Texas for at least two consecutive years immediately prior to filing an application; applicant must be a bona fide Texas resident at the time the application is made (a bona fide resident is someone who is living in Texas with the intent to remain in Texas). Presence in Texas due to military service alone does not establish bona fide residency); and
• Have successfully repaid any previous TVLB loan within the same loan program. A loan is considered repaid when the account has been paid in full by the original veteran purchaser or last approved assignee. Any active TVLB loans in programs other than the one for which application is being made must be in good standing.

Whether you served in the Army, Air Force, Navy, Marines, National Guard, or any of the armed services, it’s easy to take advantage of these great programs that thank you for your service to our country. For more information, contact the Texas Veterans Land Board at 800-252-VETS or visit http://glo.state.tx.us/vlb. The Veterans Land Board also sponsors free public information seminars that are conducted throughout Texas; call for details.

	Real estate in texas The real costs of buying and owning a home By amy e. lemen, Consumer columnist
	When it comes to buying a house, most Texans are overwhelmed when they write that big check for a down payment. REALTORS® will tell you it’s likely to be the biggest check you’ll write in your life, and it is. It’s a tough number to come up with for many people, and one of the biggest barriers to homeownership. There are downpayment-assistance programs, such as Texas Cares. But, as intimidating as the down payment might be, some homeowners are surprised by just how much goes into owning a home. There are a lot of hidden costs that go beyond traditional expenses like principal, interest, taxes, and insurance, or PITI. In reality, it’s just the beginning. Many people overlook such necessities as general maintenance, repairs, insurance, home improvements, and decorating costs. Here’s what you can expect – and how much you should set aside for these expenses – when it comes to buying or selling a home. General maintenance Living in a rental property certainly does have its advantages. No gutters to replace, no plumbing repairs – or none that you have to do yourself, anyway. Landlords take care of those things, but now that you’re a bonafide homeowner, it’s your job to keep your house running smoothly. How much your home will cost you in maintenance and repairs depends on how old it is; how well it was taken care of by previous owners (if applicable); how harsh the weather is where you live; and how much money you want to get out of your home when you sell it. Experts say you should budget at least 1% of the home’s purchase price for repairs and general maintenance. For example, if you buy a $200,000 home, you should set aside at least $2,000 a year. Don’t be tempted to take that Caribbean vacation if you don’t end up using the cash. A new roof can run $5,000 or more – and you want the money there to cover your costs when you need it. Protecting your investment – insurance Everyone who owns a house needs it. It’s a lot like most other types of insurance: you hope you won’t need it, but it’s nice to know it’s there if you do. Consider the real cost of replacing your home if it’s destroyed. Check with several different home insurance companies to get rate quotes (an independent insurance agent can provide rate quotes from a variety of companies).		Also consider raising your deductible to save money on monthly premiums. The deductible is the amount of money you have to pay toward a loss before your insurance kicks in. Home insurance deductibles usually start around $250. But, if you increase your deductible to: - $500, you’ll save up to 12% on your premiums - $1,000? Save up to 24% - $2,500? Save up to 30% - $5,000? Save up to 37% Home improvements: Make your home your own Want polka-dotted walls? Now that you own a home, you can go nuts with any color scheme you want. Just be sure you budget for all that paint. While painting a few rooms won’t seriously dent your improvement budget, it’s easy to go overboard. The good news is that a few projects can add great value to your home and may even help you recover initial costs. But it will cost you some bucks. According to Remodeling magazine, a major kitchen overall – one of the most popular home improvements – can cost an average of $38,769. Check out the magazine’s Cost vs. Value survey to see which projects will give you the most bang for your buck. Of course, if you’re handy with a hammer and a paintbrush, you can save money by doing some work yourself. Don’t forget new furniture, otherwise you might be sitting on that ratty college sofa for a few years. When you consider your budget, remember costs for things like window treatments, lighting fixtures, carpet or area rugs and appliances. Stocking up the tool rack Owning a home also means investing in the tools to keep it in tip-top condition. If you’re going from an apartment to a house, for example, you’ll probably need a lawnmower and other assorted machines and tools. And they’re not cheap. Don’t forget closing costs Lenders estimate that 3% to 6% of the loan amount will be closing costs. On a $150,000 mortgage, that would add up to somewhere between $4,500 and $9,000. Closing costs might include: loan application fees and credit report; title search and insurance fees; lender’s attorney fees; property appraisal; inspections; survey; recording fees; mortgage origination fees; and escrow account balances/prepaids (for taxes, insurance). The bottom line is to just keep a little extra aside, and you’ll be well prepared for any costs that come up when buying or maintaining your home.