VA Mortgage Loans
VA loans offer zero down payment and no PMI for eligible veterans in Texas & Nationwide
What is a VA Loan?
A VA loan is a mortgage program backed by the U.S. Department of Veterans Affairs and available to borrowers who meet applicable military service requirements. VA loans can be used to purchase, build, or refinance a primary residence.
The VA does not lend money directly. It guarantees a portion of the loan made by an approved lender, which reduces the lender’s risk and is what makes zero-down payment financing possible. The program includes specific eligibility, occupancy, and property requirements, and loan approval is based on individual borrower qualifications and applicable VA guidelines.
VA Loan Eligibility
The U.S. Department of Veterans Affairs determines VA loan eligibility based on your length and character of service.
Generally, you may be eligible if you are:
- An active-duty service member with 90 or more continuous days of service
- A veteran who meets minimum service requirements
- A National Guard or Reserve member with six or more years of service, or 90 days of active-duty service during a qualifying conflict
- An eligible surviving spouse of a veteran
Your Certificate of Eligibility
Eligibility is documented through a Certificate of Eligibility, or COE. The COE confirms to your lender that you qualify for the benefit and shows how much entitlement you have available. Most borrowers do not need to obtain it themselves.
Novus Texas can request your COE electronically in most cases and can help you gather DD-214, NGB-22, or statement of service documentation if a manual request is required.
VA Loan Benefits
Zero down payment for qualified purchases up to your available entitlement
No monthly PMI (Primary Mortgage Insurance) requirement
Competitive Interest Rates
Flexible credit qualifying
Limits on closing costs
No prepayment penalty
Assumable financing to an eligible buyer
VA Loan Requirements
*Requirements subject to change
Certificate of Eligibility (COE)
Minimum Credit Score: No VA minimum; lender overlays typically 580–620
Debt-to-Income Ratio: 41% VA benchmark, with higher ratios allowed
Residual Income: Must meet the VA minimum for your household size and region
Occupancy: Must be your primary residence; investment properties and second homes are not eligible
Property Standards: Must meet VA Minimum Property Requirements and pass a VA-assigned appraisal
Eligible Properties: Single-family homes, VA-approved condos, 2–4 unit properties you occupy, and qualifying manufactured homes
The VA Funding Fee
The VA funding fee is a one-time charge that helps sustain the program so it can continue operating without taxpayer subsidy. It can be financed into the loan or paid at closing. The rates below took effect April 7, 2023, and are current for 2026
| Loan Type | Down Payment | First Use | Subsequent Use |
| Purchase or construction | Less than 5% | 2.15% | 3.30% |
| Purchase or construction | 5% to 9.99% | 1.50% | 1.50% |
| Purchase or construction | 10% or more | 1.25% | 1.25% |
| Cash-out refinance | Not applicable | 2.15% | 3.30% |
| Interest Rate Reduction Refinance Loan (IRRRL) | Not applicable | 0.50% | 0.50% |
Borrowers who are exempt from the funding fee pay nothing. If you paid a funding fee and later received a retroactive disability rating covering your closing date, you may be entitled to a refund. Ask your loan officer to review it.
Work with a VA Loan Officer Who Has Been There
Ariel Carballo is a United States Marine Corps veteran and serves as Loan Officer and Sales Manager at Novus Texas, NMLS #2097750. He has walked through this benefit himself and works with veterans, active-duty service members, and military families across DFW and all 50 states.
If you are not sure whether you have entitlement available, whether your credit is where it needs to be, or how a disability rating affects your numbers, that is a conversation worth having before you start looking at homes.
Free Guide for Active Duty, Reserve & Veteran Home Buyers
Most veterans qualify for a VA loan. Most veterans underuse it. And too many find out what they left on the table only after they’ve already closed on a lesser loan.
This guide fixes that. No fluff, no fine print buried in the back, just the information you need to use the benefit you earned, organized the way you’d want it explained by someone who’s been where you are.
FREQUENTLY ASKED QUESTIONS
Is there a minimum credit score for a VA loan?
No. The VA does not set a minimum credit score for a VA home loan. Individual lenders apply their own overlays, and those commonly fall in the 580 to 620 range. Underwriters also weigh residual income, payment history, and the overall strength of the file rather than the score alone.
Can I use a VA loan more than once?
Yes. The VA loan benefit is not a one-time program. Entitlement is restored once a prior VA loan is paid off and the property is sold. In some cases you can hold two VA loans at the same time using remaining entitlement, which is common during a permanent change of station.
Do I have to pay the VA funding fee?
Not always. Veterans receiving VA disability compensation, active-duty Purple Heart recipients, and eligible surviving spouses receiving Dependency and Indemnity Compensation are exempt. Everyone else pays a one-time fee that can be financed into the loan.
Can I use a VA loan to buy a home in Texas if I am stationed out of state?
Yes. VA loans can be used for property in any state regardless of where you are currently stationed. The home must be your intended primary residence, and occupancy rules allow for reasonable timelines during a PCS.
Can I use a VA loan for an investment property?
No. VA loans are for primary residences only. You can purchase a multi-unit property of up to four units with a VA loan if you occupy one of the units, which allows the remaining units to generate rental income.
Can I use a Texas VLB loan and a VA loan together?
In many cases, yes. The Texas Veterans Land Board Housing Assistance Program can work alongside VA financing for eligible Texas veterans. Because each program has its own eligibility and property requirements, this is worth reviewing with a loan officer familiar with both.
Novus Texas is a regional team of Novus Home Mortgage, a division of Ixonia Bank, serving the Dallas–Fort Worth area and clients nationwide. Based in Dallas, the team provides residential mortgage solutions, including conventional, FHA, VA, renovation, and investment property financing. The team is led by experienced mortgage professionals Shawn Fehily and Marcus Lepp, bringing over 25 years of combined industry experience.
Established in 2019, Novus Home Mortgage originates loans in all 50 states and is committed to a simpler, more transparent mortgage process. Novus Home Mortgage is a division of Ixonia Bank. NMLS #423065. Member FDIC. Equal Housing Lender.