Most Texas veterans are familiar with VA loans. Far fewer know that Texas offers state-level veteran loan programs that can be especially useful for building a home or planning long-term ownership.
One of those programs is the Texas Veterans Land Board (VLB) Home Loan. It’s not better or worse than a VA loan – it’s different. And in the right situation, it can make building or buying in Texas more accessible than many veterans expect.
→ The Ultimate Guide to Using Your VA Loan in San Antonio
Here’s how the VLB loan works, when it makes sense, and what to know before deciding if it’s the right tool for your plans.
What Is the Texas Veterans Land Board (VLB)?
The Texas Veterans Land Board is a state agency created to help Texas veterans access land and homeownership opportunities. While it’s often associated with land loans, the VLB also offers a home loan program that can be used to purchase or build a primary residence in Texas.
Unlike VA loans, which are federally backed, the VLB loan is Texas-specific and comes with its own rules, benefits, and limitations.
👉 Texas Veterans Land Board – Home Loan Program
How the VLB Home Loan Works
At a high level, the VLB home loan functions similarly to a traditional mortgage, with a few key differences veterans should understand upfront.
Key features include:
- Lower down payment options compared to many conventional loans
- Competitive interest rates set by the state
- No private mortgage insurance (PMI)
- Available only to eligible Texas veterans
The loan is intended for a primary residence and is best suited for veterans planning to stay put rather than move frequently.
Using a VLB Loan to Build a Home
One of the biggest advantages of the VLB loan is that it can be used for new construction, including custom or semi-custom homes.
Typically, this involves a construction-to-permanent loan, meaning:
- One loan covers construction
- The loan converts to a permanent mortgage after completion
- No second closing is required
Practical considerations when building with a VLB loan:
- Builders must meet specific approval requirements
- Timelines can be longer than resale purchases
- Planning and documentation matter more than speed
For veterans building a long-term or retirement home, this structure can be appealing – but it’s not ideal for buyers who need a fast or flexible closing.
👉 Texas Veterans Land Board – Construction Loan Information
VLB Loan vs. VA Loan: Key Differences
This is where practical decision-making matters most.
A VLB loan may make sense if:
- You plan to build or buy long-term in Texas
- You want a state-backed option with predictable terms
- You don’t need the flexibility of a zero-down VA loan
A VA loan may be a better fit if:
- You want maximum flexibility
- You may move again
- You want to leverage zero down with fewer geographic constraints
Neither option is universally better – the right choice depends on your timeline, goals, and how long you plan to stay in the home.
Who the VLB Loan Is a Good Fit For
Based on real-world use, the VLB loan tends to work best for:
- Veterans building a custom or semi-custom home
- Veterans planning to retire in Texas
- Buyers purchasing land and building intentionally
- Veterans focused on long-term affordability and stability
It’s less ideal for:
- Short-term ownership
- Tight timelines
- Buyers who want maximum flexibility
Important Limitations to Know Upfront
Before pursuing a VLB loan, it’s important to understand a few constraints:
- The property must be located in Texas
- Builder and lender approvals are required
- The process can be more structured than a VA resale purchase
- It’s not always the cheapest option – just a different one
Understanding these limits early prevents frustration later.
The Bottom Line
The Texas Veterans Land Board loan is a valuable option for veterans who are planning intentionally and thinking long-term about homeownership in Texas.
It’s not a shortcut, and it’s not for everyone – but for the right buyer, it can be a powerful tool for building a home that fits both lifestyle and legacy goals.
If you’re a Texas veteran considering building or buying and want help evaluating whether a VLB loan makes sense for your situation, having that conversation early can save time, stress, and money.
Jennifer Anderson is a San Antonio Realtor and military spouse who focuses on educating VA buyers and military families about using VA loans successfully – particularly in far west San Antonio neighborhoods. She combines local market knowledge with clear, practical guidance to help VA buyers make confident decisions.
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