Texas One Mortgage specializes in VA & Texas Vet mortgage loans. VA home loans & Texas Vet home loans are designed to provide assistance to veterans, active duty military personnel and surviving spouses of veterans who wish to purchase or refinance a home. Below is a chart comparing there similarities and differences. If you don't find the information you are looking for, please email us your questions for further help. Also, check out our Texas Vet webpage. If you are purchasing a rural home, check out our USDA zero down rural housing loans.

Texas Vet vs. VA Loan Comparison Chart
Descriptions	VA Loans	Texas Vet Loans
Eligibility	Veterans in good standing with sufficient VA entitlement to insure loan	Same as VA, plus, must be resident of Texas at time of application & meet Texas Vet residence requirements
Closing Costs	Lower closing costs. Rates with lender paid rebates for lower closing costs to you	Usually higher closing costs. No lender rebates
Maximum Loan Amount	$1,500,000, including financed VA Funding Fee	$325,000, including financed VA Funding Fee
New Construction	No additional requirements	Must be Energy Star labeled & certified
Rates	Sometimes better than Texas Vet base rate Many different rates with different amounts of lender rebate Rates change daily	Base rate Sometimes better than VA... Disability Rate 0.5% Rate Discount. Better than VA Rates change weekly
VA Funding Fee	Yes	Yes

Guidelines

VA purchase loans up to $417,000 with $0 down payment.
This is the most common VA purchase loan. It allows the borrower to purchase with NO down payment up to a maximum loan amount of $417,000, including the VA Funding Fee, if financed..

You can only purchase a 1 to 4 unit home you intend to live in and take possession of within a 60 days from closing. Single family, 1 unit homes are the most common property purchased with VA loans.

VA Jumbo Loans up to $1,500,000 with a down payment.
New loan limits now allow VA loans for purchasing a new home or refinancing an existing mortgage up to $1,500,000 with a down payment (or equity for refinance loans) equal to 25% of the excess over $417,000. Example: Loan amount $517,000, excess equals $100,000, times 25% equals a $25,000 down payment or equity. Additional restrictions may apply. Click here for more details.

There are several advantages to purchasing with a VA loan, including,
- Zero Down Payment,
- Seller can pay all your closing costs.

• Assumable - Yes, but the new borrower must qualify for the loan to assume it.
• Bankruptcy or Foreclosure
  

  Chapter 7
  You must wait 2 years from the discharge date.

  Chapter 13
  You must have made all your payments on time for at least 12 months. Permission from the bankruptcy trustee is also required.

  Foreclosure
  You must wait 2 years from the date of the foreclosure.
  If the loan was a VA loan and there was a balance due after the home was sold, you may have limited or no entitlement. A new COE will show this.

  NOTE: After a bankruptcy be sure to check  your credit report for errors  and correct inaccurate information. This can make a big difference in your credit scores and loan approval.

  If you need help repairing your credit, contact us and we will refer you to HTDI Financial, a credit repair agency we work with.

• Buy-downs - Allowed on purchases only, up to a loan amount of $417,000. Not allowed on ARM loans.
• Closing costs - VA limits what closing costs can be paid by the veteran. Classed as the "veteran's unallowable closing costs" these fees, from $775 to $2039, are normally paid by the seller when purchasing an existing home.
  The Owner's Title Insurance Policy, about 0.8% of the sales price, is also a fee normally paid by the seller when purchasing an existing home.

  When purchasing a new home from a builder the veteran should discuss these items to be sure if the builder will pay these fees, part of these fees or none of these fees. If the builder is not paying these fees, notify us so we can structure your loan properly to pay these fees and still provide you with the lowest interest rate possible.

  Many builders will encourage you to use their own mortgage company and may provide incentives to you if you do, i.e., pay points for you or pay for your Owner's Title Policy. We have found that most of the time we can still save you money and give you a better interest rate, even without the builder's incentives, so it's best to request an analysis & estimate from us to compare with the builder's offer. You may be pleasantly surprised.

• Credit Scores - VA does not set credit score limits, but all of our lenders do. Scores below 640 are not currently allowed.  If your scores are below 620 you will need credit repair to see if your scores can be raised enough to qualify. 
  
  The following adjustments are to the points. As a rule of thumb, 0.50% in points equals about 0.125% in the rate. So if you have to add 0.75% pt. your rate will go up about 0.25%, i.e., 7.0% to 7.25%..
  
  
  • >700 = subtract 0.125% pt.
  • 640 - 660 = add 0.25 pt.
  • 640 Minimum credit score.
• DTI - Debt to income ratios between 41-44% using manual underwriting (VA guidelines). We only use manual underwriting when we can't get an approval from AU. Using automated underwriting we've approved loans with up to 50%+ DTI.
• Eligible Property Types - 1-4 unit homes, townhouse, approved Condos and PUDs.
• Energy Efficiency Improvements - May be added to your loan amount up to $3000 if costs are documented.
  Amounts over $3000, up to $6000 may be added, but require the costs to be documented and must show the resulting increase in the monthly P&I payment does not exceed the likely reduction in the monthly utility costs resulting from the energy efficiency improvements. (This must be documented).
• Loan to values up to 100%, plus the VA Funding fee, on loan amounts up to $417,000.
• Loan Types - 15 & 30 year fixed rate loan. 3/1 & 5/1 Hybrid ARM loans are available.
  Some lenders also offer 10, 20 or 25 year loans, but the pricing isn't as good as the 15 or 30 year loans. Ask us and we can show you how to pay off your loan in a shorter term without using a shorter term loan.
• Maximum Loan Amount - $1,500,000 including the VA Funding Fee, if financed.
• Loans greater than $417,000 require:
  • Down payment equal to 25% of the excess over $417,000. Based on full VA entitlement.
  • VA Funding Fee required, unless exempt.
  • Only available on 30 year fixed rate loans.
  • Loans greater than $700,000 are underwritten on a case by case basis.

• Loans greater than $700,000 also require:
  • No foreclosure or bankruptcy in past seven years
  • No housing payment 30 days or more past due in the last 12 months
  • 640 middle credit scores for purchase or rate/term refinances and 660 for Other Refinances. Loans greater than $1,000,000 require 700 credit scores.
  • Loans greater than $700,000 are underwritten on a case by case basis. Additional restrictions may apply.
  • More Details on VA Jumbo Loans
• Occupancy - You MUST occupy the home you intend to buy. NO investment properties or second homes.
• Residency - 1-4 family primary residences only.
• VA Funding Fee - VA does not require mortgage insurance, but, does require a VA Funding Fee. This is a percentage of the loan amount that can be paid at closing or financed in the loan amount. The VA Funding Fee for veterans is currently 2.15% for 1st use and 3.30% for subsequent use. National Guard & Reservists are 2.40% and 3.30%. (see VA Funding Fee table for more details)
  Veterans with a 10% or greater VA compensable disability rating should be exempt from the VA Funding Fee. VA will verify this on your COE.
• Seller Concessions - Closing costs cannot be financed in the new loan amount. They can be paid by the seller. The cost to the veteran can be as little a $0 to move in.
  1) Negotiate the best price you can, then
  2) increase the sales price the amount of your closing costs and
  3) have the seller use those funds to pay your closing costs for you.
  * The only limit on this is the sales price cannot exceed the appraised value. **We're always glad to help you and your realtor with the proper numbers for all this...

VA Conforming Purchase Loan Rates Rates based on $200,000 Loans
30 Year Fixed Loans 30 day lock.			15 Year Fixed Loans 30 day lock.
Rate	Points	APR	Rate	Points	APR
3.375%	1.779%	3.800%	3.000%	-0.128%	3.756%
3.500%	0.666%	3.928%	3.500%	-3.024%	4.267%
3.750%	-1.538%	4.184%	4.000%	-4.276%	4.778%
0.000%	0.000%	0.000%	%	%	%

Notes: Maximum VA $0 down loan limit is $417,000,    including the VA Funding Fee , if financed. VA 1 yr ARM, 3/1 ARM & 5/1 ARM loans available.	Credit Scores: >700 = subtract 0.25% pt., 640 - 660 =  add 0.25 pt. All Loans - 640 Minimum.
Additional adjustments & restrictions may apply <> Contact us for an analysis and estimate Notes for rates

VA Jumbo Purchase Loan Rates Rates based on $650,000 Loans
30 Year Fixed Loans 30 day lock.
Rate	Points	APR	Rate	Points	APR
3.750%	-0.507%	4.053%
3.875%	-0.925%	4.180%
4.000%	-1.428%	4.308%
0.000%	0.000%	0.000%

Notes: Maximum VA JUMBO loan limit is $1,500,000. Down payment Required. 30 yr fixed rate only.	Credit Scores: >700 = subtract 0.25% pt. 640 - 660 =  add 0.25 pt. 640 Minimum. Loan amount > $1,000,000 = minimum 700
Additional adjustments & restrictions may apply <> Contact us for an analysis and estimate Notes for rates

It's real easy to get a pre-qualification analysis. The results and an estimate will be emailed to you. Just click here to get started.

VA Streamline Refinance Loan
(Interest Rate Reduction Refinance Loan - IRRRL)

The VA streamline refinance loan is known as an "Interest Rate Reduction Refinance Loan" or IRRRL (pronounced Earl). It is the easiest and cheapest way to refinance your existing VA loan if you are the veteran or surviving spouse of the veteran on the loan(veteran must have died on active duty or due to wounds received while on active duty). You must be refinancing a VA mortgage loan that used your eligibility to guaranty the loan. The VA streamline refinance loan provides a way for current VA homeowners to lower their interest rate and/or term.

Borrowers have the option to finance closing costs in the new loan amount or pay for the closing cost in cash. A few guidelines for VA Streamline Refinance Loans are listed below. Please email us or call our office for additional information. Click here for an analysis and estimate for refinancing your VA loan.

• Appraisal Requirements - An appraisal may be required by the lender, depending on who is servicing your loan, the type of occupancy of the property and the new loan to value.
  The following properties require an appraisal:
  
  • Condominiums
  • 2 - 4 units
  • Second Homes
  • Investment Properties
  • Any VA loan not serviced by Wells Fargo and have a new loan to value greater than 95%, based on the lenders AVM value.
• No qualifying debt ratios, No income verification available on most VA IRRRLs. A credit report is required. Minimum credit score is 620.
  (Some restrictions - *See below)
• Borrower must be paying off a VA insured mortgage, using their own eligibility.
• All parties on the current loan and listed in title on the current loan must be listed on the new loan.
• Loans not serviced by our lender are limited to a 100% loan to value (LTV) for the new loan, including the VA Funding Fee, if financed.
• Maximum loan amount is $1,500,000. Loans greater than $417,000 require at least 25% equity for the amount above $417,000.
• 15, 20, 25 & 30 year fixed rate loans up to $417,000 loans. Loans greater than $417,000 available only on 30 year loans on a case by case basis.
• The new interest rate must be a lower rate than the current interest rate on the loan you are refinancing unless you are converting from a VA ARM loan to a fixed rate loan. Our best VA lender now requires you to recoup your closing costs in 36 months.
• The principal and interest payment on the new loan must be less than the principal and interest payment on the loan being refinanced unless:
    (1) the loan being refinanced is a VA ARM;
    (2) the term of the new loan is shorter than the loan being refinanced; or
    (3) energy efficiency improvements are included in the new loan.
• Borrower may refinance all closing costs, including prepaids and Texas Vet loans, up to the appraised value or LTV limits.
• Energy efficiency improvements may be included up to $3000 - or up to $6000 if the increase in the monthly payment for the P&I (principal & interest) does not exceed the likely reduction in monthly utility costs resulting from the energy efficiency improvements.
  (This must be documented).
• Up to 1 origination point and 2 discount points may be financed in the new loan amount. We will provide Good Faith Estimates for you to compare if you wish to buy your rate down. Due to new Federal Regulations that went into affect 01/01/2010, discount points can only be used for buying your rate down.
• Late fees may not be financed.
• Mortgage payment must be current with no 30 day or greater late payments in past 12 months.
• VA only requires a satisfactory 12 month Mortgage History with NO 30 day or longer late payments. Our lenders are now requiring minimum credit scores of 640 or higher, so a credit report is now required.
  
• Derogatory accounts on your credit report  - Until recently, only the mortgage payment history was examined for late payments. But now, some lenders are requiring all credit accounts to be examined and requiring all credit accounts to meet their standard credit requirements.
• IRRRL loans can be used for the following types of properties: Primary residence, second homes* & non-owner occupied(rental) properties*.
  * Veteran or spouse must provide evidence he/she lived in the property at one time. Usually a statement from the borrower is acceptable.
•  Income & Assets are not required unless the monthly payment - PITI (principal, interest, taxes & insurance) will increase by 20% or more on your new loan.

It only takes a few minutes to see how much refinancing your VA loan can save you. Just complete our simple Pre-Qualification form and an analysis & estimate will be emailed to you for your review. Don't wait. Interest rates change daily. Take advantage of these low rates while they last.

VA Regular Refinance Loan
(Refinance non-VA loans)

This VA refinance loan is designed to refinance conventional or other types of loans into a VA loan.

• Loans currently serviced by Wells Fargo are limited to 95% LTV.
• Loans serviced by lenders other than Wells Fargo are limited to 90% LTV.
• Maximum loan amount is $999,999, including the VA Funding Fee, if financed. Loan amounts over $417,000 require a minimum of 25% equity for the amount exceeding $417,000. Other restrictions may apply. Click here for more details
• LTV limits are on the base loan amount. The VA Funding Fee may be financed above the stated percentages.

(VA has increased the allowable LTV to 100% up to a loan amount of $417,000 for these loans, but none of our lenders have adopted the new guidelines, yet)

Guidelines and qualification requirements are the same as for purchase loans, including the VA Funding Fee requirements. Property must be your primary residence to qualify for this loan. No investment properties or 2nd homes.

The borrower has the option of financing the closing costs into the new loan amount. Please email us or call our office for additional information.

Complete our simple Pre-Qualification form and an estimate will be emailed to you for your review. Don't wait. Interest rates change daily. Take advantage of these low rates while they last.

FAQs

An unmarried surviving spouse is eligible if the veteran died as a result of a service connected disability or while on active duty.
Children are not eligible.

Since Texas is a common law state, the answer is MAYBE.
> If you are engaged and not living together as man and wife, the answer is NO. You must be married. The veteran can purchase in their name only using only their income and debts to qualify.
> If you are living together as man and wife and claim to be married under common law it is possible to get a VA loan. These are dealt with on a case by case basis. Please contact us for additional details.

Yes, but the amount VA will guarantee remains the same - 25% of the loan amount, up to the maximum VA loan amount of $417,000.
** Most lenders are not able to do this type of loan because of system limitations. We do not offer this type of loan.

Purchase Loans
Veteran must certify that they will personally take occupancy within 60 days of closing on the loan.
IRRRL Loans
Veteran must certify that they once occupied the home.
* If you have a home with a VA loan that you now rent, but once lived in, you can refinance with a VA Streamline Refinance Loan (IRRRL). That's a big savings over an investment property loan.

1) When you have sold your previous home and the VA loan is paid in full, or
2) When you have sold your previous home to a veteran who substitutes his/her entitlement for yours, or
3) When you have paid off a VA loan, but still own the property. VA will reinstate your entitlement for this purpose one-time only. After that you must sell your properties that have or had VA financing on to use your entitlement again.

DIVORCED?
1) Your ex-spouse must refinance the home and/or pay off the VA loan, or
2) Your ex-spouse is a veteran who agrees to substitute entitlement for yours.

Private lenders make the loans, however, the VA guarantee protects the lender against loss. The VA guarantees 25% of the loan amount.

Maybe. This depends on how much entitlement you have left for VA to insure the new home.
Example:
Maximum entitlement is $104,250. If your current VA loan used $20,000 of entitlement, you have $84,250 remaining. The maximum loan amount for the new home would be $337,000 with a zero down payment. ($84,250 divided by 0.25)
Or, a down payment would be required so that your available entitlement plus the down payment equals 25% of the sales price or appraised value, whichever is less.