Maximizing Your Veterans Home Loan Benefits

Thousands of veterans across Texas have taken advantage of

the VLB’s below-market interest rates for buying a home.

All applicants for VLB home loans must qualify for a conventional,

VA or FHA loan from a participating lender. Those veterans who

qualify for a VA-guaranteed loan can take advantage of the VLB’s

low interest rates with no money down. For information on VA qualifying,

visit http://www.benefits.va.gov/homeloans/eligibility.asp.

For veterans who haven’t owned a home for the past three years

and meet certain income requirements, the Texas Department of

Housing and Community Affairs (TDHCA) has a First-Time Homebuyer

Program that offers down payment and closing cost assistance

of 4 percent of the mortgage amount as a second lien, 30-

year, interest-free loan. The assistance loan must be paid off when

the home is sold or the first mortgage loan is either refinanced or

paid off. The TDHCA also has a Veterans Mortgage Credit Program

for qualifying borrowers that exempts veterans from the first-time

home buying requirement. Under this program, the borrower may

earn a tax credit of up to $2,000 a year based on 30 percent of the

total annual interest paid by the borrower. So if a borrower pays

$5,000 in mortgage interest in a given year, the borrower earns

a tax credit of $1,500 that can be applied toward the borrower’s

federal income tax liability for that year. The remaining $3,500 in

mortgage interest may be deducted from the borrower’s taxable

income.

For more information about the TDHCA’s assistance programs,

visit http://www.tdhca.state.tx.us/homeownership/fthb/.

Many cities and counties across Texas have additional housing

assistance programs that veterans should look into. Ask your

lender if he or she is aware of any local assistance programs for

which you may qualify.

The VLB must approve these additional benefits before the

loan is made. Questions? Contact the VLB’s Veterans Hotline at

1.800.252.VETS (8387) or Eve Lucas, Broker Associate at 281-615-1911.



This information is an excerpt from TexasVeterans Voice Newsletter, Fall 2011