In today’s real estate market, every advantage matters — especially for our Veterans. Over the past several months, I’ve seen certain loan programs make the difference between a transaction closing successfully and a deal completely falling apart.
In fact, one specific Veteran-focused program recently helped save two separate transactions that otherwise would have crashed and burned.
If you’ve been in real estate or lending long enough, you’ve likely seen these situations happen:
- A buyer receives a conditional approval, only for third-party documentation to uncover an issue that suddenly makes them ineligible.
- Or, more commonly, the buyer simply can’t qualify for a high enough loan amount to purchase the home they truly need.
Buyers often start out optimistic that they’ll “find a deal,” but in reality, they usually end up needing just a little more purchasing power than their approval allows.
That’s why lowering a borrower’s debt-to-income ratio can be so powerful. Even if it doesn’t determine whether a client gets approved, it can absolutely expand their options, improve affordability, and make the monthly payment more manageable.
The Texas Veteran Benefit Many People Don’t Know Exists
Many Texas Veterans are unaware of the incredible benefits available through the Texas General Land Office (GLO).
These programs can offer:
- Land Loans
- Home Improvement Loans
- Mortgage Loans
And the interest rates can be significantly lower than standard market rates — in some cases, 1.00% to 1.50% lower.
That’s substantial.
Lower rates directly increase affordability and buying power. On the program’s maximum loan amount, eligible Veterans could potentially save anywhere from $8,000 to $12,000 annually in mortgage interest.
Even more impressive? These rates are not limited to VA loans.
Eligible borrowers may also access these benefits through:
- FHA loans
- Conventional loans
- VA loans
That flexibility can create major opportunities for Veterans who may benefit more from one loan type over another.
Why Conventional Financing Can Sometimes Be Better for Veterans
Many people assume a VA loan is always the best option for a Veteran. While VA financing is an outstanding program, that isn’t always the case.
Unless a Veteran qualifies for a funding fee exemption due to disability status, VA loans include a funding fee ranging from approximately 1.25% to 3.30%, depending on down payment amount and prior use of VA benefits.
On a $500,000 loan, that fee could range from roughly $6,250 to $16,500.
In some cases, using a Conventional loan through one of these special Veteran programs may eliminate that fee entirely while still providing an excellent interest rate.
That combination can dramatically improve affordability.
Why More Lenders Don’t Talk About These Programs
One question I hear often is:
“Why haven’t I heard about this before?”
The answer is simple: many lenders either don’t offer these programs or have very few loan officers who can originate them.
Because these programs carry lower rates, the lender revenue is often lower as well. In some cases, the margins are so thin that lenders choose not to prioritize them.
That’s unfortunate, because these programs can genuinely save transactions and help families secure homes they otherwise may not have been able to afford.
At the end of the day, it’s about having the right tools available for our clients and referral partners.
Every Transaction Matters
In today’s market, solutions matter more than ever. Programs like these provide additional flexibility, improved affordability, and opportunities that many Veterans never realize they have access to.
If you’re a Veteran thinking about buying a home — or if you’re a Realtor helping Veteran clients navigate the market — it’s worth asking your preferred lender whether these programs are available.
The market will likely get busier in the coming months, and buyers who prepare early tend to position themselves best.
If you need guidance, education, or simply want to explore your options, we’re always here to help.
Jay Atterstrom
📧 [email protected]
📞 (214) 377-0033