Aravian Financial Blog

The Texas Veteran Home Buyer Guide: Using Your VA Loan Benefit in 2026

kris@aravianfinancial.com (Kris Syevens) — Sun, 31 May 2026 17:11:51 GMT

If you served, you earned one of the most powerful financial benefits available to any American: the VA home loan guarantee. Zero down payment. No private mortgage insurance. No loan limit with full entitlement. Competitive wholesale rates. And you can use it more than once.

Despite how valuable it is, a significant number of Texas veterans either do not know they have this benefit or do not understand how to use it. This guide covers everything you need to know to put your VA benefit to work in 2026.

Who Is Eligible?

Veterans who served 90+ days active duty during wartime
Veterans who served 181+ days active duty during peacetime
Active duty service members (after 90 continuous days)
National Guard and Reserve members with 6+ years of service
Surviving spouses of veterans who died in the line of duty or from a service-connected disability

Discharge must be honorable or general under honorable conditions. If you received an other-than-honorable discharge, there are character of discharge review processes that may still result in eligibility.

The Core Benefits

Zero down payment. For veterans with full entitlement, there is no down payment requirement regardless of loan amount. You can purchase a $700,000 home in Houston with $0 down.

No PMI. Ever. Conventional loans require private mortgage insurance for down payments below 20%. VA loans never require PMI, saving veterans hundreds of dollars per month for the life of the loan.

No loan limit with full entitlement. The 2026 conforming limit is $832,750, but VA borrowers with full entitlement are not bound by it. You can borrow any amount a lender will approve with zero down. Partial entitlement situations (if you have an existing VA loan) use the $832,750 baseline.

Competitive rates. Because the VA guarantees a portion of the loan, lenders take on less risk and offer lower rates. Kris shops VA rates across 20+ wholesale lenders to find the most competitive pricing available.

The VA Funding Fee

The VA charges a one-time funding fee to sustain the program. It ranges from 0.5% to 3.3% of the loan amount depending on your down payment, whether it is your first use, and your service category. The fee can be rolled into the loan so there is no out-of-pocket cost.

Exemptions: Veterans with a service-connected disability rating of 10% or more are completely exempt from the funding fee. Surviving spouses of veterans who died in the line of duty are also exempt. This exemption is one of the most important details to confirm before closing — Kris verifies this for every VA borrower.

How to Get Your Certificate of Eligibility (COE)

The COE is the document that confirms your VA loan eligibility to the lender. There are three ways to get it:

Through your lender — Kris can pull your COE electronically through the VA portal in minutes during the pre-qualification process. This is the fastest and most common method.
Online at VA.gov — Log into your VA account and request it through the eBenefits portal.
By mail — Submit VA Form 26-1880 to the VA Eligibility Center. Takes several weeks.

In most cases Kris handles the COE pull as part of the pre-qualification so you never have to deal with it separately.

Can I Use My VA Benefit More Than Once?

Yes. There is no limit on how many times you can use your VA benefit. As long as you have sufficient remaining entitlement — either because you have paid off a prior VA loan or because your prior loan balance leaves room — you can use it again. In some situations you can even have two VA loans simultaneously, for example if you are PCSing to a new duty station.

The VA IRRRL — Streamline Refinance

If you already have a VA loan and rates have dropped, the VA Interest Rate Reduction Refinance Loan (IRRRL) lets you refinance to a lower rate with minimal paperwork and no appraisal required in most cases. The funding fee for an IRRRL is just 0.5% and can be rolled into the loan. It is one of the fastest and least burdensome refinance options available to any borrower.

Texas-Specific Considerations

Texas has a few quirks worth knowing. The Texas Constitution's home equity rules apply to cash-out refinances on primary residences — VA cash-out refinances in Texas are subject to the 80% LTV limit like other home equity products. Standard VA purchase loans are not affected by this rule.

Texas also has no state income tax, which improves the overall economics of homeownership here compared to most states. Combined with the VA benefit, Texas veterans are in an exceptionally strong financial position to build wealth through real estate.

Ready to use your benefit? Start the pre-qualification process with Kris. Kris will pull your COE, confirm your entitlement, and shop VA rates across 20+ wholesale lenders — all at no cost and no obligation. You earned this benefit. Use it.

Texas Property Taxes Are High. Here Is How to Budget Them.

kris@aravianfinancial.com (Kris Syevens) — Sun, 31 May 2026 17:10:21 GMT

Texas has no state income tax — one of the biggest financial advantages of living here. But there is a trade-off, and it shows up directly in your mortgage payment: property taxes. Texas property tax rates are among the highest in the nation, and failing to account for them correctly is one of the most common budgeting mistakes first-time buyers make.

What Are Typical Property Tax Rates in Texas?

Texas does not have a single statewide property tax rate. Each county, city, school district, and special district sets its own rate, and they are all added together. In practice, total effective property tax rates in the Houston metro area typically run between 2.0% and 2.5% of appraised value annually. Some suburban districts run even higher.

What that looks like on real homes:

$300,000 home at 2.2% = $6,600/year = $550/month
$400,000 home at 2.2% = $8,800/year = $733/month
$500,000 home at 2.2% = $11,000/year = $917/month

That $550 to $917 per month is added directly on top of your principal and interest payment. A buyer who only budgets for P&I will be significantly underprepared for what their actual monthly payment looks like.

How Lenders Calculate Your Payment (PITI)

Your mortgage payment is not just principal and interest. Lenders calculate your full PITI — principal, interest, taxes, and insurance — when determining how much you qualify to borrow. Property taxes are divided by 12 and collected monthly as part of your escrow payment. When Kris quotes you a rate and payment, it always includes the full PITI so there are no surprises.

The Homestead Exemption

Texas offers a homestead exemption that reduces the appraised value used to calculate your property tax. For your primary residence, the standard homestead exemption is $100,000 off the school district appraised value as of 2023 legislation. Additional exemptions exist for homeowners 65 and older, disabled veterans, and other qualifying groups.

The exemption applies to the school district portion of your tax bill, which is typically the largest component. You must apply for the exemption with your county appraisal district — it is not automatic. Applications are due by April 30 of the year you are claiming it. First-year buyers often miss this and overpay their first year.

Action item: After closing on your Texas home, apply for your homestead exemption immediately. Go to your county appraisal district website (HCAD for Harris County), fill out the application, and submit it before April 30. This can reduce your annual tax bill by $1,500 or more.

How Property Taxes Affect Your Buying Power

Because lenders include taxes in your DTI calculation, high property taxes directly reduce how much home you can qualify for. Two identical buyers with identical incomes and debts will qualify for different loan amounts in different Texas zip codes — purely based on local tax rates. A buyer shopping in a district with a 2.8% rate qualifies for a meaningfully smaller loan than one shopping in a district at 1.9%.

This is something Kris factors in early in the pre-qualification conversation so you are shopping in areas where your budget actually works.

AG Exemption for Rural Texas Property

If you are buying rural land or a property with agricultural use in Texas, an AG exemption can dramatically reduce your property tax burden. Agricultural land is taxed based on its productive value rather than market value. A 10-acre tract worth $500,000 on the market might have an AG value of $50,000 for tax purposes. This is one reason land loans in Texas can be more affordable to carry than buyers expect.

Use the Calculator

The mortgage payment calculator on this site includes a property tax field. Enter your estimated annual taxes to see the full PITI payment before you make an offer. It takes 30 seconds and removes the most common source of buyer surprise at closing.

Fannie Mae Removed the Credit Score Minimum. What It Means for Texas Buyers.

kris@aravianfinancial.com (Kris Syevens) — Sun, 31 May 2026 17:05:08 GMT

For decades, 620 was the magic number. The minimum credit score to qualify for a conventional mortgage. In 2025, Fannie Mae removed that floor entirely — and Freddie Mac had already done the same years earlier. This is a meaningful shift for Texas buyers who have been told they do not qualify.

What Actually Changed

Fannie Mae and Freddie Mac are the government-sponsored enterprises that buy conventional mortgages from lenders after closing. When they removed the minimum credit score requirement, they were saying: we will buy conventional loans regardless of the borrower's credit score, as long as the overall loan file meets our underwriting guidelines.

This matters because most conventional lenders originate loans with the intention of selling them to Fannie or Freddie. If the GSEs set a minimum score, lenders enforced it. Now that the GSEs have no minimum, lenders have more flexibility to approve borrowers they previously had to turn away.

What Are Lender Overlays?

Here is the nuance: just because Fannie Mae has no minimum does not mean every lender will approve a 500 credit score conventional loan. Individual lenders can apply their own stricter requirements on top of agency guidelines. These are called overlays.

A large retail bank might set a 680 overlay because they want to minimize risk in their portfolio. A wholesale lender might set a 600 overlay. Another might truly underwrite to the file with no floor at all. This is exactly where working with a broker like Kris creates real value — Kris shops the actual overlay requirements across 20+ lenders to find the one whose guidelines fit your credit profile.

What Else Matters in a Conventional Loan File?

Removing the credit score minimum does not mean credit is irrelevant. The overall file still needs to make sense. Underwriters look at:

Payment history — on-time payments on existing accounts carry significant weight
Debt-to-income ratio — typically needs to be under 45-50%
Down payment — larger down payments offset lower credit scores
Reserves — cash remaining after closing demonstrates stability
Loan-to-value — lower LTV reduces lender risk
Employment stability — 2 years in the same field or position

A borrower with a 580 credit score, 20% down, stable employment, and minimal debt is a very different risk profile than a borrower with a 580 score and 3% down with maxed-out credit cards. The removal of the minimum means the full picture can be evaluated rather than an automatic rejection at the door.

What About PMI?

Private mortgage insurance is still required on conventional loans with less than 20% down, and PMI pricing is directly tied to credit score. A lower credit score means higher PMI premiums. So while you may now be able to qualify, the cost of the loan at a lower score will be higher. Kris runs this comparison so you can see the real monthly payment difference between waiting to improve your score versus buying now.

Is Conventional Still Better Than FHA for Lower Credit Scores?

Not necessarily. FHA has historically been the go-to for borrowers with lower credit because of its 580 minimum with 3.5% down. With the conventional floor removed, it is worth comparing both side by side. FHA has mortgage insurance for the life of the loan in most cases. Conventional PMI can be removed at 20% equity. Depending on your score, down payment, and how long you plan to stay in the home, either could be the better choice. Kris runs this comparison as part of every pre-qualification.

Bottom line: If you have been told your credit score disqualifies you from a conventional loan, that may no longer be accurate. The guidelines changed. Get a free pre-qualification and let Kris show you what you actually qualify for today.

How to Buy a Home in Texas Without a Social Security Number

kris@aravianfinancial.com (Kris Syevens) — Sun, 31 May 2026 16:53:59 GMT

If you live in Texas, pay your taxes, and have been building a life here — you deserve the opportunity to own the home you live in. The absence of a Social Security number is not a barrier to homeownership. ITIN mortgage loans exist specifically for this situation, and they are completely legal.

What is an ITIN Loan?

An ITIN loan is a Non-QM mortgage that uses your IRS-issued Individual Taxpayer Identification Number as identification instead of a Social Security number. The IRS issues ITINs to individuals who have U.S. tax filing obligations but are not eligible for a Social Security number. If you file taxes using an ITIN, you can qualify for a mortgage using that same number.

ITIN loans are offered by Non-QM lenders and portfolio banks who underwrite to their own guidelines rather than government agency requirements. Full legal title ownership. Your name on the deed.

Who Qualifies for an ITIN Loan in Texas?

You have a valid ITIN issued by the IRS
At least 2 years of U.S. tax filing history using your ITIN
Verifiable income through tax returns, bank statements, or pay stubs
Credit score of 600 or higher, or acceptable alternative credit history
Down payment of 10-20% depending on lender and loan amount
Property in Texas used as primary residence or investment

What if I Don't Have a U.S. Credit Score?

Many ITIN borrowers do not have a traditional U.S. credit history. Most ITIN lenders accept alternative credit references in its place. This typically includes:

12-24 months of on-time rental payment history (landlord letter or statements)
Utility bill payment history
Insurance premium payment history
Other recurring obligations paid consistently over time

Kris reviews your specific credit profile and matches you with lenders whose overlay requirements fit your history.

What Documents Do You Need?

ITIN letter from the IRS
2 years of U.S. tax returns filed with your ITIN
2 months of recent bank statements
Recent pay stubs or employer letter (W-2 employees)
12-24 months of bank statements (self-employed borrowers)
Proof of Texas residence (utility bill, lease agreement)
Down payment funds documented in a U.S. bank account

How Much Do You Need to Put Down?

ITIN loans typically require 10-20% down depending on the lender, your credit profile, and the loan amount. Borrowers with alternative credit or lower credit scores generally need closer to 20%. Some lenders offer options as low as 10% for borrowers with documented U.S. credit history.

Can Self-Employed Borrowers Use ITIN Loans?

Yes. Many ITIN borrowers are self-employed. Instead of tax returns, self-employed ITIN borrowers can often qualify using 12-24 months of bank statements, similar to a bank statement Non-QM loan. Kris can determine which income documentation method produces the best qualifying picture for your situation.

Important: ITIN loans are not available through FHA, VA, or USDA — those government programs require a Social Security number. ITIN financing is exclusively through Non-QM lenders, which is exactly why working with a broker who has access to multiple Non-QM lenders matters.

Building Credit Going Forward

One underappreciated benefit of an ITIN mortgage is what it does for your financial future. Making on-time mortgage payments builds U.S. credit history. Over time this opens doors to better rates, more loan options, and a stronger overall financial profile. Homeownership is often the first step.

Ready to explore your options? Start the pre-qualification process with Kris at Aravian Financial. The conversation is confidential and there is no credit pull to get started.

DSCR Loans in Texas: The Investor Mortgage That Qualifies on Rent

kris@aravianfinancial.com (Kris Syevens) — Sun, 31 May 2026 16:43:03 GMT

If you are a real estate investor in Texas, you have probably run into this problem: you own properties, you have equity, you have cash flow, but your tax returns show low income because of depreciation and write-offs. You go to a conventional lender and get declined because your personal income does not support another loan.

DSCR loans were built specifically for this situation. They qualify based on the rental income of the property you are buying, not your personal income. If the rent covers the mortgage, you can qualify — regardless of what your W-2 says.

What is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. It is a simple formula:

DSCR = Gross Monthly Rent ÷ Monthly PITIA

PITIA is principal, interest, taxes, insurance, and HOA combined. A DSCR of 1.0 means the rent exactly covers the payment. A DSCR of 1.25 means the rent is 25% more than the payment. Most lenders require a minimum of 1.0 to qualify, though some programs go as low as 0.75 for strong borrowers with larger down payments.

Why Texas Investors Use DSCR

Texas is one of the strongest rental markets in the country. Houston, Dallas, Austin, San Antonio, and their surrounding suburbs all have strong rental demand, favorable landlord laws, and no state income tax. DSCR loans let investors move quickly on properties without the bottleneck of personal income documentation.

Key advantages for Texas investors:

No W-2, tax returns, or employment verification required
LLCs and entities can be on title — critical for liability protection
Short-term rental income accepted by select lenders (Airbnb, VRBO)
No limit on the number of properties you can finance
Available for purchase and cash-out refinance

What You Need to Qualify

DSCR requirements vary by lender, which is why working with a broker matters. General guidelines:

Minimum DSCR of 1.0 (some lenders allow 0.75 with larger down payment)
Credit score of 620 or higher (680+ for best pricing)
Down payment of 20-25% for single-family, 25% for 2-4 unit
Reserves of 3-6 months PITIA typically required
Appraisal must include rental market analysis (Form 1007)

Example: A Houston single-family rental priced at $350,000 with 25% down ($87,500) has a loan of $262,500. At 7.5% over 30 years, PITIA including taxes and insurance is approximately $2,450/month. If market rent is $2,600/month, DSCR = 2,600 ÷ 2,450 = 1.06 — qualifying.

DSCR vs Conventional Investment Loans

Conventional investment loans cap investors at 10 financed properties, require personal income documentation, and have stricter DTI limits. DSCR loans have none of those restrictions. Each property qualifies on its own cash flow, your personal income is irrelevant, and there is no property count limit. For investors scaling beyond their first few properties, DSCR is the standard tool.

LLC Vesting

One of the most important features of DSCR loans is that LLCs and other entities can hold title. Most conventional loans require the borrower to hold title personally, which exposes personal assets to liability. DSCR lenders understand real estate investor structures and accommodate them. This is something Kris specifically shops for when comparing lenders.

Short-Term Rentals

Many DSCR lenders now accept short-term rental income for qualifying. If you are buying an Airbnb property in Houston, Galveston, or the Texas Hill Country, lenders can use either market rent from a comparable analysis or actual platform revenue. Not all lenders accept this — it is another area where broker access to multiple lenders makes a meaningful difference.

Ready to run the numbers on a Texas investment property? Use the DSCR Calculator to see if a property qualifies, or start the pre-qualification process with Kris directly.

TSAHC Down Payment Assistance Houston 2026 | How It Works | Aravian

kris@aravianfinancial.com (Kris Syevens) — Sun, 31 May 2026 14:11:22 GMT

If you are buying a home in Houston and worried about the down payment, you may be sitting closer to homeownership than you think. The Texas State Affordable Housing Corporation (TSAHC) offers down payment assistance programs that provide real money, up to 5% of your loan amount, as either a grant you never repay or a forgivable loan that disappears after three years.

As a TSAHC-participating lender in Houston, Kris Syevens at Aravian Financial processes these programs directly. One application. One closing. Significantly less cash out of pocket.

What is TSAHC?

The Texas State Affordable Housing Corporation is a nonprofit created by the Texas Legislature in 1994. Its mission is to help low and moderate-income Texans achieve homeownership by pairing affordable first mortgages with down payment and closing cost assistance.

TSAHC administers two main programs for home buyers:

Homes for Texas Heroes — for teachers, first responders, veterans, nurses, and other eligible professionals
Home Sweet Texas — for any Texas buyer who meets income and credit requirements

Both programs provide a 30-year fixed-rate mortgage paired with 2%, 3%, 4%, or 5% in down payment assistance. You choose the level that covers your needs.

Important: TSAHC programs are available to both first-time and repeat buyers. You do not need to be buying your first home to qualify.

Grant vs Forgivable Loan — What Is the Difference?

TSAHC offers down payment assistance in two structures:

Grant (non-repayable)

The grant option is available when you pair TSAHC with a government-backed loan (FHA, VA, or USDA). As long as your first mortgage is not paid off in the first six months, the grant never needs to be repaid under any circumstances. It is a gift toward your purchase.

Deferred Forgivable Second Lien

The forgivable second lien is available with both government and conventional first mortgages. It carries a 0% interest rate and requires no monthly payments. On the third anniversary of your closing date, it is forgiven in full. However, if you sell, refinance, or transfer the property before three years, the full amount must be repaid at that time.

How Much Can You Get?

TSAHC provides 2%, 3%, 4%, or 5% of the first mortgage loan amount. You choose the level at application. Here is what that looks like at common Houston price points:

$300,000 loan at 3% = $9,000
$300,000 loan at 5% = $15,000
$400,000 loan at 3% = $12,000
$400,000 loan at 5% = $20,000

These funds can cover your down payment, closing costs, prepaid items, or any combination. For many Houston buyers, a 5% TSAHC grant effectively eliminates the out-of-pocket cost of buying a home.

Note on rate: TSAHC assistance is funded through a slightly higher interest rate on your first mortgage compared to a standard market rate. The spread is how TSAHC generates the assistance funds. Kris can show you the exact rate comparison so you can decide whether the trade-off makes sense for your situation.

Who Qualifies?

TSAHC has two sets of requirements: one for the Homes for Texas Heroes program and a broader set for Home Sweet Texas.

Homes for Texas Heroes (profession-based)

Pre-K through 12th grade teachers, school librarians, school counselors
Fire fighters, EMS personnel
Police officers, sheriffs, correctional officers
Veterans and active-duty military
Licensed nurses and nursing faculty

Home Sweet Texas (all eligible buyers)

Any Texas buyer meeting income and credit requirements
Primary residence only
Minimum credit score of 620
Income within TSAHC limits for your county and household size

Income Limits (2026)

For most Houston area counties, TSAHC income limits in 2026 are approximately $108,540 for households of 1-2 people and $126,630 for households of 3 or more. Heroes program participants may have slightly higher limits. Kris can confirm the exact limit for your county before you apply.

The Mortgage Credit Certificate (MCC)

First-time buyers using TSAHC can also layer a Mortgage Credit Certificate (MCC) on top of the down payment assistance. An MCC is a federal tax credit equal to 20% of the mortgage interest you pay each year, for the life of the loan.

On a $350,000 loan at 6.5%, annual interest in year one is approximately $22,400. An MCC gives you a federal tax credit of $4,480 that year. Unlike a deduction, this is a dollar-for-dollar reduction in your tax liability. Over a 30-year loan, the cumulative value is significant.

How to Apply in Houston

The process is straightforward when you work with a TSAHC-participating lender like Aravian Financial:

Pre-qualify with Kris to confirm TSAHC eligibility and get your rate options
Complete the required homebuyer education course (online, typically 6-8 hours)
Select your assistance level (2%, 3%, 4%, or 5%) and DPA structure (grant or forgivable)
Submit your mortgage application — Kris handles the TSAHC layer simultaneously
Close at a title company in Houston with both the first mortgage and TSAHC assistance processed together

There is no separate TSAHC application. Everything runs through your mortgage lender. This is why choosing a participating lender matters.

Ready to check your eligibility? Kris can confirm your income limit, credit eligibility, and available assistance amount in the same conversation as your pre-qualification. Start the pre-qualify process here or contact Kris directly.