VA Loans (Federal)

What is VA Loans (Federal)?

VA Loans (Federal) is gift funds for homebuyers in Texas.

• VA Home Loan Guaranty Program provides zero down payment financing for eligible veterans, active duty service members, National Guard and Reserve members, and qualifying surviving spouses. Backed by the U.S. Department of Veterans Affairs, VA loans feature no private mortgage insurance (PMI), competitive interest rates, limited closing costs, and no prepayment penalty. A VA funding fee applies in lieu of PMI.
• $0 down payment required for eligible veterans.
• no private mortgage insurance (PMI) required.
• competitive interest rates typically below conventional.
• limited closing costs (VA caps certain fees).
• no prepayment penalty.
• funding fee waived for veterans with service-connected disability.
• streamline refinance (IRRRL) available.
• assumable loan benefit.
• lifetime benefit — can be used multiple times.
• available to veterans, active duty, National Guard/Reserve with qualifying service, and surviving spouses.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal.

How much assistance does it provide?

VA Loans (Federal) provides assistance worth 100% of the purchase price, as set by the program.

• Buyer contribution: No down payment required with full entitlement.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

VA Loans (Federal) is structured as a grant, so it is not repaid.

• The assistance is recorded in 1st Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

VA Loans (Federal) is open to buyers who will live in the home as their primary residence.

What are the income limits?

VA Loans (Federal) sets its income limit as follows: No income limit; residual income requirements apply by family size and geographic region.

• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

VA Loans (Federal) caps the purchase price as follows: No VA loan limit for borrowers with full entitlement (since 2020). County conforming loan limits apply for borrowers with partial remaining entitlement. No maximum purchase price restriction from VA.

• Eligible property types include Single Family, Condo, Townhouse, 2-4 Unit, Manufactured Home, Modular Home, and New Construction.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

VA Loans (Federal) names veterans, active-duty service members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

VA Loans (Federal) is a federal program, so it is not limited to Texas.

How do you apply?

Applications for VA Loans (Federal) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.