In my last post I covered what fees to expect. In my final post on the Texas Veterans Land Board Mortgage Loan (TVLB) or Veterans Housing Assistance Program (VHAP) I will cover the process briefly, some expectations and some of the resistance to the program.
Steps in the purchase
- As with all mortgage loans in today’s market the first step is to get pre-qualified by professional mortgage expert who has your needs in mind who is certified to participate in the VHAP.
- Then once you are pre-qualified you will then know how much home you can afford. This will include taxes and insurance.
- At that point you may contact a competent Realtor that can assist you in finding a house that will fit into your budget.
- Once you have an executed contract on a house we can fill out the necessary VHAP paperwork and along with your other paperwork submit to the TVLB and Underwriting for approval.
What to Expect
- The veteran is required to occupy the home within 60 days of closing AND the home must be the primary residence of the veteran for at least 3-years. If these terms are violated the TVLB may accelerate the loan making the entire loan amount due or raise the rate to current market rates.
- Because of market Volatility of rates we will provide you with a comparison of the VHAP and base loan (VA, FHA or Conventional) that you have qualified for and in some circumstances that loan may have a better rate however, in the end you may choose what is best for you.
After the Purchase – VHAP Loans may be assumed under the following conditions
- The veteran must have occupied the home as his/her primary residence for a period of three years from the closing date, unless this requirement is waived in writing by the VLB.
- An Assumption and Release Agreement must be entered into by the person assuming the loan.
- All applicable program insurance policies must be maintained.
- The terms of all rules of the VLB must be met, and approval of the VLB must have been obtained.
- All paperwork and approvals must be obtained through the company where the monthly payments are made.
Resistance to the Program
Many lenders and builders do not like to use the TVLB/VHAP because it limits their fees or the fees of the companies that they own. I hear hundreds of stories of Veterans taken advantage of my unscrupulous professionals looking to make money at the expense of the Veteran. I see it as a personal mission to serve the tens of thousands veterans returning home after protecting our country and to provide them with the means to purchase a hew home for them and their families.
In conclusion the Texas Veterans Land Board Mortgage Loan (TVLB) or Veterans Housing Assistance Program (VHAP) is in many cases one of the best ways that a veteran may obtain a mortgage on Texas.