Texas
VA One-Time Close Construction Loans in Texas
Texas may be the best state in the country for a VA One-Time Close, with affordable land, strong comps and a huge military population. Here is how to pick your spot.
Home Loans Inc is not licensed in Texas and cannot take a Texas loan application. We originate in South Carolina | North Carolina | Virginia | West Virginia | Florida | Georgia | Alabama | Mississippi | Iowa | Wyoming.
Why Texas tops the list
If there is a best state for a VA One-Time Close, it is probably Texas. Land is affordable, construction is affordable, several major metros have strong comps, the military population is massive, and there is no state income tax. San Antonio around Joint Base San Antonio and Dallas-Fort Worth are the strongest markets. That does not mean every Texas deal works. It means more of them can, if you pick the right ground and the right builder.
Eleven installations, one very large VA market
Fort Cavazos
Killeen
Formerly Fort Hood. The largest active-duty armored post and home of III Corps.
Fort Bliss
El Paso
1st Armored Division, in an affordable border market.
Joint Base San Antonio
San Antonio
Lackland, Randolph and Fort Sam Houston together, the largest joint base in DoD.
Navy and Marine air
Corpus Christi and Fort Worth
NAS Corpus Christi trains Navy pilots. NAS JRB Fort Worth hosts Navy and Marine Reserve units with F-35 production nearby.
West Texas Air Force
Abilene, Del Rio, Wichita Falls, San Angelo
Dyess (B-1B and C-130J), Laughlin (pilot training), Sheppard (Euro-NATO Joint Jet Pilot Training) and Goodfellow (intelligence training).
Houston and Texarkana
Ellington Field JRB and Red River Army Depot
Guard and Reserve in Houston, vehicle maintenance in Texarkana.
Metro by metro
San Antonio and JBSA
A massive military metro with strong comps and affordable builds. If you have flexibility, start here.
Dallas-Fort Worth
A huge market with strong new-construction comps throughout. Appraisers rarely lack data.
Houston
Massive and comp-rich, but flood zone considerations belong on your lot checklist from day one.
Austin
Expensive, with strong comps at higher price points. Fine if your budget matches the neighborhood.
Killeen and Fort Cavazos
A large military market with moderate comps that get thin above $400K. Keep the plan realistic.
El Paso and Fort Bliss
Affordable, with moderate comps in a border market.
Corpus Christi
Moderate pricing with coastal considerations to price in.
Homestead law changes the paperwork, and your future refinance
Texas has very strong homestead protection under Article XVI, Section 50 of the state constitution. As a general rule for homestead liens, a non-borrowing or non-titled spouse must sign the deed of trust, so married borrowers should plan on both signatures. Texas closings are run by licensed escrow officers at a title company, document preparation is regulated, and closings fund wet. Foreclosure is non-judicial.
Think ahead, too. Texas sets homestead cash-out by constitution, and VA cash-out is effectively not allowed on a Texas homestead. A VA IRRRL and no-cash-out rate-and-term refinances are allowed. So if rates drop after your home is finished, the streamline route stays open, but do not plan on pulling equity out with a VA cash-out later.
The VA mechanics, plus our role
Under the federal rules, a single loan with a single closing buys the land, funds the construction and becomes your permanent mortgage. Full entitlement lets an eligible veteran do it with zero down. Only a VA-registered builder with a VA builder ID qualifies, and the appraisal is built from plans and specs, including VA Form 26-1852, ending in a Notice of Value. Inspections gate each staged draw. Your home has to appraise for the Total Acquisition Cost, which stacks the lot, construction, contingency, accrued interest and funding fee. The fee is 2.15% for first use and 3.3% for subsequent use at zero down, with an exemption for VA disability compensation. A 660 score is a common lender target. Start with builder approval and the land guide.
Home Loans Inc is not licensed in Texas and cannot take a Texas application. Use this page to prep, then work with a Texas-licensed lender who closes these loans regularly.
Texas VA OTC questions
Why is Texas considered such a good state for VA construction loans?
Texas combines affordable land, affordable construction, strong comps in multiple major metros, a massive military population and no state income tax. San Antonio around Joint Base San Antonio and Dallas-Fort Worth are the strongest markets. Comps still decide every deal, so check the specific area before you buy a lot.
Is building near Fort Cavazos in Killeen risky for the appraisal?
Killeen is a large military market with moderate comps, but support gets thin above $400K. A modest build there can work well. A large, expensive plan may not find comparable sales to back the Total Acquisition Cost, so size the home to what the local market actually supports.
After my Texas home is built, can I do a VA cash-out refinance?
Plan on no. Texas sets homestead cash-out by constitution, and VA cash-out is effectively not allowed on a Texas homestead. A VA IRRRL and no-cash-out rate-and-term refinances are allowed, so you can still lower your rate later if the numbers make sense.
Does my non-borrowing spouse need to sign in Texas?
Generally, yes. Texas homestead protection under the state constitution means a non-borrowing or non-titled spouse must sign the deed of trust on a homestead lien. Plan on both of you being at closing, which is run by a licensed escrow officer at a title company.
Can Home Loans Inc close my VA One-Time Close in Texas?
No. Home Loans Inc is not licensed in Texas and cannot take an application for a Texas property. Use this site to learn the loan, the comps and the appraisal risk, then choose a Texas-licensed lender with a real track record on VA One-Time Close loans.