February 4, 2026
9 minutes
After eight years of honorable service, you returned to Texas with one dream: owning a piece of land. But traditional lenders shut you out-until you discovered the Texas Veterans Land Board (VLB).
"If you're a Texas veteran, active-duty service member, or qualifying spouse, you may qualify for a low-interest land loan through the VLB. These loans come with relaxed credit requirements and minimal down payments-unlike most conventional options.
The Texas Veterans Land Board offers land loans of 1–20 acres with as little as 5% down, competitive interest rates, and veteran-friendly underwriting. This guide covers how to qualify, combine benefits with a VA loan, and use your land as a foundation for generational wealth.
Key Takeaways
- Veteran-Specific Land Financing: The Texas Veterans Land Board (VLB) offers low-interest land loans to eligible veterans, allowing them to buy 1–20 acres with as little as 5% down-even when traditional lenders won’t finance raw land.
- Stackable with VA Benefits: Veterans can use the VLB loan to buy land and a VA loan to build a home on that land later, maximizing both state and federal benefits without overlap.
- Flexible Terms and Requirements: With fixed interest rates, up to 30-year terms, and veteran-friendly underwriting, VLB loans are more accessible than many bank land loans-especially for those with moderate credit scores.
- No Pressure to Build Immediately: The VLB land loan does not require immediate construction, making it ideal for long-term investment, retirement planning, or eventual custom home builds.
Why Most Veterans Miss Out on Land Ownership?
Despite the rising value of land in Texas, only 12% of eligible veterans take advantage of the VLB program. Here's why that matters:
- Texas rural land values are increasing 6%+ annually
- Most private banks do not finance raw land
- Land ownership builds passive income, tax advantages, and legacy value.
Get Pre-Qualified and Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% at closing when you combine real estate and mortgage services with reAlpha.
Pro Tip: The VLB is not just a loan-it’s a veteran-focused pathway to real estate ownership and long-term financial growth.
Who Qualifies for a VLB Land Loan?
To apply for a Texas VLB land loan, applicants must:
- Be a legal Texas resident
- Be a veteran, active-duty service member, or qualifying surviving spouse
- Have served at least 90 days active duty (unless discharged earlier due to service-related injury)
- Possess an honorable discharge (DD214, NGB-22, or equivalent)
- Provide a minimum 5% down payment
Land must:
- Be 1 to 20 acres in size
- Be fully within Texas state lines
- Have legal road access
Official VLB Application Portal: https://vlb.texas.gov/land
How Much Can You Borrow?
- Minimum land size: 1 acre
- Maximum land size: 20 acres
- Loan cap: Up to $150,000 (2025 limits)
You can finance raw, undeveloped land-even if you don’t plan to build immediately.
Can You Combine a VLB Loan With a VA Loan?
Yes, you can. Here’s how veterans are stacking both benefits:
- Use a VA loan (0% down) for your primary home
- Use a VLB land loan (5% down) to purchase land separately
- Later, use VA construction financing to build on your land.
Partner with reAlpha Mortgage to coordinate both your VA and VLB loan benefits with ease. Our veteran-focused team ensures you get the maximum savings and a smooth path to land ownership.
Current Interest Rates and Terms (as of April 2025)
- Standard rate: 7.25% (30-year fixed)
- Discounted rate: 6.75% for veterans with a service-connected disability rating of 30% or more
Terms:
- Up to 30 years
- No prepayment penalties
- Flexible underwriting standards
Land Buying Process Through the VLB
- Search for qualifying land (must meet size and access requirements)
- Apply online via the VLB portal
- Submit proof of eligibility, Texas residency, credit, and income documents
- Close the loan and take ownership
Browse VLB-vetted land listings: https://vlb.texas.gov/land
Timeline: Expect 4–8 weeks from application to closing.
Comparison: VA Loan vs VLB Loan vs Traditional Bank Loan
| Feature | VA Loan | VLB Land Loan | Bank Land Loan |
|---|---|---|---|
| Down Payment | 0% | 5% | 10%–20% |
| Max Acreage | Home only | 1–20 acres | Varies |
| Use | Primary residence | Land ownership or investment | Limited |
| Credit Requirements | Moderate | Veteran-friendly | Strict |
| Support | Moderate | Veteran-first | Limited |
Support from Veteran-Focused Partners
reAlpha Mortgage
reAlpha Mortgage simplifies the homebuying journey for veterans - from pre-approval to closing. Our VA-certified loan specialists guide you through both VA and VLB loans while helping you save big at every step.
- Apply online at reAlpha Mortgage
- NMLS ID: 1743790 (SAFE Act Compliant)
- Get help with paperwork, fast pre-approvals, and veteran-savvy guidance
reAlpha Real Estate Investment
Looking to turn your land into a long-term asset? reAlpha helps veterans buy smarter by connecting you with expert advisors and up to 1.5% of your buyer agent’s commission back - so you build wealth from day one.
- No traditional 6% commissions
- Veteran-friendly real estate investment advisors
- Build, lease, or flip at your pace
Veterans Can Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% on your purchase price by using reAlpha Realty and Mortgage together
FAQs
Can veterans buy land in Texas using the VLB program?
Yes. You may purchase 1–20 acres with as little as 5% down.
Is the VLB loan only for Texas residents?
Yes. You must be a legal resident of Texas.
Is the VLB loan the same as a VA loan?
No. The VLB loan is a state-run program for Texas land purchases. VA loans are federal loans that cover primary home financing. reAlpha Mortgage helps veterans combine both seamlessly.
Do I have to build right away?
No. You can hold the land for future use or investment.
What credit score is required?
Most veterans get approved with 620–640 credit scores. But reAlpha Mortgage often helps applicants with lower scores qualify through strong compensating factors and personalized underwriting.
Final Thought: Own Land. Build Wealth. Leave a Legacy.
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
Estimate your savings → Rebate Calculator
Start your savings journey now at reAlpha Mortgage.
Get the latest market trends, homebuying tips, and insider updates—straight to your inbox. No fluff, just the good stuff.
Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.