Veterans Land Board Loans: How to Buy Land in Texas as a Veteran (and Build Wealth)?

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

1. 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.
2. 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.
3. 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.
4. 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.

 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 Be My Neighbour to coordinate both loan paths and ensure proper use of benefits. Learn more

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

1. Search for qualifying land (must meet size and access requirements)
2. Apply online via the VLB portal
3. Submit proof of eligibility, Texas residency, credit, and income documents
4. 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

Support from Veteran-Focused Partners

Be My Neighbour Mortgage

Be My Neighbour helps veterans simplify the mortgage journey, with VA-certified specialists who can pre-approve you for VA and VLB loans.

• Apply online
• NMLS ID: 1743790 (SAFE Act Compliant)
• Paperwork assistance
• Pre-approvals and expert guidance

reAlpha Real Estate Investment

Looking to invest commission-free? reAlpha empowers buyers to use the land as a long-term asset.

• No traditional 6% commissions
• Veteran-friendly real estate investment advisors
• Build, lease, or flip at your pace

Frequently Asked Questions

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 is a Texas-run program for land; VA loans are federal and cover home purchases.

Do I have to build right away?

‍ No. You can hold the land for future use or investment.

What credit score is required?

‍Most applicants are approved with 620–640 scores, but lower scores may qualify with compensating factors.

Final Thought: Own Land. Build Wealth. Leave a Legacy.

Your service opened doors—now it’s time to walk through one. With veteran-first lenders like Be My Neighbour and real estate platforms like reAlpha, your path to Texas land ownership is more accessible than ever.

Whether you're buying 10 acres for your dream home or investing in your legacy, you’ve earned this.

This article is for informational purposes only. All loan programs, interest rates, and eligibility requirements are subject to change. This is not a commitment to lend. Be My Neighbour Mortgage is an Equal Housing Lender. NMLS #1743790.