There are many questions surrounding veteran loans, and one of the questions that pops up quite often is whether a Texas veteran loan only applies to veterans or if they also can be taken out by spouses. The answer is, yes, in the state of Texas military spouses are allowed to apply for eligibility and if they are found to meet a very specific set of requirements then they do qualify. Currently married spouses generally cannot but widows often qualify, and that individual can’t be married. If the marriage ends because of death of the service member or even in many cases of divorce, they can still qualify, but it all starts with that first step of applying for special eligibility.
What Are Lenders Looking At? There are many different factors that certified VA lenders will look at when making a decision whether or not to allow for a loan. The first is obviously eligibility. This is always the first step and it is a no go if the persona applying simply doesn’t qualify based on the state’s rules then nothing else matters after that.
Assuming an easy qualification, the next thing to look at is the all important debt to income ratio. This is the amount paid out monthly in debt payments compared to total gross monthly income. Generally speaking the magic number is 41%, however this is not set in stone. Lenders will look at the debt, the income, the overall situation and still sometimes approve a VA loan depending on the circumstances involved.
Cap On Lending The overall cap in the state of Texas (and the federal VA cap) is set at $424,100. There are some ways to get a “Jumbo Loan” for more, if needed, but generally speaking this is the cap that can be available. That being said, it is up to the lender how much they are willing to loan and so those numbers are going to differ from place to place. A Texas Veteran Loan is very similar to a VA mortgage and if you are in the Lone Star State you’ll be most likely dealing with them to some extent, and will need to meet the necessary requirements such as an intention to live in Texas after your service time is completed. Other normal considerations also come into play such as things like savings, credit score, and housing you are attempting to buy.
Disability Considerations One worry many potential borrowers have is how eligibility and disability work. The benefit of the doubt is given because of past service and when looking at a VA loan in the state of Texas a disability will not impact your ability to receive a VA loan as long as you meet all the other standard requirements that are otherwise in place. In addition to this, there are waivers available for the active service requirement if there was a dishonorable discharge due to disability although this is definitely done on a case by case basis.
Don’t assume anything negative or positive – meet with a VA lender and find out first hand whether or not this might be an option for you. The truth is that you don’t know until you apply, and this can be a great way to get the funding you need for a new residence.