VLB Land Loan Below Market Rate Texas: 2026 Guide

The Texas Veterans Land Board (VLB) Land Loan Program offers below-market fixed interest rates—currently 7.25% as of 2026—for eligible Texas veterans to purchase 1 to 20 acres of land with as little as 5% down . This is one of the only 30-year land loan programs available in Texas, and the VLB offers an exclusive below-market rate to help veterans acquire their own piece of Texas .

Quick Facts

What Is the VLB Land Loan Program?

The VLB Veterans Land Loan Program is the only one of its kind in the nation, giving Texas veterans and military members the opportunity to purchase land at competitive, below-market interest rates . The program is self-funded—the bonds used to fund the program are retired from loan repayments, and the cost of administering the program is financed through a small fee charged on each loan .

Why it matters: Commercial lenders typically offer 10–20 year terms on agricultural or rural land . The VLB’s combination of a below-market rate and a 30-year amortization makes land purchase significantly more accessible than standard commercial land financing . This is the only program of its kind in the nation .

What veterans should do next: Confirm your eligibility, check current rates on the VLB website, and contact the VLB at 1-800-252-8387 or join a weekly Zoom@Noon session for detailed information about the program .

Current Rates for 2026

As of 2026, the VLB land loan interest rate for veterans is 7.25% . All VLB interest rates and available discounts are subject to change at any time and are set when new bond funding is obtained .

The rate is typically below market because VLB issues state bonds and uses the proceeds to fund veteran loans, reflecting the state’s bond cost rather than the commercial land loan market .

Who Qualifies for a VLB Land Loan?

Eligibility Criteria

To qualify for the VLB Land Loan Program, you must be:

• A legal Texas resident at the time of application 

• At least 18 years of age

Service Requirements

You must meet one of the following service criteria :

Texas Residency Proof: For active duty personnel, this requires filing a Change of Residency Form (DD2058) with the military.

Loan Amounts and Acreage

Maximum Loan Amounts (Effective February 2026)

Important: In February 2026, the VLB approved a combined $100,000 increase—the standard land loan amount rose from $150,000 to **$200,000**, and the dual-spouse land loan amount rose from $225,000 to $275,000 .

Acreage Requirements

• Minimum: 1 acre 

• Maximum: Up to 20 acres

• The land must be wholly located in Texas 

• The land must be non-commercial and meet VLB requirements 

The Veterans-Only Land Sale

The VLB holds exclusive Veterans-Only Land Sales quarterly—every January, April, July, and October . These are an additional avenue to secure land with VLB financing.

How It Works

• The VLB puts specific tracts of land up for bid

• Veterans and military members may bid on multiple tracts 

• If your bid is accepted, you can apply for a VLB Land Loan at the current 7.25% rate, with a 30-year term and 5% down payment 

• The VLB will finance up to the minimum bid amount; you must pay any amount offered over the minimum bid at closing 

2026 Sale Dates

The VLB holds land sales every January, April, July, and October . The April 2026 sale closed on April 16, 2026, with three available tracts totaling over 10.82 acres .

Required Documents

How to Apply (Step-by-Step)

Step 1: Confirm Eligibility

Review the eligibility criteria above. If you have questions, call the VLB at 1-800-252-8387 or attend a weekly Zoom@Noon session .

Step 2: Check Current Rates

Visit the official VLB land loan page to confirm current rates—they are subject to change .

Step 3: Find a Participating Lender

The VLB does not originate loans directly. You must work with a participating lender . If you are interested in the Veterans-Only Land Sale, you can apply directly through the sale process.

Step 4: Complete the Application

Submit the following:

• Request for Certification (Form 41)

• Declaration of Eligibility (Form 42)

• DD-214 (Member 4 copy)

• Proof of Texas residency

• Income verification

Step 5: Close the Loan

VLB land loans must be closed by a title company or an attorney’s office. The minimum down payment is 5%.

How the VLB Rate Compares to Market

The VLB offers a state-funded rate subsidy. While the exact savings vary with market conditions, VLB land loans typically come with a rate well below what a veteran would receive for raw land financing from a commercial lender, because raw land is generally considered a riskier loan product .

Common Mistakes to Avoid

Common Questions

What is the current VLB land loan rate?

The current land loan interest rate for veterans is 7.25% as of 2026 . All rates are subject to change and are set when new bond funding is obtained.

How much land can I buy with a VLB land loan?

You can purchase between 1 and 20 acres of land in Texas . The land must be non-commercial and meet VLB requirements .

What is the maximum VLB land loan amount?

As of February 2026, the maximum is $200,000** for individual eligible veterans and **$275,000 for dual-spouse applicants .

What is the minimum down payment for a VLB land loan?

The minimum down payment is 5% .

Can I use a VLB land loan to buy land in the Veterans-Only Land Sale?

Yes. If you are awarded a tract, you can apply for a VLB land loan at the current 7.25% rate .

How often are land sales held?

Quarterly—every January, April, July, and October .

Can two veterans who are married apply together?

Yes. The dual-spouse land loan benefit allows two veterans who are spouses and individually eligible to borrow up to $275,000 with a 5% down payment .

Are VLB land loans available statewide?

Yes, VLB land loans have been made in 177 of 254 Texas counties . Loans are available for land located anywhere in Texas that meets program requirements.

Can I get a land loan for a property with a home already on it?

No. The VLB land loan program is for raw or unimproved land. If you are purchasing a property with a home, you need a VLB home loan .

How do I apply for a VLB land loan?

Contact the VLB at 1-800-252-8387 or visit vlb.texas.gov to find a participating lender and start your application .

Key Takeaways

• The VLB Land Loan Program provides below-market rate financing for Texas veterans to purchase land 

• Current rate as of 2026 is 7.25% 

• Individual maximum loan amount: $200,000 (effective February 2026) 

• Dual-spouse maximum loan amount: $275,000 

• Minimum down payment: 5% 

• Loan term: Up to 30 years 

• Acreage: 1 to 20 acres in Texas 

• Veterans-Only Land Sales occur quarterly in January, April, July, and October 

• Rates are subject to change—check vlb.texas.gov for current rates 

• The program is self-funded through bond issuances and loan repayments 

Official Resources

• Texas Veterans Land Board (VLB) – vlb.texas.gov | 1-800-252-8387

• VLB Land Loan Program – glo.texas.gov/vlb/loans/land

• Current Rates – Check official VLB website for up-to-date rates

• Request for Certification (Form 41) – Available at vlb.texas.gov