The Veterans Housing Assistance Program (VHAP) provides financing up to $325,000 toward the purchase of a home to qualified Texas veterans.

There is no maximum sales price with the VHAP; however, the VLB can only loan up to $325,000 towards the purchase. The VHAP must be originated in conjunction with Federal Housing Administration (FHA), Veterans Administration (VA), or conventional financing. Loans must be originated by a participating lender.

The VHAP is not a refinancing program. If you have an existing loan on your home, you cannot use the VHAP to lower your interest rate, nor can the VHAP be used as a down payment on a home. It can only be used as a first lien on your primary residence.

The term of the loan can be 15, 20, 25 or 30 years. VHAP loans typically require an escrow account be set up for taxes and insurance.

Cosigners and guarantors may be accepted on the veteran's behalf if the veteran has sufficient income to qualify for at least 60 percent of the monthly payments on the mortgage loan, including taxes and insurance.

Two married, eligible veterans may have only one active VHAP loan at one time.

NOTE:  All new-construction housing must be ENERGY STAR^® labeled and certified.