VA Home Loans in Central Texas: What Veterans and Active-Duty Buyers Need to Know
By Cat Totty | The Totty Team at Cardinal Financial
Central Texas continues to be a popular destination for veterans and active-duty service members — and for good reason. With strong communities, growing job markets, and a wide range of housing options, areas like Georgetown, Round Rock, Jarrell, Belton, Killeen, Temple, Salado, Waco, and Austin offer real opportunity for VA buyers.
Using a VA loan in this market can be incredibly powerful — but understanding how VA loans work locally is key to a smooth, successful purchase.
Why VA Loans Are a Strong Fit for Central Texas
VA loans are one of the most valuable home financing benefits available to eligible veterans and service members.
Key advantages include:
No down payment in most cases
No monthly mortgage insurance
Competitive interest rates
More flexible credit guidelines
In a market like Central Texas — where prices, taxes, and property types vary widely — these benefits can make homeownership far more attainable.
Property Taxes Matter More Than Many Buyers Expect
Texas does not have a state income tax, which means property taxes play a major role in your monthly housing payment.
In Central Texas, tax rates can vary significantly based on:
City and county
School districts
New construction vs. resale
MUD or PID assessments (common in newer developments)
Two homes with the same purchase price can have very different monthly payments depending on where they’re located. A strong VA pre-approval should reflect local tax rates, not statewide averages.
Important note for disabled veterans:
In the state of Texas, veterans who are 100% disabled — or rated as unemployable by the VA — may qualify for a full property tax exemption on their primary residence, meaning $0 in property taxes.
Because property taxes are such a large portion of housing costs in Texas, this exemption can dramatically reduce a veteran’s monthly payment and long-term cost of homeownership. It’s an important benefit that should be factored into affordability discussions early in the process.
VA Appraisals in Central Texas
VA appraisals are designed to protect the veteran — not to create roadblocks.
In competitive Central Texas markets, a VA appraisal may trigger a Tidewater notice if the appraiser has concerns about value. This isn’t a denial. It’s a chance for the buyer, agent, and lender to provide additional market data before the value is finalized.
Having a lender experienced with VA appraisals helps keep the process compliant, calm, and moving forward.
Using a VA Loan for New Construction
New construction is common throughout Central Texas, particularly in growing areas like Georgetown, Jarrell, and Temple.
VA loans can be used for new construction, but there are important details to understand:
VA-required inspections
Builder timelines
Fees veterans are not allowed to pay
How builder incentives can be structured
Working with a VA-experienced lender helps coordinate between the builder, agent, and veteran to avoid delays or surprises.
VA Loans for Manufactured, Modular, and Rural Homes
VA loans can also be a strong option for buyers looking outside city centers, including parts of Belton, Killeen, Salado, and Waco.
Depending on the property, VA financing may be available for:
Manufactured homes (with specific requirements)
Modular homes
Homes on acreage
These property types have additional guidelines, making local expertise especially important.
VA Funding Fee Basics
Most VA loans include a VA funding fee, which helps keep the program available for future veterans.
A few key things to know:
Some veterans are exempt, including those receiving VA disability compensation
The funding fee can often be financed into the loan
The percentage varies based on loan usage and down payment
A knowledgeable lender will explain how the funding fee applies to your specific situation.
Competing with a VA Loan in a Strong Market
There’s a common misconception that VA loans are difficult for sellers. In reality, a well-structured VA offer with a strong pre-approval can be very competitive.
Sellers and listing agents value:
Fully reviewed pre-approvals
Clean financing terms
Responsive, local lenders
Confidence the loan will close on time
When handled properly, VA loans close smoothly across Central Texas.
Why Local VA Experience Matters
VA guidelines are national — but real estate is local.
A Central Texas VA lender understands:
Local tax districts and exemptions
Title company practices
Builder expectations
Common appraisal challenges
Texas contract timelines
That local knowledge helps protect the veteran and keep the transaction on track.
Buying with a VA Loan in Central Texas?
Whether you’re purchasing your first home, relocating, or building new, a VA loan can be an incredible tool when guided by the right expertise.
If you’re buying in Georgetown, Round Rock, Jarrell, Belton, Killeen, Temple, Salado, Waco, or Austin, I’d be honored to help you navigate the process with clarity and confidence.
Cat Totty
The Totty Team | Cardinal Financial
A strong pre-approval, local insight, and a clear plan can make all the difference.
