Originally published on HAR by Michael Gee with updated Houston insights. Read the full HAR version here.
Houston continues to rank as one of the top cities in Texas for veterans, active duty military members, and their families to buy a home. The VA loan program offers a path to homeownership with no down payment, no private mortgage insurance, and interest rates that compete with or beat conventional options. This guide breaks down how VA loans work in the Houston housing market, what you qualify for, and where to look.
Who Qualifies for a VA Loan in Houston Texas
The VA loan is a mortgage guaranteed by the Department of Veterans Affairs. It is designed for veterans, active duty service members, eligible National Guard and Reserve members, and qualifying surviving spouses.
Eligibility is based on meeting at least one of these service requirements:
- 90 consecutive days of active duty during wartime
- 181 days of active duty during peacetime
- Six years or more of National Guard or Reserve service
- Surviving spouse of a service member who died from a service connected cause
Your lender will verify eligibility through a Certificate of Eligibility, which can often be obtained electronically in a matter of minutes. While the VA does not set a minimum credit score, most lenders look for a score of at least 620 along with stable income and employment history.
Key Advantages of Using a VA Loan in Houston
VA loans offer several advantages that make them one of the strongest financing tools available to Houston homebuyers:
- No down payment required. Eligible buyers with full entitlement can finance the entire purchase price. With the Houston median home price at $334,990, this keeps thousands of dollars in your pocket.
- No PMI. Unlike conventional loans that charge private mortgage insurance on low down payment purchases, VA loans never require PMI. This can save Houston buyers $150 to $200 per month.
- Lower interest rates. The VA guaranty reduces risk for lenders, which translates to more competitive rates for borrowers.
- Reusable benefit. VA loan entitlement can be restored and used again after selling a home or paying off a previous VA loan.
VA Loan Limits for Houston in 2026
The 2026 VA loan limit for all Texas counties, including Harris County, is $832,750. This represents a 3.3 percent increase from 2025.
Veterans with full entitlement are not technically capped at this number. The limit applies primarily to those with partial entitlement who have an existing VA loan.
Houston’s median home price of $334,990 and average price of $426,558 both fall well below the loan limit, which means most Houston homes are accessible to VA buyers with zero money down.
The VA Funding Fee Explained
Instead of PMI, VA loans include a one time funding fee that supports the program. This fee can be paid at closing or financed into the total loan amount.
2026 funding fee rates for purchase loans:
| Down Payment | First Time Use | Subsequent Use |
| Less than 5% | 2.15% | 3.30% |
| 5% to less than 10% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
For a first time buyer purchasing a $335,000 home in Houston with no down payment, the funding fee would be roughly $7,202. Veterans with a VA disability rating and certain surviving spouses are exempt from this fee entirely.
Top Houston Neighborhoods for Veterans and Military Families
Houston’s size and diversity mean there is a neighborhood for every budget and lifestyle. These areas are especially popular with military families and VA loan buyers:
Katy — Homes priced from $270,000 to $500,000 with top rated schools in Katy ISD. Master planned communities offer excellent amenities, and the commute to Ellington Field runs about 45 minutes.
Pearland — Affordable homes ranging from $200,000 to $600,000 served by highly rated Clear Creek ISD. A strong veteran community and proximity to the Michael E. DeBakey VA Medical Center make Pearland a natural fit.
Clear Lake — Developed alongside NASA’s Johnson Space Center, Clear Lake offers a family friendly community with deep ties to aerospace and military culture. Ellington Field is nearby, and the area features waterfront living and excellent schools.
Spring Branch — Centrally located in west Houston with growing appeal among military families. Spring Branch offers an accessible commute and suburban living within the city limits.
Southbelt / Ellington — Located directly next to Ellington Field Joint Reserve Base, this neighborhood provides affordable housing and easy highway access along I 45 and Beltway 8.
Texas Veteran Benefits Beyond the VA Loan
Texas charges no state income tax, allowing military pay, retirement income, and disability benefits to go further.
Disabled veterans in Texas also qualify for property tax exemptions based on their VA disability rating:
- 100% rating: full exemption from property taxes
- 70% to 99%: $12,000 exemption
- 50% to 69%: $10,000 exemption
- 30% to 49%: $7,500 exemption
- 10% to 29%: $5,000 exemption
Why 2026 Is a Strong Year to Buy in Houston With a VA Loan
Houston’s housing market has shifted in favor of buyers heading into 2026. Inventory is up 16.6 percent with over 34,500 active listings. Homes are averaging 66 days on market, giving buyers more negotiating room. Monthly mortgage payments on a median priced home have dropped by more than $161 compared to a year ago.
Houston housing affordability has improved in 15 of the past 18 months. For VA loan buyers, the combination of zero down payment, no PMI, and a more balanced market creates one of the best buying opportunities in years.
Take the Next Step With Michael Gee
Ready to put your VA loan benefit to work in Houston? Search Houston homes, explore neighborhoods like Katy, Pearland, and Clear Lake, register for listing alerts, or connect directly with Michael Gee to start your home search today.
