The VA loan is one of the most valuable financial benefits in the military, and in my experience it’s also one of the most misunderstood. I’ve worked with buyers who thought they couldn’t use it because they heard it “takes too long,” buyers who didn’t know the funding fee could be waived, and buyers who passed up zero-down financing because a lender didn’t explain it clearly.
Let me walk through how the VA loan actually works in Texas, with the specific 2026 numbers for the Killeen and Fort Cavazos market.
What the VA loan actually is
The VA doesn’t lend money directly. It guarantees a portion of a home loan made by a private lender — a bank, credit union, or mortgage company — which lets those lenders offer better terms than most buyers can get through conventional financing. The major benefits for VA-eligible buyers:
- No down payment required in most cases
- No private mortgage insurance (PMI), which typically runs $100–$300/month on conventional loans
- Competitive interest rates, often 0.5–1% lower than conventional
- No prepayment penalty
- Reusable benefit — you can use it more than once
For a $250,000 home in Killeen, a conventional buyer putting 5% down would need $12,500 at closing plus several hundred dollars a month in PMI. A VA buyer with full entitlement brings $0 down and pays no monthly PMI. Over five years, that’s a significant difference.
Who is eligible
You need to meet minimum service requirements and have a Certificate of Eligibility (COE):
- Active duty: 90 consecutive days of active service
- Veterans: 90 days wartime service or 181 days peacetime service (varies by era)
- National Guard/Reserves: 6 years service or 90 days active-duty service under Title 10
- Surviving spouses: of service members who died in service or from service-connected disability
If you’re active duty at Fort Cavazos, you’re almost certainly eligible. Your lender can pull your COE electronically through the VA’s system in most cases — you usually don’t have to wait for a paper certificate.
2026 VA loan limits in Texas
Here’s the detail that matters: if you have full entitlement (you’ve never used a VA loan before, or you’ve paid off and sold the previous VA-financed home), there is technically no loan limit. You can borrow as much as a lender will approve.
The conforming loan limit for 2026 in Bell County (Killeen, Harker Heights) and Coryell County (Copperas Cove) is $832,750. This number matters primarily if you have reduced entitlement — meaning you still have an active VA loan on another property. In that case, the $832,750 figure is the ceiling for zero-down purchasing.
For most Fort Cavazos buyers purchasing in the $200,000–$400,000 range, the loan limit is not a practical constraint.
The funding fee
The one cost specific to VA loans is the funding fee — a one-time payment to the VA that helps fund the program. The fee varies based on your situation:
| Use | Down payment | First-time use | Subsequent use |
|---|---|---|---|
| Purchase or construction | 0% | 2.15% | 3.3% |
| Purchase or construction | 5–10% | 1.5% | 1.5% |
| Purchase or construction | 10%+ | 1.25% | 1.25% |
On a $250,000 loan with zero down at first use, the funding fee is $5,375. It can be rolled into the loan amount so you don’t pay it at closing.
The fee is waived entirely if you have a VA disability rating of 10% or higher, or if you’re a surviving spouse receiving DIC (Dependency and Indemnity Compensation). This is one of the most commonly missed benefits I see. If you have any service-connected disability, check your rating before your lender calculates costs.
Texas VLB loans: the state benefit most people don’t know about
Texas has its own home loan program through the Texas Veterans Land Board (VLB) that’s separate from the federal VA loan. The VLB offers below-market fixed-rate mortgages to eligible Texas veterans and can sometimes be layered with the federal VA benefit depending on your lender.
To use the VLB housing loan, you generally need to be a Texas resident (or plan to be), be honorably discharged or currently serving, and use the home as your primary residence.
If you’re staying in Texas long-term — retiring, separating, or building roots here — it’s worth asking your lender about VLB options alongside the standard VA loan.
BAH as qualifying income
This is a question I get from active-duty buyers constantly: does BAH count toward my loan qualification?
In most cases, yes. BAH is considered stable, recurring income by VA-approved lenders. Because it’s tax-free, many lenders will “gross it up” — essentially treating it as a higher income figure since it’s not subject to taxes — which improves your qualifying ratios.
In the Fort Cavazos market, an E-5 with dependents receiving $1,695/month BAH, combined with base pay, typically qualifies for a purchase in the $220,000–$280,000 range. That covers a solid portion of what’s available in Killeen and Copperas Cove, though it gets tighter in Harker Heights at higher price points.
I always walk buyers through a realistic budget before they start looking at houses, because shopping at the top of your range and finding out at pre-approval that you’re $40,000 over is a frustrating experience.
The VA appraisal process
VA loans require a VA appraisal, which is done by a VA-assigned appraiser (not one your lender selects). This appraisal checks two things: that the home is worth what you’re paying for it, and that it meets VA Minimum Property Requirements (MPRs).
MPRs are not onerous for most well-maintained homes. They cover basics like having a functioning roof, working utilities, no active pest infestations, safe electrical, and no major structural issues. In my experience in the Killeen market, the most common reasons a property fails VA appraisal are deferred maintenance items a seller could have addressed before listing.
If a property doesn’t meet MPRs, the buyer can ask the seller to repair the issues before closing, or walk away using the VA loan contingency. I always advise buyers to get a standard home inspection in addition to the VA appraisal — the appraisal is not a substitute for an inspection.
Timeline for a VA purchase at Fort Cavazos
From pre-approval to closing, a typical VA purchase takes 30–45 days if the process goes smoothly:
- Days 1–5: Pre-approval. Gather documents (LES, DD-214 or statement of service, W-2s, bank statements, ID). Most lenders in this market are experienced with VA and can turn around a pre-approval letter quickly.
- Days 5–15: Home search and offer. Once you’re pre-approved, you’ll make an offer on a property. Sellers in the current Killeen market are generally open to VA buyers — the market has softened enough that VA offers are competitive.
- Days 15–25: Appraisal and inspection. VA appraisal is ordered by the lender. Plan for 7–14 business days for the appraisal to come back. Schedule your home inspection in the same window.
- Days 25–35: Underwriting. Your lender reviews all documents. They may request additional items (“conditions”) during this phase.
- Days 35–45: Closing. You sign, the loan funds, and you get your keys.
If you’re on a tight PCS timeline, mention that to your lender and agent upfront. Many lenders in military markets can prioritize VA loans for active-duty buyers with orders.
What I look for in a lender
Not all VA lenders are equal. I’ve seen buyers lose deals because their lender didn’t understand VA MPR repairs or couldn’t communicate a clear closing timeline to a seller. When you’re interviewing lenders, ask these specific questions:
- Do you have experience with VA loans specifically in Bell County and Coryell County?
- How long does your VA appraisal process typically take?
- Do you use in-house underwriting, or does your file go to a third party?
- Can you accommodate a quick close if my orders require it?
I can refer you to lenders in the Killeen area who consistently close VA loans on time and understand the Fort Cavazos market. Reach out and I’ll make an introduction.
Questions about using your VA benefit to buy in Killeen, Harker Heights, or anywhere in Central Texas? Call or text me at (737) 203-0360. I’m Sujin Park Henson, REALTOR at StarPointe Realty, and helping military families use this benefit correctly is one of the things I care most about in this work.
