VA Loan Austin Zero Down
Eligible Austin veterans with full VA entitlement can purchase a primary residence with zero down. Here is how full vs partial entitlement works, the funding fee, and how Texas 50(a)(6) affects VA cash-out.
An Austin VA loan with zero down is a VA-guaranteed mortgage where an eligible veteran, active-duty servicemember, or qualifying spouse with full VA entitlement purchases a primary residence in the Austin metro without making a down payment. The VA does not lend money; it guarantees a portion of the loan against borrower default, and that guarantee is what lets approved investors lend to 100% loan-to-value. Why it matters in Austin: the Austin-Round Rock-San Marcos metro houses thousands of veterans and active military, and Travis, Williamson, and Hays Counties all qualify for the same VA program. Important Texas note: VA cash-out refinances are not allowed in Texas because federal VA cash-out rules conflict with the Texas Constitution Article XVI Section 50(a)(6). All VA programs are subject to VA eligibility and entitlement.
Key facts
- $0 down for borrowers with full VA entitlement and a loan within investor and VA guidelines
- No loan limit for full-entitlement borrowers (Blue Water Navy Vietnam Veterans Act of 2019)
- Partial entitlement uses the county conforming limit ($832,750 statewide in Texas, 2026)
- VA funding fee applies on most files; waived for borrowers receiving VA disability compensation, surviving spouses of certain veterans, and Purple Heart recipients (Isakson-Roe Act of 2020)
- No PMI on VA loans
- Primary residence only within 60 days of closing
- VA cash-out refinance is not allowed in Texas (Texas Constitution 50(a)(6) conflicts with federal VA cash-out rules)
- Texas VLB Home Loan is a separate state program ($832,750 cap as of January 2026 per Texas GLO); see my separate guide
VA vs FHA vs Conventional for Austin first-time buyers
High-level comparison. VA programs require eligibility and entitlement; FHA and conventional do not.
| Program | Down payment | Mortgage insurance | Loan amount cap (Travis 2026) |
|---|---|---|---|
| VA (full entitlement) | $0 down | None; funding fee may apply | No cap |
| VA (partial entitlement) | $0 to varies | None; funding fee may apply | $832,750 (statewide conforming) |
| FHA | Required minimum investment | UFMIP + annual MIP, commonly life of loan | $571,550 |
| Conventional | Required minimum down (varies) | PMI on LTV above 80%; removable at 80% | $832,750 |
Who this fits (and who it does not)
Files VA tends to fit
- Eligible veterans, active-duty, National Guard, Reserves, or qualifying spouses with VA Certificate of Eligibility
- Borrower purchasing a primary residence in the Austin metro
- Borrower wants zero down or low cash to close
- Borrower has full entitlement (no active VA loan, no past VA loan in default)
- House-hacking a two-to-four-unit property with owner-occupancy in one unit
Files VA does not fit
- No VA eligibility (not a veteran, active-duty, or qualifying spouse)
- Investment-only property; second home; vacation home
- Cash-out refinance on a Texas homestead (50(a)(6) blocks VA cash-out)
- Property does not meet VA Minimum Property Requirements
- Borrower with partial entitlement and a loan amount above conforming who cannot bring required cash
How I handle these files
I run every VA file in Austin the same way: confirm eligibility via the Certificate of Eligibility from the VA portal, calculate entitlement (full vs partial), pull the borrower across two or three VA-approved investors to compare pricing, and structure the offer so the seller does not see VA financing as a reason to reject. The most common Austin mistake on VA offers is letting the listing agent assume VA appraisals or VA buyer requirements will be a problem; in practice they are not, but presentation of the offer matters.
On entitlement: full entitlement means zero down with no loan limit, subject to investor overlays. Partial entitlement applies when you have an active VA loan or a prior VA loan default; you can usually still buy zero down up to the county conforming limit, with anything above requiring cash to make up the entitlement gap. I calculate that gap before we write an offer.
On Texas: VA loans are fully allowed for purchase and rate-and-term refinance in Texas. The one product that is not allowed is a VA cash-out refinance on a Texas homestead, because the federal VA cash-out program conflicts with Article XVI Section 50(a)(6) of the Texas Constitution. If you want cash out and you are on a VA homestead, you are looking at a Texas 50(a)(6) conventional cash-out instead. I cover that in the separate Texas 50(a)(6) page.
All VA programs are subject to VA eligibility and entitlement. Send me your Certificate of Eligibility (or your DD-214 and I will pull the COE) and your scenario, and I will tell you what your file looks like before we apply.
Sources & methodology
All figures verified against primary sources as of May 26, 2026.
- Department of Veterans Affairs: Loan Limits and Full vs Partial Entitlement
- VA Lender Handbook (Pamphlet 26-7)
- Texas Veterans Land Board: Home Loan Program
- Texas GLO: VLB Home Loan cap raised to $832,750 (January 2026)
- Texas Constitution Article XVI Section 50 (governs Texas cash-out)
- Kellibrooke: VA Loan Program page (companion)
Common questions
Who qualifies for a VA loan in Austin?
Veterans, active-duty servicemembers, National Guard and Reserves members meeting service requirements, and certain surviving spouses. The VA issues a Certificate of Eligibility (COE) confirming entitlement; an MLO can pull it from the VA portal with your DD-214 or service information. All VA programs are subject to VA eligibility and entitlement.
Is zero down really $0 in Austin?
For full-entitlement borrowers, yes, down payment can be $0. There are still other costs (appraisal, title, prepaids, possibly funding fee) which can sometimes be covered by seller concessions or rolled into the loan up to investor limits. I walk through every line item before contract.
What is the VA funding fee?
The funding fee is a one-time fee paid to the VA to support the program. Amount varies by service category, down payment, and whether it is a first-time use. Borrowers receiving VA disability compensation, surviving spouses of certain veterans, and Purple Heart recipients are exempt (Isakson-Roe Act of 2020). The fee can be financed into the loan.
Can I use a VA loan more than once?
Yes. VA entitlement can be restored after a prior VA loan is paid off, the property is sold, or in certain other circumstances. If you have an active VA loan and want another VA loan, you are likely on partial entitlement; full-entitlement zero down is restored once the first loan is paid off.
Are VA cash-out refinances allowed in Texas?
No. Texas Constitution Article XVI Section 50(a)(6) governs cash-out refinances on Texas homesteads, and the federal VA cash-out program cannot be reconciled with those rules. VA rate-and-term refinances (IRRRL) and VA purchase loans are fully allowed in Texas. For cash-out on a Texas homestead, you are looking at a conventional 50(a)(6) cash-out.
What is the difference between federal VA and Texas VLB?
Federal VA is the Department of Veterans Affairs guarantee program; Texas VLB is a separate state program run by the Texas General Land Office for Texas-resident veterans. They have different application processes, different rate structures, and different limits. Texas VLB Home Loan cap is $832,750 as of January 2026 per the Texas GLO. Some borrowers qualify for both and we compare which works better for their file.
Does the property need to meet special requirements for VA?
Yes. VA Minimum Property Requirements include safety, sanitation, and structural soundness standards. The VA appraisal includes a brief MPR review. Most Austin-area homes pass without issue; older homes with deferred maintenance can occasionally trigger conditions that need to be cured before closing.
Can I use VA to buy a duplex, triplex, or fourplex in Austin?
Yes, if you occupy one unit as your primary residence within 60 days of closing. This is a common path for veterans entering the Austin market who want to offset their housing cost with rental income from the other units.
Eligible Austin veteran?
Send me your Certificate of Eligibility (or your DD-214 and I will pull the COE) and the scenario you are running. I will tell you what your file looks like before you write an offer. All VA programs subject to VA eligibility and entitlement.