Home Improvement

The VLB helps Veterans, Military Members and their spouses buy homes and then help pay to improve it through the Texas Veterans Home Improvement Program (VHIP).

This program was introduced in 1986 to provide below-market interest rate loans to qualified Texas Veterans for home repairs and improvement to their existing homes.

The VLB offers loans up to $50,000.00 for a 2-20-year term or loans from $7,500 - $10,000.00 for a 2-10-year term.Veterans with a VA service-connected disability rating of 30% or greater qualify for a discounted interest rate.

No down-payment is required, however, the program does require the following:

  • $10 flood certification fee, required at time of application.
  • $125 title search fee, required at time of application.
  • Closing costs.
Seven Simple Steps to Get Started

Home Improvement Loan base rate %; discounted rate %

*Discounts may apply for Veterans with a VA service-connected disability of 30% or greater
*Some improvements may not be eligible – Learn More

Note: All VLB interest rates and available discounts are subject to change at anytime. The VLB base rate is subject to adjustments on the first business day of each week. All loans are subject to credit approval.

The Home Improvement Loan Process

The loan amount is based on credit approval. Get prepared by reviewing your credit. Gather your income information and be prepared to provide your loan processor with your most recent pay stubs to assist in determining your creditworthiness.

Home Improvement Loan Checklist

Once you have gathered your income information and reviewed your credit, start the online application process for loan approval.

Research contractors in your area who are able to perform your desired home improvements. Obtain a bid from each individual contractor for the costs of the improvements to provide to your loan processor.

Complete the processing of your home improvement loan by returning all required loan documentation to your loan processor.

All closings must take place at a title/attorney's office. All parties must attend the scheduled closing. Review closing documents prior to the closing and be prepared to pay the costs to close.


VLB home improvement loans in the amount of $25,000 or less are insured by the Federal Housing Administration (FHA). To qualify, the following requirements must be met:

  • The home being repaired must be wholly located in the state of Texas.
  • The home must be the applicant’s primary residence.
  • Single-family dwellings, condominiums, duplexes, triplexes and four-plexes are eligible. Duplexes, triplexes and four-plexes must be at least five years old. The borrower must reside in a newly constructed home for at least 90 days. Modular or manufactured homes that are on a permanent foundation and are part of the real estate (real property) may also be eligible, but the final decision on these types of loans will be determined by the VLB.
  • The home will require an inspection to determine that no work has begun no materials have been delivered prior to closing.
  • For loans over $25,000, VLB must be in a first lien position.
  • The borrower cannot begin construction or advance funds to the contractor or purchase material prior to receipt of the loan proceeds from VLB. Loan proceeds will be available on the fourth business day after closing.
  • The borrower must secure a general contractor. 
  • A current appraisal report may be required to determine the equity in the home for loans over $25,000.00.

It’s possible for a Veteran or Military Member to have one active loan in each program — land, home, and home improvement—at the same time. Once a Veteran, or his or her successor, has successfully paid off a VLB home improvement loan s/he may obtain another VLB home improvement loan. The same applies to our land and housing program. All VLB programs are self-funded, using no public taxpayer funding. VLB programs are financed with bonds, which are serviced by loan payments from Veteran participants.


A VLB home improvement loan can be used for alterations, repairs and improvements that are eligible for financing under the Department of Housing & Urban Develop (HUD) Federal Housing Administration (FHA) Title I Loan Program.

All work and/or construction must be in compliance with the applicable building codes and standards. The VLB home improvement loan can only be used to make repairs and improvements to the Veteran or Military Member's existing primary residence. Visit the forms section of our website for a detailed listing of eligible and ineligible home improvements.


To be eligible for VLB loan programs, Veterans and Military Members must be:

  • At least 18 years of age.
  • A bona fide and legal resident of Texas on the date of application and meet one of the following service criteria:
    • An active duty Military Member.
    • A member of the Texas National Guard.
    • A reserve component Military Member having completed 20 qualifying years for retirement.
    • A Veteran having served at least 90 active duty days unless discharged sooner due to a service-connected disability and not discharged dishonorably.
    • A surviving spouse of a Veteran listed as missing in action or whose death was service connected.

Ready to Apply?

Here is what you need in order to complete the application:

  • The amount you would like to borrow.
  • The number of years you want to finance your loan (term length).
  • Texas Drivers License.
  • Social Security Card.
  • Proof of all income received.
  • DD214 Member 4 copy.
  • Current mortgage statement.
  • Declaration page for homeowner’s insurance.
  • If applicable, information for the joint borrower (the joint borrower must be your spouse).

Military Service Documents

SCRA Assistance