By Melissa Avara, Texas Real Estate Broker, Melissa Avara Realty Group | November 2026
This Veterans Day, thank you to everyone who has served and the families who served with them. If you are buying a home in McKinney, Frisco, Prosper, Celina or Plano, a VA loan is one of the best tools you have earned: no down payment if the price does not exceed the appraised value, no monthly mortgage insurance, and no loan limit if you have full entitlement. Here is how it works in North DFW.
Who qualifies for a VA home loan?
Most veterans, active-duty service members, and National Guard and Reserve members qualify, along with some surviving spouses. In general, that means at least 90 continuous days on active duty while serving, 24 continuous months for veterans who served after August 1990, or six creditable years in the Guard or Reserve. You can be eligible with less time if you were discharged for a service-connected disability.
You prove eligibility with a Certificate of Eligibility (COE). You can request it online at VA.gov, or your lender can pull it for you in a few minutes.
How much can you borrow with a VA loan in 2026?
If you have full entitlement, VA sets no loan limit. You can borrow what you qualify for, as long as the appraisal supports the price. That has been the rule since January 1, 2020.
If part of your entitlement is tied up in another VA loan, your limit is based on the county loan limit. In Collin County, that is $832,750 for 2026. Above that, your lender may ask for a down payment. Ask your lender to check your remaining entitlement early, especially if you are keeping a home you bought with a VA loan somewhere else.
What is the VA funding fee in 2026?
The funding fee is a one-time charge, figured on the loan amount, that you can pay at closing or roll into the loan. For a purchase:
Down payment | First VA loan | After first use |
|---|---|---|
Less than 5% | 2.15% | 3.3% |
5% or more | 1.5% | 1.5% |
10% or more | 1.25% | 1.25% |
You do not pay it if you receive VA disability compensation, if you are a surviving spouse receiving Dependency and Indemnity Compensation, or if you are on active duty and show evidence of a Purple Heart by closing. If you are awarded compensation later, with an effective date before your closing, you may get the fee refunded.
Can the seller pay your closing costs on a VA loan?
Yes. VA does not limit the seller paying normal closing costs, such as title, lender fees and prepaid items. VA does cap seller concessions at 4% of the home's reasonable value. Concessions include things like paying your funding fee, paying off a debt for you, or prepaying your homeowners insurance.
In a market like North DFW right now, where homes are taking about two months to sell, sellers are often open to helping with costs. Melissa can write those requests into your offer from the start.
A VA lender's origination charge is capped at 1% of the loan, and VA limits the other fees a lender can charge you. Since August 2024, VA policy has let veterans pay their own buyer's agent, as long as the fee is reasonable. It cannot be rolled into the loan, and the seller can still agree to cover it.
How does the VA appraisal work?
A VA appraiser checks the home's value and makes sure it meets VA's minimum property requirements: safe, structurally sound and sanitary. When the appraisal is done, you get a notice of value.
If the appraiser expects the value to come in below the price, VA's Tidewater process gives your agent two business days to send more sales data before the report is final. If the value is still short, you can ask for a reconsideration of value, renegotiate, or walk away. The Texas contract's financing addendum says a VA buyer does not have to close if the price is higher than the VA's reasonable value.
An appraisal is not an inspection. VA recommends a separate home inspection. Schedule it early in your option period so there is time to negotiate repairs.
What Texas programs help veterans buy a home?
The Texas Veterans Land Board's Veterans Housing Assistance Program offers fixed-rate loans up to $832,750 through participating lenders, and it can be paired with a VA loan. Veterans with a service-connected disability rating of 30% or more can get a discounted rate. You must be a Texas resident when you apply, so out-of-state buyers should check timing with a VLB lender.
What property tax breaks do Texas veterans get?
Every Texas homestead gets a $140,000 school tax exemption once the owner files for it. Disabled veterans get more:
- 100% disabled or unemployable: No property tax on your homestead. On a new home, the exemption can start as soon as you qualify the new homestead.
- 10% to 90% disability rating: An exemption of $5,000 to $12,000 of your home's value, depending on your rating. Veterans 65 and older with at least a 10% rating get $12,000.
- Surviving spouses: The unmarried surviving spouse of a service member killed in the line of duty, or of a 100% disabled veteran, may keep a total exemption.
File with the Collin Central Appraisal District, or the Denton Central Appraisal District for homes in the Denton County parts of Frisco, Prosper and Celina. See how property taxes compare across North DFW.
Where do military buyers live in North DFW?
Many VA buyers here are veterans, retirees, reservists and Guard members rather than active-duty families, because NAS JRB Fort Worth, the closest installation, is about 55 to 65 miles away. VA health care is closer: there is a VA clinic in Plano and VA medical centers in Garland and Dallas. Plano, McKinney and Frisco keep you close to the Plano clinic, and Celina offers newer homes for less than Prosper or Frisco.
Buying in a newer community is fine with a VA loan. Ask for the MUD or PID rate in writing, because it adds to your tax bill. Condos must be in a VA-approved project.
How does Melissa help VA buyers?
Melissa Avara is a McKinney-based Texas real estate broker, licensed since 2016, who helps veterans and military families buy across North DFW, including buyers relocating from out of state. She connects you with lenders who close VA loans regularly, writes offers that ask for the seller credits VA allows, and handles the appraisal and repair steps with you.
Ready to put your benefit to work? Call or text Melissa at (214) 280-4317 or send her a message. Related: Relocating to North DFW, How to buy a home in McKinney, McKinney real estate guide.
Sources: VA.gov eligibility, loan limits, purchase loan and funding fee pages (fee table effective April 7, 2023); FHFA 2026 conforming loan limits; 38 CFR 36.4313; VA Circular 26-24-14; TREC Third Party Financing Addendum 40-11; Texas General Land Office, Veterans Land Board home loans; Texas Comptroller exemption guides; VA North Texas Health Care locations. Checked November 2026. Ask your lender to confirm current terms.
