These two loan programs have a lot of similarities, however, the primary difference is the rates for Texas Veteran Loans are set by the Texas Veterans Land Board and the rates on VA Mortgages are market based and set by the lenders who originate the loans with the VA guarantee.  Also, Texas Veteran loans can only be used for home purchases, where as a VA Loan can be used for a home purchase or refinance.

Other differences include:

• A ½ percentage point discount on the Texas Vet loan for Veterans with a disability rating of 30% or greater.
• Texas Veteran loans can be originated under the guidelines for a VA Loan, FHA Loan or Conventional loan.  In most cases it will be originated as a VA loan but in certain cases it may make sense to originate the loan as FHA or Conventional.