7 Mistakes You’re Making with Your Texas VA Loan

by Shondrea Harroon, PhD

Harroon Realty Group | Brokered by Fathom Realty

7 Mistakes You’re Making with Your Texas VA Loan (and How to Fix Them)

Military family standing outside a modern home in Central Texas

Buying a home while serving at Fort Hood is more than just a real estate transaction; it’s a milestone for your family and your future. The VA loan is, hands down, one of the most powerful wealth-building tools available to our service members and veterans. However, because it is such a specialized product, it is often surrounded by myths, misunderstandings, and missed opportunities.

In the 2026 Central Texas market, things are moving fast. Whether you are looking at a quiet cul-de-sac in Temple or a new build in Copperas Cove, avoiding these seven common pitfalls will save you thousands of dollars and a significant amount of stress.

At Harroon Realty Group, we believe in guidance you can feel and results you can trust. Let’s dive into how you can master your VA loan benefits.

1. Assuming ‘Zero Down’ Means ‘Zero Out-of-Pocket’

Calculator, keys, and savings jar representing out-of-pocket homebuying costs

This is perhaps the most frequent surprise for buyers in the Fort Hood area. While it is true that the VA loan allows for 100% financing (meaning no down payment), it does not automatically cover the other costs associated with buying a home.

The Mistake: Many buyers arrive at the closing table shocked to find they still need cash for:

Earnest Money: The "good faith" deposit you make when you sign a contract.
Option Fee: The fee paid to the seller for the right to terminate the contract during the inspection period.
Appraisal and Inspection Fees: These are typically paid at the time of service, long before you close.
Closing Costs: Title insurance, taxes, and lender fees.

The Fix: Budget for "entry costs." Even with a VA loan, we recommend having a modest reserve of liquid cash. The good news? In our current market, we can often negotiate for the seller to pay some or all of your closing costs, potentially getting that earnest money back to you at the end!

2. Settling for a Non-Specialized VA Lender

Not all lenders are created equal. Some big-box banks or online lenders treat VA loans like a "side project." This leads to longer closing times, higher interest rates, and loan officers who don't understand the nuances of military pay stubs (LES) or BAH.

The Mistake: Working with a lender who isn't intimately familiar with VA guidelines can lead to your loan being denied late in the process or missing out on specific Texas-based benefits.

The Fix: Work with a local or specialized VA lender who understands the Central Texas market. We work with a network of trusted professionals who can explain your debt-to-income ratio and ensure your loan stays on track with your PCS timeline.

3. Overlooking the VA Funding Fee Exemptions

The VA Funding Fee is a one-time payment made to the Department of Veterans Affairs to keep the program running for future generations. It currently ranges from 1.25% to 3.3% of the loan amount.

The Mistake: Paying the fee when you shouldn't have to.
The Fix: If you have a service-connected disability rating of 10% or higher, or if you are a surviving spouse, you are likely exempt from this fee. This can save you upwards of $10,000 on a $300,000 home. Always ensure your Certificate of Eligibility (COE) is updated and reflect your current status.

4. Thinking You Can Only Use Your VA Loan Once

Home documents and checklist on a desk representing VA loan eligibility and repeat use

A common myth among veterans is that the VA loan is a "one-shot" deal. We often hear, "I used my VA loan on my last house, so I have to use a Conventional loan for this one."

The Mistake: Limiting your buying power by switching to a loan that requires a 5% or 20% down payment.
The Fix: You have "entitlement" that can be restored or even split. If you sold your previous home and paid off the loan, your entitlement is restored. If you still own the previous home as a rental, you may still have enough "bonus entitlement" to buy another home in the Fort Hood area with $0 down. Our team can help you navigate this calculation with your lender.

5. Not Accounting for the VA Appraisal (MPRs)

The VA appraisal is different from a standard appraisal. The appraiser isn't just looking at the value; they are looking for Minimum Property Requirements (MPRs) to ensure the home is safe, sound, and sanitary.

The Mistake: Falling in love with a "fixer-upper" that has peeling paint, exposed wiring, or a leaky roof. The VA will likely not approve the loan until these items are fixed.
The Fix: When we tour homes together, we keep a "VA-eye" on the property. We look for the red flags that an appraiser might call out so we can address them in our initial offer. If you’re looking at older homes in established neighborhoods, this is especially critical.

6. Missing Out on Seller Concessions in the 2026 Market

In the heat of the 2021-2022 market, sellers weren't paying for anything. In 2026, the landscape has shifted.

The Mistake: Not asking for help with closing costs or interest rate buy-downs.
The Fix: The VA allows sellers to pay up to 4% of the purchase price in "concessions." This can go toward your closing costs, or even potentially paying down certain debts as allowed by VA guidelines. Always verify these specific concessions with your lender during the pre-approval process. Don’t leave money on the table, let us negotiate these benefits for you.

7. Working with a REALTOR® Who Doesn’t Speak ‘Military’

Military family meeting with a real estate agent in a bright modern home

The pace of military life is different. Between TDYs, deployments, and tight PCS windows, you don't have time for a real estate agent who takes three days to return a text or doesn't know where the main gates are at Fort Hood.

The Mistake: Hiring an agent who treats you like any other client, without understanding the urgency of your report date or the specifics of your BAH.

The Fix: Partner with a team that specializes in relocation. At Harroon Realty Group, we pride ourselves on being emotionally intelligent partners who understand the stress of a move. We offer virtual tours for families who are currently out of state and handle the "boots on the ground" logistics so you can focus on your mission.

Guidance You Can Feel. Results You Can Trust.

Navigating the real estate market in Central Texas is a journey, and your VA loan is the vehicle that can get you to the finish line of homeownership. By avoiding these common mistakes, you’re not just buying a house, you’re building a foundation for your family’s future.

If you’re ready to start your search or just have questions about your entitlement, we are here to help. Contact us today to schedule a consultation. Whether you're a first-time buyer or a seasoned investor, our team at Harroon Realty Group | Brokered by Fathom Realty is dedicated to providing the education and excellence you deserve.

Harroon Realty Group | Brokered by Fathom Realty
1710 Keller Parkway; Keller, TX 76248
Broker Phone: (888) 455-6040

Legal Disclosures:
Texas Real Estate Commission Information About Brokerage Services (IABS)
Texas Real Estate Commission Consumer Protection Notice

Disclaimer: Harroon Realty Group and its members are not financial advisors, tax professionals, or mortgage lenders. All financial and tax-related information provided is for educational purposes only. Please consult with a licensed mortgage professional or tax advisor regarding your specific financial situation.