VA Loans for Fort Hood Veterans in Bell County

What a VA loan actually is

You don’t borrow from the VA. You borrow from a lender like Fairway, and the Department of Veterans Affairs guarantees a portion of the loan. That guaranty is what lets lenders finance a home for eligible borrowers without a down payment and without monthly mortgage insurance.

The benefit is available to eligible veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses. Your Certificate of Eligibility confirms that you qualify and shows how much entitlement you have available. If you don’t have one yet, I can request it for you with a few details.

Bell County

Which city you buy in changes your payment

Killeen, Harker Heights and Nolanville are only a a couple miles apart, but the property taxes look completely different from one zipcode to the next.

Here is the same $320,000 house with a homestead exemption, using each jurisdiction’s adopted 2026 rates:

Where the house sits	Property tax
Unincorporated Bell, Belton ISD	$261 / mo
Harker Heights	$389 / mo
Nolanville	$399 / mo
Belton	$410 / mo
Killeen	$442 / mo
Temple	$469 / mo

Harker Heights instead of Killeen is $53 a month on an identical house. Across a three-year tour that’s about $1,900. Buying outside the city limits in the Belton ISD boundary is $181 a month less than Killeen, though you’re trading that against a longer drive to the gate and often a septic system and a well.

None of this appears in a pre-approval letter. It appears in your payment, every month, and it is the biggest difference between two houses at the same price around here. You can check any address against every taxing unit with my Central Texas Property Tax Calculator.

The test that decides it

Residual income matters more than your DTI

Most loans look mainly at your debt-to-income ratio. VA looks at that too, but it asks a more practical question: after the mortgage, taxes, insurance, your other debts and an allowance for upkeep and utilities, how much is left for your family to actually live on?

That’s residual income, and unlike DTI, it’s a dollar figure rather than a percentage. Texas sits in the VA’s South region. On a loan of $80,000 or more:

Family size	Required each month
1	$441
2	$738
3	$889
4	$1,003
5	$1,039
Each additional person	add $80

Two things about this matter more at Fort Hood than anywhere else.

BAH and BAS aren’t taxed, so all of it counts

Residual income is measured after taxes. A civilian earning $6,300 a month gross loses a chunk to federal withholding and FICA before anything is left over. A soldier earning $4,200 in base pay plus $2,100 in BAH and BAS pays tax on the $4,200 only. The allowances arrive whole.

Same gross income, materially different residual. It’s why soldiers often qualify comfortably on a VA loan at a debt-to-income ratio that would stop a conventional file, and it’s the part most online calculators get wrong, because they ask for one income figure and tax all of it. The calculator above doesn’t.

A bigger house costs more than its payment

The VA counts upkeep and utilities at 14 cents per square foot per month. A 1,600 square foot house carries $224. A 2,800 square foot house carries $392- $168 a month of residual income gone before you’ve furnished it. On a tight file, square footage can be the thing that decides it.

And if your DTI runs above 41%, the residual requirement rises by 20%. For a family of four that’s $1,204 instead of $1,003. Still not a deal-breaker, because VA sets no DTI cap, but the bar moves.

Worth the most money

A disability rating changes the math twice

If you receive VA compensation for a service-connected disability, you’re typically exempt from the VA funding fee. On a $300,000 loan with nothing down, a first-use fee of 2.15% is $6,450 you are not financing and not paying interest on for thirty years.

Texas adds a second layer, and in Bell County it is the larger of the two.

Veterans rated 100%, or paid at the 100% rate for individual unemployability, receive a total exemption on their homestead. Not a reduction. Zero. On a $320,000 house that is worth:

Where the house sits	Worth each month
Temple	$469
Killeen	$442
Belton	$410
Nolanville	$399
Harker Heights	$389

That isn’t a discount on your tax bill. It is the whole bill, gone, for as long as you own and homestead the house. It changes what you can afford by roughly the same amount.

At ratings below 100%, Texas gives a partial exemption that steps with your rating: $5,000 of assessed value at 10–29%, $7,500 at 30–49%, $10,000 at 50–69%, and $12,000 at 70–99%. Those are worth a few dollars a month rather than a few hundred, so don’t let anyone tell you a 30% rating transforms your payment. The 100% exemption is the one that moves the number.

If your claim is pending, tell me early. If a rating comes through after closing with an effective date before closing, you may be able to have the funding fee refunded.

The part most people miss

Entitlement is the real currency

Your VA benefit isn’t one-and-done. Entitlement is the amount the VA guarantees on your behalf. It can be restored after you sell and pay off a VA loan, and it can be partly in use while you still own a home.

If you have your full entitlement, there’s no VA loan limit; you’re limited by what you qualify for. If part of your entitlement is still tied up in a house you’re keeping, the math changes. You may still be able to buy again with VA, sometimes without a down payment, but how much you can borrow before a down payment comes into play depends on your remaining entitlement and the county loan limit.

This is the most common place I see military families leave value on the table. Some sell a house they would have been glad to keep. Others keep it and get surprised by a down payment on the next one. Thirty minutes with your Certificate of Eligibility before you list your house or sign a lease can save you from both.

Buy the house you’ll live in, and the house it might become

Fort Hood families move. The home you buy in Killeen, Harker Heights, Nolanville or Copperas Cove may make a good rental for years after you leave. When we plan your purchase I like to treat it as two decisions: the house you need now, and what that house becomes when orders take you somewhere else.

A VA loan has to be for your primary residence when you buy, and you’ll generally need to move in within about 60 days of closing. Once you’ve lived there and moved on, renting it out is often an option. For rentals you’ll never live in, DSCR loans are the right tool instead.

One more worth knowing: VA loans are assumable. If you sell when rates are higher than yours, a qualified buyer may be able to take over your loan, which makes your house stand out in a neighborhood full of listings. If that buyer isn’t a veteran substituting their own entitlement, yours stays tied to the loan — so it’s worth planning around rather than discovering.

Timing

PCSing in, separating, or starting over

PCSing in

With a copy of your orders you can be approved before you get here. Families tour by video, write an offer from their current duty station, and close near their report date. If you’re in the field or deployed after closing, a spouse can typically satisfy the occupancy requirement.

Where to land is worth thinking about before you fall in love with a listing. Harker Heights and Nolanville sit closer to the east side of the post and carry lower city taxes than Killeen. Killeen has the most inventory and the shortest drive to the main gate. Belton and Salado are a longer commute and different school districts. Temple is further still and has the highest combined tax rate in the county. I’ll tell you what each one costs you per month on the same house, before you write.

Retiring or separating

If you’re getting out within the next year, a lender will want to see what your income looks like on the other side: a civilian job offer, a reenlistment, or retirement and disability income that’s already established. Military retirement pay and VA disability compensation can both count as qualifying income, and because disability compensation isn’t taxed, it often goes further than the same number on a paycheck.

The timing question is real. Sometimes it’s smarter to buy while you’re still on active duty pay, and sometimes it’s smarter to wait for your award letters. I’ll lay out both paths so you can choose with your eyes open.

Taking a second look

The VA doesn’t set a minimum credit score; lenders do, and their requirements vary. A past bankruptcy or foreclosure starts a clock, but VA waiting periods are generally shorter than conventional guidelines. Collections, a recent job change after separation, or a higher debt-to-income ratio can sometimes be worked through with the right documentation and a clear explanation to underwriting.

I can’t promise you a yes. I can promise you’ll know exactly why, and what it would take to get there.

Your offer has to look strong to a seller

Some sellers still carry old assumptions about VA buyers, usually that the appraisal will be harder or the closing will drag. Most of that doesn’t hold up anymore, but perception still affects which offer gets picked. I’d rather solve it before you write. I’ll talk with your agent and the listing agent, send a clear pre-approval letter, and be specific about timelines, so the seller is comparing offers rather than loan types.

It also helps to know the rules. On a VA loan the seller can pay your normal closing costs plus up to 4% of the price in additional concessions, which can cover the funding fee, prepaid taxes and insurance, or paying off a debt to help you qualify. And since the 2024 real estate commission changes, how your buyer’s agent gets paid is part of the negotiation too. VA now allows veterans to pay their own agent in certain situations, and I’ll make sure you know what that does to your cash to close before you sign anything.

Straight answers

The honest tradeoffs

A VA loan is one of the strongest tools available to people who’ve served. It isn’t always the best one, and here’s where it can fall short.

There’s a funding fee unless you’re exempt

On a first use with less than 5% down it’s 2.15% of the loan amount. On later uses it’s 3.3%. Putting 5% or more down lowers it. Most people finance it into the loan, which means paying interest on it over time.

The appraisal checks the house

VA appraisers confirm the home is safe, sound and sanitary. A lot of the housing stock closest to the main gate is 1960s and 70s, built quickly for a growing post. Peeling paint on a pre-1978 house triggers lead-based paint requirements. A roof near the end of its life, a water heater without a pan, an open crawlspace or a missing handrail can each turn into repairs before closing.

None of it is disqualifying. It’s a negotiation, and it goes better when we see it coming. On an older house near the post I’d rather talk about it the day you find it than the day the appraisal lands.

You have to live there, and your entitlement stays committed

VA loans are for a primary residence. They aren’t for investment properties you won’t occupy or for most second homes. And if you keep the house, part of your benefit stays tied to it until the loan is paid off or another eligible veteran assumes it with their own entitlement. That’s fine when it’s planned. It’s frustrating when it’s a surprise.

Refinancing a VA loan

An Interest Rate Reduction Refinance Loan, often called a VA streamline or IRRRL, can lower your rate with less paperwork and a smaller funding fee. A VA cash-out refinance can turn equity into cash, or move a non-VA loan into VA financing.

VA requires a refinance to give you a real benefit, and generally requires the costs of a streamline to be recouped within 36 months. I hold it to the same standard. I’ll show you how long it takes for the savings to cover the costs, and if the answer is too long, I’ll tell you to wait.

Who I help most, and what you’ll need

Around Fort Hood, Killeen, Temple, Belton and Salado, the people who get the most out of a careful VA plan are:

• Active-duty soldiers PCSing in with orders and a short timeline
• Families leaving Fort Hood who want to keep the house as a rental
• Veterans buying again with VA while they still own the first house
• Retirees and separating service members whose income is about to change
• Veterans with a disability rating who want every dollar of the benefit
• Surviving spouses who aren’t sure whether they’re eligible
• Anyone who’s been told no and wasn’t told exactly why

What you’ll need

• Your Certificate of Eligibility — I can usually request it for you
• Your DD-214 if you’ve separated, or a statement of service if you’re active duty
• Your two most recent Leave and Earnings Statements if you’re active duty
• Retirement and disability award letters, if they apply
• PCS orders, if you’re relocating
• Recent bank statements, ID, and the usual income documents for a spouse or civilian job
• Your current mortgage statement and lease, if you’re keeping a home as a rental

If a VA loan isn’t the fit

It’s one tool. Depending on your situation, one of these may serve you better.

Conventional, done carefully

If you have 20% down and strong credit, conventional can beat VA once the funding fee is counted. I’ll compare them before you choose.

DSCR loans

For rentals you won’t live in. Qualifies on whether the property’s rent covers its own payment. DSCR loans →

Bank statement loans

For self-employed veterans whose tax returns show less income than the business actually earns. bank statement loans →

Asset depletion loans

For retirees with substantial savings and little earned income. asset depletion loans →

Common questions

Questions I get from military families

Can I have two VA loans at the same time?

Often, yes. If you have remaining entitlement and plan to live in the new home, you can usually keep your first VA-financed home and buy another with VA. How much you can borrow without a down payment depends on how much entitlement you have left.

Does BAH count as income for a VA loan?

Yes, and because it isn’t taxed it goes further than the same amount of base pay. BAH, BAS and VA disability compensation all count, and none of them have withholding taken out, which is exactly what the residual income test measures.

How much is residual income for a family of four in Texas?

$1,003 a month on a loan of $80,000 or more, using the VA’s South region table. If your debt-to-income ratio is above 41%, the requirement rises 20% to $1,204.

Is there a VA loan limit?

Not if you have your full entitlement. If part of your entitlement is in use, the county loan limit affects how much you can borrow before a down payment is needed.

Do I pay the funding fee if I have a disability rating?

Usually not. Veterans receiving compensation for a service-connected disability are typically exempt, along with some surviving spouses and active-duty Purple Heart recipients. Your Certificate of Eligibility shows your funding fee status.

What is the property tax exemption for disabled veterans in Texas?

Veterans rated 100%, or paid at the 100% rate for individual unemployability, receive a total exemption on their homestead. In Bell County that is worth roughly $390 to $470 a month on a $320,000 house, depending on which city you’re in. Below 100%, the exemption is a flat reduction in assessed value that steps with your rating, and it is worth considerably less.

Is there a minimum credit score for a VA loan?

The VA doesn’t set one. Lenders do, and their requirements vary.

Can I use a VA loan while I’m still on active duty?

Yes. Active-duty service members are generally eligible after 90 continuous days of service.

Can I use my VA loan in Copperas Cove?

Yes. Copperas Cove is in Coryell County rather than Bell, so the appraisal district and the tax rates are different, but the VA benefit works exactly the same way.

Can I use a VA loan on acreage or out in the county?

Often, yes, as long as it’s your primary residence and the property meets VA requirements. Rural properties need a little more care with the appraisal, which is exactly the kind of loan I like working on.