VA Loan Guide for Fort Bliss Buyers (Texas Edition)
How to use your VA loan benefit to buy a home near Fort Bliss - eligibility, entitlement, and El Paso-specific tips.
A VA loan is the single most powerful home-buying tool available to Fort Bliss service members - zero down payment, no private mortgage insurance (PMI), competitive interest rates, and no VA-imposed loan limit for borrowers with full entitlement. In El Paso, where the median home price is approximately $265,000 according to GEPAR MLS data, a VA loan paired with your BAH makes homeownership more accessible than at most duty stations in the country. This guide covers everything Fort Bliss buyers need to know about VA loan eligibility, the funding fee, the buying process in Texas, and strategies to get the strongest terms.
What Is a VA Loan and Why Does It Matter at Fort Bliss?
A VA home loan is a mortgage benefit earned through military service, backed by the U.S. Department of Veterans Affairs. It's not a loan from the VA itself - the VA guarantees a portion of the loan, which allows private lenders to offer significantly better terms than conventional mortgages.
The three advantages that matter most to Fort Bliss buyers:
Zero down payment. While conventional loans typically require 3–20% down, VA loans require nothing down. On a $265,000 home in El Paso, that's $7,950 to $53,000 you don't need to bring to closing - a massive advantage for PCS families who may not have had time to save a large down payment between moves.
No PMI. Conventional borrowers who put less than 20% down pay private mortgage insurance, typically $100–$250/month. VA loans eliminate this cost entirely. On a 30-year mortgage, that's $36,000 to $90,000 in savings over the life of the loan.
Competitive interest rates. Because the VA guarantees the loan, lenders take on less risk and can offer rates that are typically 0.25–0.5% lower than conventional loans. On a $265,000 mortgage, even a 0.25% rate difference saves approximately $13,000 over 30 years.
VA Loan Eligibility: Who Qualifies?
To use a VA loan at Fort Bliss, you need to meet the VA's service requirements and obtain a Certificate of Eligibility (COE).
Active-duty service members are eligible after 90 continuous days of active service during wartime, or 181 days during peacetime. Most Fort Bliss personnel easily meet this threshold.
Veterans qualify based on their length and character of service. The specific requirements vary by era of service, but generally require 90 days to 2 years of active duty depending on when you served.
National Guard and Reserve members are eligible after 6 years of service, or after 90 days of active-duty service under Title 10 orders.
Surviving spouses of service members who died in the line of duty or from a service-connected disability may also be eligible for VA loan benefits.
Your COE confirms your entitlement - the amount the VA will guarantee. You can request your COE online through the VA's eBenefits portal or have your lender pull it, which is usually faster. Most experienced VA lenders can retrieve your COE in minutes.
The VA Funding Fee: What It Costs and Who's Exempt
The VA funding fee is a one-time charge that offsets the cost of the VA loan program to taxpayers. It can be paid at closing or rolled into your loan balance.
2026 Funding Fee Rates for Purchase Loans
| Scenario | Down Payment | Funding Fee |
|---|---|---|
| First-time use | 0% down | 2.15% |
| First-time use | 5–9% down | 1.50% |
| First-time use | 10%+ down | 1.25% |
| Subsequent use | 0% down | 3.30% |
| Subsequent use | 5–9% down | 1.50% |
| Subsequent use | 10%+ down | 1.25% |
Source: VA.gov - Funding Fee and Closing Costs
On a $265,000 El Paso home with zero down (first-time use), the funding fee is $5,698. If you roll this into your loan, your total mortgage becomes $270,698. At current interest rates, that adds roughly $35–$40/month to your payment.
Who's Exempt from the Funding Fee
You pay no funding fee at all if you:
- Have a service-connected disability rating of 10% or higher
- Are receiving VA disability compensation
- Are a surviving spouse receiving Dependency and Indemnity Compensation (DIC)
- Are a Purple Heart recipient
This exemption saves thousands of dollars. If you have any service-connected disability, even a 10% rating, make sure your lender applies the exemption - it's one of the most commonly missed savings in VA lending.
VA Loan Limits in El Paso County [2026]
For borrowers with full entitlement (meaning you've never used your VA loan benefit, or you've fully restored it), there is no VA-imposed loan limit. You can borrow as much as a lender will approve with zero down payment.
For borrowers with partial entitlement (you have an existing VA loan or haven't fully restored your entitlement), the 2026 conforming loan limit for El Paso County is $832,750. This is the maximum you can borrow with zero down under partial entitlement - up from $806,500 in 2025.
In practice, this limit is rarely a constraint in El Paso. With a citywide median home price of $265,000 and even the most expensive neighborhoods (West Side/Upper Valley) averaging $317,000–$372,500, virtually every home purchase in El Paso falls well within VA loan limits.
The VA Loan Process at Fort Bliss: Step by Step
Step 1: Get Pre-Approved (Before You Start Looking)
Pre-approval means a lender has verified your income, credit, and COE and issued a letter stating the loan amount you qualify for. This takes 24–48 hours with most VA lenders and gives you two critical advantages: a clear budget for your home search, and credibility with sellers. In El Paso's market, a pre-approval letter signals that you're a serious buyer ready to move.
Credit requirements: The VA itself has no minimum credit score, but most lenders require a FICO score of 620–670. If your score is below 620, some lenders will still work with you - ask specifically about VA manual underwriting options.
Debt-to-income (DTI): VA lenders typically cap DTI at 41%, though exceptions are common with strong residual income. Residual income - the money left after all monthly obligations - is a VA-specific requirement that conventional loans don't use. It actually works in your favor if you have low living costs, which El Paso's affordable market supports.
Step 2: Find the Right Home
Once pre-approved, your agent should be sending you homes tailored to your criteria - not random MLS blasts. At Fort Bliss, common priorities include commute time to base, school districts, BAH alignment, and resale potential for when you PCS out.
VA property requirements: The home must be your primary residence, and it must meet the VA's Minimum Property Requirements (MPRs). These ensure the home is structurally sound, sanitary, and safe. Common issues that can flag a VA appraisal include peeling paint on pre-1978 homes (lead paint concern), inadequate roofing, and non-functional HVAC systems. A good agent will preview homes and flag potential MPR issues before you waste time on a property that won't pass VA appraisal.
Step 3: Make an Offer and Navigate the Texas Contract
Texas uses standardized TREC (Texas Real Estate Commission) contracts. Key elements for VA buyers:
Option period: Texas contracts include a negotiated option period (typically 7–10 days) where you have the unrestricted right to terminate for any reason. You pay a small option fee ($100–$500, negotiable) for this right. This is when you complete your home inspection.
Earnest money: Typically 1% of the purchase price in El Paso ($2,650 on a median-priced home). This is deposited with the title company and credited toward your closing costs at close.
VA appraisal: The VA orders an independent appraisal to ensure the home's value supports the loan amount. If the appraisal comes in low, you can negotiate a price reduction with the seller, pay the difference out of pocket, or walk away. The VA's appraisal process typically takes 10–15 business days in El Paso.
Step 4: Close on Your Home
VA loan closings in El Paso typically take 35–45 days from contract execution - slightly longer than conventional loans due to the VA appraisal timeline. Closing costs for VA buyers in El Paso typically run 2–4% of the purchase price. The VA limits what lenders can charge buyers (no prepayment penalties, no broker commissions to the buyer), and it's common to negotiate seller-paid closing costs.
Texas-specific note: Texas is a community property state, meaning both spouses' debts may be considered in VA loan qualification - even if only one spouse is on the loan. Make sure your lender understands Texas community property rules and how they interact with VA underwriting.
"Purchased a home from out of state for a military relocation and they were very attentive and thorough throughout the whole process. They were always communicating and keeping me in the loop. They also did a great job with live walk-throughs."
- Jacob C., Military Buyer, Google Review
VA Loan Strategies for Fort Bliss Buyers
Compare Multiple Lenders
This is the single most impactful thing you can do. Interest rates, origination fees, and closing cost credits vary significantly between lenders. Get quotes from at least 2–3 VA-approved lenders and compare the Loan Estimate documents side by side. We maintain a list of reputable local and military-friendly lenders we can share.
A word about military-branded lender programs. Some large national lenders will try to pair you with a network agent in exchange for referral fees. That referral fee comes out of the agent's commission, which can create a more transactional experience. For a major purchase - often the biggest financial decision of your life - you want an agent who is fully focused on your interests, not splitting attention with a referral partner.
Negotiate Seller Concessions
In El Paso's market, sellers can contribute up to 4% of the purchase price toward the buyer's closing costs on a VA loan. The 2025 GEPAR data shows homes selling at 98.5–99.2% of asking price, which means there's room to negotiate - especially outside of peak spring months. A skilled agent can structure an offer that includes seller-paid closing costs without significantly weakening your competitive position.
Use Your VA Loan as an Investment Tool
El Paso's strong rental market, driven by constant PCS turnover at Fort Bliss, means that when you receive new orders, you can often keep your home as a rental property. A home purchased with your VA loan today at $265,000 can generate $1,400–$1,800/month in rent - potentially covering your mortgage payment and building long-term wealth. Just note that VA loans require owner-occupancy for the initial purchase; renting it out after you PCS is permitted.
"Moved to El Paso for work and they took care of everything, walked me through every single step of the process. Alejandro was excellent, very professional and patient!"
- Eran H., Military Buyer, Google Review
Understand the Texas Property Tax Advantage for Disabled Veterans
Texas offers significant property tax benefits for veterans with service-connected disabilities. Veterans with a 100% disability rating are fully exempt from property taxes in Texas - a savings of $4,800–$5,500/year on a median-priced El Paso home. Partial exemptions are available for ratings of 10% or higher, scaled by disability percentage. If you qualify, this effectively reduces your monthly housing cost by $400–$460/month.
Download Your Free VA Loan Buyer's Guide
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Frequently Asked Questions
What credit score do I need for a VA loan in El Paso?
The VA itself has no minimum credit score requirement. However, most lenders require a FICO score of 620–670 for VA loan approval. Some lenders will work with scores below 620 through manual underwriting. Your best strategy is to check your score before applying and compare requirements across multiple lenders.
How much can I borrow with a VA loan in El Paso?
With full entitlement, there's no VA-imposed limit - you can borrow as much as a lender will approve with zero down. With partial entitlement, the 2026 limit for El Paso County is $832,750. Since El Paso's median home price is approximately $265,000, virtually every purchase here falls well within VA loan limits.
What is the VA funding fee for 2026?
For first-time VA loan users with zero down payment, the funding fee is 2.15% of the loan amount ($5,698 on a $265,000 home). The fee drops to 1.50% with 5–9% down and 1.25% with 10%+ down. Veterans with a service-connected disability rating of 10% or higher are completely exempt from the funding fee.
How long does it take to close on a VA loan in El Paso?
VA loan closings in El Paso typically take 35–45 days from contract execution. The VA appraisal process (10–15 business days) is the primary factor that extends the timeline beyond conventional loans (30–35 days). Working with a lender experienced in VA transactions and an agent who understands VA property requirements can keep the process on track.
Can I use a VA loan to buy new construction in El Paso?
Yes. VA loans can be used for new construction purchases, though the process differs slightly - the home must meet VA Minimum Property Requirements at final inspection, and the builder should be registered with the VA. El Paso has active new construction from builders like Palo Verde, Desert View, and Carefree Homes. See our Complete Guide to Buying New Construction in El Paso.
Can I reuse my VA loan if I've used it before?
Yes. VA loan entitlement can be restored when you sell the previous home and pay off the VA loan, or through a one-time restoration if the previous VA loan was paid in full (even if you still own the property). Second-time users pay a higher funding fee (3.30% with zero down vs. 2.15% for first-time). Your COE will show your remaining entitlement.
What are VA Minimum Property Requirements?
VA MPRs ensure the home is safe, structurally sound, and sanitary. Common issues that flag VA appraisals include peeling paint on pre-1978 homes, damaged roofing, non-functional HVAC, and inadequate water or sewage systems. In El Paso, flat roof condition and HVAC function are the most common flags due to the desert climate. A pre-inspection before making an offer helps avoid surprises.
Do I need a real estate agent to buy with a VA loan?
No law requires it, but using an experienced local agent costs you nothing as a buyer (the seller pays the commission in most transactions) and provides significant value - especially for PCS buyers purchasing from out of state. A good agent will preview homes, flag VA appraisal risks, negotiate seller concessions, and coordinate the closing process while you're still at your current duty station.