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VLB Home Improvement Loan FAQ

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Q. If the improvements have already begun or have been completed, can the VHIP be used to finance them?
A. No. The VHIP loan cannot be used to pay off any prior debt.

Q. Why does the work have to be done by a general contractor?
A. VHIP loans are FHA Title I insured loans. Both the FHA and the VLB require a valid lien in favor of the VLB against the property. This type of lien cannot be created without a general contractor.

Q. Why are certain types of improvements ineligible for an FHA insured VHIP loan?
A. The FHA determines which improvements are eligible for a loan. Its guidelines state that the improvement must enhance the basic livability or energy efficiency of the home or repair damage due to a natural disaster.

Q. Why does the FHA insure these loans?
A. FHA insures these loans against default, which helps to maintain the stability of the program.

Q. Can the VHIP be used on a manufactured home?
A. Yes, however, there are multiple requirements which must be met. Please consult with a VLB loan officer for those requirements.

Q. Can a veteran have more than one VLB loan at a time?
A. Yes. It’s possible for a veteran to have one active loan in each program – land, home and home improvement – at the same time.

Q. How many VLB loans can a veteran receive in his or her lifetime?
A. Once a veteran, or his or her successor, has successfully paid off a VLB home improvement loan, he or she may get another VLB home improvement loan.  The same applies to our land and home loans.

Q. Who pays for all these veterans programs?
A. All of the programs are self-funded and none of our programs use money from Texas taxpayers.  Our loan programs are financed with bonds, which are serviced by loan payments from the veterans who use the programs.

Links to Additional Resources

External Links


VLB Help Line
1.800.252.VETS (8387)
VLB Help Line