Killeen Temple VA Homebuying Guide 2026
In 2026, Killeen and Temple remain one of the most VA focused housing corridors in Central Texas because Fort Cavazos keeps buyer demand steady and sellers see VA contracts regularly. The advantage is real, but it is not automatic: your outcome depends on funding fee status, clean COE and entitlement documentation, and an offer that anticipates appraisal, repairs, and credits. Nationally, Realtor.com projects active inventory up about 8.9% year over year in 2026, which often supports more negotiation on repairs and closing costs when a home has been sitting (Realtor.com 2026 Housing Forecast). Use this guide as a practical execution checklist, not a theory piece.
What this guide covers
This is a 2026 focused VA buying framework for the Killeen and Temple area, built around the three friction points that most often delay or derail closings.
- Funding fee rates, how exemptions work, and how to budget the fee without surprises.
- COE and entitlement, including how repeat use changes your zero down ceiling.
- Seller expectations, including appraisal timing, repair standards, and how to structure concessions cleanly.
2026 VA funding fee and exemptions
The VA funding fee is a one time program fee paid at closing unless you qualify for an exemption. Your rate depends on first use versus subsequent use and down payment level.
- First use under 5% down: 2.15% of the loan amount.
- After first use under 5% down: 3.3% of the loan amount.
- Reduced with down payment: 5% down is 1.5%, and 10% down is 1.25%.
- Common exemptions: receiving VA disability compensation, qualifying surviving spouse receiving DIC, and certain Purple Heart cases.
COE and entitlement in plain terms
Your Certificate of Eligibility proves you qualify for VA benefits, and your entitlement determines how much the VA guaranty can support when you already have a VA loan.
- Fastest COE path: request online or have your lender pull it using VA Web LGY.
- Full entitlement: typically means no VA loan limit, subject to lender approval and appraisal.
- Partial entitlement: your zero down limit is tied to the county FHFA conforming limit and your used entitlement.
- Working formula: county limit times 0.25, minus used entitlement, then multiply the remainder by 4.
What sellers in 2026 usually want to see
Sellers in Killeen and Temple are used to VA offers, but they still prioritize deals that close on time with minimal re trade.
- Strong preapproval: a VA capable lender and clean documentation reduce appraisal and underwriting delays.
- Concessions done right: seller concessions are capped at 4% of reasonable value, but closing cost credits can be negotiated.
- Repair readiness: homes must meet VA Minimum Property Requirements, so safety and habitability repairs cannot be ignored.
- Earnest money: many sellers still expect around 1% to show commitment, even with zero down financing.
Quick questions this guide answers
Do VA funding fee rates change in 2026?
VA funding fee rates can change only if the VA updates policy, but many buyers in 2026 still use the current published rate charts and plan accordingly.
Can I buy in Bell County with zero down in 2026?
Many eligible buyers can. If you have full entitlement, you often are not limited by a county loan limit, but affordability and appraisal still apply.
Will Killeen and Temple sellers accept a VA offer?
Often yes, because VA is common here. The best acceptance strategy is a clean preapproval, realistic repair posture, and a timeline that stays on the critical path.
Key Takeaways
- In 2026, Killeen and Temple remain highly VA active due to Fort Cavazos, so sellers are familiar with VA timelines, appraisal steps, and documentation requirements.
- Funding fee planning is a mission critical step: first use and subsequent use rates differ, and exemption status can remove the fee entirely for qualifying buyers.
- Request your COE early, because entitlement math and prior loan history are what determine how far zero down purchasing power actually reaches.
- Seller concessions are capped at 4% of reasonable value, so structure credits and concessions strategically instead of assuming everything can be rolled in.
- VA appraisal delays are usually preventable when the offer is clean, comps are realistic, and the lender and agent coordinate during Tidewater timelines.
- In a more negotiable environment, buyers can often secure repair agreements or credits, but only when the request is tied to real inspection findings and contract timing.
1. 2026 VA funding fee and exemptions
This section is about how to budget the VA funding fee correctly and determine whether you are exempt before you write offers. The funding fee is paid one time at closing, and the rate depends on first use versus subsequent use and down payment level. The clean execution move is to confirm exemption status early, then decide whether you will pay the fee in cash or finance it into the loan, based on your cash to close plan.
Funding fee execution checklist
- Confirm your status early: ask your lender to document whether you owe the fee or qualify for an exemption before you submit an offer.
- Know the tier: first use under 5% down is 2.15%, and after first use under 5% down is 3.3% of the loan amount.
- Understand reductions: a 5% down payment reduces the fee to 1.5%, and a 10% down payment reduces it to 1.25%.
- Plan the cash path: decide whether you will finance the fee or pay it at closing, then align concessions and reserves accordingly.
Education note: VA rules allow financing the VA funding fee into the loan, but not other purchase closing costs.
| Down payment level | First use funding fee | After first use funding fee | Operational note |
|---|---|---|---|
| Less than 5% | 2.15% | 3.3% | Most common scenario in Fort Cavazos adjacent purchases. |
| 5% or more | 1.5% | 1.5% | Down payment reduces funding fee and can improve offer optics. |
| 10% or more | 1.25% | 1.25% | Lowest published rate tier for purchase and construction loans. |
| Exempt | No fee | No fee | Applies to qualifying disability compensation, DIC cases, and certain Purple Heart cases. |
2. COE and entitlement: confirm eligibility and protect your timeline
This section is about making your VA eligibility and entitlement a solved problem before you enter contract. The COE confirms you qualify for the VA benefit, and it also shows prior loan usage that affects your remaining entitlement. The highest leverage move is to request the COE early and have your lender review any prior loans, because partial entitlement math changes what zero down looks like in real terms.
COE and entitlement operational steps
- Pull the COE first: request online or have your lender retrieve it through VA Web LGY to avoid preventable underwriting pauses.
- Check prior loans: if you have an active VA loan or used entitlement, your zero down ceiling is based on county limits and used entitlement.
- Use the VA math: county limit times 0.25, minus used entitlement, then multiply the remainder by 4 to estimate max zero down loan size.
- Plan entitlement restoration: selling and paying off a prior VA loan can restore entitlement, but timing matters for a new purchase.
| Input | Example value | What it means |
|---|---|---|
| County one unit limit (2026 baseline reference) | $832,750 | Many counties use the baseline FHFA value unless designated high cost. |
| 25% of county limit | $208,187.50 | This is the typical guaranty target lenders want entitlement and or cash to cover. |
| Used entitlement (prior loans) | $50,000 | This is pulled from the COE prior loans charged to entitlement section. |
| Remaining bonus entitlement | $158,187.50 | Calculated as 25% of county limit minus used entitlement. |
| Estimated max zero down loan amount | $632,750 | Calculated as remaining bonus entitlement multiplied by 4. |
3. What the 2026 conforming limit means for Bell County planning
This section is about correctly interpreting the $832,750 number and using it the right way in VA planning. FHFA sets conforming loan limit values each year, and the national baseline one unit limit for 2026 is $832,750. VA uses the same county limit values when you calculate remaining bonus entitlement, so the conforming limit is not your approval amount, it is a planning input for zero down capacity when entitlement is partially used.
How to use the limit without misunderstanding it
- Do not confuse limit with approval: lender underwriting determines affordability based on income, debts, and credit, even when entitlement is full.
- Treat it as entitlement math: the county limit supports remaining bonus entitlement calculations, not a promise that any price point will be approved.
- Use one unit values: VA instructs borrowers to use the one unit county limit for these calculations, even if the home has more than one unit.
- Check the county: confirm the local county value using FHFA resources when you are near the top of the range or buying in a higher priced pocket.
4. What Killeen and Temple sellers expect in 2026 with a VA offer
This section is about the practical seller side of VA contracts in a Fort Cavazos driven market. Sellers here understand VA, but they still screen for execution risk: appraisal timing, repair requests, and whether the buyer can keep the deal moving. The clean strategy is to present a strong preapproval, make concession requests that fit VA rules, and be realistic about Minimum Property Requirements so you do not trigger avoidable delays.
Seller expectations you should plan for
- Appraisal discipline: VA Tidewater allows a short window for market data submission when value appears low, so comps and condition must be clean.
- Concessions structure: VA limits seller concessions to 4% of reasonable value, but closing cost credits are still negotiable and common.
- Repair posture: safety and habitability items that affect Minimum Property Requirements should be addressed early, not debated at the end.
- Earnest money optics: even with zero down, many sellers respond better when earnest money shows intent and timelines are disciplined.
Tactical note: If inspection findings drive the request, ask for credits with contractor based estimates instead of open ended repairs.
5. A clean Texas timeline for a VA purchase in this market
This section is about keeping your contract on the critical path from offer acceptance to closing. Most delays come from documentation gaps, late insurance quotes, or unresolved repair scope, not from the VA program itself. The objective is simple: front load the COE, align inspections and repair decisions early, and coordinate appraisal and underwriting conditions with weekly checkpoints so the closing date stays stable.
Timeline checkpoints that prevent last minute chaos
- Week one lock in: submit documents, order inspections, and confirm insurance pricing so underwriting does not stall later.
- Option period leverage: use inspections to decide repairs versus credits while there is still contractual flexibility.
- Appraisal readiness: provide your agent and lender the best comps early so Tidewater response time is not wasted.
- Final week discipline: verify cash to close, confirm repairs are documented, and review the closing disclosure line by line.
| Phase | Typical window | Definition of done |
|---|---|---|
| Preapproval and COE | Before shopping or week one | COE pulled, funding fee status confirmed, payment ceiling set using full taxes and insurance estimates. |
| Contract and option period | 5 to 10 days | Inspections completed, repair and credit strategy finalized, and scope is aligned with lender requirements. |
| Appraisal and underwriting | 2 to 3 weeks | Conditions cleared, insurance bound, and any Tidewater market data submission handled on time. |
| Closing | Final week | Closing disclosure reviewed, funds verified, and final walkthrough confirms agreed repairs or credits are satisfied. |
Your Next Steps with LRG Realty
If you are buying in Killeen or Temple in 2026 using VA eligibility, the objective is a stable closing with a payment you can sustain and paperwork that does not drift. LRG Realty helps you build a clean offer strategy, estimate true monthly costs, and coordinate repairs and appraisal timelines so you stay mission ready from contract to keys. Start with local search and planning tools, then execute: review Killeen area guidance, browse homes for sale in Killeen, and pressure test your numbers using the mortgage calculator and affordability calculator.
What to send your lender before you tour homes
- COE request complete: ask the lender to pull the COE and confirm any prior entitlement usage in writing.
- Funding fee status documented: confirm whether you owe the fee, qualify for exemption, or may be eligible for a refund scenario.
- Purchase ceiling set: establish a maximum monthly payment and maximum price target based on full taxes, insurance, and reserve requirements.
- Offer strategy ready: decide in advance how you will request credits, repairs, and concessions so you do not improvise under pressure.
References Used
- VA funding fee and closing costs (rates, exemptions, seller concession cap)
- VA home loan entitlement and limits (full entitlement and bonus entitlement calculation)
- How to request a VA COE (online, lender Web LGY, and mail options)
- FHFA conforming loan limit values for 2026 (baseline one unit limit)
- VA Pamphlet 26-7 Chapter 10 (Tidewater Procedure overview)
- Realtor.com 2026 Housing Forecast (inventory expectation)
Frequently Asked Questions
What does VA mean by reasonable value for seller concessions?
Reasonable value is the value shown on the VA Notice of Value from the appraisal process. VA caps seller concessions at 4% of that value, even if the contract price is higher.
Can the seller pay my VA funding fee?
In many cases the seller can cover the VA funding fee as part of seller concessions, but concessions are capped. You should structure concessions and closing cost credits strategically with your lender.
What happens if the VA appraisal comes in below my contract price?
The Tidewater Procedure may allow a brief window to submit additional market data for reconsideration. If value still comes in low, you may renegotiate, bring cash, or exit based on contract terms.
What repairs commonly trigger VA Minimum Property Requirements?
Common issues include defective paint, safety hazards, roofing problems that risk water intrusion, and major system failures. The practical standard is that the home must be safe, structurally sound, and sanitary.
How much earnest money should I plan for in Killeen and Temple?
Earnest money is negotiable, but many sellers expect about 1% of the purchase price as a signal of commitment, even when the loan is structured for zero down.
Can I have two VA loans at the same time?
Sometimes yes. It depends on occupancy intent, lender approval, and whether you have enough remaining entitlement to support the new loan without a down payment requirement.
How do I estimate my true monthly payment before I write an offer?
Build your estimate using principal, interest, property taxes, insurance, and any HOA dues. Then stress test the number for escrow changes so the payment stays sustainable after closing.
