Yes, as a 100% disabled veteran, you can use your VA loan entitlement for the purchase, and your wife can be a co-borrower without issue; however, the Texas Veterans Land Board (VLB) program has specific restrictions regarding non-veteran co-signers that you must navigate. Your VA loan benefit, governed by 38 U.S.C. Chapter 37 and 38 CFR 36.4300 *et seq.*, permits a veteran and spouse to be joint borrowers, and your 100% disability rating exempts you from the VA funding fee, a significant financial advantage. The Texas VLB program, authorized by the Texas Constitution, Article III, Section 49-b, provides a below-market interest rate and an additional discount for veterans with a disability rating of 30% or higher. Critically, the VLB's rule (found in the Texas Administrative Code) generally requires the veteran to be the *sole obligor* on the mortgage note, meaning your wife likely cannot be a co-signer on the VLB portion. A practical solution is to explore a "blended" or "split-note" loan structure where the VLB finances the majority of the loan as the first lien (with you as the sole borrower), and a second lien from another source covers any remainder, potentially with your wife as a co-borrower on that second portion. Your immediate actionable steps are to: 1) Obtain your Certificate of Eligibility (COE) to confirm your full VA entitlement, 2) Contact a VLB-participating lender to discuss your specific income situation (though Chapter 31/35 benefits can be used, underwriting will assess stable monthly income) and to clarify the exact co-borrower policy and explore split-note feasibility, and 3) Compare the combined cost of a VLB blend with a standard VA loan where both of you are fully on the note to determine the best financial path.
*This information is for educational purposes to assist in understanding VA benefits and is not legal, financial, or medical advice. You should consult with a VLB-approved lender, a VA-accredited claims agent, or attorney for guidance specific to your circumstances.*
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