I served in the Army, so I have a personal interest in this one being right. VA-guaranteed financing may allow an eligible borrower to purchase without a down payment and generally does not require monthly private mortgage insurance. Those features are not automatic for every borrower, price, property, entitlement situation, or lender. A funding-fee exemption depends on the circumstances and current VA rules, not merely the existence of any rating.
What almost nothing covers is what actually goes wrong with VA loans in this county. Bastrop County is largely unincorporated. A great many of the homes a buyer will want are on a well, a septic system, or several acres — and that is precisely where a VA appraisal behaves differently from a conventional one.
Septic and well: where VA deals here get complicated
A VA appraisal provides a value opinion and includes an observation related to VA Minimum Property Requirements. It is not a home inspection, engineering evaluation, septic inspection, well inspection, water-quality guarantee, or complete condition report. The appraiser, lender, VA guidance, and property facts determine what additional evidence or repairs are required.
On a home connected to city water and sewer, this is a non-event. On a property served by a private well and an on-site septic system — which describes a large share of this county — it becomes a real part of the transaction. Expect the water supply and the septic system to be looked at, and expect the local health authority’s standards to matter.
- Aerobic septic systems may have ongoing maintenance and reporting requirements. Verify the permit, service history, current contract if any, transfer procedures, provider, and owner obligations with Bastrop County and qualified septic professionals.
- Permit and site records should be requested. Do not assume the county file is complete or that every installation or modification was permitted. Compare available records with the system and obtain professional evaluation.
- Shared wells have their own paperwork. Access and maintenance agreements matter to a lender.
None of this makes a VA loan a bad tool here. It makes the option period more important. Background: septic systems and OSSF in Bastrop County and water, wells and Aqua WSC.
Acreage
Land is a normal part of this market, and VA lending is oriented toward residential property rather than agricultural operations. Where a parcel carries substantial acreage, outbuildings, or an agricultural valuation, the appraisal and the underwriting both get more involved — and lenders vary considerably in appetite.
The practical advice is unglamorous: tell your lender what kind of property you are actually looking for before you start looking, not after you are under contract. A lender who regularly writes VA loans on acreage in Central Texas will handle it routinely. One who does not may discover the issue late.
If the land carries an agricultural valuation, understand what happens if that use stops — rollback in Texas is three years with no interest, which nearly every real estate article still gets wrong by saying five years, or three plus interest. The interest was deleted in 2021. See the ag exemption and rollback taxes.
The Texas exemptions are where the real money is
This is the part most veterans in Texas under-use, and it has nothing to do with the loan itself.
- The school homestead exemption is $140,000, not $100,000. Proposition 13 passed in November 2025 and a great many 2026 articles have not caught up.
- Texas offers property tax exemptions for veterans with a service-connected disability rating, scaled by that rating, and a total exemption from property taxes on the homestead for veterans rated 100% disabled or receiving 100% compensation due to individual unemployability. This is applied for through the appraisal district.
- A VA funding-fee exemption may apply in circumstances defined by current VA rules, including certain borrowers receiving or eligible to receive qualifying disability compensation. The Certificate of Eligibility and lender/VA determination control; verify before calculating cash to close.
Apply through Bastrop CAD, (512) 303-1930. And note the timing: the protest and application calendar is not what most people assume — the 2026 protest deadline was May 29, not the May 15 that gets repeated. More on all of it: property taxes and the homestead exemption.
One thing worth knowing if you already have a VA loan
A VA-guaranteed loan may be assumable with servicer or VA approval. The buyer must meet applicable requirements, and assumption terms, timing, fees, release of liability, occupancy, lender consent, and the seller’s entitlement must be reviewed. An assumption is not guaranteed and should not be advertised as a simple transfer of a low rate.
If you are a veteran who bought here in the low-rate years and are thinking about selling, this is worth a conversation before the listing goes up rather than after.
What I would do first
- Get your Certificate of Eligibility and a pre-approval from a lender who writes VA loans in Central Texas regularly.
- Say out loud what you want — in town, or on land with a well and septic. It changes which lender is right.
- Check the flood zone for any parcel you get serious about. The county’s FEMA maps changed on May 9, 2023 and some parcels moved. Note also that you have not needed an Elevation Certificate to buy flood insurance since 2021, whatever older pages say. See flood zones and elevation certificates.
- Review possible exemptions. Apply only if eligible and verify the effect with the appraisal district and qualified tax or legal advisers; no savings amount can be promised.
If you served and you are looking in Bastrop, Elgin, Cedar Creek or Smithville, I am glad to talk it through — including the parts where a VA loan is not the right tool.
Last reviewed August 6, 2026. I am a REALTOR®, not a lender, appraiser, inspector, attorney, tax professional, or VA representative. Loan eligibility, entitlement, zero-down availability, appraisal and property requirements, assumptions, funding fees, and tax exemptions depend on current rules and individual facts. Review VA home-loan guidance, your Certificate of Eligibility, licensed lender information, appraisal-district records, and qualified professional advice. This is general information, not a loan offer or guarantee of eligibility, property acceptance, appraisal, tax treatment, or closing. Equal Housing Opportunity.
Questions about buying or selling in Bastrop County? Call or text (512) 993-8488, or send me a note. No pressure either way.
Related: Neighborhoods · School districts · Property taxes · Search all listings · Client reviews · Military and VA buyer representation