Created by the Texas Legislature in 1946, the board was established to make land available to veterans returning from World War II.
As of 2024, the Chairwoman is Land Commissioner Dawn Buckingham), plus two citizens — one specializing in veterans' affairs and one in finances.
Retired U.S. Navy Rear Admiral Judson "Jud" Scott and James Rothfelder are the current serving board members.
In 1954, a newspaper reporter discovered that many veterans, in exchange for money, were tricked into signing loans to purchase land in several South Texas counties.
Disabled veterans and surviving spouses may qualify for additional interest rate deductions for housing and home improvement loans.