Texas USDA Mortgage Lender

LONE STAR FINANCING

TEXAS USDA
HOME LOANS

Zero Down, Low Rates, Flexible Credit

Trusted Lender for USDA Home Loans in Texas

Welcome to Lone Star Financing, your trusted Texas USDA lender. USDA loans offer up to 100% financing with no money down for qualified buyers in designated rural areas.

Zero Down Payment: USDA loans enable qualified buyers no down payment options
Low Interest Rates: Offer lower interest rates than conventional mortgages
Flexible Credit Requirements: Texas USDA loans have more flexible credit requirements

USDA QUALIFICATIONS:

Your home must be located in a designated USDA rural area. You can check the USDA Eligibility of your property by county: CHECK ELIGIBILITY
2024 USDA loan limits in Texas have a USDA loan limit of $348,500.
Min credit 600 FICO (or higher)

The USDA home loan program was created to promote homeownership in rural and suburban communities by offering affordable financing options. With 100% financing and no down payment required, this program is ideal for low- to moderate-income buyers. In addition to the zero-down option, USDA loans often come with lower interest rates and more lenient credit requirements.

USDA Guidelines

$348,500 MAX VALUE

Texas rural properties – 100% Financing

Minimum FICO Credit Score

620 Minimum Down Payment

0%

Maximum Loan To Value

100%*

Maximum Debt To Income

41%*

Except Onse To 45%

Mortgage Insurance

Yes

Years Since Bankcruptcy

3 Years Since Foreclosure

3 Years Since Short Sale

3 Special Qualification Requirements

USDA "Rural"
Property Loan

About Texas USDA Loans

Looking to buy a home in a rural Texas county? Your property may qualify for a USDA loan. As an approved Texas USDA lender, Lone Star Financing offers low rates, low fees, and fast, streamlined closings.

Why Lone Star Financing

Based in Austin, Lone Star Financing is a trusted USDA-approved lender in Texas. Our experienced loan officers have helped thousands of first-time homebuyers find their perfect home. We offer personalized service and competitive rates on USDA mortgages, ensuring you get the best financing options tailored to your needs.

TEXAS USDA HOME LOAN EXPERTS

As a preferred USDA lender in Texas, we offer unbeatable rates and tailored loan solutions designed to help you achieve your homeownership dreams. With our expert guidance, hassle-free approval process, we make securing an USDA loan easier than ever!

USDA Preapprovals

Pre-qualification helps you understand your budget and strengthens your buying position.

Why Choose Lone Star Financing? It's our People!

Read Our Reviews...

Brenda was quick to respond to questions I had and made herself available to me. She was very patient and understanding when having to resolve issues regarding my ex. The entire team, in fact, was great and a true godsend!

As a realtor here in Austin, TX, I’ve been working with Lone Star Financing for almost a decade. The loan officers at Lone Star financing are without a doubt the best communicators in the business. They provide timely updates to me and my buyers from the start of the loan to close of sale and I can't tell you how important that is during a real estate transaction. I recommend all of my clients use Lone Star financing because unlike a lot of mortgage companies they can close loans on time. During one of the most critical times of my customers lives, it's imperative that all links of the chain are strong. Having the right lender in place is key. Thanks Lone Star!

I was thoroughly impressed with the customer service from start to finish. I had a lot of questions and they were all answered. I recommend lone star to first time home buyers as well as those who have note done it before.

Making me feel comfortable through the entire process as I was a bit nervous but Keith’s ways with his words and staying professional never made me feel overwhelmed, as well as the staff members that also helped me. The whole process was a smooth ride with no bumps and that was a great feeling making this single mother very happy with the outcome!!! Thanks!!!

I have gone through the home financing five times, and this is my second re-finance. The team at Lone Star Financing was the best experience I've ever had going through the mortgage process. The previous finance company I used to purchase my home was the worst experience I'd ever had in getting a mortgage. I was extremely hesitant to go through the re-finance process, but with the interest rates being so low I knew I would be saving a lot of money. I did the research to find a highly reviewed local financing company, and Lone Star Financing was the best. They did an outstanding job helping me through the process, made it incredibly easy and quick. More...

Thanks for helping us through the loan refinance process. P.S. The only reason we can't refer family and friends is we don't live in Texas or have any contacts there!

About Texas USDA Loans

What is a USDA Loan in Texas

The USDA mortgage loan in Texas is a fantastic program offers low-interest rates, no down payment requirements, and flexible credit guidelines, making homeownership in Texas more accessible than ever. Perfect for rural and suburban areas, a Texas USDA loan helps you secure a beautiful home while keeping more money in your pocket.

A USDA loan was created in the early 1990s to make home ownership more affordable for low-income rural families. Due to the fact that more than 97% of Texas is classified as rural, USDA loans are available to a large number of borrowers. The USDA loan might be the right choice for you if you live in a rural area of Texas and you meet the income requirements.

USDA loans are a great because they they typically have lower rates and up to 100% financing.

Another advantage of USDA loans is they require no downpayment and there are no prepayment penalties, but their rates are fixed. In addition to private mortgage insurance (PMI), USDA mortgage loans also require it.

There are no ARM products available for USDA rural housing loans.

Still have questions? Call to speak to one of our Texas USDA loan experts today!

About USDA Loans

So what is a USDA loan? Simply stated it is a Rural Housing Development loan also known as Rural development loans and also referred to as Section 502 loans. The government created USDA loans to make it easier for low-income families in rural areas to become homeowners. This type of loan is available for many Texas borrowers because as of 2024, 97% Texas is classified as rural area.

A Texas USDA loan may be the best mortgage option for you if you qualify and your property qualifies. Similar to Texas FHA loans and Texas VA home loans, there are a number of advantages to USDA financing, including low interest rates and up to 100% financing. Besides no prepayment penalties, USDA loans can also be structured without a down payment and have no prepayment penalties. That’s right, 100% financing!

ARM mortgages are not available for USDA loans in Texas. USDA loans do require private mortgage insurance, which your loan officer can better explain.

Still have questions? Our friendly USDA loan specialists can help answer any of your questions about USDA Loans. To learn more about USDA loans in Texas, you can visit USDA.gov to check eligibility by address or zip code. Call today to speak with one of our USDA loan specialist to see if going USDA is right for you.

*2024 minimum credit score is 600 FICO (or higher). Borrowers with higher credit scores receive streamlined processing. Applicants with below 600 FICO scores may still qualify but will require more stringent underwriting.

USDA Guidelines

Texas USDA Guidelines

USDA loans in Texas offer great benefits for eligible borrowers, but there are specific guidelines that borrowers will need to follow:

Location: USDA loans are only available for properties in designated rural and suburban areas. You can check eligibility by using the USDA’s online property eligibility tool.
Income Limits: Your household income must be at or below 115% of the median income for the area where you plan to buy. This varies by location and household size.
Credit Score: While there is no strict minimum credit score requirement, most lenders prefer a score of at least 640. Lenders may have their own criteria, so it’s good to check with them directly.
Employment: You must have a stable and dependable income. USDA loans generally require a two-year history of steady employment or a consistent income stream.
Debt-to-Income Ratio: Your total monthly debts, including the mortgage, should not exceed 41% of your gross monthly income. However, exceptions can be made based on other factors.
Primary Residence: The property must be used as your primary residence, not as a rental or vacation home.
Property Condition: The home must meet USDA property standards to ensure it is safe and livable. It should be free of health and safety hazards.
Down Payment: One of the biggest advantages of USDA loans is that they require no down payment, which can make homeownership more accessible.

USDA guidelines at Lone Star Financing can vary slightly based on local regulations and investor overlays, so it’s always best to consult with one of our USDA loan specialist on current rates and terms.

Advantages of USDA Loans

Advantages of USDA loans:

No Down Payment: USDA loans offer the significant benefit of requiring no down payment, making it easier to purchase a home without a large upfront expense.
Low Interest Rates: These loans often feature competitive interest rates, which can reduce your monthly mortgage payments and save you money over the life of the loan.
Flexible Credit Requirements: USDA loans are more forgiving of less-than-perfect credit compared to other loan types, often requiring a credit score of 640 or higher.
Affordable Mortgage Insurance: The mortgage insurance costs for USDA loans are generally lower than those for FHA or conventional loans, making them more budget-friendly.
High Income Limits: USDA loans are available to borrowers with incomes up to 115% of the median income for the area, making them accessible to a broad range of homebuyers.
No Prepayment Penalties: You can pay off your USDA loan early without facing prepayment penalties, allowing you to save on interest if you choose to pay off your loan faster.
100% Financing: With no down payment required, USDA loans cover the entire cost of the home, which helps in preserving your savings for other needs or emergencies.
Assumable Loans: USDA loans can be assumed by qualified buyers, which can be a selling point if you decide to sell your home in the future.
Rural and Suburban Areas: The loan is designed to promote homeownership in rural and suburban areas, often leading to less competition and potentially more affordable home prices.
Streamlined Refinancing: If you already have a USDA loan, you may be eligible for the USDA Streamlined Assist program, which simplifies the refinancing process and can lead to better loan terms.

These benefits make Texas USDA loans a compelling option for many homebuyers looking to purchase in eligible areas. Lone Star Financing was voted as the best 2024 USDA lender in Texas.

Texas USDA Mortgage Lender

TEXAS USDA HOME LOANS

Trusted Lender for USDA Home Loans in Texas

$348,500 MAX VALUE

Minimum FICO Credit Score

620

Minimum Down Payment

0%

Maximum Loan To Value

100%*

Maximum Debt To Income

41%*

Except Onse To 45%

Mortgage Insurance

Yes

Years Since Bankcruptcy

3

Years Since Foreclosure

3

Years Since Short Sale

3

Special Qualification Requirements

USDA "Rural" Property Loan

About Texas USDA Loans

Why Lone Star Financing

TEXAS USDA HOME LOAN EXPERTS

Shawn Dulac

James Hair

Ricardo Trejo

Eden Vick

Roman Balley

Read Our Reviews...

About Texas USDA Loans

*2024 minimum credit score is 600 FICO (or higher). Borrowers with higher credit scores receive streamlined processing. Applicants with below 600 FICO scores may still qualify but will require more stringent underwriting.

Texas USDA Guidelines

Advantages of USDA loans:

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Lone Star Financing | Texas Home Loans

TEXAS USDA
HOME LOANS

USDA "Rural"
Property Loan