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LONE STAR FINANCING

TEXAS USDA
HOME LOANS

Zero down payment loan options for eligible rural and suburban areas
PRE-QUALIFY

USDA-Backed Home Loan Programs 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. 

USDA-backed home loan programs in Texas offering zero down payment financing for eligible buyers
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. 

USDA Qualifications:

  • Your home must be located in a designated USDA rural area. Check the USDA Eligibility by county: CHECK ELIGIBILITY
  • Min credit 620 FICO (or higher)
  • 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
Get Pre-Approved
USDA Guidelines

NO 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 Ons 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

USDA loans are government-backed home loan programs designed to help eligible buyers purchase homes in qualified rural and suburban areas. In Texas, USDA loans offer zero down payment options, competitive rates, and flexible credit requirements for qualifying buyers.

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.

Why Choose Us ? It's our People!
Allen Lundberg Sr. Loan Officer NMLS# 277507

Allen Lundberg

Sr. Loan Officer
NMLS #277507

Chris Lederer

Chris Lederer

Production Manager
NMLS #2004549

Chien “Jen” Papaelias, Senior Loan Officer at Lone Star Financing

Jen Papaelias

Sr. Loan Officer
NMLS #2692859

Ryan Wood, Senior Loan Officer at Lone Star Financing specializing in Texas residential home loans

Ryan Wood

Sr. Loan Officer
NMLS #1757471

Brett Dempsey Loan Officer

Brett Dempsey

Branch Manager
NMLS #2014728

ABOUT US
USDA loan pre-approval process with a trusted USDA lender in Texas helping buyers prepare for home financing
USDA Preapprovals

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

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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. 

The maximum loan size in Texas for 2026 is determined by the borrower’s ability to qualify based on their income, debt-to-income (DTI) ratios, and the specific county’s household income limits. 

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

 

USDA Home Loan

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. 

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. 

*2026 minimum credit score is 620 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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. Primary Residence: The property must be used as your primary residence, not as a rental or vacation home.

  7. 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.

  8. 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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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. 

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