- Texas USDA Lender for rural properties - Up to 100% Financing
Texas USDA Home Loans
USDA loans, or also called a Rural Development Loan, are government-insured home loans that allows borrowers to purchase new homes with no money down. USDA can offer up to 100% financing for qualified buyers. So how do you qualify for a USDA loan in Texas?
- Your home must be located in a designated USDA rural area. We can help check the USDA Eligibility of your county, or you can check USDA eligibility in Texas online here.
The primary purpose of the USDA home loan program was to help smaller, rural areas thrive by making owning a home more affordable. It might surprise you just how many counties qualify for USDA loans in Texas.
2024 USDA loan limits in Texas have a USDA loan limit of $348,50.
USDA Loan Advantages
- Rural Properties
- 100% Financing
- No Maximum on Loan Amounts
- No Restrictions on Seller Concessions
- Low Monthly Mortgage Insurance
- Acreage Up to 30% of Total Value with Restrictions
- FHA/USDA Certified Appraisers only
- 1% Guarantee Fee May be Rolled into the Loan
How Texas USDA Loans Work
The Rural Housing Loan Program, also known as Section 520, is a type of government loan that is available to rural homeowners. 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 so 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.
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
Texas USDA Loans - Learn More
What is a Texas USDA 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. 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.
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