TEXAS USDA LOANS

Rural Home Loans - 0% Down

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. 

USDA Rates

getting rates...

30 Year USDA

100% financing rural properties

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?

USDA Home Loan
TX 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. 

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Texas USDA Loans
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"Best USDA Lender in Texas!" See what our clients are saying...

Read Our Reviews...

Rebeka L
Rebeka L
Heartland, TX
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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!
Michael Underwood
Michael Underwood
Austin, TX
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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!
Jordan Rodriquez
Jordan Rodriquez
Bastrop, TX
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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.
Veronica M.
Veronica M.
Camey, TX
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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!!!
Scott Kruse
Scott Kruse
San Marcos, TX
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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...
David, Y
David, Y
San Antonio, TX
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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!
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