TEXAS USDA LOANS
If your property is in a rural area then your home could qualify for a Texas USDA loan, or also called a Rural Development Loan. USDA mortgages 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. Lone Star Financing specializes in USDA home loans and can help educate you on the advantages of USDA loans and help to see if you and your property qualify. It might surprise you just how many counties qualify for USDA loans in Texas.
- 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
TX USDA loans - Things to Know
What is a Texas USDA Loan?
So what is a USDA loan? Simply stated, USDA loans are 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 97% Texas is classified as rural area.
For those borrowers and properties that qualify, a Texas USDA loan is likely the best mortgage option for you. USDA primary advantages are low interest rates and up to 100% financing. Other advantages are that USDA loans don’t have prepayment penalties and the other advantage is you can structure your loan so there is no down payment. 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 https://www.rd.usda.gov/tx. Here you can 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.
*Recommended credit score is 620 FICO (or higher). Borrowers with higher credit scores receive streamlined processing. Applicants with below 620 FICO are going to require more stringent underwriting.
Texas USDA Home Loans
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