Rural Properties - 0% Down
Texas USDA Loans
A USDA loan (also called a Rural Development Loan) is a government-insured home loan that allows you to purchase a home with NO Money Down. Texas USDA Loans offer 100% financing to qualified buyers.
- In order to qualify for a USDA Loan, your home must be located in a designated USDA rural area. We can check the USDA Eligibility of your county, or you can check USDA home eligibility in Texas online.
The goal of the USDA loan program is to help our nation’s smaller, rural communities thrive by making homeownership more affordable. Lone Star Financing specializes in USDA home loans and can help educate you on this loan program—and help you check to see if your property qualifies for a USDA home loan.
It might surprise you just how many counties in Texas qualify for these no money down USDA home loans.
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
More about USDA loans
Texas USDA Mortgages - How They Work
Texas Rural development loans are also known as Section 502 loans. The government created USDA loans in the 1990s 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.
If you want to live in a rural area, and you meet the income requirements, a Texas USDA loan may be the best option for you. USDA primary advantages are low interest rates and up to 100% financing. There’s no prepayment penalty and no down payment required, but you will be locked into a fixed rate if you take out a USDA mortgage loan. ARM mortgages are not available for USDA loans in Texas. USDA loans do require private mortgage insurance, which your loan officer can help better explain. Your Houston USDA loan specialist!
To learn more about USDA home loans in Texas, USDA programs and, please visit https://www.rd.usda.gov/tx. Here you can find the answers to most of your Texas USDA loan questions and eligibility.