Rural Properties - 0% Down

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. 

USDA 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

TX USDA loans - Things to Know

What is a Texas USDA Loan?

USDA Home 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. 

USDA Loans - Apply online in minutes

Texas USDA Home Loans

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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!