USDA LOANS

Up to 100% Financing - Apply Now

USDA Loans

USDA Loans – Home loans guaranteed by the United States Department of Agriculture (USDA) provide affordable financing options for rural Texas properties. This program helps eligible low- to moderate-income families achieve home ownership – via a no down payment home loan option. 

Lone Star’s USDA loan details: 

* 100% financing + guarantee fee = 101% of appraised value
* 620 Min FICO Score
* Terms: Up to 30 Years
* Low interest rate
* Gift funds can be used at closing

USDA Loan Eligibility

In Texas the USDA loan eligibility is based on the property size, location and condition along with income and other qualifying factors. Some of these requirements include:

  • Property must be located in a USDA designated rural area (Check Eligibility Map
  • Maximum loan limits vary based on location
  • Household members can have a total income of up to 115% for area medium income
  • Household must be able to afford the mortgage payment, property taxes and annual fees.
USDA Loans

What is a USDA loan?

USDA loans are mortgages backed by the U.S. Dept of Agriculture as part of its Rural Development Guaranteed Housing Loan program.

USDA loans are available to home buyers with low-to-average income. They offer home financing with no down payment, reduced insurance, and lower rates. 

USDA – compare to FHA & conventional rates?

Compared to other home loan programs, USDA interest rates are some of the lowest rates that we can offer. USDA rates are typically only matched by the VA loan. At Lone Star Financing we specialize in Texas USDA loans and can close loans fast. 

To get the lowest possible rate and monthly payments, you need an excellent credit score and a low debt-to-income ratio. Making a larger down payment is also factored into your rate. 

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

Lone Star Financing - Why Us?

Headquartered in Grapevine, Texas, Lone Star Financing specializes in USDA new home loans and USDA mortgage refinance.  We’ve been closing loans in Texas since 2007 and we specialize in Texas USDA loans.   Lone Star Financing is an approved USDA lender in Texas. As a direct lender we can close loans fast, whether FHA, USDA or VA loans, we’ve got you covered.  Apply online in minutes  and we look forward to earning your business

More About USDA Loans

Before you apply for an USDA loan, there are a few things you need to know.

It’s important to understand the limits and requirements before you apply – to insure you have the best chance of approval.

100% Financing USDA Loan

100% Financing with a monthly insurance rate of .3% compared to that of an FHA which is 1.35%. 

The average household income limits for a USDA loan in Texas is $112,850. The household limits also vary according to how many occupants in the home. With 5 or more occupants the limit can be as high as $148,950.

To search the USDA home loan income limits per counties for the state of Texas, check out the USDA eligibility screen for income limits by county. 

Lone Star Financing is an approved USDA lender in Texas and we can close loans fast!

USDA - Any Negatives?

What are the Drawbacks? 
 
  • Only for primary residences. USDA loans cannot be used to purchase a vacation home/rental 
  • There are location/area restrictions. Not for urban properties.
  • Income limits will apply
  • Mortgage insurance is factored into the cost.


Still have questions about USDA loans in Texas?  Call to speak to one of our loan officers – We can help!

Lone Star Financing - USDA Home Loans

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