Texas 100 Percent USDA Rural Housing: Did you know that certain Government-backed mortgage programs like USDA Rural Housing offer flexible home financing options for first-time homeowners in Texas? First time buyers starting out don’t have many options today to purchase a home with NO money down.
In fact, VA and USDA are the only government loan options that still allow TX buyers to purchase a home with a $0 cash down payment. The USDA home loan program offers many advantages buyers just won’t find in an FHA or conventional loan. A few of these advantages include:
- 100% financing – That’s right, the USDA mortgage is one of the few remaining mortgage programs in the country that require absolutely no down payment for the purchase of a home.
- Low monthly mortgage insurance – PMI.
- No cash savings requirement.
- Texas USDA RD loans program allows for closing costs to be either paid by the seller in full or permitted to be accumulated or “rolled into” the total amount of the loan if the home appraisal is high enough. This allows buyers to need very little money upfront to buy your home.
The USDA 502 Guaranteed loan is available to all home buyers purchasing in eligible locations that are still deemed “rural” in nature by Rural Development.
Many locations in suburbs outside of the major cities may still be eligible. See an overview of the approved map below, please contact us with questions about your location.
The program is not reserved exclusively for first-time home buyers. Even better, buyers are not required to take any special class to get approved. Buyers can complete a quick loan application and search for a home all on the same day! Give us a call at 800-743-7556 or just submit the short info request form on this page to get started.
Buyers will want to ensure they meet the basic USDA mortgage requirements below:
- Again, the property must be located in an area that is designated “Rural” in nature by Rural Development/USDA Don’t let the word “rural” discourage you as many suburban locations just minutes outside of Dallas, Fort Worth, Houston, Austin, San Antonio, Midland, Lubbock, Amarillo, Beaumont, and Odessa may still be eligible. Buyers searching for homes in more densely populated cities (not USDA approved) are encouraged to learn more about the FHA Mortgage here.
- 620 credit score is required for automated GUS approval. Slightly lower credit can be approved on a case-by-case by manual underwriting.
- USDA Rural Housing is available for primary home transactions only (no investment properties or second homes)
- Available for first-time buyers or seasoned home buyers (Buyer cannot own another home at the time of purchase)
- Buyer income is limited to a maximum of 115% of the median income. A family of 1–4 members can make up to $110,650 gross income per year. Even higher for larger household with 5 or more members. Please contact us for the latest USDA income limits in Texas
- W2 income or self-employed is allowed (income and employment must be fully documented)
- Gifts for closing costs or down payment (if desired) are permitted
- The home purchase price including the upfront USDA Guarantee Fee can be financed into the loan
- The seller or lender can contribute up to 6% of the sales price toward the home buyer’s USDA closing costs
- Single-family, townhomes, manufactured, and eligible condos are permitted
- Safe 30-year fixed interest rate
The map below shows the darker brown locations that are NOT eligible for USDA financing.
USDA Mortgage Source serves home buyers in many states, including TX. Contact us today to learn more about all the financing options available. Please call PH: 800-743-7556 or just submit the Info Request Form on this page.