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USDA Home Loan Program in Texas

Are you looking for an USDA Loan in Texas, but just not sure what a USDA loan even is, how it works, or what it’s even about?

Well looks like you’re in luck today.

We are Texas’s top USDA lender that specializes in providing FREE USDA mortgage advice and information to folks looking to learn more about how USDA loans work.

Whether you are looking to learn more about how much you can get approved for or already have a USDA mortgage and need to refinance out of your high interest rate loan, we’re here to help you every step of the way and get you the best rate possible!

Checking USDA home loan eligibility is fast, 100% free, and takes less than 30 seconds!

We don’t check credit or need your social security number in order to get started.

Get the Lowest USDA Rates in Texas
Because we have exclusively specialized in USDA loans since 2004, we have developed some of the best investor relationships in order to give you the best rates and save you even more money.
Have Expert USDA Advice at Your Fingertips
Buying a home or refinancing can be a confusing puzzle at times. Rest assured that your USDA loan is in good hands and we’ll help guide you in the right direction.
Save More Trees with Our E-Sign Technology
Being a USDA Approved Lender in Texas, we are environmentally friendly. With our e-sign technology, you can start on your USDA loan in a matter of just a few clicks.

How Can a USDA Loan Help You?

If you are someone looking to buy a home but do not have the minimum down payment requirement with other types of mortgages out there, then a Texas USDA home loan may be for you.

USDA loans in Texas are offered to help lower to moderate income households purchase homes in rural areas and in some cases on the outskirts of a city or in a medium sized town as determined by the United States Department of Agriculture (USDA) with no down-payment needed!

In Texas, a USDA loan offers many advantages to qualified borrowers looking to buy or refinance (no cash out) including:

  • 100% financing
  • Very small monthly mortgage insurance
  • No asset requirements
  • Gifts allowed for closing costs
  • Required property improvements can be financed into the loan up to 102% of the “improved” value, which can be completed after closing.

At TexasUSDALoan.com, we offer the best USDA interest rates and most competitive closing costs when it comes to helping you buy a home that keeps things easy on the wallet.

We look forward to answering all your questions and are here for you every step of the way.

USDA/FDA Loans

With all the benefits USDA offers, rural development loans have become very popular in Texas.
Exciting things are happening with USDA home financing – other than a VA loan, USDA is only 1 of only a few options left for true 100% financing.

TexasUSDALoan.com specializes in servicing first time home buyers. A USDA mortgage offers many advantages, as it is very popular with first time homeowners, so you should expect lower interest rates and no down payment in relation to a conventional residential home loan.

In 2019, owning a home is a huge responsibility which shouldn’t be taken lightly when you’re looking at FDA loans. There is a lot to learn before you dive right in, although the first step is often to get approved for FDA home loans. People who have taken mortgage in the past have contributed their knowledge to this article so you can learn how to avoid the mistakes they’ve made, so read on about the rural development direct loan program.

100% Financing

USDA loans may be for up to 100 percent (102 percent if the guarantee fee is included in the loan) of whatever the home appraises for. With this no down-payment option, USDA loans have become a very popular option for those that do not have enough saved up for other types of mortgage financing that is required.

Low, Fixed Rates

USDA mortgages come in one size only – fixed rates. The rates are the same or even better as if you were putting 20% down on the home.

Funds for Closing

Another great feature that comes along with USDA financing is that you can roll everything into the loan. This means you can include closing costs, the guarantee fee, title service fees, and other prepaid items,  as long as the appraised value is higher than sales price. The way this is done is by having the sellers raising the sales price by a certain percentage, and then giving it back to you to help contribute to your closing costs.

Occupancy

USDA home loans are only for primary residences. All buyers must personally occupy the dwelling following the purchase.

Refinance Options

If you are wanting to refinance into a USDA loan, you must have an existing USDA Rural Development Guaranteed housing loans or our Section 502 Direct housing loans already in place. For example, you cannot refinance into a USDA loan if you currently have an FHA loan.

Guarantee Fee

There is a one-time guarantee fee that is charged to the lender, which in turn, is rolled into the loan. This is what is called the USDA Guarantee fee and what helps keep USDA in business and offering this great program.

If you are looking for an Austin USDA Lender, Houston USDA Lender, Dallas USDA Lender, or San Antonio USDA Lender, you have come to the right place!

USDA Loan Limits 2019

These are the loan limits for the USDA direct program. Please keep in mind that these are if you go with USDA directly, but if you go with a USDA approved lender such as us, these limits are much much higher because the lender is assuming the risk instead of USDA themselves.

To put things in perspective, USDA lenders like us can do loan amounts over $400,000 whereas if you decide to go with the USDA direct mortgage loan program, you will be capped at these limits below.

Here are all the counties and cities sorted out for you nice and neatly.

Texas County USDA Loan Limits 2019
Anderson County, Texas $104,400
Andrews, Texas $110,500
Angelina County, TX $124,200
Aransas County $134,100
Archer County, TX $133,200
Armstrong County $121,900
Atascosa County $142,300
Austin County, TX $147,600
Bailey, Texas $129,000
Bandera County, TX $131,600
Bastrop County, TX $144,500
Baylor County, TX $125,800
Bee County $128,100
Bell County, TX $111,500
Bexar County $143,500
Blanco County, TX $137,300
Borden, Texas $110,500
Bosque County, TX $125,200
Bowie County $134,300
Brazoria County $134,000
Brazos County, TX $162,500
Brewster County TX $135,200
Briscoe County $124,200
Brooks County, TX $121,300
Brown County, TX $118,800
Burleson County, TX $140,800
Burnet County, TX $117,500
Caldwell County $149,700
Calhoun $132,000
Callahan County, TX $121,000
Cameron County $133,900
Camp County $131,300
Carson County $127,400
Cass County $131,300
Castro County $116,900
Chambers County, TX $138,000
Cherokee $130,200
Childress County $127,200
Clay County, Texas $122,300
Cochran, Texas $129,000
Coke County, TX $118,600
Coleman County, TX $115,800
Collin County, TX $146,700
Collingsworth County $116,900
Colorado County, TX $140,300
Comal County $162,500
Comanche County, TX $118,300
Concho County, TX $129,200
Cooke County, TX $135,700
Coryell Co, TX $128,500
Cottle, Texas $114,700
Crane County TX $126,600
Crockett County TX $129,200
Crosby, Texas $129,000
Culberson County $136,100
Dallam County $120,900
Dallas County, TX $134,300
Dawson, Texas $114,700
Deaf Smith County $123,900
Delta County $128,800
Denton County, TX $135,200
DeWitt $132,000
Dickens, Texas $129,000
Dimmit County, TX $146,500
Donley County $122,200
Duval County $121,700
Eastland County, TX $131,700
Ector County TX $141,600
Edwards County, TX $115,900
Ellis County $143,000
El Paso $113,000
Erath County $133,000
Falls County, Texas $103,500
Fannin County, TX $128,300
Fayette County, TX $138,400
Fisher County, TX $121,000
Floyd, Texas $129,000
Foard County, TX $123,200
Fort Bend County $136,000
Franklin County $129,300
Freestone County, Texas $104,400
Frio County $121,700
Gaines, Texas $114,700
Galveston County $131,000
Garza, Texas $129,000
Gillespie County, TX $166,000
Glassock County TX $130,600
Goliad $132,000
Gonzales County $138,800
Gray County $128,400
Grayson County TX $139,400
Gregg $135,300
Grimes County $134,200
Guadalupe County $150,900
Hale, Texas $132,800
Hall County $122,200
Hamilton County, TX $105,700
Hansford County $119,400
Hardeman County, TX $123,200
Hardin County, TX $128,000
Harris County, TX $167,900
Harrison $133,600
Hartley County, TX $129,400
Haskell County, TX $121,400
Hays County $149,700
Hemphill County, TX $131,400
Henderson County $129,200
Hidalgo County, TX $132,600
Hill County, TX $125,200
Hockley, Texas $129,000
Hood County $143,000
Hopkins County $132,300
Houston County, TX $139,700
Howard, Texas $114,700
Hudspeth County $137,900
Hunt County TX $137,600
Hutchinson County, TX $122,900
Irion County, TX $129,200
Jack County, TX $122,300
Jackson $132,000
Jasper County, TX $105,700
Jeff Davis County TX $141,100
Jefferson County, TX $129,000
Jim Hogg County, TX $121,300
Jim Wells County $130,600
Johnson County $143,000
Jones County, TX $122,000
Karnes County $144,000
Kaufman County $139,800
Kendall County, TX $181,400
Kenedy County $100,700
Kent County, TX $120,400
Kerr County, TX $132,400
Kimble County, TX $128,300
King, Texas $129,000
Kinney County, TX $115,900
Kleberg County $130,600
Knox County, TX $121,400
Lamar County $132,300
Lamb, Texas $132,800
Lampasas County, TX $110,400
La Salle County $132,800
Lavaca $132,000
Lee County, TX $140,000
Leon County, TX $143,200
Liberty County, TX $145,500
Limestone County, Texas $104,400
Lipscomb County, TX $116,600
Live Oak County $121,700
Llano County, TX $129,300
Loving County TX $120,900
Lubbock, Texas $129,000
Lynn, Texas $129,000
McCulloch County, TX $127,700
McLennan County, TX $134,300
McMullen County $115,800
Madison County, TX $143,200
Marion $130,700
Martin, Texas $110,500
Mason County, TX $128,300
Matagorda $133,900
Maverick County, TX $145,100
Medina County, TX $133,300
Menard County, TX $124,300
Midland County TX $140,600
Milam County, TX $105,500
Mills County, TX $103,200
Mitchell County, TX $122,900
Montague County, TX $146,600
Montgomery County, TX $161,500
Moore County, TX $136,900
Morris County $131,300
Motley, Texas $129,000
Nacogdoches County, TX $124,200
Navarro County, Texas $134,300
Newton County, TX $102,600
Nolan County, TX $122,400
Nueces County, TX $130,600
Ochiltree County $131,400
Oldham County $131,900
Orange County, TX $129,000
Palo Pinto County, TX $133,000
Panola $129,800
Parker County, TX $143,000
Parmer County $119,400
Pecos County TX $135,600
Polk County, TX $105,700
Potter County, MSA $153,600
Presidio County TX $140,900
Rains County $137,600
Randall County MSA $153,600
Reagan County TX $129,200
Real County, TX $115,900
Red River County $128,800
Reeves County TX $126,600
Refugio County $130,000
Roberts County $120,600
Robertson County $128,500
Rockwall County $152,700
Runnels County, TX $118,600
Rusk $136,500
Sabine County, TX $102,600
San Augustine County, TX $102,600
San Jacinto County, TX $141,500
San Patricio County, TX $141,500
San Saba County, TX $104,700
Schleicher County, TX $127,700
Scurry County, TX $123,400
Shackelford County, TX $121,000
Shelby County, TX $102,600
Sherman County $121,900
Smith County $135,900
Somervell County $133,000
Starr County, TX $130,100
Stephens County, TX $131,400
Sterling County, TX $127,700
Stonewall County, TX $120,400
Sutton County, TX $127,700
Swisher County $116,900
Tarrant County $143,000
Taylor County, TX $123,400
Terrell County TX $118,500
Terry, Texas $129,000
Throckmorton County, TX $121,400
Titus County $132,300
Tom Green County, TX $129,200
Travis County, TX $144,100
Trinity County, TX $139,700
Tyler County, TX $105,700
Upshur $135,500
Upton County TX $121,400
Uvalde County, TX $145,000
Val Verde County, TX $142,000
Van Zandt County $130,000
Victoria $132,000
Walker County, TX $150,400
Waller County $151,200
Ward County TX $139,600
Washington County, TX $144,500
Webb County $120,600
Wharton $132,300
Wheeler County $120,500
Wichita County, TX $135,700
Wilbarger County, TX $125,800
Willacy County $130,300
Williamson County, TX $144,100
Wilson County $155,000
Winkler County TX $124,600
Wise County, TX $146,600
Wood $139,600
Yoakum, Texas $129,000
Young County, TX $135,700
Zapata $125,800
Zavala County, TX $141,800

Hire an attorney to help you understand your USDA loan income limits and property limits. Even those with degrees in accounting can find it difficult to fully understand the terms of a mortgage loan and the different types of rural development income limits, and just trusting someone’s word on what everything means can cause you problems down the line. Get an attorney to look it over and make everything clear on the USDA loan limits.

USDA First Time Home Buyer

A rural development loan is just another way of saying USDA mortgage. Both are in fact the exact same thing but different lenders use this terminology instead.

USDA home loans for rural housing are designed to keep agricultural areas in the United States strong by giving people in the communities the same opportunity to own homes even though there may be less homes in these USDA areas.

At TexasUSDALoan.com, our USDA loan experts will take you through the loan process step-by-step.

With a USDA Loan you can:

  • Purchase or refinance a home.
  • Avoid high private mortgage insurance (PMI) like other loan programs.
  • Avoid needing money for a down payment
  • Get lower, fixed interest rates
  • Save money and refinance an existing USDA loan into a lower fixed rate

And because it’s a USDA loan, lenders will offer you lower, more affordable rates. Even if you have less-than-perfect credit or are a first time home buyer a USDA loan could be the right loan for you.

Purpose

The USDA Rural Development Loan program is made to ensure that individuals of rural communities can compete in the global economy. This will allow for rural communities to build better community centers and facilities thus attracting more people to move to those neighborhoods. These loans are attractive to those who have stable income and credit, but don’t have enough money for down payment.

Benefit

Traditional mortgage loans can be more challenging for these types of buyers because they require a down payment and are unable to have a guarantee that the loan will be paid. USDA home mortgage loans on the other hand are insured and guaranteed by the government.

Protection

Under the Guaranteed Loan Program, the Housing and Community Facilities Program guarantees and insures loans made by lenders such as ourselves. In addition, an individual or family may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment.

Location

Not only people living in rural areas qualify. Those living in the outskirts of a city or in a medium sized town may also qualify. Find out if you qualify for a USDA home mortgage loan by asking questions without any obligations.

Outlook

USDA loans Texas are primarily designed to help low income individuals and households to purchase a home in rural areas. These loans do not require a down payment but do have income and property limitations.

If you are planning on purchasing a house and are a USDA first time home buyer, make sure your credit is in good standing. Most lenders want to make sure your credit history has been spotless for at least a year if you’re looking to get approved for a USDA first time home buyer loan. To obtain the best rate for a USDA first time home buyer program, your credit score should be at least 580. Remember that the lower your score is, the harder the chances of getting approved if you are a first time home buyer USDA.

In addition to that, you can also take advantage of the USDA first time home buyer grant which helps.

USDA Refinance

usda streamline refinance texas
If you have a USDA loan, you can refinance into a lower rate and save more money.

If you are looking to refinance and want the best rate and terms, and want an easy process with more favorable guidelines, a USDA loan is probably the best choice for you.

USDA refinances are for rate and term refinance loans (no cash out allowed). The original loan must be a Guaranteed Rural Housing Loan.

USDA fixed rate loans are the most popular programs for refinancing. This is where you have stable predicable payments each month and as a result offers the most security for yourself and your family. If you are currently in an adjustable rate mortgage (ARM) and would like the security of a fixed rate, a fixed rate USDA is the right program for you.

Refinancing Your USDA Loan

Refinancing into a USDA loan is a very similar process to refinancing using conventional financing.

In fact, both loans require almost identical paperwork, it’s just that a USDA mortgage is only another type of loan.

That whole process generally takes no more than 30 days.

One nice advantage of refinancing is that you are allowed to skip one month of your mortgage payment after you close.

Depending on when in the month your mortgage closes you can possibly not make the current mortgage payment and skip the following month as well. You can use this money to pay off another bill, fix up your home, or even go on vacation.

When it comes to refinancing your current mortgage with USDA, we make the process simple here at TexasUSDALoan.com by giving straight forward advice because we know that this will enable you to make the most accurate financial decision.

Check out the interest rates for 30, 15 and 20 year term lengths if looking for a USDA refinance. Many times the shorter the term length the lower the interest rate. Although you may think you payment will be higher on a shorter term loan on perhaps double wide financing, you can actually save money on your payment by choosing a lower interest rate and a shorter term on the USDA streamline refinance.

USDA Mortgage Insurance

Although using money given to you as a gift from relatives for your down payment is legal, make sure to document that the money is a gift. The lending institution may require a written statement from the documentation and donor about when the deposit to your bank account was made. Have this documentation ready for your lender if you’re looking for a home loans direct.

USDA Underwriting Guidelines

USDA loans do not require a down payment which makes it easier for first time home buyers.
USDA loans do not require a down payment which makes it easier for first time home buyers.

To be eligible, applicants must:

  • Have an adequate and dependable income.
  • Be a U.S. citizen, qualified alien, or be legally admitted to the United States for permanent residence.
  • Have an adjusted annual household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income— such as annual child care expenses and $480 for each minor child—in order to qualify. Here is an automated USDA income eligibility calculator for USDA to help out.
  • Have a credit history that indicates a reasonable willingness to meet obligations as they become due.
  • Have repayment ability based on the following ratios: total monthly obligations / gross monthly income cannot exceed 41%.

When comparing USDA direct vs guaranteed loans in 2019 and before giving personal information to any lender, check with your local Better Business Bureau. Unfortunately, there are predatory lenders out there that are only out to steal your identity. By checking with your BBB, you can ensure that you are only giving your information to a legitimate home mortgage lender.

USDA Property Eligibility

texas usda loan
USDA loans have helped millions of Americans buy homes with 100% financing..

Before you set out and start making offers on USDA homes, you need to know what areas are going to work and which one’s aren’t. While there are some rules that are set in place and general USDA maps that can help guide you as to what home fall under these USDA eligible areas, you’d be surprised to know that we have seen some homes that we’d never thought would be considered “rural”.

Eligible USDA property types include single family homes and condominiums (primary residence only).

Since the USDA loan program is designed for areas that are in rural areas, here are some of the rules that must be met for existing homes:

  • New or Existing Homes – Guaranteed loans can be made on either new or existing homes. All existing homes must be structurally sound, functionally adequate, and in good condition. There are no restrictions on the size or design of the home financed.
  • Home Cannot Be Income Producing – The home cannot be used for income-producing purposes; aka Farm or Ranch agricultural exempt properties.
  • Location – Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and—under certain conditions—towns and cities with between 10,000 and 25,000 residents. While this rule is very much like a blanket policy, you would be very surprised about which homes qualify, so it’s always a good idea to check with us before you count any homes out of the picture.

If any of this is confusing or you have a question, please feel free to reach out and we’ll do our best to help you.

USDA Approved Lenders

Put as much as you can toward a down payment. Twenty percent is a typical down payment, but put down more if possible. Why? The more you can pay now, the less you’ll owe your lender and the lower your interest rate on the remaining debt will be. It can save you thousands of dollars.

Pay off or lower the amount owed on your credit cards before applying for a USDA rural loan with USDA approved lenders. Although your credit card balances do not have to be zero, you should have no more than 50 percent of the available credit charged on each credit card. This shows lenders that you are a wise credit user when trying to get approved with USDA mortgage lenders.

USDA Mortgage Calculator

Calculating your mortgage payment can be confusing if you’re not sure what you should be adding, and what you should be subtracting.

While there is a general rule that you can always take 1% of your sales price as your mortgage payment, we wanted to take it one step further and made a USDA loan calculator specifically for you to help you figure out what your monthly payment will be.

All you have to do is plug in a just 2 numbers and everything will get automatically calculated for you.

It’s really easy.

USDA Loan Rates

Getting a great USDA rate is important when looking to buy or refinance a home.

The thing that many people don’t realize is how mortgage rates actually work.

While it’s always best to get a fresh, up to date rate quote, it’s a good idea to know a “range” of what rates are doing in the market so that you’ll at least know where things stand.

Keep in mind that rates always change, but knowing the trends can help you get an idea as to where USDA rates stand at the moment.

To see the average USDA mortgage rates for Texas, just click here.

Also, here’s a great video that goes over how mortgage rates work and why they sometimes go up, and why they go down as well:

USDA Loans Texas

If you have just started a new job within the last year, do not embark on the process of buying a home for a USDA loan Texas. The best home mortgage rates go to those that have been with a company for a number of years. Having a job for a short time is seen as a risk, and you will be the one to pay for it with a higher interest rate.

A USDA home loan Texas can be a great thing once you can get qualified.

Credit Score For USDA Loan

Know that Good Faith estimates are not binding. These estimates are designed to give you a good idea of what your mortgage will cost on your home loan direct. It should include title insurance and points, and appraisal fees. Although you can use this information to figure out a budget, lenders are not required to give you a mortgage based on that estimate.

Learn about fees and cost that are typically associated with a home mortgage. There are so many strange line items when it comes to closing on a home. It can be a little bit discouraging. But with a little homework, you can talk the language, and this will make you better prepared to negotiate.

USDA Loan Process

Put as much as you can toward a down payment. Put down more if possible, even though twenty percent is a typical down payment. Why? The more you can pay now, the less you’ll owe your lender and the lower your interest rate on the remaining debt will be. It can save you thousands of dollars on your direct home loan.

USDA Loan Status

Before you begin home mortgage shopping, be prepared. Get all of your debts paid down and set some savings aside. By seeking out credit at a lower interest rate to consolidate smaller debts, you may benefit. Having your financial house in order will give you some leverage to get the best terms and rates.

USDA vs FHA

When comparing the USDA direct vs guaranteed loan program and FHA, you should contact your credit bureau if you find incorrect information on your credit file. There are so many instances of identity theft happening each year. For this reason, most credit bureaus have risk managers that have experience dealing with this type of thing. Also, the credit bureau can mark your credit report as one that has had their identity stolen.

USDA Appraisal Guidelines

Speak with a broker and ask them questions about things you do not understand on USDA appraisal guidelines. It is essential that you know exactly what is happening on your USDA appraisal. Be sure the broker has your contact information. Check your emails to see if the broker needs more information when you get your USDA appraisal requirements back.

USDA Mortgage Lenders

Always read the fine print when seeking a USDA home loan pre approval and even on double wide financing. If you have a hard time understanding the information, get some help with an expert that does not work for the lending company for a USDA home loan Texas. You want to make sure that the USDA home loans in Texas terms do not change after a certain amount of time. The last thing you want is surprises.

USDA Financing Map

USDA Home Loans Texas

Take note of home buying season. Usually markets will have cold and hot selling periods if you’re looking for a USDA home loan pre approval. The hotter the selling period, the more shady lenders are likely to be around. If you know what trend the market is in on double wide loans, you will better be able to guard against people looking to take advantage of you.

USDA Loan Closing Costs

Check the internet for mortgage financing. You don’t have to get a mortgage from a physical institution anymore. Lots of solid lenders operate entirely online. These loans are often processed quicker and they’re decentralized.

USDA Loan Reviews

Most financial institutions require that the property insurance and taxes payments be escrowed. This means the extra amount is added onto your monthly mortgage payment and the payments are made by the institution when they are due. This is convenient, but you also give up any interest you could have collected on the money during the year.

Now that you know what it takes to get a mortgage which fits your needs, you have to get down to work and do it. Follow the steps laid out here and begin your planning process. Soon enough, you’ll find a great lender who is offering a great rate and your job will be done.