USDA Loan FAQ for Texas Buyers

A home loan for a primary residence in an area USDA treats as rural, for households within USDA's income limit. In the Guaranteed program, a private lender makes the loan and USDA Rural Development guarantees it. See what a USDA loan is.

Yes. USDA Rural Development runs the program, so all three names usually mean the Section 502 Guaranteed loan.

A participating private lender. USDA reviews the lender's work, issues a Conditional Commitment before closing, and issues a Loan Note Guarantee to the lender after closing.

No. Properties used mainly for farming or business aren't eligible. The program is for homes.

Enter the full address on USDA's property eligibility map. Our map guide walks through each step and result.

Every adult in the household, even those not on the loan, minus USDA's allowed deductions. Only borrowers' income is used to qualify for the payment. See income limits.

In some cases. You can keep one other home if it no longer meets your needs, you qualify to carry both, and you're not responsible for another USDA home loan by closing.

U.S. citizens, U.S. non-citizen nationals and qualified aliens with acceptable documentation can be eligible under USDA's rules.

No. USDA doesn't allow co-signers or co-borrowers who won't live in the home.

USDA's handbook doesn't set one minimum for every file. USDA's automated system weighs your credit, and lenders may set their own requirements. Ask Danny for Canopy Mortgage's current requirements.

Possibly. USDA allows a non-traditional credit history using payments like rent, utilities and insurance.

Yes. USDA uses two ratios: your housing payment against your income, and your total monthly debts against your income. See debt ratios.

Yes. The lender generally reviews a two-year history of business earnings.

The program does not require a down payment for eligible buyers. You'll still have closing costs and prepaid items, some of which can be financed or paid by the seller within USDA's limits. All loans subject to credit and property approval.

An upfront guarantee fee, which can be financed, and an annual fee collected monthly. USDA sets both each fiscal year.

Sellers can contribute toward closing costs within USDA's limits. Your purchase contract spells out the amount.

There's no program maximum price. Your income limit, repayment ability and the appraisal limit what you can borrow.

Yes, if it meets USDA's rules on foundation, labels, age, site and real-property status. See manufactured homes.

Yes, with a single-close construction loan and a qualified builder. Owner-builders aren't allowed. See construction loans.

Yes, through USDA's rehabilitation and repair with purchase feature, or a repair escrow for minor work. See renovation loans.

Yes, if the condo project is approved or accepted by HUD/FHA, VA, Fannie Mae or Freddie Mac.

Land alone isn't eligible. A home on acreage can be, if the property is mainly residential and not used to produce income.

Only if your current loan is already a USDA Guaranteed or Direct loan. See USDA refinance options.

No. USDA refinances don't allow cash out.

A refinance for current USDA borrowers without a new appraisal or debt ratio review, which requires your monthly payment to drop by at least the amount USDA sets. See streamline refinance.

At the Canopy Mortgage, LLC El Paso branch. He works with buyers across Texas by phone and email.

English, Spanish and Arabic.

Call 512-743-5512 or send a short inquiry. It's not a loan application and doesn't pull your credit.