Find the best USDA loan rates for your USDA home loan.
The USDA mortgage loan is an often overlooked program that can be of great use under the right circumstances in getting the best USDA mortgage rates.
USDA Mortgage Rates in Texas for January 15, 2019
|Texas USDA Loan Program||USDA Loan Interest Rates (APR %)|
|30-Year Fixed-Rate USDA||4.073 %|
|15-Year Fixed-Rate USDA||2.542 %|
The USDA rural development loan allows home buyers to purchase their primary residence with NO MONEY DOWN and get a really low USDA loan rate! This is the only remaining program in the country that allows average people to get into a home with no money out of their pocket. 100% of the purchase price can be financed with a USDA mortgage.
In fact, a home buyer can finance their closing costs into the loan as longs as the home appraises high enough to allow the loan to not exceed the current appraised market value of the property being purchased. That means that with USDA financing, home buyers can purchase their primary residence with 100% financing and no closing costs! If there is not enough equity in the home to roll your closing costs into the mortgage, the USDA loan allows the seller to pay for the buyers closing costs up to 6% of the purchase price. In most cases this is plenty of room to include all of the buyers closing costs while still getting a great USDA loan interest rate.
There is no more flexible loan program when it comes to a first time home-buyer purchasing their primary residence than the USDA rural development loan! Like a VA loan, the USDA mortgage program has no mortgage insurance. Instead they charge a 2% funding fee that can easily be financed into the loan. This will save you hundreds of dollars per month in mortgage insurance premiums that other loan programs like FHA and Conventional loans would require. Over the course of 30 years these savings will add up quickly if you don’t have low USDA loan interest rates! There are only a very few requirements that must be met in order for someone to qualify.
Let’s take a look at what you need to ensure before looking into the USDA loan as an option.
- The property must be in an approved USDA zone in order to purchase a home with the rural development loan. You can easily check to see if the property is in an approved USDA zone by putting your property address into the USDA Eligibility map checking page. Here you will be able to zoom out and look around to see what areas are and are not covered near where you want to buy your home.
- Most lenders require a minimum middle credit score of 620 in order to qualify for a USDA rural development loan and get the best USDA rates. While the USDA does not have any minimum credit requirement, lenders have implemented their own minimum credit requirements in an attempt to avoid making any sub-prime loans that may have a higher chance of default. With a 620 credit score the USDA offers a credit waiver. This means they do not look at the credit report in order to qualify the loan. It is mainly going to based on proving that the borrower can afford to pay the loan back. This leads us to the third and final requirement for USDA loans.
- The USDA rural development program has income restrictions in order to qualify and get low USDA interest rates. The buyer interested in obtaining a USDA mortgage loan can have an income of up to 115% of the median income in the area. You can look up the median income limits for each State and County on our USDA income eligibility page to ensure you get a low payment and get USDA loans interest rates that will work for you and your situation.
If you have been looking for a 100% financing option with a low 30 year fixed rate and no mortgage insurance, then the USDA rural development loan is just the loan program you have been looking for!
To find current USDA mortgage rates, apply only today and let one of our USDA loan specialists follow up with you to go over all the details of how it can help you buy your home with NO MONEY DOWN today!