Question 1

What is a USDA loan?

Accepted Answer

A USDA loan is a mortgage backed by the U.S. Department of Agriculture. It's designed to help moderate-to-low income buyers purchase homes in eligible rural and suburban areas with no down payment required.

Question 2

What areas of Texas are USDA eligible?

Accepted Answer

Many areas of Texas qualify for USDA loans, including suburbs of major cities and rural communities. Surprisingly, many areas just outside Austin, Dallas, Houston, and San Antonio are eligible. We can check specific addresses for eligibility.

Question 3

What are the income limits for USDA loans in Texas?

Accepted Answer

Income limits vary by county and household size. Generally, your household income must be at or below 115% of the area median income. In Texas, this can range from about $103,500 to $136,600 for a family of four depending on the county.

Question 4

Can I use a USDA loan to buy a manufactured home?

Accepted Answer

Yes, USDA loans can be used for manufactured homes if they meet certain requirements: they must be new, permanently affixed to a foundation, and meet HUD standards. The land must also be in an eligible rural area.

Question 5

How does USDA mortgage insurance work?

Accepted Answer

USDA loans have two types of fees: an upfront guarantee fee of 1% of the loan amount (can be financed) and an annual fee of 0.35% of the remaining balance. These are lower than FHA mortgage insurance premiums.

Texas USDA Loans

USDA Loan Benefits

Eligibility Requirements

Property Location

Income Limits

Credit Score

Primary Residence

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Frequently Asked Questions

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