USDA Home Loans in Texas

Discover the advantages of USDA home financing for rural Texans, including programs that assist with your home purchase, competitive USDA rates and eligibility requirements.

What is a Texas USDA Home Loan?

USDA home loans offer Texas buyers in eligible rural/suburban areas a path to affordable homeownership with no down payment, below-market rates, and flexible credit requirements. These government-backed mortgages help overcome traditional barriers to ownership, requiring only that properties be located in designated areas and that borrowers meet income limits based on county and household size. Ideal for first-time buyers, USDA loans have helped many Texans purchase primary residences they couldn’t otherwise afford through conventional financing.

Types of USDA Loans in Texas

In Texas, USDA loans are classified into two types: guaranteed loans and direct loans. These programs offer 100% financing, which means no down payment is required, for low- to moderate-income people and families buying or building a home in designated rural and suburban regions. There are also home repair loans and grants for low-income homeowners in eligible rural areas.

  • USDA Single Family Housing Guaranteed Loan: The USDA Guaranteed Loan Program helps moderate-income Texas families purchase homes in qualifying rural and suburban areas with no down payment requirement. Backed by government guarantees that enable private lenders to offer favorable terms, the program features competitive interest rates and flexible credit guidelines – making homeownership accessible even for buyers with limited savings or imperfect credit histories. Many areas near Texas cities still qualify as “rural” under the program’s surprisingly inclusive geographic guidelines.
  • USDA Single Family Housing Direct Loan: The USDA Direct Loan program offers government-funded mortgages for low-income Texas buyers in rural areas, featuring subsidized rates as low as 1% and flexible terms. Designed for those who can’t qualify for conventional loans, it provides extended repayment periods (up to 38 years) and payment assistance, specifically helping very low-income families, seniors, and first-time buyers achieve homeownership.  
  • USDA Home Repair Loans and Grants Program: The USDA offers 1% interest loans and up to $10,000 in grants to help low-income rural homeowners fund critical repairs like structural fixes, safety upgrades, or accessibility modifications. This program provides grants to very-low and low-income homeowners to repair homes damaged in a Presidentially Declared Disaster Areas.

Texas USDA Eligibility Requirements

  • USDA Guaranteed Loan: The USDA guaranteed loan program helps Texas borrowers purchase homes in eligible rural/suburban areas with no down payment by requiring: a minimum 620 credit score (with possible exceptions), stable 2-year income history, household income below county limits, and a property meeting basic safety standards as the primary residence. Many areas near major Texas metros surprisingly qualify as “rural” under the program’s inclusive guidelines.
  • USDA Direct Loan: To qualify for a USDA-Direct loan, applicants must meet income limits (below 80% of the area median), purchase a modest primary residence in eligible rural areas, and demonstrate repayment ability, with flexible credit requirements that help first-time buyers and fixed-income borrowers. 
  • USDA Repair and Rehabilitation Loan: The USDA Single Family Housing Repair program assists low-income Texas homeowners through two options: loans (1% interest) for those who can repay, and grants (up to $10,000) for seniors 62+ who can’t. To qualify, homeowners must occupy the property and meet very low-income limits for their county. Loan applicants need decent credit and repayment ability, while grant recipients must be elderly and unable to afford even the 1% loan terms. Both options help fund critical repairs like roof replacements, accessibility modifications, or system upgrades to maintain safe, livable housing in rural communities across Texas.
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Benefits of Texas USDA Home Loans

You can take advantage of several benefits that are intended to help your journey to homeownership stress-free and affordable by selecting a USDA home loan. 

  • $0 Down Payment – One of the only true no-money-down mortgage options.
  • Below-Market Interest Rates – Lower than conventional loan rates.
  • Flexible Credit Requirements – Accepts lower credit scores.
  • Low Mortgage Insurance – More affordable than FHA or conventional loans.
  • Rural & Suburban Eligibility – Many areas near major cities (e.g., outskirts of Austin/San Antonio) qualify.
  • Income-Based Accessibility – Designed for low-to-moderate-income borrowers.
  • Community Growth Focus – Supports development in USDA-designated rural areas.

Frequently Asked Questions About Texas USDA Loans

We understand you might have questions. Here are answers to some common inquiries to help you feel confident in your decision.

What areas are eligible for USDA home loans in Texas?

USDA home loans are intended for properties in eligible rural areas. Our team can help you confirm if your preferred location meets USDA property eligibility criteria in Texas.

Your income must fall within USDA income limits Texas, ensuring the loan remains affordable. We can help you assess if your earnings align with these guidelines.

You’ll need standard financial documents including proof of income, employment verification, credit history, and any other documents required by Texas USDA loan requirements.

While each case is unique, the USDA application process in Texas is designed for efficiency, from preapproval to closing, ensuring you are in your new home as soon as possible.

Hear From Our Satisfied Clients

“10 Stars to Jason Turner and his team at Texas Mortgage Pros! Jason was very helpful and straightforward in explaining the process from start to finish. He was prompt to answer all our queries and concern. Everything was well explained that made our decision to go with Mortgage Pros a breeze. The process was definitely scary at the beginning, changing a lender company just few weeks from closing our house, but Jason helped us lower our closing cost and was able to broker a lender with lower interest rates which every home owner needs. Jason and his team really did a great job! They deserve 10 gold stars!!!” — Ronald Alcalde.

“These guys were recommended from realtors. They went above and beyond and even answered questions for us outside of normal business hours. Very smooth process. If the need ever arises for a mortgage broker again we will definitely be using Jason and his team. I would also recommend them to anyone who needs a broker.” — Kelli Youngblood.

“Jason was incredibly helpful and patient throughout the entire process. He went above and beyond to work around my schedule, making everything so much easier. Highly recommend his services!” — Traci Poulter.

Apply for a Texas USDA Loan Today!

Your dream of owning a home in Texas is within reach. With the advantages of USDA home financing and a supportive application process designed around your needs, now is the perfect time to take action.

Our dedicated team is ready to walk you through every step of the USDA mortgage process, ensuring that you secure the best terms available for your unique situation. Don’t wait—secure your affordable USDA home loan in Texas today! Call us at (877) 280-4833 to get started.

Better Mortgages, Better Living.

Make your dream a reality—fast, simple solutions for every first time home buyer in Texas.

Pre-Qualify

Get Pre-Qualified Now

Ready to take the next step toward homeownership with a Texas USDA Loan? Get prequalified in just a few minutes and find out how much you can invest in your future.

Discover your qualification amount in 10 minutes or less with our easy, online pre-qualification process.

Get an instant estimate of how much you can qualify for, streamlining your home-buying journey.

Partner with our experienced, local loan experts who are dedicated to providing personalized and knowledgeable support.

Count on us to guide you smoothly through the process, ensuring your loan closes on time, every time.

Pre-Qualify Here

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Income Limits for USDA Loans

USDA loans have income limits based on household size and location. These limits ensure the program serves low- to moderate-income families. To check specific income thresholds for your area, visit the USDA’s Income Limits Tool.

Types of USDA Loans in Texas

Types of USDA Loans in Texas

USDA Loans in Texas come in three primary types, each catering to different needs:

Real Stories From Homebuyers

This has been a seamless, pleasant and positive experience which I truly appreciate. Not to mention, He saved us a ton of money for closing! Thank you for all the encouragement and hard work you put in to making this happen for me and my family!
Clyneshia Butler
Texas Home Buyer

How It Works

USDA Loan Approval Process

Here’s a step-by-step guide to securing USDA Loans in Texas:

Step 1

Prequalification

Work with a lender to determine your eligibility.

Step 2

Property Selection

Identify a USDA-eligible property.

Step 3

Submit Required Documents

Provide required documents to your lender.

Step 4

Appraisal

Verify the home meets USDA standards.

Step 5

Loan Processing

USDA reviews the loan for final approval.

Step 6

Closing

Sign the paperwork and take ownership of your new home.

Rural Housing Service in Texas

The Rural Housing Service (RHS) plays a pivotal role in administering USDA loans in Texas. Their mission is to improve the quality of life in rural areas by increasing access to affordable housing. Through USDA loan programs, RHS supports homeownership, community development, and economic growth in Texas’s underserved regions.

The Texas Mortgage Pros is one of the approved USDA Lenders in Texas. We are a USDA Guarantee Lender in the area that can provide any information you need to secure a USDA loan.

Options with USDA Loans in Texas
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Over 95% of rural areas in Texas are eligible for USDA loans, making homeownership accessible for many families.

Pros & Cons of Texas USDA Loans

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