Wichita Falls has a grounded, practical feel. Sheppard Air Force Base brings steady energy, local hospitals and schools anchor the community, and the pace still leaves room for evening walks and weekend plans. If you’re looking to buy and open to the quieter edges of town, a USDA home loan makes that a reality. They are designed for people who want to live in rural or semi-rural areas, seeking modest homes, stable payments, and neighborhoods where you can breathe.
A USDA home loan is a mortgage program backed by the U.S. Department of Agriculture that helps low- to moderate-income borrowers buy homes in eligible rural areas. The program is not designed to put people on farms. It helps communities outside dense urban centers grow, stabilize, and thrive by making homeownership accessible.
Around Wichita Falls, eligibility is more common once you move away from the densest parts of the city. Many buyers look toward communities like Iowa Park, Burkburnett, Holliday, Henrietta, Dean, Bellevue, Byers, and other pockets in Wichita, Clay, and Archer counties. The address always matters, so eligibility is checked property-by-property. Still, the big idea is consistent. If you want more space and a calmer pace without waiting years to save a down payment, USDA can be a strong fit.
USDA offers two main programs that serve different financial situations.
Both programs require you to occupy the home as your primary residence, and both require the property to be located in a USDA-eligible area.
If your income is more in the low to moderate range, and you can qualify for a mortgage, but the down payment is the issue, the USDA Guaranteed program is probably the one you’ll hear about most. Here, you borrow from a regular lender, and USDA guarantees a portion of the loan in the background.
There is an upfront guarantee fee and a modest annual fee rolled into the loan cost. These fees help keep the program sustainable and make zero down possible. Closing costs can often be covered with seller concessions. In some cases, if the appraisal supports it, certain costs can be financed into the loan.
To qualify for a USDA Guaranteed home loan in the Wichita Falls area, you generally need to meet several factors:
While USDA does not set a hard credit score minimum for the guaranteed program, most lenders look for a score of at least 640, though exceptions exist for borrowers with strong compensating factors.
It must be your primary residence, not a vacation home or investment property.
Your household income generally needs to fall at or below 115 percent of the median income for your area. In Wichita Falls and surrounding Texoma communities, that threshold lands in a range that covers a wide swath of working families.
The property must be located in a USDA-eligible area, which you can verify using the USDA's online eligibility map.
Lenders want to see stable income, manageable debt, and a pattern of on-time payments. The home must meet basic safety and livability standards; it must be sound, functional, and typical of the market.
The Direct program is for buyers who want to own a home but cannot access affordable financing through conventional channels. The loan comes directly from the USDA and is designed specifically for low- and very-low-income borrowers.
The Direct Loan makes homeownership possible for families who might otherwise have no realistic path to it. Interest rates can be significantly reduced through payment assistance, a subsidy the USDA applies based on your income that lowers your effective rate substantially.
With a USDA Direct loan, you’re working directly with the government, not a traditional lender. To qualify for a USDA Direct loan in the Wichita Falls area, you typically need to meet the following:
What sets USDA Direct apart is the payment assistance. USDA can temporarily reduce your effective interest rate based on your income, lowering your monthly payment.
Q: Do I have to be a first-time homebuyer to use a USDA loan?
A: No. You don’t have to be a first-time buyer; you just need to meet the income, location, and occupancy requirements, and you can’t already have adequate housing that meets your needs.
Q: How strict are the income limits for USDA loans?
A: They are important. Both Direct and Guaranteed programs have income caps based on your county and household size. A lender or housing specialist can help you see where you land.
Q: Can I buy a home inside the Wichita Falls city limits with a USDA loan?
A: It depends on the specific area. Some addresses may qualify, but eligibility is more common in rural and suburban pockets outside the densest parts of the city. Always verify the specific address early.
Q: Can I use a USDA loan to buy a fixer-upper?
A: The home has to meet certain livability and safety standards. If the home needs major repairs, you may need them completed before closing, or consider a different financing option.
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.
If you’ve wondered whether you can buy a home in or around Wichita Falls without a huge down payment, it might be time to look closer at USDA home loans. Whether you’re drawn to the Guaranteed Loan’s accessibility or the Direct Loan’s deeper affordability, there is a real path here for North Texas families ready to put down roots.
Call us at (877) 280-4833 to talk about USDA home loans in the Wichita Falls area and see whether a USDA Direct or USDA Guaranteed loan could help you move into a home that truly fits your life.
