Are you looking for an USDA Loan in Texas, but just not sure what a USDA loan even is, how it works, or what it’s even about?
Well looks like you’re in luck today.
We are Texas’s top USDA lender that specializes in providing FREE USDA mortgage advice and information to folks looking to learn more about how USDA loans work.
Whether you are looking to learn more about how much you can get approved for or already have a USDA mortgage and need to refinance out of your high interest rate loan, we’re here to help you every step of the way and get you the best rate possible!
Getting Pre-Qualified is 100% FREE.
We don’t check credit or need your social security number in order to get started.
How Can a USDA Loan Help You?
If you are someone looking to buy a home but do not have the minimum down payment requirement with other types of mortgages out there, then a Texas USDA home loan may be for you.
USDA loans Texas are offered to help lower to moderate income households purchase homes in rural areas and in some cases on the outskirts of a city or in a medium sized town as determined by the United States Department of Agriculture (USDA) with no down-payment needed!
In Texas, a USDA loan offers many advantages to qualified borrowers looking to buy or refinance (no cash out) including:
- 100% financing
- Very small monthly mortgage insurance
- No asset requirements
- Gifts allowed for closing costs
- Required property improvements can be financed into the loan up to 102% of the “improved” value, which can be completed after closing.
At USDA Loan Texas, we offer the best USDA interest rates and most competitive closing costs when it comes to helping you buy a home that keeps things easy on the wallet. We look forward to answering all your questions and are here for you every step of the way.
USDA Home Loans
Exciting things are happening with USDA home financing – other than a VA loan, USDA is only 1 of only a few options left for true 100% financing.
USDA Loan Texas specializes in servicing first time home buyers. A USDA mortgage offers many advantages, as it is very popular with first time homeowners, so you should expect lower interest rates and no down payment in relation to a conventional residential home loan.
Highlights of the USDA Guaranteed Rural Housing Loan Program
We make the process of purchasing a new home or refinancing your current mortgage simple and straight forward by offering you the latest in financial tools set forth by the best banks in our country. This will enable you to make the most accurate financial decision. Purchasing a home or refinancing your current mortgage should not be stressful.
If you are looking for an Austin USDA Lender, Houston USDA Lender, Dallas USDA Lender, or San Antonio USDA Lender, you have come to the right place!
USDA Rural Development Loans
A rural development loan is just another way of saying USDA mortgage. Both are in fact the exact same thing but different lenders use this terminology instead.
USDA home loans for rural housing are designed to keep agricultural areas in the United States strong by giving people in the communities the same opportunity to own homes even though there may be less homes in these USDA areas.
At USDA Loan Texas, our USDA loan experts will take you through the loan process step-by-step.
With a USDA Loan you can:
- Purchase a Home
- Avoid High PMI
- Don’t Need a Down Payment
- Get Lower Interest Rates
- Refinance to a Lower Fixed Rate
And because it’s a USDA loan, lenders will offer you lower, more affordable rates. Even if you have less-than-perfect credit or are a first time home buyer a USDA loan could be the right loan for you.
USDA fixed rate loans are the most popular programs for refinancing. This is where you have stable predicable payments each month and as a result offers the most security for yourself and your family. If you are currently in an adjustable rate mortgage (ARM) and would like the security of a fixed rate, a fixed rate USDA is the right program for you.
Refinancing Your USDA Loan
Refinancing into a USDA loan is a very similar process to refinancing using conventional financing.
In fact, both loans require almost identical paperwork…a USDA is just another type of loan.
That whole process generally takes no more than 30 days. One nice advantage of refinancing is that you are allowed to skip one month of your mortgage payment after you close. Depending on when in the month your mortgage closes you can possibly not make the current mortgage payment and skip the following month as well. You can use this money to pay off another bill, fix up your home, or even go on vacation.
If you are looking to refinance and want the best rate and terms, and want an easy process with more favorable guidelines, a USDA loan is probably the best choice for you.
USDA refinances are for rate and term refinance loans (no cash out allowed). The original loan must be a Guaranteed Rural Housing Loan. For more information, please contact us.
We make the process of purchasing a new home or refinancing your current mortgage simple here at USDA Loan Texas by giving straight forward advice. This will enable you to make the most accurate financial decision. Purchasing a home or refinancing your current mortgage should not be stressful. Please contact us for up to date rates and any other mortgage questions or apply now.
USDA Mortgage Eligibility
To be eligible, applicants must:
USDA Property Eligibility
Before you set out and start making offers on USDA homes, you need to know what areas are going to work and which one’s aren’t. While there are some rules that are set in place and general USDA maps that can help guide you as to what home fall under these USDA eligible areas, you’d be surprised to know that we have seen some homes that we’d never thought would be considered “rural”.
Eligible USDA property types include single family homes and condominiums (primary residence only).
Since the USDA loan program is designed for areas that are in rural areas, here are some of the rules that must be met for existing homes:
- Guaranteed loans can be made on either new or existing homes. All existing homes must be structurally sound, functionally adequate, and in good condition. There are no restrictions on the size or design of the home financed.
- The home cannot be used for income-producing purposes; aka Farm or Ranch agricultural exempt properties.
- Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and—under certain conditions—towns and cities with between 10,000 and 25,000 residents. While this rule is very much like a blanket policy, you would be very surprised about which homes qualify, so it’s always a good idea to check with us before you count any homes out of the picture.
If any of this is confusing or you have a question, please feel free to reach out and we’ll do our best to help you.
In the meantime you can click this link which will help you determine USDA property eligibility.
USDA Loan Limits
These are the loan limits for the USDA direct program. Please keep in mind that these are if you go with USDA directly, but if you go with a USDA approved lender such as us, these limits are much much higher because the lender is assuming the risk instead of USDA themselves.
Here are all the counties and cities sorted out for you nice and neatly. Use the search tool to find your county and see what the USDA direct limit is in your area:
USDA Loan Limits 2014
|Anderson County, Texas||$104,400|
|Angelina County, TX||$124,200|
|Archer County, TX||$133,200|
|Austin County, TX||$147,600|
|Bandera County, TX||$131,600|
|Bastrop County, TX||$144,500|
|Baylor County, TX||$125,800|
|Bell County, TX||$111,500|
|Blanco County, TX||$137,300|
|Bosque County, TX||$125,200|
|Brazos County, TX||$162,500|
|Brewster County TX||$135,200|
|Brooks County, TX||$121,300|
|Brown County, TX||$118,800|
|Burleson County, TX||$140,800|
|Burnet County, TX||$117,500|
|Callahan County, TX||$121,000|
|Chambers County, TX||$138,000|
|Clay County, Texas||$122,300|
|Coke County, TX||$118,600|
|Coleman County, TX||$115,800|
|Collin County, TX||$146,700|
|Colorado County, TX||$140,300|
|Comanche County, TX||$118,300|
|Concho County, TX||$129,200|
|Cooke County, TX||$135,700|
|Coryell Co, TX||$128,500|
|Crane County TX||$126,600|
|Crockett County TX||$129,200|
|Dallas County, TX||$134,300|
|Deaf Smith County||$123,900|
|Denton County, TX||$135,200|
|Dimmit County, TX||$146,500|
|Eastland County, TX||$131,700|
|Ector County TX||$141,600|
|Edwards County, TX||$115,900|
|Falls County, Texas||$103,500|
|Fannin County, TX||$128,300|
|Fayette County, TX||$138,400|
|Fisher County, TX||$121,000|
|Foard County, TX||$123,200|
|Fort Bend County||$136,000|
|Freestone County, Texas||$104,400|
|Gillespie County, TX||$166,000|
|Glassock County TX||$130,600|
|Grayson County TX||$139,400|
|Hamilton County, TX||$105,700|
|Hardeman County, TX||$123,200|
|Hardin County, TX||$128,000|
|Harris County, TX||$167,900|
|Hartley County, TX||$129,400|
|Haskell County, TX||$121,400|
|Hemphill County, TX||$131,400|
|Hidalgo County, TX||$132,600|
|Hill County, TX||$125,200|
|Houston County, TX||$139,700|
|Hunt County TX||$137,600|
|Hutchinson County, TX||$122,900|
|Irion County, TX||$129,200|
|Jack County, TX||$122,300|
|Jasper County, TX||$105,700|
|Jeff Davis County TX||$141,100|
|Jefferson County, TX||$129,000|
|Jim Hogg County, TX||$121,300|
|Jim Wells County||$130,600|
|Jones County, TX||$122,000|
|Kendall County, TX||$181,400|
|Kent County, TX||$120,400|
|Kerr County, TX||$132,400|
|Kimble County, TX||$128,300|
|Kinney County, TX||$115,900|
|Knox County, TX||$121,400|
|Lampasas County, TX||$110,400|
|La Salle County||$132,800|
|Lee County, TX||$140,000|
|Leon County, TX||$143,200|
|Liberty County, TX||$145,500|
|Limestone County, Texas||$104,400|
|Lipscomb County, TX||$116,600|
|Live Oak County||$121,700|
|Llano County, TX||$129,300|
|Loving County TX||$120,900|
|McCulloch County, TX||$127,700|
|McLennan County, TX||$134,300|
|Madison County, TX||$143,200|
|Mason County, TX||$128,300|
|Maverick County, TX||$145,100|
|Medina County, TX||$133,300|
|Menard County, TX||$124,300|
|Midland County TX||$140,600|
|Milam County, TX||$105,500|
|Mills County, TX||$103,200|
|Mitchell County, TX||$122,900|
|Montague County, TX||$146,600|
|Montgomery County, TX||$161,500|
|Moore County, TX||$136,900|
|Nacogdoches County, TX||$124,200|
|Navarro County, Texas||$134,300|
|Newton County, TX||$102,600|
|Nolan County, TX||$122,400|
|Nueces County, TX||$130,600|
|Orange County, TX||$129,000|
|Palo Pinto County, TX||$133,000|
|Parker County, TX||$143,000|
|Pecos County TX||$135,600|
|Polk County, TX||$105,700|
|Potter County, MSA||$153,600|
|Presidio County TX||$140,900|
|Randall County MSA||$153,600|
|Reagan County TX||$129,200|
|Real County, TX||$115,900|
|Red River County||$128,800|
|Reeves County TX||$126,600|
|Runnels County, TX||$118,600|
|Sabine County, TX||$102,600|
|San Augustine County, TX||$102,600|
|San Jacinto County, TX||$141,500|
|San Patricio County, TX||$141,500|
|San Saba County, TX||$104,700|
|Schleicher County, TX||$127,700|
|Scurry County, TX||$123,400|
|Shackelford County, TX||$121,000|
|Shelby County, TX||$102,600|
|Starr County, TX||$130,100|
|Stephens County, TX||$131,400|
|Sterling County, TX||$127,700|
|Stonewall County, TX||$120,400|
|Sutton County, TX||$127,700|
|Taylor County, TX||$123,400|
|Terrell County TX||$118,500|
|Throckmorton County, TX||$121,400|
|Tom Green County, TX||$129,200|
|Travis County, TX||$144,100|
|Trinity County, TX||$139,700|
|Tyler County, TX||$105,700|
|Upton County TX||$121,400|
|Uvalde County, TX||$145,000|
|Val Verde County, TX||$142,000|
|Van Zandt County||$130,000|
|Walker County, TX||$150,400|
|Ward County TX||$139,600|
|Washington County, TX||$144,500|
|Wichita County, TX||$135,700|
|Wilbarger County, TX||$125,800|
|Williamson County, TX||$144,100|
|Winkler County TX||$124,600|
|Wise County, TX||$146,600|
|Young County, TX||$135,700|
|Zavala County, TX||$141,800|
USDA Mortgage Calculator
Calculating your mortgage payment can be confusing if you’re not sure what you should be adding, and what you should be subtracting.
While there is a general rule that you can always take 1% of your sales price as your mortgage payment, we wanted to take it one step further and made a USDA loan calculator specifically for you to help you figure out what your monthly payment will be.
All you have to do is plug in a just 2 numbers and everything will get automatically calculated for you.
It’s really easy.
Click here to check it out.
USDA Loan Rates
Getting a great USDA rate is important when looking to buy or refinance a home.
The thing that many people don’t realize is how mortgage rates actually work.
While it’s always best to get a fresh, up to date rate quote, it’s a good idea to know a “range” of what rates are doing in the market so that you’ll at least know where things stand.
Keep in mind that rates always change, but knowing the trends can help you get an idea as to where USDA rates stand at the moment.
To see the average USDA mortgage rates for Texas, just click here and you’ll be taken back to the top of the page where we have it on the right hand side.
Also, here’s a great video that goes over how mortgage rates work and why they sometimes go up, and why they go down as well:
What is a USDA Mortgage, and what makes this program better than other programs that offer a low down payment?
USDA loans are a fixed rate mortgages with 30-year full amortizations, which provides for a stable payment over the life of the loan, thus giving the borrower security. USDA loans DO have a small monthly MI payment.
What is the downside to a USDA mortgage?
Nothing financially, but USDA loans are geographically and income restrictive. Typically towns on the outskirts of larger cities and less than 30,000 residents apply, however you would be surprised where the areas are. In many cases, there are eligible areas in ineligible counties!
Please click this link to help determine property eligibility.
While the USDA income limits are liberal, they are based on the total projected income for all adults living in the household. This income limit varies between counties and your situation.
Please click on this link to help find some more information on the income limits for your particular area.
Do I have to put a down payment?Loans may be for up to 100 percent (102 percent if the guarantee fee is included in the loan) of appraised value or for the acquisition cost, whichever is less.
Is everyone eligible for a USDA home mortgage loan?
To be eligible, applicants must:
- Purchase a primary residence. Investment properties are not allowed.
- Have an adequate and dependable income.
- Be a U.S. citizen, qualified alien, or be legally admitted to the United States for permanent residence.
- Have an adjusted annual household income that does not exceed the moderate income limit established for the area. Please contact us to determine the income limit in your area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income such as annual child care expenses and $480 for each minor child in order to qualify.
- Have a reasonable credit history.
Does every home qualify for a USDA home loan?
Homes That Qualify:
- New or existing homes.
- Existing homes must be structurally sound, functionally adequate, and in good repair.
- There are no restrictions on the size or design of the home financed.
- The home must not be used for income-producing purposes.
- Homes must be located in rural areas (some city outskirt areas may qualify. Contact us to double check.)
What is considered a rural area?
Rural areas include open country and places with a population of 10,000 or less and under certain conditions towns, cities, and outskirts with between 10,000 and 25,000 residents. Contact us to determine if the area you are looking in can qualify.
Are USDA home mortgage loans the same as traditional mortgage loans?
USDA home mortgage loans are on a 30 year fixed rate term and provide interest rates that are usually equal to or sometimes lower than traditional financing making it more attractive to home buyers.
Can I refinance my mortgage if it is not a USDA home mortgage loan?
No. Loans may be made to refinance only existing USDA home mortgage loans.
Are there any USDA fees?
For purchase loans, a one-time guarantee fee equal to 2.0 percent of the loan amount is charged. The buyer also has an option to finance this charge but at a different percent depending on the loan amount.
The charge for refinance loans is 0.5 percent. After the one-time fee is paid, there is no recurring monthly expense charged for guaranteeing the loan.
Where to Go From Here
Now that you’ve become a certified USDA loan expert, you’re ready to pick a direction and get going.
If you still have more questions that you’d like answered, you can always reach out and we’ll be happy to help guide you in the right direction.