Many Texas first-time buyers don’t have the means for the large down payments required by most mortgage programs today. The good news is the 100% USDA Rural Housing loans are offered to help lower to moderate-income households purchase homes in Texas’s rural areas.
In some cases, even the outskirts of larger cities like Houston, Dallas, San Antonio, and Austin are still eligible. USDA home mortgage loans offer many advantages to qualified borrowers looking to buy or refinance including:
- No money down – 100% financing
- Low monthly mortgage insurance
- No asset requirements
- Gifts allowed for closing costs
- Streamline refinance for homeowners that currently have a USDA loan
Approved USDA property types include single-family homes, townhomes, and condominiums. All properties must be a primary residence and be located in a USDA eligible area. USDA also has household income limits that apply to the entire family, read more about 2025 income limits here.
Other USDA Details:
- No Manufactured or Mobile Homes allowed.
- No Livestock Buildings, Acreage.
- The home must be owner-occupied. No investment homes or rental loans are permitted.
- Low Mortgage Insurance Premium. You will be expected to pay a low mortgage insurance premium for as long as you have the loan. The premium is about half the amount of comparable FHA and conventional loans.
- The Current USDA Guarantee Fee (1%) can be included in the borrower’s loan.
- The home seller can pay all the buyer’s closing costs up to 6%.
- You can still qualify even if you are not a first-time home buyer! The USDA program isn’t reserved exclusively for first time buyers.
To learn more about rural home loans please call ph: 800-743-7556