USDA Home Loan Texas
Did you know that around 97% of U.S. land is eligible for a USDA-backed mortgage?
What is a USDA Mortgage?
The USDA mortgage is a government-backed loan that allows for a lower down payment and more lenient credit qualifications when purchasing a home in rural or suburban areas. The USDA has a map that shows which areas are eligible for loan USDA funding. Most places in the United States are suitable for USDA funding, except for cities and the surrounding areas.
The USDA mortgage program was first established in the 1930s to help rural Americans who could not purchase homes because of their low income. It requires a 620 credit score and a 30-year fixed-rate mortgage.
The USDA mortgages are available on one-unit homes that meet specific criteria, such as location and size restrictions. In 2022, these mortgages’ average annual income limit was $136,600 for households with 5–8 members. Income limits per county may differ on account of differences in the cost of living. Hence, some metropolitan areas have higher limits.
by striving to make funds available to them within 24 hours of application.
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How Does a USDA Loan Work?
USDA loans are for rural areas, low-income families, and borrowers with low credit scores. If you qualify for a USDA mortgage loan in Texas, you’ll get the following benefits:
- You can use it to buy a home in any state. Rural residents who live in metropolitan areas may also qualify.
- USDA loans don’t require a downpayment so that more people can afford their dream homes.
- There’s no mortgage insurance required with this type of loan, which saves money!
- Instead of mortgage insurance, a USDA loan requires an upfront guarantee fee and an annual fee. The guarantee fee is 1% of the loan amount, while the annual fee is 0.35%.
Is a USDA Loan Right for You?
If you have a low income, want a house in a rural area, or don’t like paying a high upfront downpayment and closing costs, USDA loans might be the perfect fit.
- The USDA loan program is designed specifically for people who live in rural areas or who meet the other eligibility requirements listed above.
- They’re also available to borrowers with less than 20% equity in their home—which means that if your property value is $100K and you owe $80K on it, then you could qualify for this type of mortgage even though it is considered “high risk” by most lenders.
- The final requirement when applying for a USDA loan is having less than stellar credit (660+). If this sounds like where you are right now—and it’s not uncommon—then don’t worry! You can still get approved with help from one of our knowledgeable partners today!
Why Partner With a Mortgage Lender?
While the USDA home loan in Texas is relatively straightforward to navigate, there are some specific steps you can take to ensure you get approved for one.
One way to ensure your application moves through the process smoothly is by working with an experienced mortgage lender. If you need one, the Gentry Vansa team is ready to take on the challenge of helping you secure a USDA mortgage loan in Texas.
We know how frustrating it can be trying to navigate this type of loan by yourself, and we want to make sure that you are treated with respect and professionalism. Our team knows what it takes to get you the best rates available on your USDA Mortgage Loan. We will help determine if you are eligible for a USDA loan and guide you through the process. We will also explain to you your payment options, including how to pay off your loan early without penalty or fees. If you have concerns related to USDA Loans or other home loan types, please contact us today.
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