Zero down payment
100% financing on the appraised value. You can also finance the upfront guarantee fee into the loan, meaning you can buy with effectively no money down.
USDA loans for rural and suburban Texas.
Zero down for buyers in eligible Texas areas — and there are more eligible areas than you think. Backed by USDA Rural Development, structured by us.
- 0% down on eligible properties
- Income limits by county — many Texas families qualify
- Lower monthly mortgage insurance than FHA
A zero-down government loan for rural and suburban Texas.
A USDA loan is a mortgage guaranteed by the U.S. Department of Agriculture under the Section 502 Guaranteed Loan Program. The program is administered by USDA Rural Development with the goal of expanding homeownership in rural and qualifying suburban communities. Two things make USDA unique: zero down payment for borrowers who qualify, and a footprint that extends well beyond what most people picture as "rural." Large portions of Collin County, Denton County, Kaufman County, Rockwall County, and almost all of East Texas fall inside USDA-eligible boundaries — and the boundaries are checked address by address using the USDA Eligibility Map.
How a USDA loan goes from inquiry to keys.
- 01
Property and income eligibility check
Before anything else we run the address through the USDA Eligibility Map and check household income against the county limit. If both pass, USDA is on the table.
- 02
Soft-pull pre-qualification
We pull a soft credit report — no FICO ding — and run quick income math. You leave knowing whether USDA is the strongest program for your file.
- 03
Full pre-approval
We collect pay stubs, W-2s, tax returns (USDA verifies all household income, not just borrower income), and bank statements. The file goes through GUS — USDA’s automated underwriting engine.
- 04
House hunting in eligible areas
We share the USDA-eligible boundaries with your real estate agent so you only tour homes you can actually finance with USDA. No wasted weekends.
- 05
Contract, appraisal, and USDA conditional commitment
Once your offer is accepted, we order a USDA appraisal and submit the file to USDA Rural Development for a conditional commitment, which is required before final closing.
- 06
Underwriting, conditions, and funding
The lender clears conditions in parallel with the USDA conditional commitment. We send the closing disclosure at least three business days before close per TRID. You sign at title, funds wire, and you get keys.
Zero down — without the funding fee of a VA loan or the lifetime MI of FHA.
USDA is the most overlooked program in Texas. Most buyers assume they don’t qualify because the word "rural" is on the label — and most agents don’t know that suburban-edge addresses around DFW, Houston, San Antonio, and Austin frequently qualify. When the property and income check out, USDA can beat both FHA and conventional on monthly cost. Our job is to run the eligibility check on day one and structure the file correctly: household income calculation, qualifying ratios, and USDA-specific appraisal expectations.
USDA is the right tool when:
- You want to buy in a USDA-eligible area (we check the address — many Texas suburbs qualify)
- Your household income is at or below the county USDA limit (typically up to ~115% of area median)
- You have little or no down payment saved
- Your FICO is 620+ (some lenders go to 580 with manual underwriting)
- You are buying a primary residence — single-family, townhouse, or eligible condo
Why USDA wins for eligible Texas buyers.
Lower mortgage insurance than FHA
USDA charges a 1.0% upfront guarantee fee plus a 0.35% annual fee — meaningfully cheaper than FHA’s 1.75% UFMIP and ~0.55% annual MIP on most files.
Competitive interest rates
Because USDA is government-guaranteed, lenders price USDA loans similarly to FHA — often a touch better than conventional for borrowers with average credit.
No PMI
USDA uses an annual fee structure rather than traditional PMI. The fee is built into your monthly payment and is generally lower than equivalent conventional PMI at low down payments.
Flexible credit review
GUS-approved files get streamlined underwriting. Borderline files can go to manual underwriting where compensating factors (residual income, savings, low DTI) are weighed.
Larger eligible footprint than most expect
USDA-eligible boundaries cover far more of Texas than the word "rural" suggests — significant portions of the DFW outer suburbs, North Texas, East Texas, and the Hill Country qualify.
0%
Down payment in eligible areas
USDA loan questions, answered.
How do I know if a property is USDA-eligible?
USDA publishes an interactive Eligibility Map that flags addresses by parcel. We check every address before issuing a USDA pre-approval — and we keep the boundaries in mind when working with your agent on the search. Many buyers are surprised to learn that towns on the outskirts of DFW (Anna, Princeton, Melissa, Aubrey, Pilot Point and many others) and significant parts of East Texas, North Texas, and the Hill Country are inside the boundary.
What are the USDA income limits in Texas?
USDA caps household income at roughly 115% of the area median income for the county, with adjustments for household size. The exact dollar number varies by county and family size — we check it on every file before quoting USDA. Importantly, USDA counts all adult household income, not just the income of the people on the loan, which is different from how FHA and conventional underwriting work.
USDA vs FHA — which is better?
When the property and income qualify for USDA, it usually beats FHA on monthly cost: USDA’s annual fee (~0.35%) is lower than FHA’s annual MIP (~0.55% on most files) and you can do zero down vs FHA’s 3.5%. The catch is the eligibility limits — FHA has neither a property location restriction nor a household income limit. We model both side by side when both are possible.
Are there closing costs on a USDA loan?
Yes — USDA loans have standard closing costs (title, appraisal, underwriting, etc.). However, USDA allows the seller to pay up to 6% of the purchase price toward your closing costs, and you can finance up to 100% of the appraised value. Combining seller credits with the appraisal-financed structure means many USDA buyers close with very little out-of-pocket.
What is the USDA guarantee fee?
USDA charges a one-time upfront guarantee fee of 1.0% of the loan amount (which can be financed into the loan) and an annual fee of 0.35% (charged monthly, included in your payment). This is USDA’s version of mortgage insurance. The fees support the program; they are not paid to the lender.
How long does a USDA loan take to close?
Typical USDA close is 35–45 days from a fully ratified contract. The extra time vs FHA or conventional comes from the USDA conditional commitment step — the file goes to USDA Rural Development before clear-to-close, and turn times vary by region. We set timeline expectations with your agent up front so the contract reflects reality.
Wondering if your address qualifies for USDA?
USDA loan requirements at a glance.
- Property must be inside the USDA Eligibility Map boundary for the county
- Household income at or below the county USDA limit (~115% of area median, adjusted for family size)
- FICO 620+ for streamlined GUS approval (manual underwriting available below)
- DTI typically up to 41% (or higher with compensating factors)
- Owner-occupancy: must be your primary residence
- Two-year work history (or schooling counts toward it)
- Upfront guarantee fee (1.0%) + annual fee (0.35%) — both built into payment structure
USDA vs FHA vs VA vs Conventional at a glance.
| USDA | FHA | VA | Conventional | |
|---|---|---|---|---|
| Minimum down | 0% | 3.5% (580+ FICO) | 0% | 3% (first-time buyers) |
| Minimum FICO | 620 (GUS); 580 manual | 580 (or 500 with 10% down) | 580–620 (lender overlay) | 620 (best at 740+) |
| Mortgage insurance | 1.0% upfront + 0.35% annual | MIP — usually for life of loan | No PMI; one-time funding fee | PMI — removable at 80% LTV |
| Income limit | Yes — by county | No | No | No |
| Property location restriction | Yes — USDA-eligible areas | No | No | No |
| Best for | Eligible-area buyers with moderate income | First-time and credit-rebuilding buyers | Veterans, active-duty, qualifying spouses | Strong-credit buyers; investment / second homes |
Ready to move on a USDA Loan?
Get a soft-pull pre-approval in minutes. No credit hit, no surprises.
Other ways we close
FHA Loans
For first-time and credit-rebuilding buyers when USDA isn’t available. 3.5% down at 580 FICO.
Learn moreVA Loans
Zero down for veterans, active-duty service members, and qualifying spouses — anywhere in Texas.
Learn moreConventional Loans
For 620+ FICO buyers — lower long-term cost when you have credit and stable income.
Learn more