USDA Rural Housing Loans

USDA Rural Housing Loans is a first mortgage for homebuyers in Texas. USDA Rural Development Section 502 Guaranteed Loan Program offers 100% financing (no down payment) for low-to-moderate income households purchasing in eligible rural areas of Texas. Features competitive fixed rates, no PMI, and flexible credit standards. Upfront guarantee fee of 1% and annual fee of 0.35% apply instead of PMI. $0 down payment required. 100% financing available. competitive fixed interest rates. no private mortgage insurance (PMI). flexible credit requirements (minimum 640 score). no first-time homebuyer requirement. upfront guarantee fee of 1% can be financed into loan. annual fee of 0.35% (much lower than FHA MIP). seller concessions up to 6% allowed. available for purchase of modest single-family homes in USDA-eligible rural areas of Texas. Funding comes from Federal.

USDA Rural Housing Loans is a first mortgage and is repaid under the terms set by the administering agency. Repayment is triggered by Sale, Refinance, and No Longer Primary. The assistance is recorded in 1st Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

USDA Rural Housing Loans is open to homebuyers who will live in the home as their primary residence. The program lists a minimum credit score of 640. Residency requirement: No Requirement. Citizenship or immigration status: Legal Resident. U.S. Citizen, non-citizen national, or Qualified Alien required. Property must be located in a USDA-eligible rural area. No first-time homebuyer requirement. Income must not exceed 115% of area median income.

USDA Rural Housing Loans limits household income to 115% of the area median income, which varies by county and household size. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

USDA Rural Housing Loans can be used for Single Family, Townhouse, Manufactured Home, Modular Home, and New Construction. New construction is eligible. Manufactured homes are eligible.

USDA Rural Housing Loans serves homebuyers purchasing anywhere in Texas. The program targets specific areas: Available in USDA-eligible rural areas of Texas. Eligible areas are generally communities with populations under 35,000 that are not adjacent to large metropolitan areas. Use the USDA Property Eligibility Map to verify a specific address. Many suburban and exurban Texas communities qualify. Major metropolitan areas (Houston, Dallas, Austin, San Antonio core areas) are generally ineligible.

Applications for USDA Rural Housing Loans go through the administering agency, which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.