The United States Department of Agriculture (USDA) loans program provides mortgages to the resident of rural areas having low-to-moderate income to buy, repair, or renovate their home who cannot afford high down payments. USDA home loans offer 100% financing to qualified buyers.
The Lowdown on USDA Loans...

How the USDA loan in Texas works:
The USDA offers two home loan programs and both help’s qualifier to purchase home
- Section 502 Guaranteed loan: As the USDA offer’s guaranteed 90% loan amount support, lenders offer loans at fixed rates and no down payments. This allows you to get low mortgage interest rates, even without a down payment.
- Section 502 Direct loan: It is issued by the USDA to qualified buyers who don’t receive an affordable mortgage from any other lenders and do not have secure, decent, and sanitary housing. Due to subsidies, interest rates are low around 1%.
Why USDA home loans?
USDA home loans are for rural homebuyers having zero-down-payment mortgages. The main benefit is that USDA is been granted to only those buyers who are not wealthy enough to pay the traditional mortgage to buy, repair, or renovate their home. Buyers who are qualified for these loans are provided with the flexibility to pay nothing for the down payment.
Do I Qualify?
- Loans are available to those buyers having a low-to-moderate income.
- The limit of income depends on the area you live in and the loan program.
- The ideal credit score must be 640, but still, you can get qualified at a low credit score.
- Must be a permanent citizen of the U.S.
How Do I Apply for the USDA Loan in Texas?
To apply for USDA home loans, you need a good credit score and submit various documents to the lenders, to check whether you are qualified or not.
For applying for a guaranteed loan, you are required to approach an approved USDA lender who could provide you best loan terms. And for a direct loan, you will need to submit your applications directly to the USDA rural development.
We are here to make it easier for you and guide you starting from a FREE USDA Loan Qualifier, where you can check for your qualification. Our USDA loan lenders in San Antonio, Austin, Dallas, Houston, TX, and more will guide you and provide all the details for choosing the right loan programs.