Zero-down USDA Guaranteed Loans are the most popular rural development mortgage program in Texas. These loans are available for anyone with low to moderate income to purchase a home in approved rural areas with no down payment. The USDA Guaranteed Loan Program is also the favorite no-down payment mortgage in Texas for non-veterans today, and can be used for a broader range of applicant incomes than USDA Direct Loans.
What are Texas USDA Loans?
The USDA loan program was created by the United States Department of Agriculture Rural Development, also known as “USDA RD”. USDA Guaranteed Loans (also known as USDA Section 502 Guaranteed Loans) are a mortgage program for low and moderate income mortgage applicants. Texas USDA loans provide low-cost, government insured mortgage options that suit a variety of home buying needs. The most common mortgages offered through USDA are known as “Guaranteed” loans. USDA Guaranteed Loans are 100% financing mortgages, which means you can use them to buy a home with no down payment.
Texas USDA Loan Requirements
USDA loan requirements mainly focus on the home loan applicant and the property. First off, the home must be located in an approved rural areas to be considered eligible for USDA financing. Second off, the home buyer must meet all income requirements set forth by USDA. These income limits are established through a combination of debt-to-income ratios and income ceilings that equal 115% of the area median income (AMI) for the particular area. Statewide, Texas carries a median household income of $61,874, but that can vary from county to county. Ultimately, the applicant must also meet all lender requirements for mortgage approval which include:
- Credit Requirements
- Income Requirements
- Documentation Requirements
Texas USDA Loan Limits
USDA doesn’t set specific maximum loan amounts for guaranteed mortgages. Instead, local limits are determined by a combination of the area USDA maximum income limit and the borrower’s debt-to-income ratios. This approach means that guaranteed Texas USDA loan limits are fluid and based upon numerous factors. The limits listed below are based on approximate calculations. Actual guaranteed loan limits may vary.
Area | 1-4 Person Households | 5-8 Person Households |
|---|---|---|
| Abilene, TX MSA | $306,000 | $391,000 |
| Amarillo, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Anderson County, TX | $306,000 | $391,000 |
| Andrews County, TX | $340,000 | $431,000 |
| Angelina County, TX | $306,000 | $391,000 |
| Aransas County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Atascosa County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Austin County, TX HUD Metro FMR Area | $306,000 | $408,000 |
| Austin-Round Rock, TX MSA | $374,000 | $483,000 |
| Bailey County, TX | $306,000 | $391,000 |
| Baylor County, TX | $306,000 | $391,000 |
| Beaumont-Port Arthur, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Bee County, TX | $306,000 | $391,000 |
| Blanco County, TX | $306,000 | $391,000 |
| Borden County, TX | $323,000 | $417,000 |
| Bosque County, TX | $306,000 | $391,000 |
| Brazoria County, TX HUD Metro FMR Area | $374,000 | $483,000 |
| Brewster County, TX | $306,000 | $391,000 |
| Briscoe County, TX | $306,000 | $391,000 |
| Brooks County, TX | $306,000 | $391,000 |
| Brown County, TX | $306,000 | $391,000 |
| Brownsville-Harlingen, TX MSA | $306,000 | $391,000 |
| Burnet County, TX | $306,000 | $391,000 |
| Calhoun County, TX | $306,000 | $391,000 |
| Camp County, TX | $306,000 | $391,000 |
| Cass County, TX | $306,000 | $391,000 |
| Castro County, TX | $306,000 | $391,000 |
| Cherokee County, TX | $306,000 | $391,000 |
| Childress County, TX | $306,000 | $391,000 |
| Cochran County, TX | $306,000 | $391,000 |
| Coke County, TX | $306,000 | $391,000 |
| Coleman County, TX | $306,000 | $391,000 |
| College Station-Bryan, TX MSA | $306,000 | $391,000 |
| Collingsworth County, TX | $306,000 | $391,000 |
| Colorado County, TX | $306,000 | $391,000 |
| Comanche County, TX | $306,000 | $391,000 |
| Concho County, TX | $306,000 | $391,000 |
| Cooke County, TX | $306,000 | $391,000 |
| Corpus Christi, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Cottle County, TX | $306,000 | $391,000 |
| Crane County, TX | $323,000 | $417,000 |
| Crockett County, TX | $306,000 | $391,000 |
| Culberson County, TX | $306,000 | $391,000 |
| Dallam County, TX | $306,000 | $391,000 |
| Dallas, TX HUD Metro FMR Area | $340,000 | $431,000 |
| Dawson County, TX | $306,000 | $391,000 |
| Deaf Smith County, TX | $306,000 | $391,000 |
| Delta County, TX | $306,000 | $391,000 |
| DeWitt County, TX | $306,000 | $391,000 |
| Dickens County, TX | $306,000 | $391,000 |
| Dimmit County, TX | $306,000 | $391,000 |
| Donley County, TX | $306,000 | $391,000 |
| Duval County, TX | $306,000 | $391,000 |
| Eastland County, TX | $306,000 | $391,000 |
| Edwards County, TX | $306,000 | $391,000 |
| El Paso, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Erath County, TX | $306,000 | $391,000 |
| Falls County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Fannin County, TX | $306,000 | $391,000 |
| Fayette County, TX | $306,000 | $391,000 |
| Fisher County, TX | $306,000 | $391,000 |
| Floyd County, TX | $306,000 | $391,000 |
| Foard County, TX | $306,000 | $391,000 |
| Fort Worth-Arlington, TX HUD Metro FMR Area | $306,000 | $408,000 |
| Franklin County, TX | $306,000 | $391,000 |
| Freestone County, TX | $306,000 | $391,000 |
| Frio County, TX | $306,000 | $391,000 |
| Gaines County, TX | $306,000 | $391,000 |
| Garza County, TX | $306,000 | $391,000 |
| Gillespie County, TX | $306,000 | $391,000 |
| Glasscock County, TX | $374,000 | $483,000 |
| Gonzales County, TX | $306,000 | $391,000 |
| Gray County, TX | $306,000 | $391,000 |
| Grimes County, TX | $306,000 | $391,000 |
| Hale County, TX | $306,000 | $391,000 |
| Hall County, TX | $306,000 | $391,000 |
| Hamilton County, TX | $306,000 | $391,000 |
| Hansford County, TX | $306,000 | $391,000 |
| Hardeman County, TX | $306,000 | $391,000 |
| Harrison County, TX | $306,000 | $391,000 |
| Hartley County, TX | $323,000 | $408,000 |
| Haskell County, TX | $306,000 | $391,000 |
| Hemphill County, TX | $306,000 | $391,000 |
| Henderson County, TX | $306,000 | $391,000 |
| Hill County, TX | $306,000 | $391,000 |
| Hockley County, TX | $306,000 | $391,000 |
| Hood County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Hopkins County, TX | $306,000 | $391,000 |
| Houston County, TX | $306,000 | $391,000 |
| Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area | $306,000 | $408,000 |
| Howard County, TX | $306,000 | $391,000 |
| Hudspeth County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Hutchinson County, TX | $306,000 | $391,000 |
| Irion County, TX SEA | $306,000 | $391,000 |
| Jack County, TX | $306,000 | $391,000 |
| Jackson County, TX | $306,000 | $391,000 |
| Jasper County, TX | $306,000 | $391,000 |
| Jeff Davis County, TX | $306,000 | $391,000 |
| Jim Hogg County, TX | $306,000 | $391,000 |
| Jim Wells County, TX | $306,000 | $391,000 |
| Karnes County, TX | $306,000 | $391,000 |
| Kendall County, TX HUD Metro FMR Area | $374,000 | $483,000 |
| Kenedy County, TX | $306,000 | $391,000 |
| Kent County, TX | $306,000 | $391,000 |
| Kerr County, TX | $306,000 | $391,000 |
| Killeen-Temple, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Kimble County, TX | $306,000 | $391,000 |
| King County, TX | $323,000 | $417,000 |
| Kinney County, TX | $306,000 | $391,000 |
| Kleberg County, TX | $306,000 | $391,000 |
| Knox County, TX | $306,000 | $391,000 |
| La Salle County, TX | $306,000 | $391,000 |
| Lamar County, TX | $306,000 | $391,000 |
| Lamb County, TX | $306,000 | $391,000 |
| Lampasas County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Laredo, TX MSA | $306,000 | $391,000 |
| Lavaca County, TX | $306,000 | $391,000 |
| Lee County, TX | $306,000 | $391,000 |
| Leon County, TX | $306,000 | $391,000 |
| Limestone County, TX | $306,000 | $391,000 |
| Lipscomb County, TX | $323,000 | $417,000 |
| Live Oak County, TX | $306,000 | $391,000 |
| Llano County, TX | $306,000 | $391,000 |
| Longview, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Loving County, TX | $323,000 | $417,000 |
| Lubbock, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Lynn County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Madison County, TX | $306,000 | $391,000 |
| Marion County, TX | $306,000 | $391,000 |
| Martin County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Mason County, TX | $306,000 | $391,000 |
| Matagorda County, TX | $306,000 | $391,000 |
| Maverick County, TX | $306,000 | $391,000 |
| McAllen-Edinburg-Mission, TX MSA | $306,000 | $391,000 |
| McCulloch County, TX | $306,000 | $391,000 |
| McMullen County, TX | $306,000 | $391,000 |
| Medina County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Menard County, TX | $306,000 | $391,000 |
| Midland, TX HUD Metro FMR Area | $357,000 | $466,000 |
| Milam County, TX | $306,000 | $391,000 |
| Mills County, TX | $306,000 | $391,000 |
| Mitchell County, TX | $306,000 | $391,000 |
| Montague County, TX | $306,000 | $391,000 |
| Moore County, TX | $306,000 | $391,000 |
| Morris County, TX | $306,000 | $391,000 |
| Motley County, TX | $306,000 | $391,000 |
| Nacogdoches County, TX | $306,000 | $391,000 |
| Navarro County, TX | $306,000 | $391,000 |
| Newton County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Nolan County, TX | $306,000 | $391,000 |
| Ochiltree County, TX | $306,000 | $391,000 |
| Odessa, TX MSA | $306,000 | $391,000 |
| Oldham County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Palo Pinto County, TX | $306,000 | $391,000 |
| Panola County, TX | $306,000 | $391,000 |
| Parmer County, TX | $306,000 | $391,000 |
| Pecos County, TX | $306,000 | $391,000 |
| Polk County, TX | $306,000 | $391,000 |
| Presidio County, TX | $306,000 | $391,000 |
| Rains County, TX | $306,000 | $391,000 |
| Reagan County, TX | $306,000 | $408,000 |
| Real County, TX | $306,000 | $391,000 |
| Red River County, TX | $306,000 | $391,000 |
| Reeves County, TX | $306,000 | $391,000 |
| Refugio County, TX | $306,000 | $391,000 |
| Roberts County, TX | $357,000 | $466,000 |
| Runnels County, TX | $306,000 | $391,000 |
| Rusk County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Sabine County, TX | $306,000 | $391,000 |
| San Angelo, TX MSA | $306,000 | $391,000 |
| San Antonio-New Braunfels, TX HUD Metro FMR Area | $306,000 | $391,000 |
| San Augustine County, TX | $306,000 | $391,000 |
| San Jacinto County, TX | $306,000 | $391,000 |
| San Saba County, TX | $306,000 | $391,000 |
| Schleicher County, TX | $306,000 | $391,000 |
| Scurry County, TX | $306,000 | $391,000 |
| Shackelford County, TX | $306,000 | $391,000 |
| Shelby County, TX | $306,000 | $391,000 |
| Sherman County, TX | $306,000 | $391,000 |
| Sherman-Denison, TX MSA | $306,000 | $391,000 |
| Somervell County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Starr County, TX | $306,000 | $391,000 |
| Stephens County, TX | $306,000 | $391,000 |
| Sterling County, TX | $306,000 | $391,000 |
| Stonewall County, TX | $306,000 | $391,000 |
| Sutton County, TX | $306,000 | $391,000 |
| Swisher County, TX | $306,000 | $391,000 |
| Terrell County, TX | $306,000 | $391,000 |
| Terry County, TX | $306,000 | $391,000 |
| Texarkana, TX-Texarkana, AR HUD Metro FMR Area | $306,000 | $391,000 |
| Throckmorton County, TX | $306,000 | $391,000 |
| Titus County, TX | $306,000 | $391,000 |
| Trinity County, TX | $306,000 | $391,000 |
| Tyler County, TX | $306,000 | $391,000 |
| Tyler, TX MSA | $306,000 | $391,000 |
| Upton County, TX | $306,000 | $391,000 |
| Uvalde County, TX | $306,000 | $391,000 |
| Val Verde County, TX | $306,000 | $391,000 |
| Van Zandt County, TX | $306,000 | $391,000 |
| Victoria, TX MSA | $306,000 | $391,000 |
| Waco, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Walker County, TX | $306,000 | $391,000 |
| Ward County, TX | $306,000 | $391,000 |
| Washington County, TX | $306,000 | $391,000 |
| Wharton County, TX | $306,000 | $391,000 |
| Wheeler County, TX | $306,000 | $391,000 |
| Wichita Falls, TX MSA | $306,000 | $391,000 |
| Wilbarger County, TX | $306,000 | $391,000 |
| Willacy County, TX | $306,000 | $391,000 |
| Winkler County, TX | $306,000 | $391,000 |
| Wise County, TX HUD Metro FMR Area | $306,000 | $391,000 |
| Wood County, TX | $306,000 | $391,000 |
| Yoakum County, TX | $306,000 | $391,000 |
| Young County, TX | $306,000 | $391,000 |
| Zapata County, TX | $306,000 | $391,000 |
| Zavala County, TX | $306,000 | $391,000 |
Additional USDA Limits
- Texas USDA Guaranteed Loan Income Limits
- Texas USDA Direct Loan Limits
- Texas USDA Direct Loan Income Limits
- All USDA Loan Limits
- USDA Loan Requirements
What is the maximum amount that I can borrow with a USDA Loan?
The maximum amount for a USDA home loan in Texas is determined by:
- Maximum Loan Amount: There’s no set maximum loan amount for USDA rural home loans in TX. Instead, your debt-to-income ratios dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for all areas can be found at here.
- Maximum Financing: The maximum USDA Rural Development Loan amount in TX is 100% of the home’s appraised value plus the 1% USDA RD Loan guarantee fee.
What types of loans does USDA offer in Texas?
Two USDA home loan options are presently available in Texas for single family households. These programs are backed by the U.S. Department of Agriculture by way of its Rural Development Housing Loans:
- Texas USDA Guaranteed Home Loans – Guaranteed Loans the most common Rural Housing Loans in Texas, because they accommodate higher income limits and 100% financing for home purchases. USDA Guaranteed applicants may have an income of up to 115% of the median household income for the area, which average $61,874 across the state. Specific area income limits for the program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.
- Texas USDA Direct Home Loans – USDA Direct Housing Loans in Texas are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.
What factors determine if I’m eligible for a USDA Loan in Texas?
To be eligible for a USDA loan in Texas, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is generally required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.
How much money will I need for the down payment and closing costs?
Rural Development Mortgages in Texas require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).
What property types are allowed for USDA Mortgages?
While USDA Guidelines do require that the property be Owner Occupied (OO), they also allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.
