USDA Texas Rural Home Loan Program

March 19, 2009

The United States Department of Agriculture (USDA) has a rural development program to help make affordable housing available in rural areas (Ex. Boerne, Cibolo, New Braunfels). This program has some key advantages compared to other types of Texas rural home loans. Listed below are some of the key benefits:

USDA Texas Mortgage Program Benefits

No Down Payment Required
100% Financing
Seller May Pay Your Closing Costs Up To 6%
No Reserve Requirements
Very Low Finance Rate At A Fixed Rate
No Mortgage Insurance Which Reduces Your Monthly Payment
No Maximum Purchase Limit
Reasonable Minimum Credit Score
NOT Just For First-Time Home Buyers

Texas USDA Rural Development Loan Qualifications:

The property must be in a designated rural area (Ex. Boerne, Cibolo, New Braunfels)
The property must be for residential use and you must intend to occupy the home as your primary residence
The value of the land should not be more than 30% of the total property value
You must NOT already own adequate housing in the area you wish to purchase in
You must be a US citizen or be a legal permanent resident to the US
Reasonably good credit is required, especially the most recent year
Sufficient dependable income is required for the home you wish to buy; generally the home total payment should be no more than 29% of your gross monthly income
There is an income limit that depends on the county, it is about 115% of the US average
You must NOT have liquid assets of 20% or more of the homes selling price