USDA Home Loans in Dallas, TX

Texas USDA Home Loans: Financing Your Rural Dream Home

USDA Home Loans in Dallas, TX​

In the expansive rural communities of Texas, USDA home loans offer a pathway to homeownership with significant benefits. These government-insured loans provide the opportunity to purchase homes with no down payment, offering 100% financing to those who qualify. Understanding if you qualify for a USDA loan in Texas is key.

Qualifying for a USDA Loan in Texas

Eligibility for a USDA loan requires that your prospective home be located within a USDA-designated rural area. We can assist in verifying your county’s eligibility, or you can easily check online through the USDA’s eligibility site for Texas. The USDA’s aim is to bolster rural communities by making homeownership more accessible, and you might be surprised by the extensive number of counties in Texas that are eligible for these loans.

For 2024, USDA loan limits in Texas are set at $348,500.

Advantages of USDA Loans for Dallas Texans

  • Ideal for Rural Properties
  • 100% Financing Available
  • No Upper Limit on Loan Amounts
  • Flexible Seller Concessions
  • Low Monthly Mortgage Insurance Premiums
  • Allowance for Acreage (up to 30% of Total Value, with
  • Restrictions)
  • Use of FHA/USDA Certified Appraisers
  • Possibility to Include a 1% Guarantee Fee in Loan Financing

How Do USDA Loans Work?

The Rural Housing Loan Program, or Section 520, is a government initiative geared toward enabling rural homeownership. Created in the early ’90s, the USDA loan is especially pertinent in Texas, where over 97% of the land is classified as rural. This makes USDA loans widely available to those meeting the income requirements in these areas.

One of the most compelling features of USDA loans is the offering of lower interest rates with 100% financing, coupled with the absence of a down payment requirement. USDA loans also have fixed rates and require private mortgage insurance (PMI). Unlike some other loan types, USDA loans do not offer adjustable-rate mortgage (ARM) products.

USDA Loan Rates and Terms

  • Current Rate: 7.625% APR, 8.331% (30-Year USDA)
  • 100% Financing for Eligible Rural Properties
  • No Prepayment Penalties

Texas USDA Loan Requirements: A Snapshot for 2024

A USDA loan might be your ideal choice if you meet the loan requirements and your property is eligible. They share some similarities with FHA and VA loans in Texas, such as low-interest rates and the possibility of 100% financing. Furthermore, USDA loans don’t have prepayment penalties and can be structured without a down payment.

For 2024, the minimum credit score for a USDA loan is 600 FICO. Applicants with higher scores may enjoy streamlined processing, while those with scores below 600 may still qualify but will undergo more comprehensive underwriting.

Discover More About Texas USDA Loans with HomeTown Lending

If you’re considering a USDA loan, our knowledgeable loan specialists are here to address any questions you may have. For further details, USDA.gov provides eligibility information by address or zip code. Connect with us today to discuss whether a USDA loan aligns with your homeownership goals in Texas’s rural landscapes.

Embark on your journey to securing a piece of Texas’s rural charm with the support of HomeTown Lending’s USDA loan expertise.