USDA Home Loans in Texas
If you’re a homeowner with decent credit, but struggling to get approved for a conventional home loan, you may want to consider the Texas USDA home loan program. The Texas USDA Home Loan program is specifically designed for lower to moderate income families, or individuals, looking to purchase a home in a Texas rural area. While USDA Loans in Texas have long been considered “farmers loans”, this is not the case. Many Texas residents are often surprised when they discover that in many cases USDA rural areas can be suburbs on the outskirts of larger cities, or small towns with less than 25,000 residents.
Texas USDA Home Loan Advantages
USDA Home Loans in Texas offer many advantages to qualified borrowers that you won’t find from a traditional mortgage. First and foremost, the Texas USDA home loan program is one of the only home loan programs left in the country that requires absolutely no money down on the purchase of your home. This could be essential for buyers who can’t afford to save up thousands and thousands of dollars needed for the costly down payment of a home.
Also, the Texas USDA loan program has tons of other excellent features such as a low interest rate 30 year fixed term, very low PMI insurance, and you still can be accepted even if you’ve had a previous bankruptcy, as long as it has been discharged for more than two year. Another great feature of the Texas USDA home loan program is that closing costs can be financed into the total amount of the loan, or can be arranged to be paid party by the seller. This can save the buyer thousands of dollars upfront when purchasing the home, which can be spent on other necessities like on furnishing the home, home repair, and home insurance.
Who Is Eligible For a Texas USDA Home Loan
To be eligible for a USDA Home Loan in Texas, you must meet the following criteria. You must have moderate to low income, but still be able to prove that you can afford to make mortgage payments every month. Because the USDA home loan program was designed to help low, to very low, income families and individuals secure a home loan, there are designed income limits that vary for each USDA qualified area. These income limits are generally 115% of the average median income for that area.
You must also be a U.S. citizen, or legally permitted to be in the United States. You must have an above average credit history, with no unresolved bankruptcies or foreclosures. Bankruptcies must be dismissed for two years and foreclosures must be at least three years old. Also, you must have a minimum credit score of 640.
You may call a Texas USDA Loan Specialist to find out your areas maximum income limits and USDA eligible areas.
