Quick highlights
- $0 down payment required
- Lower mortgage insurance than FHA
- Competitive fixed rates
- Income limits apply (varies by area)
- Property must be in eligible USDA area
- Primary residence only
Is my property eligible?
Eligibility is based on the property's location, and the USDA's definition of 'rural' is broader than most people expect. Many suburban areas outside Houston, San Antonio, Austin, and Dallas qualify. I can check eligibility on any address in minutes.
What are the income limits?
Household income must fall under 115% of the area median income, which varies by county and family size. For most Texas counties, a family of four can qualify with household income up to $110,000-$120,000+. Some higher-cost areas allow even more.
What are the downsides?
Two main ones: the property must be in a USDA-eligible area, and there's both an upfront fee (1%) and an annual fee (0.35%) similar to FHA's MIP. For buyers who qualify, USDA still typically beats FHA on total cost because the fees are lower.
Ready to see what you qualify for?
Every situation is different. Let's talk through your specific scenario and shop it across our lender network for the best terms.