Welcome to USDA Texas Mortgage
Serving all your Texas USDA Loan Needs
If you are looking for information on the USDA Home Loan offered through USDA Rural Development you’ve landed in the right place. This particular loan program seems to have many names. It is often called the USDA Rural Home Loan or Guaranteed Home Loan. No matter the name it all comes from the same place and has the same requirements. 100% financing is the cornerstone of USDA financing. Other than VA Mortgages which only Veterans can apply for, USDA home mortgage is the only other 100% option out there.
What is a USDA Mortgage, and what makes this program better than other programs that offer a low down payment? USDA loans are a FIXED-rate mortgages with 30-year fully amortizations, which provides for a stable payment over the life of the loan, thus giving the borrower security. USDA loans DO have a small monthly MI payment! MI payments can be a burden on the borrower in making his monthly payments; therefore, we must note the monthly insurance rate is .3% compared to 1.15% for FHA, this is a huge advantage. For Refinances, USDA will only allow a current USDA mortgage to be refinanced into a USDA mortgage.
What is the downside to a USDA mortgage? Nothing financially, but USDA loans are geographically and income restrictive. Typically towns on the outskirts of larger cities and less than 30,000 residents apply. You would be surprised were the areas are. Please click this link Property Elgibility and begin your search. Income limits are liberal and are based on the total projected income for all adults living in the household. This income limit varies between counties. An applicant may have an income up to 115% of the median income for the area. Please click on this link Income Elgibility to find the income limits for your particular area.