What is a USDA Loan?

USDA Loans in the surrounding
Houston Area

A USDA home loan is insured by the US Department of Agriculture (USDA) to help with housing needs in the “rural” areas of America. It may surprise you how USDA defines a “rural” area. Some areas often thought of as “suburban” actually are designated as “rural” by USDA. There are more than a few beautiful new planned housing communities on the outer limits of the Houston Metro area that will qualify for a USDA home loan.

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USDA Loan Quick Facts

Zero Downpayment Required.

 Loan Limit varies by area income limit.

 Flexible qualification.

 Low mortgage insurance rates.

Owner occupants only.

Seller contribution up to 6%.

Qualifying is Easy and Simple.

1. How’s My Credit

2. Loan Options

3. Approval Process

4. Steps to Closing

1. How’s My Credit

2. Loan Options

3. Approval Process

4. Steps to Closing

What are the Benefits of USDA Loans in the Houston Area?

 With the USDA insuring your loan, your risk profile as borrower is lower than it would be otherwise. Lenders who see this will be more willing to accommodate your needs when negotiating mortgage terms, and may offer you more competitive loans than you would otherwise be able to qualify for.

Houston homebuyers who are eligible for USDA home loans can take advantage of the following benefits:

The land the home occupies can be as large is “typical in the area”. There is no official size restriction on the acreage.

USDA loans have significantly less costly mortgage insurance than FHA Loans which means that a USDA loans could offer a lower monthly payment versus FHA.

If the home appraisal is for more than the purchase price, then the difference may be rolled into an increased loan amount, which allows the buyer to finance all or some of their closing costs.

Flexible and easy qualifications that are based on FHA guidelines.

30 year fixed rates are extremely competitive.

Have you thought about a rural Houston lifestyle?

What Determines Eligibility for USDA Loans surrounding our Houston Metro Area?

Income Limitations:

Click below to find out the income limitation for your County. This is based on Household Size.

Loan Amount Limitation:

The maximum loan amount is determined by the maximum payment the borrower can make and still maintain their total Debt to Income (DTI) Ratio below 41%. In some circumstances Automated Underwriting can allow a DTI Ratio to slightly exceed 41%.

Area Limitations:

Click below to find out if an address is eligible for an USDA loan:

Map of available locations for USDA loans near Houston Metro

Other home loans include:

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