USDA Rural Development Home Loan Program Available

With an abundance of homes for sale in most of rural Texas, buyers continue to have plenty of choices and lots of bargaining power.

With the help of USDA Rural Development’s "No Down Payment" home loan programs, dreams of home ownership can come true.

USDA Rural Development’s Rural Housing Direct Home Loan Program offers 100 percent financing with no down payment required for low and lower income individuals or families at a 3.25 percent interest rate. These loans are made directly through USDA Rural Development and are offered for a period of 30-38 years. The repayment on the loan may be subsidized by the Federal Government, based on the household income. Direct loans may be made for the purchase of an existing home or new home construction.

The loan amount is determined by repayment ability of the borrower. Loans made under this program are to individuals and families with income that does not exceed 80 percent of the median income level of the county where they live and who would not otherwise qualify for a conventional loan. County Income limits for the programs are posted on the USDA Rural Development Texas website and clicking on “Check Eligibility” on the bottom of the screen.

USDA Rural Development’s Rural Housing Programs offer a broad range of home ownership assistance available to individuals and families who wish to or currently live in rural areas, cities, and communities. The Rural Housing Program area of USDA Rural Development has the ultimate goal of providing affordable home ownership opportunities to Texas residents.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life in rural communities. For further information on USDA Rural Development and programs offered, you can visit our website, email TXdirectSFH@tx.usda.gov or call (254) 742-9770.