USDA mortgage loans are boosting development in rural areas and helping families with low or moderate income purchase homes.
The U.S. Department of Agriculture backs USDA loans. They are designed to promote rural living and development.
If you want to live in a rural area in Texas, you may be able to qualify for a Texas USDA mortgage loan.
What is a USDA Mortgage Loan?
In order to increase rural development, the USDA works with lenders to offer these guaranteed loans.
This guarantee allows lenders to offer USDA loans with excellent low rates and no money down. Low-income borrowers in rural areas are able to purchase homes because of USDA mortgage loans.
How Do I Qualify?
In order to be approved for a USDA loan, you and the property must qualify.
The property must be located in a rural area. This means the area must have a population of less than 20,000.
In order to meet the income qualifications, you must make less than 15% above the average income for the area.
You must also be able to demonstrate that you have stable income and employment. A credit score of 640 will be required by most lenders, and your debt-to-income ratio should be below 41%.
