The rural housing loan program is sponsored by the USDA to assist low to moderate
income families wishing to purchase a rural home with
no down payment or to refinance an existing rural housing
loan. Closing costs can be financed in the loan
amount up to the appraised value of the home.
Texas rural housing properties must be located in a
designated rural area and borrowers must meet income
limits set by the Rural Development program.
- No Down Payment Required
- Finance Closing Cost up to appraised
- Loans up to 102.00%, to finance the
- Low Interest Rates
- No Mortgage Insurance
- Borrowers must meet income limits set
by the USDA program
- Properties must be in a designated rural
- Requires manual underwriting
- Requires a 2.0% guarantee fee
- 1 unit owner occupied primary residence
- Automated Underwriting
- Not allowed. Requires manual underwriting. This
loan program requires two loan approvals, one from
the lender and one from USDA. It takes about two
weeks for the loan approval process.
- Bankruptcy or Foreclosure
- Requires a minimum of 3 years from the bankruptcy
discharge date or the date of the foreclosure.
- Closing Costs - Closing
costs can be financed up to the appraised value
of the home.
NOTE: Prepaid interest and discount points cannot
be financed, but can be paid by the seller.
- Credit Scores - Our
minimum credit score is 640. If your scores
are below 640 you will need credit repair to see
if your scores can be raised enough to qualify.
- Down Payment - Zero...No
down payment required.
- DTI Ratio - USDA
loans use two qualifying ratios, 29/41.
A maximum of 29% of your gross monthly income can
be used to pay your new house payment, including
taxes and insurance(PITI) and,
A maximum of 41% of your gross monthly income can
be used to pay all of your monthly debts, including
your house payment(PITI). With compensating factors
these ratios can be stretched a little higher.
- Escrows - Taxes and
insurance must be escrowed with the lender.
- Guarantee Fee - Purchase
loans require a 2% guarantee fee based on the final
loan amount plus a 0.5% annual fee paid monthly
as a part of your monthly payment.
The guarantee fee can be financed in the new loan
amount. (see LTV below)
- Income Limits - USDA
loans limit the gross income your family makes depending
on the number of family members and the location
of the new property.
Click here to look up the maximum income your family
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- Loan Terms - Only
30 year fixed rate loans.
- LTV - The maximum
LTV is 100% plus any portion of the guarantee fee
that is financed. Closing costs may be financed
in the new loan amount up to the appraised value.
Loan amounts may not exceed the appraised value
- Manufactured Homes
- Single-wide and Double-wide manufactured homes
are NOT eligible.
- Minimum Loan Amount
- Mortgage Insurance
- Not Required. (see Guarantee Fee above)
- Occupancy - Borrower
must occupy the home within 60 days after closing.
- Pools - In-ground
pools are allowed as long as loan funds are not
used to finance the contributory value of the swimming
- Appraisers must determine the contributory
value of an operable in-ground swimming pool
and subtract that amount from the appraised
value before the maximum loan amount is calculated.
- If the in-ground pool has no contributory
value because it is inoperable, no changes to
the maximum loan amount are necessary.
- Property Eligibility
- Only properties located in a designated RURAL
area are eligible for USDA financing.
Click here to look up the property address to determine
eligibility or you can look at general maps for
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- Property Types -
Single family, 1 unit homes, townhomes, approved
Condos and PUDs.
Condo projects must be approved by HUD, VA, FNMA
or FHLMC and served by an HOA.
NO 2-4 unit multi-family properties.
- Seller Concessions
- Are limited to 6% of the sales price. The closing
costs can be paid by the seller, paid by the
lender with overpar pricing or financed(providing
the appraised value is high enough to support inclusion
of the costs).
Guidelines subject to change without notice. Additional
guidelines and restrictions may apply.
Submit your loan application
for loan approval.
30 day lock.
Maximum loan amount is $417,000,
2% guarantee fee, if financed.
Eligible borrowers must meet USDA income
Eligible properties must be in a designated
USDA rural area.
Closing costs can be financed up to appraised
>700 = subtract 0.25% pt.
640 - 660 = add 0.25 pt.
& restrictions may apply <> Contact us for an
analysis and estimate
Notes for rates
It's real easy to Get Pre-Approved. Just
click here to submit your loan application and get
Lock your rate at
888-623-7083 or in Austin
Rates are subject to change without notice until
Rates on this Page Last Updated:
Purchase Loan Application
is a complete loan application and purchase
questionnaire. It should take from 15 to 30
minutes to complete.
for a general list of information needed
to complete your application.
- After reviewing your application and
credit report, your loan will be submitted
for Automated Underwriting prior to calling
you to discuss your application unless additional
information is needed from you.
- The results will be emailed to you with
an estimate for your review. Rates are subject
to change until locked in.
Please call our office for details about
locking your rate.
- Your complete loan application and disclosure
forms will be overnighted to you for your
review and signatures, along with copies
for your records. A written list of the
required documents needed and a return overnight
envelope will also be included for you to
return the documents to us.
- The only upfront costs to you are the
credit report/AUS fee($50) & the appraisal
fee($405). The appraisal fee cannot be collected
until you have received a Good Faith Estimate
and Truth In Lending. Click
for more details on the loan process.
If for some reason your loan cannot be approved
through our Automated Underwriting Systems
and traditional underwriting is required,
some additional costs may be required and
you will be advised in advance. More details
on "Traditional Underwriting" can be found
- This is a short form that only
takes a few minutes to complete.
- It will give us the info we need to
pre-qualify you according to your income,
debts and funds available for down payment
and closing costs.
- The results will be emailed to you with
an estimate for your review.
- The Pre-Qualify form is primarily designed
for borrowers with good credit since NO
credit report will be pulled with this prequalification.
Email or call us if you need additional