Texas USDA Loan

What is a USDA Loan?

USDA guaranteed loans are generally beneficial for moderate to low income borrowers. The loan is also seen as an attractive loan option for borrowers who plan to renovate eligible properties, purchase properties outside the city limits or buy foreclosures
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The Rural Housing Service (RHS) is an agency of the United States Department of Agriculture that promotes rural development home loans, also known as USDA home loans. These are loans that offer 100% financing to buyers or borrowers who qualify. The mortgage loans are be backed by the USDA or United States Department of Agriculture; however the USDA’s definition of rural areas is much more broadly defined. Simply put, USDA loans can only be approved if the property being purchase is situated outside the city limits and located within the USDA eligible area. The primary purpose of USDA home loan is to expand the country’s smaller communities so the requirement does not come as a surprise. 

While USDA mortgage loans were originally meant to help rural America realize the dream of home ownership, they can also come in handy for a variety of other properties. Multifamily homes, businesses and single family properties are a case in point. In addition, loans that are backed by the United States Department of Agriculture can also be used to finance certain typed of development projects.

USDA Guarantee Home Loans are available to qualified borrowers but the property must be located within the USDA eligible area map. To see if the property you intend to purchase qualifies for USDA financing, use the tool checker here.

There are two types of USDA home loans: (1) Direct, and (2) Guaranteed. Both have their respective qualifications and requirements. For the Direct, a borrower must go directly to the USDA Regional Service Center in their area to apply and get the loan. The Direct is geared more towards the lower income household. A lower income family is defined as household making about 80% or less of the Area Median Income (AMI).

The USDA Guarantee Home Loans, on the other hand, is for borrowers whose household income exceeds 80% of the AMI but no more than 115% of the AMI. The USDA Guaranteed Home Loans are the type of loans that private lenders offer on behalf of USDA. Both types of loans must meet the credit, income and asset requirements set forth by the Rural Housing Service.

For more information, contact our USDA Home Loan Specialists at 281-801-9023.

Disclaimers
SPOON INVESTEMENTS LLC (DBA HUB CITY LENDING) NMLS# 1744962 IS A RESIDENTIAL MORTGAGE LOAN COMPANY, 9002 FM 1585 #G, WOLFFORTH, TX 79382. THE INTEREST RATE, APR, LOAN FEES IS BASED ON CREDIT SCORE, LOAN TO VALUE, LOAN AMOUNT, LOAN TYPE AND OTHER FACTORS. NOT ALL CONSUMERS WILL QUALIFY. There is no cost to submit a loan request, get matched with lenders and receive conditional loan offers or quotes. You may review the conditional loan offers or quotes and talk to the lenders at no cost. Of course, the lender you choose may require a fee to process your formal loan application, appraisal, and/or credit report, but until you agree to pay the lender any fee(s), you may shop with Hub City Lending. at no cost.
Figure: 7 TAC §80.200(b)
CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.
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