USDA Loans

Part of the department's single-family housing program, the USDA loan program seeks to facilitate the acquisition of homes in rural or suburban areas by streamlining mortgage processes for borrowers. With lower down payment and income requirements compared to conventional loans and other government-guaranteed loans, USDA loans also come with stringent income and location criteria.

USDA loans encompass various categories, some of which are exclusively available to borrowers with the lowest incomes. These loans can be obtained either directly from the USDA or through private lenders with department guarantees. Additionally, the USDA's Rural Development program provides grants to individuals engaged in housing construction projects.

Despite the aim of the USDA loan program to expand homeownership opportunities to a broader range of buyers, individuals must meet specific requirements to be eligible for the loans. The USDA's programs impose income limits and often demand satisfactory credit scores.

Eligibility Requirements for USDA Loan

• In order to qualify for a USDA loan, it is essential to be either a United States citizen or a permanent resident.
• Your monthly payment should not exceed 29% of your monthly income. Additionally, you must provide proof of consistent income spanning the past 24 months and not have any outstanding debts in collections within the last year.
• To increase your likelihood of prompt approval and to receive increased attention from lenders, it is advisable to apply once your credit score reaches 640 or higher.
• USDA loans are specifically designed to assist individuals with the greatest need, particularly those lacking safe and sanitary housing.
• It is important to note that while purchasing a home within a city using this loan option may not be feasible, certain suburbs are classified as rural by the USDA. Therefore, it is possible to acquire a Houston USDA mortgage loan for a home located just beyond city limits.