New homebuyers in Texas have several options when buying a home but none better than the Texas USDA Home Loan. While the product was originally designed for rural areas areas buyers are also able to take advantage of it in areas just outside of larger cities. There are two types of USDA Home Loans Texas. The Direct and the Guaranteed. The Direct is when the borrower obtains a loan directly from their local USDA office. The Guaranteed is when the borrower works with private lenders such as Primary Residential Mortgage. The USDA Loan has many benefits for home buyers. Texas residents can obtain a 100% no money down USDA loan since a large part of the state qualifies for it.
As with all home loans a person’s income and credit are considered however with USDA Loans the property location and the number of people in a buyer’s home also come into play.
The obvious attraction of the USDA Home Loan Texas is the 100% no money down feature. The USDA Rural Development loan is the only no money down loan available outside of the VA loan. Borrowers do not need to have a down payment with this loan. There are several other benefits such as the mortgage insurance. The rate for the monthly mortgage insurance is very low compared to other loans that have MI. The current factor used monthly is .50%. Another attractive feature is the flexibility in the credit requirements. At Primary Residential our minimum credit score for a Texas USDA Loan is 620. There is a trade line requirements however when those can be meet alternative trade lines can be used. Those trade lines are things like utility bills and other nontraditional credit. Buyers only need to be 2 years out of bankruptcy. Another huge benefit of the USDA Rural Development Loan is that the seller can pay 6% of the sales price towards the buyers closing costs thus allowing the buyer to get into the home with no out of pocket expenses
Primary Residential Mortgage, Inc.
Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.