Guide to USDA Loans in Texas

Guide to USDA Loans in Texas - The Tuttle Group

Guide to USDA Loans in Texas - The Tuttle Group

The U.S. Department of Agriculture offers many services for farmers across the country. But the agency does much more. Part of the USDA’s mission focuses on providing economic opportunity, particularly with a focus on rural America. 

USDA loans in Texas focus on helping communities with investments in housing and other critical infrastructures, such as high-speed Internet, water and waste treatment, and community facilities like hospitals, libraries, and schools.

At the Tuttle Group, our advisors can help you understand and apply for Texas USDA loans. Here’s what you need to know about the resources available at the USDA for your family and your community.

Single-Family Housing Direct Home Loans

The USDA Section 502 Direct Loan Program in Texas provides low-income residents with funding to help repay loans for “safe and sanitary housing” in eligible rural areas. The funding comes in the form of a subsidy that helps lower your mortgage payments for a limited period. USDA looks at your adjusted family income to determine the size of your particular subsidy.

Eligibility for Section 502 Loans

The program asks that applicants have an adjusted income that’s at or below the applicable low-income limit for the geographic area in which they are seeking to live. Applicants also must demonstrate a willingness and a means to repay the loan over a period of time. In addition, successful applicants must:

  • Make the home your primary residence
  • Show they are not able to get home loan funding from other programs at manageable terms
  • Be legally able to sign a loan
  • Meet citizenship or eligible noncitizen requirements

Finally, to obtain USDA loans in Texas, applicants must not be suspended or debarred from participating in federal programs to proceed with their applications. At the Tuttle Group, our loan advisers will work closely to help you understand the eligibility requirements and develop a strategy for finding a qualifying home that works for you and your family.

Loan Details

Loan amounts will depend on a variety of details, including the size of your household, monthly income, monthly debts, property location, estimated property taxes, and estimated hazard insurance. Our loan advisers can assist in collecting proper documentation and filling out the paperwork. You can use the single-family housing direct self-assessment tool. USDA Rural Development will use that documentation to determine the maximum loan amount, based on repayment capabilities and the area’s loan limit locally. The program does not require a down payment. Those with slightly greater assets may be asked to contribute some of those funds.

Other USDA Loan Programs

At the Tuttle Group in Dallas, we focus on helping you obtain USDA direct loans for buying and rehabilitating single-family homes. However, communities often have other needs, and the USDA offers other types of assistance to build community resiliency in rural communities. Some of the other programs include:

  • Business and industry loan guarantees
  • Community facility loans and grants
  • Loan guarantees for waste and water disposal facilities 

Let us know if we can help you pursue loans or loan guarantees under these important programs. Call us or contact us online.

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