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Texas USDA Loans

Texas Mortgage Guides

Texas USDA Loans 2026

USDA-eligible areas across Texas, income limits by county, zero-down financing requirements, and how to use USDA rural housing loans in markets near Houston, San Antonio, Dallas, and Austin.

📖 8 min readUpdated June 2026Texas · USDA Loans
0%Down payment required
NoneUSDA minimum credit score
1%Upfront guarantee fee
0.35%Annual fee (replaces PMI)

USDA-Eligible Areas in Texas

USDA’s Section 502 Guaranteed Loan finances homes in eligible rural areas. Eligibility is set property by property, so the only reliable check is the address itself.

What USDA ChecksDetail
Property locationMust be in an eligible rural area
Address lookupCheck the exact address on USDA’s eligibility site
SiteNo acreage limit; the property must be predominantly residential in design, character and use

Eligibility is determined address-by-address, not by county as a whole. Use the USDA property eligibility map at eligibility.sc.egov.usda.gov to verify any specific Texas property before proceeding.

USDA Income Limits by Texas Region (2026)

USDA caps total household income for the Guaranteed Loan program by area and household size. In 204 of Texas’s 215 USDA income-limit areas, the FY2026 limit is $122,800 for a household of one to four people and $162,100 for five to eight. Eleven areas carry higher limits:

Area1–4 Person Household5–8 Person Household
Most Texas areas$122,800$162,100
Austin-Round Rock-San Marcos MSA$153,550$202,700
Kendall County$153,550$202,700
Brazoria County$144,900$191,300
Glasscock County$139,850$184,650
Dallas HUD Metro FMR Area$139,300$183,900
Hemphill County$131,550$173,650
Wise County$129,150$170,500
Midland HUD Metro FMR Area$126,950$167,600
Fort Worth-Arlington HUD Metro FMR Area$126,850$167,450
Gillespie County$125,700$165,950
Borden County$124,200$163,950

Source: USDA’s FY2026 income limits (HB-1-3555 Appendix 5, PN 657, revised July 13, 2026). Use USDA’s income eligibility tool to confirm which area your county falls in.

Household income, not just borrower income. USDA counts the income of ALL adults in the household — not just the borrowers on the loan. If a non-borrowing adult lives in the home and earns income, that income is included in the eligibility calculation. This is one of the most common reasons USDA applications are denied. Confirm total household income before applying.

USDA Loan Requirements in Texas

RequirementUSDA StandardNotes
Property locationMust be in USDA-eligible areaMost non-urban Texas qualifies; verify on USDA’s eligibility site
Min credit scoreNo USDA minimumLenders may set their own
Down payment0%Guarantee fee (1%) may be financed into the loan
Income limit$122,800 (1–4 person) / $162,100 (5–8 person) in most Texas areasHigher in 11 areas — see income limits table
Income typeAll household income countedAll adults living in the home must be included in income calculation
Property typeSingle-family, modest sizePrimary residence only; no investment properties; must meet USDA condition standards
Upfront guarantee fee1.0% of loan amountTypically financed into the loan; not paid out of pocket
Annual fee0.35% of loan balance/yearPaid monthly ($29/mo per $100K borrowed); lower than FHA MIP
CitizenshipUS citizen or eligible non-citizenStandard requirement

USDA vs. FHA in Texas

FactorUSDA LoanFHA Loan
Down payment0%3.5%
Geographic restrictionUSDA-eligible areas onlyNo restriction — any location
Upfront fee1.0% guarantee fee1.75% MIP
Annual/monthly fee0.35%/year0.55%/year (life of loan)
Income limitSet by USDA by area — household incomeNone
Min credit scoreNo USDA minimum (lenders may set one)580 (3.5% down)
Loan limitNo formal cap (income/DTI limits purchasing power)$541,287 most TX counties
Best for Texas buyersRural/suburban buyers meeting income limits, 0% downUrban buyers; lower credit; no geographic restrictions

USDA wins on monthly cost in eligible areas. At 0.35%/year versus FHA’s 0.55%/year, USDA saves approximately $58/month on a $350,000 loan. Combined with no down payment requirement, USDA is often the strongest program for rural and suburban Texas buyers who meet the income limit and area requirements.

How to Apply for a Texas USDA Loan

  1. Verify property eligibility — Use eligibility.sc.egov.usda.gov to confirm the address is in a USDA-eligible area before proceeding.
  2. Calculate household income — Include ALL adult household members’ income, not just the borrowers.
  3. Check income limits — Compare your household income against your area’s limit in USDA’s income limits list.
  4. Check credit — USDA has no specific minimum credit score; lenders may set their own.
  5. Find a USDA-approved lender — Not all Texas lenders originate USDA loans. Ask specifically whether the lender has active USDA experience.
  6. Get pre-approved — The lender submits your file to USDA’s Guaranteed Underwriting System (GUS) for an automated eligibility determination.
  7. Make an offer — Include address verification in your process; confirm USDA eligibility before going under contract.
  8. USDA conditional commitment — After lender approval, USDA must issue a conditional commitment before closing.

Texas USDA Loan FAQs

Are there USDA-eligible areas near Houston?
USDA eligibility is determined address by address rather than by county or city. Enter the exact property on USDA’s eligibility map before you make an offer, rather than assuming it does or doesn’t qualify.
Can I buy a home near San Antonio with a USDA loan?
Yes, if the property is in a USDA-eligible area. Because USDA decides eligibility address by address, check each property near San Antonio on USDA’s eligibility map before you make an offer.
Does Texas have high property taxes even on USDA-financed rural homes?
Yes — Texas property taxes apply statewide regardless of loan type or rural location. Texas’s estimated effective property tax rate is 1.49% (Census ACS). On a $250,000 home, that is about $3,725 a year, or roughly $310 a month added to your PITI payment. Apply for the homestead exemption after closing — school districts must exempt $140,000 of a homestead’s value (Texas Comptroller).
What is the USDA income limit in Texas for 2026?
$122,800 for a household of one to four people and $162,100 for five to eight in most Texas areas. Eleven areas carry higher limits, the highest being the Austin-Round Rock-San Marcos MSA and Kendall County at $153,550 and $202,700. Source: USDA FY2026 income limits.