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.
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 Checks | Detail |
|---|---|
| Property location | Must be in an eligible rural area |
| Address lookup | Check the exact address on USDA’s eligibility site |
| Site | No 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:
| Area | 1–4 Person Household | 5–8 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.
USDA Loan Requirements in Texas
| Requirement | USDA Standard | Notes |
|---|---|---|
| Property location | Must be in USDA-eligible area | Most non-urban Texas qualifies; verify on USDA’s eligibility site |
| Min credit score | No USDA minimum | Lenders may set their own |
| Down payment | 0% | Guarantee fee (1%) may be financed into the loan |
| Income limit | $122,800 (1–4 person) / $162,100 (5–8 person) in most Texas areas | Higher in 11 areas — see income limits table |
| Income type | All household income counted | All adults living in the home must be included in income calculation |
| Property type | Single-family, modest size | Primary residence only; no investment properties; must meet USDA condition standards |
| Upfront guarantee fee | 1.0% of loan amount | Typically financed into the loan; not paid out of pocket |
| Annual fee | 0.35% of loan balance/year | Paid monthly ($29/mo per $100K borrowed); lower than FHA MIP |
| Citizenship | US citizen or eligible non-citizen | Standard requirement |
USDA vs. FHA in Texas
| Factor | USDA Loan | FHA Loan |
|---|---|---|
| Down payment | 0% | 3.5% |
| Geographic restriction | USDA-eligible areas only | No restriction — any location |
| Upfront fee | 1.0% guarantee fee | 1.75% MIP |
| Annual/monthly fee | 0.35%/year | 0.55%/year (life of loan) |
| Income limit | Set by USDA by area — household income | None |
| Min credit score | No USDA minimum (lenders may set one) | 580 (3.5% down) |
| Loan limit | No formal cap (income/DTI limits purchasing power) | $541,287 most TX counties |
| Best for Texas buyers | Rural/suburban buyers meeting income limits, 0% down | Urban 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
- Verify property eligibility — Use eligibility.sc.egov.usda.gov to confirm the address is in a USDA-eligible area before proceeding.
- Calculate household income — Include ALL adult household members’ income, not just the borrowers.
- Check income limits — Compare your household income against your area’s limit in USDA’s income limits list.
- Check credit — USDA has no specific minimum credit score; lenders may set their own.
- Find a USDA-approved lender — Not all Texas lenders originate USDA loans. Ask specifically whether the lender has active USDA experience.
- Get pre-approved — The lender submits your file to USDA’s Guaranteed Underwriting System (GUS) for an automated eligibility determination.
- Make an offer — Include address verification in your process; confirm USDA eligibility before going under contract.
- USDA conditional commitment — After lender approval, USDA must issue a conditional commitment before closing.
