USDA Home Loans Texas
For the last 80 years, The United States Department of Agriculture (USDA) has been at the forefront of developing rural America.
On April 30, 1935, President Franklin D. Roosevelt signed Executive Order 7027 which established the Resettlement Administration (what we know today as USDA Rural Development). During the Great Depression, this Administration provided aid to destitute families by helping them relocate. They also restored soil to eroded areas and issued emergency loans to farmers.
Over time, congress continued to expand the role of the Resettlement Administration. On October 13, 1994, congress reorganized the Resettlement Administration under the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act.Under this Act, the USDA Rural Development Department was created to administer the USDA Home Loan Program for rural housing.
What is a USDA Loan?
A USDA loan (Section 502) is a home loan that is guaranteed by the United States Department of Agriculture. It offers very low and competitive interest rates on home loans to borrowers with no down payment requirements.
USDA Loans FAQ
- USDA does not allow value to be given to a pool in overall value in the appraisal report
- Your household income is within the USDA income cap. Go to USDA Income Eligibility to see if you’re within the USDA income cap.
USDA Loan Process
- Obtain Pre-Approval Letter from your USDA Loan Specialist.
- Obtain Sales Contract on the home you picked out (be sure it is in a USDA eligible area and property meets USDA requirements).