USDA Direct Loans (also known as USDA Section 502 Direct Loans) are a mortgage program that assists low- and very-low income individuals buy decent, safe, and clean housing in rural areas. This is done through payment assistance which increases a borrower’s ability to repay. That payment assistance can be best described a subsidy which lowers the mortgage payment for short periods. The amount of assistance largely depends on the adjusted family income. USDA Direct Home Loans in Texas don’t work in the same manner as USDA Guaranteed Loans in Texas. The USDA Guaranteed Loan Program is a more popular option and can be used for a wider range of applicant incomes.Texas USDA Direct Loans are 100% financing mortgages. Unlike Guaranteed USDA Loans, applicants must have low or very low income to qualify for Direct Loans.

Texas USDA Direct Loan Requirements

USDA Direct Loans are a mortgage program available for low-income individuals to buy homes in rural areas. USDA defines low- or very low income as anything between 50% and 80% of the Area Median (AMI). The statewide median income was recently reported as $61,874 in Texas, but this number may differ from one county to the next. For home buyers that meet those requirements, USDA Loans are a zero-down mortgage, meaning there’s no down payment. To be eligible, applicants must also meet the following requirements:

  • You don’t presently have decent, clean, sanitary and safe housing.
  • You can’t get another mortgage from a different source with terms and conditions reasonably expected to be met.
  • The subject property must be your primary residence.
  • You must be legally eligible for a mortgage.
  • You must meet citizenship requirements or non-citizen requirements.
  • You must be eligible for participation in federal programs.

In addition, the subject property must meet the following requirements.

  • It must be moderately-sized for that area.
  • The home cause can’t exceed the area’s applicable loan limit.
  • The home can’t be designed for the production of income.

How much can I borrow with a USDA Direct Mortgage?

Up to the maximum loan limit, the amount of money that an applicant’s eligible for depends on their ability to pay it back. When evaluating home loan applicants for Direct home loans, Rural Development considers income, assets, debt, and payment assistance. And remember, you can’t borrow more than the local USDA loan limit for the county where the home is located, no matter what your repayment ability may be.

What areas in TX are eligible for USDA Direct Loans?

The subject property must be in an approved rural area. You can search specific addresses in Texas for USDA eligibility here.

Are there other zero down mortgage options or low down payment mortgages in Texas?

Yes, other low down payment mortgage options, and no down payment mortgage options are available in Texas besides USDA Direct Loans. You can start by looking into USDA Guaranteed Loans in Texas, FHA Loan in Texas, or if you’re a veteran or qualified family member, VA Loans in Texas. You may also want to research if any helpful Texas down payment assistance programs may be available.

Search all USDA Guaranteed Loan Limits (Direct and Guaranteed Loans)
Learn about today’s USDA Loan Requirements

Direct Loans aren’t as popular as USDA Guaranteed Loans, which accommodate a wider range of borrower qualifications. The USDA sets specific maximum mortgage limits for Direct Loans in Texas. Search home loan limits for your area below.

Texas USDA Direct Loan Limits

Direct Loan Limit
Anderson $251,862
Andrews $251,862
Angelina $251,862
Aransas $251,862
Archer $251,862
Armstrong $251,862
Atascosa $287,960
Austin $264,960
Bailey $251,862
Bandera $287,960
Bastrop $311,880
Baylor $251,862
Bee $251,862
Bell $251,862
Bexar $287,960
Blanco $251,862
Borden $251,862
Bosque $251,862
Bowie $251,862
Brazoria $264,960
Brazos $251,862
Brewster $251,862
Briscoe $251,862
Brooks $251,862
Brown $251,862
Burleson $251,862
Burnet $251,862
Caldwell $311,880
Calhoun $251,862
Callahan $251,862
Cameron $251,862
Camp $251,862
Carson $251,862
Cass $251,862
Castro $251,862
Chambers $264,960
Cherokee $251,862
Childress $251,862
Clay $251,862
Cochran $251,862
Coke $251,862
Coleman $251,862
Collin $316,480
Collingsworth $251,862
Colorado $251,862
Comal $287,960
Comanche $251,862
Concho $251,862
Cooke $251,862
Coryell $251,862
Cottle $251,862
Crane $251,862
Crockett $251,862
Crosby $251,862
Culberson $251,862
Dallam $251,862
Dallas $316,480
Dawson $251,862
Deaf Smith $251,862
Delta $251,862
Denton $316,480
DeWitt $251,862
Dickens $251,862
Dimmit $251,862
Donley $251,862
Duval $251,862
Eastland $251,862
Ector $251,862
Edwards $251,862
El Paso $251,862
Ellis $316,480
Erath $251,862
Falls $251,862
Fannin $251,862
Fayette $251,862
Fisher $251,862
Floyd $251,862
Foard $251,862
Fort Bend $264,960
Franklin $251,862
Freestone $251,862
Frio $251,862
Gaines $251,862
Galveston $264,480
Garza $251,862
Gillespie $259,440
Glasscock $251,862
Goliad $251,862
Gonzales $251,862
Gray $251,862
Grayson $251,862
Gregg $251,862
Grimes $251,862
Guadalupe $287,960
Hale $251,862
Hall $251,862
Hamilton $251,862
Hansford $251,862
Hardeman $251,862
Hardin $251,862
Harris $264,960
Harrison $251,862
Hartley $251,862
Haskell $251,862
Hays $311,880
Hemphill $251,862
Henderson $251,862
Hidalgo $251,862
Hill $251,862
Hockley $251,862
Hood $316,480
Hopkins $251,862
Houston $251,862
Howard $251,862
Hudspeth $251,862
Hunt $316,480
Hutchinson $251,862
Irion $251,862
Jack $251,862
Jackson $251,862
Jasper $251,862
Jeff Davis $251,862
Jefferson $251,862
Jim Hogg $251,862
Jim Wells $251,862
Johnson $316,480
Jones $251,862
Karnes $251,862
Kaufman $316,480
Kendall $287,960
Kenedy $251,862
Kent $251,862
Kerr $251,862
Kimble $251,862
King $251,862
Kinney $251,862
Kleberg $251,862
Knox $251,862
La Salle $251,862
Lamar $251,862
Lamb $251,862
Lampasas $251,862
Lavaca $251,862
Lee $251,862
Leon $251,862
Liberty $264,960
Limestone $251,862
Lipscomb $251,862
Live Oak $251,862
Llano $251,862
Loving $251,862
Lubbock $251,862
Lynn $251,862
Madison $251,862
Marion $251,862
Martin $251,862
Mason $251,862
Matagorda $251,862
Maverick $251,862
McCulloch $251,862
McLennan $251,862
McMullen $251,862
Medina $287,960
Menard $251,862
Midland $254,840
Milam $251,862
Mills $251,862
Mitchell $251,862
Montague $251,862
Montgomery $264,960
Moore $251,862
Morris $251,862
Motley $251,862
Nacogdoches $251,862
Navarro $251,862
Newton $251,862
Nolan $251,862
Nueces $251,862
Ochiltree $251,862
Oldham $251,862
Orange $251,862
Palo Pinto $251,862
Panola $251,862
Parker $316,480
Parmer $251,862
Pecos $251,862
Polk $251,862
Potter $251,862
Presidio $251,862
Rains $251,862
Randall $251,862
Reagan $251,862
Real $251,862
Red River $251,862
Reeves $251,862
Refugio $251,862
Roberts $251,862
Robertson $251,862
Rockwall $316,480
Runnels $251,862
Rusk $251,862
Sabine $251,862
San Augustine $251,862
San Jacinto $251,862
San Patricio $251,862
San Saba $251,862
Schleicher $251,862
Scurry $251,862
Shackelford $251,862
Shelby $251,862
Sherman $251,862
Smith $251,862
Somervell $316,480
Starr $251,862
Stephens $251,862
Sterling $251,862
Stonewall $251,862
Sutton $251,862
Swisher $251,862
Tarrant $316,480
Taylor $251,862
Terrell $251,862
Terry $251,862
Throckmorton $251,862
Titus $251,862
Tom Green $251,862
Travis $311,880
Trinity $251,862
Tyler $251,862
Upshur $251,862
Upton $251,862
Uvalde $251,862
Val Verde $251,862
Van Zandt $251,862
Victoria $251,862
Walker $251,862
Waller $264,960
Ward $251,862
Washington $251,862
Webb $251,862
Wharton $251,862
Wheeler $251,862
Wichita $251,862
Wilbarger $251,862
Willacy $251,862
Williamson $311,880
Wilson $287,960
Winkler $251,862
Wise $316,480
Wood $251,862
Yoakum $251,862
Young $251,862
Zapata $251,862
Zavala $251,862

More USDA Loan Resources

USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)

All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator

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