100% financing with no down payment for eligible rural and suburban homebuyers. Lower fees than FHA, competitive rates, and up to 6% seller concessions — backed by the U.S. Department of Agriculture.
USDA loans are one of the most affordable paths to homeownership — offering 100% financing with lower fees than FHA.
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$0 Down Payment
100% financing for eligible homebuyers. Purchase your home with zero money down — no savings for a down payment required.
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Lower Fees Than FHA
Just 1% upfront guarantee fee (vs. FHA’s 1.75%) and 0.35% annual fee (vs. FHA’s 0.55%). Save hundreds per year.
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Competitive Rates
USDA loan rates are among the lowest available because the government guarantee reduces lender risk — often matching or beating conventional rates.
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Flexible Credit
640 credit score for automated GUS approval. Below 640? Manual underwriting considers your full financial picture including rental history and savings.
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6% Seller Concessions
Sellers can contribute up to 6% of the purchase price toward your closing costs — one of the most generous limits among all loan programs.
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Broad Eligibility Areas
97% of U.S. land is USDA-eligible. Many suburban communities just outside city limits qualify — not just rural farmland.
Eligibility
Who Qualifies for a USDA Loan?
USDA loans have geographic and income requirements — but they're broader than most people think.
Geographic & Income Requirements
Property Location
Property must be in a USDA-eligible rural or suburban area
97% of U.S. land qualifies — including communities up to 35,000 population
Check eligibility at eligibility.sc.egov.usda.gov or ask your loan officer
Household Income Limits
Total household income must be at or below 115% of the area median income (AMI)
Limits vary by county and household size
All household members' income is counted, not just the borrower
Borrower Requirements
U.S. citizen, permanent resident, or qualified alien
Must not currently own adequate housing
Must occupy the home as your primary residence
Not sure if you qualify?
Your Texana Bank loan officer can instantly check both property eligibility and income limits for your area during a free pre-qualification call. No hard credit pull required.
Loan Requirements
Credit Score
640+ for automated approval through GUS
Below 640 may qualify via manual underwriting
Manual UW considers rental history, savings, and employment stability
Income & Employment
Stable, dependable income (2-year history preferred)
DTI ratio up to 41% (up to ~44% with compensating factors via GUS)
Income must be verifiable through standard documentation
Property Requirements
Must be your primary residence
Single-family, condo, townhome, or qualifying manufactured home
Must meet USDA property condition standards
Down Payment
$0 down — 100% financing standard
1% upfront guarantee fee can be financed into the loan
USDA Purchase Loan
Buy Your Home with $0 Down
The USDA purchase loan offers 100% financing with no down payment for eligible rural and suburban homebuyers. Combined with lower fees than FHA and generous seller concessions, USDA is one of the most affordable ways to buy a home.
100% financing — no down payment required
1% upfront guarantee fee (financed into loan)
0.35% annual fee — 36% lower than FHA
Seller can contribute up to 6% toward closing costs
Single-family, condo, townhome, or manufactured home
On a $250,000 home, USDA saves you money at every level compared to FHA:
Down Payment: $0 vs. $8,750 (FHA 3.5%) Upfront Fee: $2,500 vs. $4,375 (FHA 1.75%) Annual Fee: $875/yr vs. $1,375/yr (FHA 0.55%) Monthly Savings: ~$42/mo on insurance alone
Not sure if your property is eligible? Check the USDA Eligibility Map → or ask your loan officer.
USDA Streamline Refinance
Refinance Your USDA Loan with Less Paperwork
Already have a USDA loan? The USDA Streamline Refinance lets you take advantage of lower rates with reduced documentation. The Streamline-Assist option requires no appraisal, no credit review, and no income verification.
Streamline-Assist: no appraisal, no credit review, no income docs
Standard Streamline: reduced documentation, faster processing
Must result in a net tangible benefit (lower payment)
Your new USDA loan replaces your existing USDA mortgage at a lower rate, reducing your monthly payment. There are two options:
Streamline-Assist: No appraisal, no credit check, no income verification. Just be current on your payments. Standard Streamline: Requires credit review and income docs but no appraisal in most cases.
Estimates only. Actual rates and payments will vary based on credit, income, and property. Subject to credit approval. USDA eligibility required.
The Process
Your USDA Loan Journey
From eligibility check to closing, here's what to expect at every step.
1
Check Eligibility & Pre-Qualify
1 Day
Your Texana Bank loan officer verifies the property is in a USDA-eligible area, confirms your household income is within limits, and runs a soft credit check (won't affect your score) to give you a clear picture of what you qualify for.
2
Get Pre-Approved & Find Your Home
Varies
With your pre-approval letter in hand, shop for your home in USDA-eligible areas with confidence. Your loan officer can check any address instantly to confirm eligibility before you make an offer.
3
Processing, Underwriting & USDA Review
14–30 Days
We order the appraisal, verify your documents, and submit your file through underwriting. After lender approval, the file goes to the USDA state office for final review. Texana Bank's experience with USDA helps streamline this step.
4
Closing
1 Day
Sign your final documents and get the keys to your new home. Your 1% upfront guarantee fee is rolled into the loan — so you may close with little to no cash out of pocket, especially with seller concessions.
Frequently Asked Questions
USDA Loan FAQs
Answers to the most common questions about USDA loans, eligibility, income limits, guarantee fees, and refinancing.
No. Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has absolutely no impact on your credit score. You can check your rate, explore loan options, and get pre-approved without any effect on your credit. A hard inquiry only occurs later if you formally move forward with a full application.
A USDA loan is a government-backed mortgage offered through the U.S. Department of Agriculture's Rural Development program. It provides 100% financing with $0 down payment for eligible homebuyers in designated rural and suburban areas. USDA loans feature lower mortgage insurance costs than FHA loans and competitive interest rates, making them one of the most affordable paths to homeownership.
To qualify for a USDA loan, you must purchase a primary residence in a USDA-eligible area, have a household income at or below 115% of the area median income, meet minimum credit requirements (typically 640 for automated approval), and be a U.S. citizen, permanent resident, or qualified alien. You cannot currently own adequate housing elsewhere.
USDA-eligible areas include most of the United States outside major metropolitan centers. Many suburban areas, small towns, and rural communities qualify. The USDA eligibility map is available at eligibility.sc.egov.usda.gov. You may be surprised — many areas just outside city limits qualify, including communities with populations up to 35,000.
Visit the USDA's official eligibility map at eligibility.sc.egov.usda.gov and enter the property address. The map will show whether the location is in an eligible rural area. Alternatively, your Texana Bank loan officer can check eligibility for you instantly during your pre-qualification call.
USDA income limits are set at 115% of the area median income (AMI) and vary by county and household size. For example, a family of four in many areas may qualify with household income up to approximately $110,650 (2024 limits). All household income is counted, not just the borrower's. Your loan officer can check specific limits for your area.
The USDA guarantee fee consists of two parts: a 1% upfront guarantee fee (financed into the loan) and a 0.35% annual fee (paid monthly as part of your mortgage payment). These fees are significantly lower than FHA mortgage insurance, which charges 1.75% upfront and 0.55% annually.
USDA fees are substantially lower than FHA. The USDA upfront fee is 1% vs. FHA's 1.75% (43% less), and the USDA annual fee is 0.35% vs. FHA's 0.55% (36% less). On a $250,000 loan, this saves approximately $1,875 upfront and about $42 per month — over $500 per year in ongoing savings.
For automated approval through the GUS (Guaranteed Underwriting System), you typically need a 640 credit score. However, borrowers with scores below 640 may still qualify through manual underwriting, which involves a more detailed review of your complete financial profile including rental history, savings, and employment stability.
Yes. USDA loans can be used for new construction as long as the property is in a USDA-eligible area. The home must meet USDA property requirements and local building codes. Construction-to-permanent USDA loans allow you to finance both the construction and the permanent mortgage in a single loan.
USDA loans can be used for single-family homes, condos, townhomes, and some manufactured homes on permanent foundations. The property must be in a USDA-eligible rural or suburban area and serve as your primary residence. Investment properties, vacation homes, and income-producing farms do not qualify.
Yes. Many suburban areas qualify as USDA-eligible, especially communities just outside major metropolitan boundaries. The USDA definition of “rural” is broader than most people expect — areas with populations up to 35,000 may qualify. Check the USDA eligibility map or ask your loan officer to verify specific addresses.
Yes. USDA loans allow sellers to contribute up to 6% of the purchase price toward the buyer's closing costs — one of the most generous seller concession limits among loan programs. Combined with 100% financing, this means you could potentially buy a home with very little cash out of pocket.
USDA Guaranteed loans are the most common type — they're made by approved lenders like Texana Bank and backed by the USDA. USDA Direct loans are made directly by the USDA to very low-income borrowers. Guaranteed loans have higher income limits (115% AMI), while Direct loans are limited to 50–80% AMI and come with interest rate subsidies.
USDA loans typically take 30–45 days to close, slightly longer than conventional loans due to the additional USDA office review. After your lender completes underwriting, the file is submitted to the USDA state office for final approval. Working with an experienced USDA lender like Texana Bank helps streamline this process.
Yes. USDA offers several refinance options including Streamline Refinance (for existing USDA loans), Streamline-Assist Refinance (no appraisal, no credit review), and Non-Streamline Refinance. These programs can help you take advantage of lower rates with minimal paperwork. Note that USDA refinances do not allow cash-out.
A USDA Streamline Refinance allows existing USDA loan holders to refinance with reduced documentation. The Streamline-Assist option requires no new appraisal, no credit review, and no income verification — you just need to be current on your mortgage. The primary requirement is that the refinance must result in a net tangible benefit, typically a lower payment.
Yes. USDA guidelines allow a USDA loan 3 years after a Chapter 7 bankruptcy discharge and 1 year into a Chapter 13 repayment plan (with court approval and satisfactory payment history). After a foreclosure, the typical waiting period is 3 years. Manual underwriting may be required.
USDA guidelines set the standard DTI limit at 41% for automated approval through GUS. However, with compensating factors such as a higher credit score, significant savings, or stable employment history, GUS may approve DTI ratios up to approximately 44%. Manual underwriting typically requires 41% or below.
If the property you want is in a USDA-eligible area and your household income is within limits, USDA is typically the better choice. USDA offers $0 down (vs. FHA's 3.5%), lower upfront fees (1% vs. 1.75%), and lower annual fees (0.35% vs. 0.55%). FHA is better if you need to buy in a non-rural area, exceed USDA income limits, or have a credit score between 580–639.
Reviews
What Our Borrowers Say About Texana Bank
Real reviews from real borrowers. See why homebuyers trust Texana Bank Mortgage.
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
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Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
D
Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
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Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
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Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
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Dejan Jajcevic
★★★★★
I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me
J
James Reaves
★★★★★
Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.
L
Lesli Hopkins
★★★★★
Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately
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Bobby Strickland
★★★★★
Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.
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Abraham Sanchez
★★★★★
Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.
Ready to Buy Your Home with $0 Down?
Whether you're purchasing your first home or refinancing an existing USDA loan, our team will check your eligibility and guide you every step of the way.
