The rates and fees associated with the USDA home loan in Texas are competitive with other programs like standard conventional loans, FHA and VA loans, and unlike these programs, there are no liquid cash reserve requirements associated with the approval of the loan. This means that you do not have to have a large amount of money in reserve after the purchase or refinance to qualify for the loan.
Please see the condensed requirements listed below for individual scenarios. The loan guidelines are not the entire guidelines, but a snapshot of the finer points allowed by the USDA’s SFHGLP program.
- All new or existing single-family housing stick-built (wood framed) or modular units common in the area are acceptable if they would otherwise qualify for FHA, VA, Freddie Mac, or Fannie Mae financing. The appraiser must be able to find at least three recent sales of comparable properties in the area
- Typically there is no acreage limit, however, site/land value should not exceed 30% of the total appraised value and must be strongly supported by all comparables
- Only single family housing units, including condominiums and town homes are allowed
- The homes must not be primarily used for income-producing purposes. Businesses that do not affect the residential nature of the residence or affect zoning are allowed
- No restrictions on the size or design of the home financed
- Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and under.
For more information or to apply please call Leesa Sandoval at 972-725-9110. www.leesasandoval.com