USDA Loans in Houston Area
Zero down payment for eligible rural and suburban properties.
100% financing with low mortgage insurance.
0% Down
100% financing with zero down payment required
Low MI
Lower mortgage insurance than FHA loans
Suburban Areas
Many Houston suburbs qualify for USDA financing
What is a USDA Loan?
A USDA loan is a zero-down-payment mortgage guaranteed by the U.S. Department of Agriculture, designed to promote homeownership in rural and suburban areas. Despite the name, many Houston suburban areas qualify, including portions of Katy, Cypress, Tomball, Spring, and Conroe. With 100% financing and lower mortgage insurance than FHA, USDA loans are an excellent option for buyers who qualify.
USDA loans are often overlooked but can be incredibly powerful for Houston-area homebuyers. If you're looking in suburban areas outside Beltway 8 or in surrounding counties like Montgomery or Fort Bend, there's a good chance your desired property qualifies. USDA loans offer zero down payment without the private mortgage insurance costs of conventional loans, making them ideal for buyers who want to preserve cash for furniture, renovations, or emergency funds.
Is a USDA Loan Right for You?
You're a Great Fit If...
- You want to buy a home with 0% down payment.
- The property is in an eligible suburban or rural area.
- Your household income is within the local USDA limit.
- You have a credit score of 640 or higher.
You Might Reconsider If...
- The home you want is in a dense urban area.
- Your household income exceeds 115% of the Area Median Income.
- You are looking to purchase a farm for income purposes.
Houston-Area Success Story
“A family wanted to move to a great school district in Cypress but didn't have a large down payment. We checked their address and found it was USDA-eligible, allowing them to buy their home with 100% financing and move in with just their closing costs.”
USDA Loan Requirements
Down Payment
0% - Absolutely no down payment required
Income Limits
Area median income limits apply (115% of AMI)
Property Location
Must be in USDA-eligible rural or suburban area
Mortgage Insurance
Lower than FHA - 0.35% annual guarantee fee
Credit Score
640 minimum for streamlined processing
Property Requirements
Primary residence only, must be modest and adequate
Eligible Houston-Area Locations
USDA eligibility is address-specific. These areas have known eligible properties, but you must verify your exact address. Contact us to check your property's eligibility.
Katy (Portions)
Some areas west of Katy qualify. Check USDA eligibility map for your specific address.
Cypress / Jersey Village
Select areas in northwest Houston metro qualify for USDA financing.
Tomball / Magnolia
Many properties north of Houston in Tomball and Magnolia area are USDA-eligible.
Spring / Klein (Portions)
Certain areas outside Beltway 8 may qualify. Property-specific eligibility required.
Pearland / Friendswood (Portions)
Some southern Houston suburbs have USDA-eligible areas. Check your address.
Conroe / Montgomery County
Many properties in Montgomery County north of The Woodlands qualify.
Benefits of USDA Loans in Houston
Frequently Asked Questions
What areas near Houston are USDA-eligible?
USDA eligibility is determined by population density and rural character, not distance from Houston. Many suburban areas qualify, including portions of Katy, Cypress, Tomball, Spring, Pearland, and most of Montgomery County. Use the USDA eligibility map or contact us to check your specific address. Eligibility can change block by block.
What are the USDA income limits in Houston?
USDA income limits vary by household size and county. For Harris County (2024), the limit is approximately $110,650 for households of 1-4 people and $146,100 for 5-8 people. These represent 115% of the area median income. Income from all household members (18+) is counted, not just those on the loan.
How is USDA mortgage insurance different from FHA?
USDA has both an upfront guarantee fee (1% of loan amount, can be financed) and an annual fee (0.35% of remaining balance). This is significantly lower than FHA's annual MIP (0.55-0.85%). Additionally, unlike FHA loans under $625,500 with less than 10% down, USDA insurance CAN be removed through refinancing once you have 20% equity.
Can I use a USDA loan for a second home or investment property?
No. USDA loans are strictly for primary residences. You must occupy the home within 60 days of closing and intend to live there. USDA loans are designed to promote homeownership in rural and suburban areas, not for vacation homes or rental properties.
How long does USDA loan approval take in Houston?
USDA loans require two approvals: lender approval and USDA Rural Development approval. With automated underwriting (GUS), the USDA approval can happen within 24-48 hours. Manual underwriting may take 7-14 days. Total time from application to closing is typically 30-45 days, similar to conventional loans.
Ready to Check Your USDA Eligibility?
Our USDA loan specialists will verify your property's eligibility and guide you through the process. 100% financing with zero down payment.
Quick Facts: 0% down • 100% financing • 640+ credit • Income limits apply • Lower MI than FHA • Many Houston suburbs qualify • Licensed in Texas • NMLS #2701989