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USDA Rural Development Home Loan Program Can Be A Great Deal for Rural Home Buyers

Gayle Aubrey
Release Date

With an abundance of homes for sale in most of the country, buyers continue to have plenty of choices and lots of bargaining power.  With the help of USDA Rural Development’s No Down Payment home loan programs, those dreams of homeownership may still come true.


Larissa Sellars Beach, a single mother of two children and a disabled veteran, recently purchased a home by utilizing a USDA Rural Development 502 Direct Home Loan.  The home was a foreclosure and in need of some repairs.  She relocated from the Odessa/Midland area to Dallas for medical reasons, and then relocated to her current residence in Coleman to care for an ailing relative.  She is very pleased with the purchase and her youngest daughter loves their new home.


USDA Rural Development’s Rural Housing Direct Home Loan Program offers 100 percent financing with no down payment required for low and lower income individuals or families at a 3.75 percent interest rate. These loans are made directly through USDA Rural Development and are offered for a period of 30-38 years. The repayment on the loan may be subsidized by the Federal Government, based on the household income. Direct loans may be made for the purchase of an existing home or new home construction.


The loan amount is determined by repayment ability of the borrower. Loans made under this program are to individuals and families with income that does not exceed 80 percent of the median income level of the county where they live and who would not otherwise qualify for a conventional loan. County Income limits for the programs are posted on the USDA Rural Development Texas website at http://www.rurdev.usda.gov/tXHome.html and clicking on “Income and Property Eligibility” on the right hand side of the screen.


USDA Rural Development’s Rural Housing Programs offer a broad range of homeownership assistance available to individuals and families who wish to or currently live in rural areas, cities, and communities. The Rural Housing Program area of USDA Rural Development has the ultimate goal of providing affordable homeownership opportunities to Texas residents.


USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life in rural communities. For further information on USDA Rural Development and programs offered or for a FREE pre-qualification, you can visit the website at http://www.rurdev.usda.gov/TX_SFH.html, email TXdirectSFH@tx.usda.govor call (254) 742-9772.