Texas USDA Loans 2026
Everything's bigger in Texas—including USDA eligibility. With over 90% of the Lone Star State qualifying for rural development financing, 100% financing is within reach whether you're eyeing Hill Country acreage, East Texas pines, or a growing suburb outside the major metros.
Texas USDA Eligible Regions
Texas leads the nation in USDA loan volume for good reason—vast stretches of the state qualify, from the piney woods of East Texas to the ranches of the Hill Country. Even fast-growing suburbs often remain USDA-eligible until population thresholds are crossed.
| Region | Sample Counties/Areas | Availability |
|---|---|---|
| Texas Hill Country | Blanco, Burnet, Gillespie, Llano, Mason, Kerr | High Eligibility |
| East Texas | Tyler, Nacogdoches, Lufkin, Longview (outskirts), Henderson | High Eligibility |
| South Texas | Laredo area, Rio Grande Valley (rural), Uvalde, Eagle Pass | High Eligibility |
| Panhandle | Amarillo suburbs, Lubbock area, Midland/Odessa outskirts | Moderate |
| DFW Outer Suburbs | Waxahachie, Rockwall (parts), Kaufman, Terrell | Limited Areas |
| Houston Outer Ring | Montgomery (north), Waller, Grimes, Washington | Limited Areas |
Hill Country Living
Fredericksburg, Kerrville, Marble Falls—the Texas Hill Country offers stunning limestone landscapes with widespread USDA eligibility. Wine country properties often qualify for zero-down financing.
East Texas Piney Woods
From Tyler to Nacogdoches, East Texas combines affordable pricing with natural beauty. USDA loans here often finance homes 40-50% below DFW/Houston prices.
Growing Suburbs
Communities like Waxahachie, Weatherford, and Conroe offer suburban conveniences with USDA eligibility—ideal for commuters priced out of metro cores.
Texas USDA Income Limits (2026)
USDA income limits are based on 115% of the area median income. Texas's generally lower cost of living means many working families qualify.
Sample Texas USDA Limits (1-4 Person Household)
Hill Country (Blanco, Kerr)
$103,500
East Texas (Tyler, Nacogdoches)
$103,500
Montgomery County (Conroe)
$120,400
Collin/Denton (eligible areas)
$126,900
Limits increase for households with 5+ members. Full USDA guide →
Explore Texas Financing by Region
Not USDA-eligible? We offer FHA, VA, and conventional options across every Texas region:
"We fell in love with a 5-acre property in the Hill Country but didn't have 20% down. Emmett showed us it was USDA-eligible—we got 100% financing and now wake up to deer in our backyard every morning."
Sarah & Tom B.
USDA Loan, Blanco County TX
Ready to Explore Texas USDA Loans?
I can check any Texas address against the USDA eligibility map in minutes. Even if you've been told "no" before, let's verify—Texas boundaries can be surprising.
Texas USDA Loan FAQs
What areas in Texas are USDA eligible?
Texas has extensive USDA eligibility with over 90% of the state's geographic area qualifying. Popular eligible regions include the Hill Country, East Texas, South Texas, the Panhandle, and many suburbs outside of DFW, Houston, Austin, and San Antonio metros.
What are the income limits for Texas USDA loans?
Texas USDA income limits vary by county. For 2026, the standard limit is approximately $103,500 for a 1-4 person household in most rural areas. Higher-income areas near DFW and Houston may have limits up to $120,000. Limits increase for 5+ person households.
Can I get a USDA loan near Houston or Dallas?
While core urban areas of Houston and Dallas are not USDA-eligible, many outer suburbs and nearby communities qualify. Areas like Conroe, Montgomery, Waxahachie, and Rockwall County have USDA-eligible zones. We can check specific addresses for eligibility.
What credit score do I need for a Texas USDA loan?
Texas USDA loans typically require a minimum credit score of 640 for automated underwriting approval. Scores between 580-639 may qualify through manual underwriting with additional documentation and compensating factors.
From the blog & learning center
USDA Loan Guides & Articles
USDA vs FHA: Which Is Actually Cheaper?
For buyers who qualify for both, USDA is usually the cheaper loan over time: zero down, a lower upfront fee, and a lower annual fee. FHA wins on flexibility.
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What Credit Score Do You Need for a USDA Loan?
USDA itself sets no minimum credit score, but most lenders require 640 for automated approval. Scores below 640 route to manual underwriting, which is stricter but still possible.
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USDA Guarantee Fees Explained: The 1% and 0.35% That Replace PMI
USDA loans don't have PMI, but they have two guarantee fees that function similarly: a 1% upfront fee and a 0.35% annual fee — both cheaper than FHA's mortgage insurance.
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USDA Loan Requirements Explained
To qualify for a USDA loan you need to buy in a USDA-eligible area and keep total household income at or below 115% of your county median. Here is how the location rule, the 2026 income limits, credit, DTI, and costs actually work on one of the last true zero-down loans.
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First-Time Homebuyer Loan Options Explained
First-time buyers have more loan options than most people realize, ranging from zero down payment programs to specialized conventional products built specifically for buyers with limited savings.
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The Complete Guide to First-Time Home Buyer Programs in 2026
Discover the surprising definition of a "first-time buyer," explore the best low-down-payment loan programs (FHA, VA, USDA, Conventional 97), and learn how to leverage state grants to get into your new home sooner.
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