USDA home loans help low- and moderate-income buyers purchase a primary home in eligible rural areas, often with little cash needed upfront. Eligibility is decided address by address and by household income. Around Austin, many smaller towns and rural parts of Williamson, Milam, Bastrop and Lee counties may qualify, while most of Austin, Round Rock and similar cities do not.
Key takeaways
- Two tests: the property address and your household income
- Income limits are set by county and household size
- Must be your primary residence
- Check the address before you make an offer
Test 1: Is the property in an eligible area?
USDA publishes an eligibility map, and it is drawn by address, not by town name. Generally, eligible areas are rural communities and smaller towns outside large metro cores. Around Central Texas, that often includes places like Thorndale, Rockdale, Cameron, Granger, Bartlett and the rural edges of eastern Williamson and Bastrop counties. Fast-growing suburbs can lose eligibility as they grow, so always check the specific address.
Check any address on the official USDA eligibility map, or text it to us and we will check it for you.
Test 2: Does your household income qualify?
For USDA guaranteed loans, total household income generally must fall at or below 115% of the area median income. The limit is set by county and household size and is updated by USDA. Note that it counts income from everyone in the household, not just the people on the loan.
Other USDA basics
- The home must be your primary residence
- The home must meet basic safety and condition standards
- Credit, income stability and debt-to-income still apply
- USDA adds its own review, so plan on a little extra time to close
USDA vs. FHA
Both help buyers with smaller savings. USDA is limited to eligible rural areas and income limits; FHA works anywhere and has no income cap. USDA mortgage insurance is typically lower than FHA's. We will price both when a property qualifies for each.
More on our USDA loans page and FHA & VA page.
Common questions
Is Taylor, Texas USDA eligible?
Parts of the area around Taylor may be eligible while many addresses inside city limits may not. Because eligibility is set by address, check the exact property on the USDA map or send it to us.
Can I use a USDA loan to build a house?
Some USDA options can work with new construction, depending on the builder, the lot and the program. Talk to us before you sign a build contract.
Can I use USDA for a second home or rental?
No. USDA loans are for primary residences only.
Brad or Buddy will review your goals and send you a personal game plan within the hour. No credit pull.
Keep learning
How to Choose a Mortgage Lender in Austin & Central Texas
Choose a lender who explains every option in plain English, is reachable when you need them, and understands Texas-specific rules like homestead…
Read the answer →InvestorsWhat Is a DSCR Loan?
A DSCR (debt service coverage ratio) loan is an investment-property mortgage that qualifies on the rent the property earns instead of your personal…
Read the answer →InvestorsHow to Calculate DSCR for a Rental Property
DSCR equals the monthly rent divided by the monthly PITIA payment (principal, interest, property taxes, insurance and HOA). For example, $2,400 in…
Read the answer →