SETH USDA-RD Purchase Loan
Best For: First Time Homebuyers, Zero Down
USDA program for Texas residents seeking down payment assistance, offered by the Southeast Texas Housing Finance Corporation (SETH)
Program Description
The Southeast Texas Housing Finance Corporation (SETH) offers a 30-year USDA-RD mortgage option that can be paired with either the SETH 5 Star Program or the SETH GoldStar Program. The assistance can be used towards down payments and closing costs. The property must be located in a designated USDA eligible area.
Tags
Do you match this loan?
Our loanSMART system will tell you if this loan program is a good fit your scenario.
SETH USDA-RD Purchase Loan
Min. Credit Score
640
Min. Down Payment
0%
Max Loan Amount
$726,200
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Flexible qualification guidelines
- Can be combined with up to 7% in down payment assistance
- Also available for manufactured homes
- Allows up to 50% DTI (Debt-to-Income)
- Limitations on property location (from SETH)
- Restricted to USDA areas only
- Household income limits may disqualify many borrowers
- Not available for second homes or investment properties
Program Availability
SETH USDA-RD Purchase Loans are available in 1 state.
*Limited Availability: Eligible homes must be located in Texas but outside of Travis County and the cities of El Paso, Grand Prairie and McKinney. Must verify property or area eligibility on the official USDA website.
Talk to an Expert
An RMM PROLender can help you see if this or a different loan program is the right fit for your unique situation. Get Started.
“If you're ready to buy a home in a rural area but need assistance offsetting costs, programs such as SETH can help with providing down payment and closing funds."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
45.00%
Purchase Price Limit
$492,500
Income Limit
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
Buying a Home?
Answer a few short questions and we'll build you a custom list of home loan program options. You're homeownership journey is in good hands.
Key Features
- USDA-RD loan program option from SETH
- No first time homebuyer requirement
- Online Homebuyer Education
Additional Conditions
- Eligible homes must be located in Texas but outside of Travis County and the cities of El Paso, Grand Prairie and McKinney
- Also allows for multifamily properties between 1 and 4 units
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is required for this loan program.
Class Name: SETH Online Homebuyer Education
The SETH online homebuyer education course is the only one accepted. A completion certificate will be provided upon completion of the 8-hour course and is valid for 12 months. The course is offered in English and Spanish.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: USDA Gurantee Fee
The USDA loan program requires the borrower to pay a funding fee called the "Upfront Guarantee Fee" that is equal to 1.00% of the loan amount and can be financed into the loan.
Type: USDA Annual Fee
The USDA loan charges an annual fee based on the total remaining balance of the mortgage at a .35% rate.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this SETH USDA-RD program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
SETH GoldStar Program
|SETH USDA-RDThe SETH GoldStar Program provides up to 7% down payment and closing cost help as a forgivable second mortgage.
Max. Loan Amount
$726,200
Min. Credit Score
640
Min. Down Payment:
0%
SETH 5 Star Program
|SETH USDA-RDThe SETH 5 Star Program provides up to 5% down payment and closing cost assistance for your home purchase.
Max. Loan Amount
$726,200
Min. Credit Score
640
Min. Down Payment:
0%
Special Offers
Occasionally, there are special offers that can be added to this mortgage program that provide additional benefits, such as a reduction in your federal taxes (mortgage credit certificates), extra cash for your down payment, and more.
SETH "Extra Credit" Texas Mortgage Credit Certificate (MCC)
SETH's "Extra Credit" Texas Mortgage Credit Certificate (MCC) is an interest tax credit that is used to reduce your federal income tax responsibility each year. It is specifically for first time homebuyers and can be paired with either the "5 Star" or "GoldStar" down payment assistance programs. Additionally, the savings from the tax credit certificate can help the borrower qualify for their mortgage.
SETH "Extra Credit" Bonus Grant
For a limited time, SETH is including a $2,500 bonus grant for down payment and closing costs that first time Texas homebuyers using the SETH MCC (Mortgage Credit Certificate) program can claim. Must be a first time homebuyer to qualify, and must get approved through a SETH approved lender.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
IHFA Tax-Exempt RD Targeted
Best For: First Time Homebuyers, Lowest Rates, Zero Down
Tax-Exempt RD rural development loan program for targeted Idaho Counties with below market interest rates and down payment assistance options.
Travis County HFC USDA-RD Loan
Best For: First Time Homebuyers, Zero Down
USDA program for Texas homebuyers seeking down payment assistance, offered by the Travis County HFC (Housing Finance Corporation).
Related Resources
2023 USDA Loan Guide
The U.S. Department of Agriculture is a complex, multifaceted entity that wears multiple hats. Under this umbrella is Rural Development, an agency part of USDA with the ultimate goal to help improve the economy and quality of life for Americans living in rural communities.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
Texas Home Buyer Education Classes
Purchasing your first home is a big milestone and the process can seem overwhelming. Before you begin looking for a home, it is a good idea to complete a homebuyer education course.
Read More
DPA Explained - Down Payment Assistance and Building Generational Wealth
Ever wondered how you could bridge the wealth gap through homeownership without the mythical 20% down payment?
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
Mortgage Program by:
ReviewMyMortgage.com is in no way affiliated with the companies or institutions listed here.
Start Your Journey
Whether your are buying a new home, or refinancing your current home loan, let the experts at Review My Mortgage guide you on your homeownership journey.
Are you a mortgage professional?
Learn about our unique sponsorships, including RMM PROLender, that can take your production to the next level.
Get in Touch