TDHCA USDA Purchase Loan
Best For: First Time Homebuyers, Zero Down
USDA program for Texas residents seeking down payment assistance, offered by the Texas Department of Housing and Community Affairs (TDHCA).
Program Description
When combined with one of TDHCA's (Texas Department of Housing & Community Affairs) down payment assistance programs, Texas residents living in rural areas can finance up to 105% of their purchase and closing costs.
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TDHCA USDA Purchase Loan
Min. Credit Score
620
Min. Down Payment
0%
Max Loan Amount
$336,500 - $386,400
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
- Assistance available, either 2%, 3%, or 4% of loan amount
- Available in all of Texas
- Subject to purchase price and income limits
- Rarely used as a standalone program
- Lower max loan amount than other TDHCA programs
Program Availability
TDHCA USDA Purchase Loans are available in 1 state.
*Limited Availability: There are parts of Texas that don’t qualify for a USDA Loan. To verify property or area eligibility, visit the official USDA website at https://eligibility.sc.egov.usda.gov/eligibility/.
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“The USDA option comes in handy when using TDHCA down payment assistance programs in a rural area."
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
55.00%
Purchase Price Limit
$336,500 - $386,400
Income Limit
$106,625 - $149,000
Annual Household (1-2) Income
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.
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Key Features
- USDA loan program option from TDHCA; use with down payment assistance
- Can be combined with "My First Texas Home" and "My Choice Texas Home"
Additional Conditions
- Buyers must meet program guidelines, complete homebuyer education courses, occupy the property as a primary residence, and not exceed the county income limits.
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 may be required for this loan program.
Class Name: TDHCA Homebuyer Education Course
This two-hour course will walk you through three important phases of the home buying process: one, preparing for homeownership; two, financing your home; and three, purchasing your home. Once you have completed the course, provide your lender with a copy of the Certificate of Completion. This will satisfy the homebuyer education requirement for TDHCA’s first time homebuyer programs.
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 TDHCA USDA program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
TDHCA My Choice Texas Home
|TDHCA USDAUp to 5% down payment and closing cost assistance for Texas homebuyers with no first time homebuyer requirement.
Max. Loan Amount
$336,500 - $386,400
Min. Credit Score
620
Min. Down Payment:
0%
TDHCA My First Texas Home
|TDHCA USDAUp to 5% down payment and closing cost assistance for Texas first time homebuyers with either forgivable or repayable assistance.
Max. Loan Amount
$336,500 - $386,400
Min. Credit Score
620
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.
TDHCA Texas Mortgage Credit Certificate (MCC)
TDHCA's 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 veterans and must be paired with TDHCA's "My First Texas Home" program.
TDHCA Bonus Gift Dollars
The Texas Homebuyer Program has partnered with local Housing Finance Agencies in certain eligible counties in Texas to offer free gift funds to be used in conjunction with the TDHCA Down Payment Assistance Programs.
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.
TDHCA FHA Purchase Loan
Best For: First Time Homebuyers, Easy Qualification
FHA program for Texas residents seeking down payment assistance, offered by the Texas Department of Housing and Community Affairs (TDHCA).
TDHCA Conventional Purchase Loan
Best For: First Time Homebuyers, Zero Down
Conventional option for Texas residents seeking down payment assistance, offered by the Texas Department of Housing and Community Affairs (TDHCA).
Related Resources
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* 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
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