USDA Home Loans in Texas
Yes — USDA home loans are available across most of Texas. Only a small slice of the state, mainly the urbanized cores of Dallas, Fort Worth, Austin, Houston, San Antonio, and El Paso, falls outside USDA-eligible territory. The fast-growing exurbs and small towns ringing those metros routinely qualify for zero-down USDA Guaranteed financing. Eligibility, though, is decided address-by-address and by household income, and both can change, so the honest first step is always to verify your specific address on the USDA map.
Eligibility depends on your exact address and household income — both can change. Not all applicants will qualify.
Why Texas Is Strong USDA Territory
Texas is one of the strongest USDA markets in the country for a simple reason: the state is enormous and its growth is spilling outward. As homes inside Dallas-Fort Worth, Austin, San Antonio, and Houston have gotten more expensive, buyers have pushed 30 to 50 miles out to towns that were rural a decade ago and are booming now. Those exurban communities still sit inside USDA-eligible boundaries, which means a first-time buyer can find a newer home on a real lot and finance it with no down payment. Roughly 95% of Texas land area is USDA-eligible, so for most Texans the question isn't whether USDA reaches their area — it's whether the exact home and their income fit the program. That combination of affordable exurban inventory and near-statewide eligibility is why we originate more USDA loans in Texas than almost any other loan type for buyers outside the big-city core.
Where USDA Loans Work in Texas
Texas is about 4.5% USDA-ineligible — meaning the overwhelming majority of the state can qualify. These are the regions where Texas buyers use USDA financing most.
North Texas (DFW exurbs)
Parker County (Weatherford), Ellis County (Waxahachie and portions of Midlothian), Johnson County (Cleburne, Alvarado, Burleson-adjacent areas), Kaufman County (Terrell), Hood County (Granbury), plus Wise, Van Zandt, Navarro (Corsicana), and Henderson (Athens) counties. These are the classic Metroplex commuter towns where much of the acreage is still map-eligible.
Central Texas (Austin overflow)
Bastrop County (Bastrop, Elgin), Caldwell County (Lockhart, Luling), and the fringes of Hays County east and southeast of the Austin urbanized area. This is where buyers priced out of Austin proper are landing on eligible ground within commuting range.
San Antonio area
Seguin, Floresville, Pleasanton, Hondo, and portions of New Braunfels and the Boerne outskirts. Large stretches south and east of Bexar County remain eligible.
Greater Houston
Sealy, Waller, Hempstead, Dayton, Angleton, and portions of Conroe and the far-west Katy fringe. The rural counties wrapping the Houston metro hold broad eligibility outside the built-up core.
East, West & South Texas
Much of East Texas, the Hill Country, West Texas, and the Rio Grande Valley qualifies broadly. Outside the six urbanized metros, small-town Texas is overwhelmingly USDA territory.
Verify your exact address — the map changes
The urbanized cores of Dallas, Fort Worth, Austin, Houston, San Antonio, and El Paso are excluded from the USDA program, and "portions of" a town can be split between eligible and ineligible zones right down the street. Because the maps are drawn at the parcel level and are periodically redrawn, never assume a specific house qualifies until you verify the exact address on the USDA eligibility map.
Open the USDA eligibility mapTexas USDA Income Limits
Higher-cost areas run higher. Higher-cost Texas areas — including several Austin-adjacent counties — carry limits above the base, running up to roughly $125,000 or more for a 1–4 person household. Your county sets the number that actually applies to you.
How income is measured. USDA counts total household income — the income of every adult who will live in the home, including non-borrowers — against a cap of 115% of the area median income for your county. Certain deductions (for dependents, childcare, and qualifying medical costs) can lower the figure the underwriter actually uses.
These 2025 figures are set by USDA Rural Development, vary by county, and change each fiscal year. Confirm the number that applies to you using the USDA income-eligibility tool, or use our USDA loan calculator.
Texas Market Snapshot
The math works in Texas because of the affordability gap between the metro core and the eligible ring around it. Median prices inside Austin or the close-in DFW suburbs frequently sit well above $400,000, while eligible exurban counties such as Johnson, Kaufman, Ellis, and Bastrop often show medians in the low-to-mid $300,000s — with newer construction on larger lots. For a buyer with steady income but little saved, financing a $320,000 exurban home with no down payment is a fundamentally different proposition than trying to assemble tens of thousands of dollars for a smaller home closer in. (Price figures move with the market; check current Zillow, Redfin, or Census data for your target county.)
USDA Loan Guides for Texas Towns
Explore the Texas markets where we help the most USDA buyers. Each guide covers local pricing, eligibility notes, and how zero-down financing works in that area.
Weatherford, TX
Parker County, on the western edge of the Fort Worth metro — small-town prices at DFW commuting distance, with wide USDA eligibility.
Waxahachie, TX
Ellis County, south of Dallas along I-35E — historic-downtown charm and eligible surrounding areas drawing first-time buyers.
Cleburne, TX
Johnson County, the affordable southwest corner of the Metroplex — some of the lowest entry prices near Fort Worth with broad eligibility.
Terrell, TX
Kaufman County, east of Dallas on I-20 — a fast-growing, still-affordable growth path where renters are becoming owners.
Bastrop, TX
Bastrop County, east of Austin on Hwy 71 — the classic Austin-overflow market with strong USDA eligibility.
Texas USDA Loan FAQs
Is my Texas town USDA eligible?
Most of Texas outside the Dallas, Fort Worth, Austin, Houston, San Antonio, and El Paso urban cores is USDA-eligible — roughly 95% of the state's land area. But eligibility is decided at the exact-address level, and a street can straddle the boundary, so confirm your specific property on the USDA eligibility map before you make an offer. We're happy to check it with you.
What are the USDA income limits in Texas?
For 2025 (subject to change), the base USDA Guaranteed limit in most Texas counties is $119,850 for a 1–4 person household and $158,250 for a 5–8 person household. Some higher-cost Texas areas carry limits above the base. USDA measures total household income against 115% of the county area median income, so check the figure for your specific county.
Can I use a USDA loan near Dallas or Austin?
Not inside the urbanized cores themselves — those are excluded — but yes in many nearby exurbs. Towns like Weatherford, Cleburne, Waxahachie, Terrell, and Bastrop sit within commuting range of Fort Worth, Dallas, or Austin and hold broad USDA-eligible territory. Verify the exact address, because eligibility can end mid-neighborhood.
Do I have to be a first-time buyer to use USDA in Texas?
No. The USDA Guaranteed program has no first-time-buyer requirement. It's popular with first-time buyers because it needs no down payment, but any qualified buyer purchasing an eligible primary residence within the income limits can use it. It cannot be used for investment properties or second homes.
How long does a USDA loan take to close in Texas?
When the file earns a USDA GUS "Accept," a Texas USDA purchase often closes on a timeline comparable to FHA — frequently in the 30–45 day range, depending on the appraisal, your documentation, and the contract. Files that require manual underwriting take longer. We'll give you a realistic timeline for your situation up front.
What credit score do I need for a Texas USDA loan?
USDA sets no hard minimum score, but a 640 or higher generally earns an automated GUS approval, which streamlines the file. Scores below 640 can still work through manual underwriting with stronger documentation and compensating factors. Not all applicants will qualify — we look at the full picture, not just the number.
Licensing & Program Notes for Texas
We are authorized to originate residential mortgage loans in Texas through registration with the Texas Department of Savings and Mortgage Lending. Texas consumers may file a complaint or seek information about the department's recovery fund through the Texas Department of Savings and Mortgage Lending; the full 7 TAC §81.200(c) notice is available on our disclosures page. We originate the USDA Single Family Housing Guaranteed program statewide — we are not a government agency and this site is not affiliated with, endorsed by, or sponsored by the U.S. Department of Agriculture.
Cornerstone First Mortgage, LLC · NMLS #173855 (nmlsconsumeraccess.org) · Tanner Cook NMLS #2090424 · Zac Cook NMLS #2111496 · Equal Housing Opportunity.
See If Your Texas Address & Income Qualify
Take our two-minute quiz and Tanner Cook (NMLS #2090424) or Zac Cook (NMLS #2111496) will follow up with an honest read on your USDA options — including a look at your exact address on the USDA map. No cost, no obligation, and not all applicants will qualify.
Cook Brothers Mortgage Team at Cornerstone First Mortgage, LLC | NMLS #173855 | Equal Housing Opportunity. This site is not affiliated with or endorsed by the U.S. Department of Agriculture.