Zero down. Closer to Austin than you think.
A lot of areas near Austin qualify for USDA financing that people don't expect. I check every address before we go down this road.
Overview
USDA loans are zero-down mortgages for properties in eligible rural and suburban areas. The word "rural" throws people. You don't need acreage or a tractor. Many communities within commuting distance of Austin qualify. Bastrop. Elgin. Taylor. Liberty Hill. Dripping Springs. Wimberley. Lockhart. Marble Falls.
The program has income limits based on area median, but they're higher than most people expect. The guarantee fee is cheaper than FHA mortgage insurance. And the entire thing can be financed, so you can legitimately close with minimal cash out of pocket.
Here's the catch: eligibility changes. USDA redraws the map periodically as areas grow. Hutto, Kyle, and Buda lost eligibility in the last update. Others may follow. I verify every specific address before we commit to this path. If your area doesn't qualify, I pivot immediately to the next strongest option.
Key Details
How I Handle This
Step one is the address. I check USDA eligibility on the property before anything else. Step two is household income against the current limits. If both check out, I price the loan and compare it against FHA and conventional. You see all three.
If the address doesn't qualify, I tell you immediately. No one wastes time.
Questions I Get
What areas near Austin qualify?
Bastrop, Elgin, Taylor, Liberty Hill, Dripping Springs, Wimberley, Lockhart, Marble Falls, and more. Hutto, Kyle, and Buda lost eligibility in the last map update. I check every specific address because it varies block by block.
Do I have to be a first-time buyer?
No. USDA has no first-time buyer requirement.
What about the income limits?
They're based on area and household size. Higher than most people expect. But all adults in the household count, not just the people on the loan. A working teenager or parent living with you can push the household over the limit. I check this early.
How does USDA compare to FHA?
Both allow low or zero down payment. USDA's guarantee fee is structured differently than FHA's mortgage insurance, which can affect the monthly payment. The tradeoff is the geographic restriction. I run both and show you the comparison.
Curious if your area qualifies?
Send me an address or a general area. I'll check USDA eligibility and run your numbers in under 24 hours.