USDA Texas income limits for very-low-income borrowers (1-4 person households) range from $37,500 in most rural counties to $63,000 in higher-cost metros.
Low-income limits run from $60,000 to $97,800. Moderate-income limits are $112,450 in most areas.
Keep reading to find the full breakdown of these income limits. I’ll also discuss how USDA income eligibility works, key requirements, and loan benefits to guide your decision-making.
To qualify for a USDA loan, your household income must meet the set limit for Texas.
Income limits vary depending on the number of household members, and they’re higher for bigger households.
I’ve summarized below the Texas income thresholds for the Single Family Housing Guaranteed and Single Family Housing Direct (Section 502) loan programs, sorted by income level and number of household members.
Based on the table above, 61 counties in Texas have an income limit of $37,500 for 1-4 person households and $49,500 for 5-8 person households for very-low-income borrowers.
To see the exact income limit range for every county in Texas, visit the official U.S. Department of Agriculture (USDA) Rural Development eligibility website, and click on your loan program > Income Limits.
Or click on Income Eligibility, select a state, and complete the form to determine whether you’re eligible for the program.
The USDA sets loan income limits at 115% of an area’s median income. The limits ensure only borrowers with low-to-medium incomes qualify for the USDA home loan programs.
The limits differ for every state and county. The USDA adjusts these limits annually to reflect changes in median household income and living costs throughout the country.
For example, a very-low-income borrower in Hopkins County, Texas mustn’t have a total household income above $40,850 for a 1-4 person household when applying for a Guaranteed house loan.
Regions with higher living costs have higher income limits. For homes with over eight occupants, the income limit rises by 8% of the four-person limit within that area for every additional occupant.
Lenders take these steps to determine whether a borrower’s total household income falls within the set limits:
Step 1: They assess the overall household income from every adult household member (ages 18 and older), including non-loan applicants.
Step 2: Then, they apply adjustments as necessary. For example, deductions are allowed for senior household members and full-time students.
Step 3: Finally, lenders review additional financial metrics and eligibility requirements to calculate your loan amount. Unlike FHA financing, USDA loans have no set limits. The amount you qualify for depends on your ability to repay the mortgage loan.
Here are the property eligibility, credit score, and financial requirements to qualify for USDA loans:
After skyrocketing rental prices forced Bradley and Janna Lanphear and their four young children out of their Oregon rental, they headed to Texas to house-sit for a friend.
Thanks to USDA Rural Development support, they discovered economical housing opportunities and fell in love with an unfinished home perfect for their family’s needs.
The Lanphears are now thrilled to have their first home despite challenges along the way.
Their journey shows how USDA loans make homeownership much more accessible. These government-backed loans open doors with:
Key Takeaway: USDA loans make homeownership easier with 100% financing, no down payment, fixed low rates, and zero upfront closing costs, especially for borrowers who don’t qualify for traditional financing.
Now that you know the USDA Texas income limits, get on the fast track to owning your home with a dependable USDA loan specialist.
Texas United Mortgage will help make homeownership a reality for you. Our mortgage experts will determine your eligibility, discuss the best loan options, and tailor a strategy to fit your financial goals, whether a conventional mortgage or a DSCR loan is the right fit for you.
Ready to get pre-approved? Contact us today and we’ll guide you all the way to closing!