ServicesUSDA Loans
USDA Loans in Round Rock
A USDA home loan lets you buy with no down payment if the property sits in an eligible area and your family income falls under the limit. We check both before you shop, so you know which listings work and what your payment looks like.
What a USDA Loan Is and Who It Fits
The USDA guaranteed loan is a 30-year fixed home loan backed by the U.S. Department of Agriculture. You don't need a down payment. The government guarantee lets the lender accept that risk, and you pay for the guarantee through a fee at closing and a smaller yearly fee built into your payment.
It fits buyers with steady income who can handle a monthly payment but haven't saved a big down payment. It is for a primary residence only. No rentals, no second places.
Two things decide it: the property address and the income of every adult who will live there. Around the edges of the metro, some streets qualify and some just down the road don't. So we look first and plan the search around the answer.
What We Handle on a USDA Loan
Address eligibility check
We run any address you're watching against the USDA eligibility map. Eligibility goes by the exact location, not the town name, and the map gets updated. We check again before you write an offer.
Income limit review
USDA counts income from every adult who will live in the property, even if they aren't on the loan. We add it up the way USDA does and tell you where you stand against the limit for your family size.
Pre-approval you can shop with
Once income, credit and assets are reviewed, you get a pre-approval letter with a realistic price range. Sellers and agents take USDA offers more seriously when the address and income work is already done.
Rate quotes and payment breakdown
We show the rate, the guarantee fees, taxes and insurance as separate lines. You see the full monthly number before you commit to anything.
File work through USDA review
After we approve the loan, USDA takes its own look before final sign-off. We prepare the file so that review goes cleanly and keep you and your agent posted on where it sits.
Signs a USDA Loan May Be Right for You
Your savings are the sticking point
You can afford the monthly payment, but saving a down payment would take years. USDA removes that hurdle, so your savings can go to closing costs and reserves.
You're looking at the outer edges of town
Many newer subdivisions and acreage listings sit farther out. Some of those addresses fall inside USDA eligible areas.
Your income is moderate and steady
USDA has an income cap, not a high income requirement. If you earn a steady paycheck that lands under the limit, this program was built for you.
You plan to live there
You want a place to live, not an investment. If it's a rental or flip, look at our hard money loans page instead.
FHA mortgage insurance looks steep
The USDA yearly fee is often lower than FHA monthly mortgage insurance. It's worth comparing both before you pick.
How a USDA Loan Comes Together
- 1
Phone or video conversation
We talk through your income, the people who will live with you, your credit and the areas you like. Most buyers learn in one conversation whether USDA is a real option.
- 2
Application and documents
You complete the loan application with your loan officer. We'll ask for pay stubs, W-2s, tax returns and bank statements, and the same for anyone whose income USDA counts.
- 3
Pre-approval and address checks
You get a pre-approval letter. As you find places you like, send us the addresses and we confirm eligibility before you make an offer.
- 4
Contract, appraisal and underwriting
After your offer is accepted, the property is appraised and we underwrite the full file. Then it goes to USDA for its final review.
- 5
Closing
Once USDA signs off, we schedule closing. Build a little extra time into your contract for that USDA review so you aren't rushed at the end.
What Moves the Cost of a USDA Loan
There's no down payment, but a USDA loan isn't cost-free. You'll have closing costs, an upfront guarantee fee that can be rolled into the loan, and a yearly fee paid monthly. Here's what changes your numbers.
- Credit and the rate
- Your credit history and the market on the day you lock set your rate. Stronger credit usually means a lower rate and an easier automated approval.
- Guarantee fees
- USDA sets the upfront and yearly fees. They're the same for every borrower, but rolling the upfront fee into the loan raises your balance and payment a bit.
- Closing costs and seller help
- Title, appraisal and prepaid taxes and insurance are due at closing. Sellers can agree to cover some of them, which we can plan for in your offer.
- Property taxes and insurance
- Taxes vary a lot by county and by special districts farther out. Two places at the same price can carry very different monthly payments.
USDA Loan Questions
Something not covered here? (512) 955-5203
Do I really need zero down payment?
Yes, the program allows 100 percent financing on the purchase price. You'll still need money for closing costs unless the seller covers them or the appraisal leaves room to finance part of them. Some cash in the bank after closing also helps your approval.
How do I know if an address qualifies?
Send it to us and we check it against the USDA eligibility map. Don't go by town name or what a listing says. Eligibility is set by the exact location and can change when the map is updated.
Whose income counts toward the limit?
USDA looks at every adult who will live in the property, not just the people on the loan. A working adult child or a relative moving in can push you over. We sort that out at the start so it doesn't surprise you later.
Can I use a USDA loan for a new build?
Often yes, on a finished new home from a builder, as long as the address is eligible and it passes appraisal. Talk to us before you sign a builder contract so the timing lines up.
Does a USDA loan take longer to close?
It can, because USDA reviews the file after we approve it. Planning for that up front, with a complete file and a realistic closing date, keeps it from becoming a problem.
Can I refinance an existing loan into USDA?
USDA refinance options are for loans that are already USDA loans. If you have a conventional or FHA loan now, we'll look at our conventional loans or FHA loans options with you instead.
Find Out If You Qualify Before You Shop
A short phone conversation tells us whether your income fits and which areas to look at. Then you can shop with a real price range and a pre-approval in hand.