Your search results

USDA Loans – A New Home Sale Opportunity

Posted by Builder Boost San Antonio on January 24, 2020

USDA loans are one of the most underutilized avenues for financing a new home.  Now, we all know they may not be the easiest loans to do, but this program sure can be a great way to open up a conversation.  Many times people postpone their dream of buying because they feel like they need a large down payment in the bank to purchase a home. The Single Family Housing Guaranteed program requires 0% down. Yes, there are still closing costs but those exist on all loans and may even be reduced or covered under certain circumstances.

You will be surprised by just how many new home communities are in the Greater San Antonio, Texas area and are USDA eligible. Location of eligible property is maintained by the United States Department of Agriculture (USDA) and can be confirmed by their map.

Featured Images:  Valley Ranch in San Antonio, Texas

Why does the USDA do this?

Providing affordable home ownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas. These rural communities are not without a luxury lifestyle. Most times these locations come with lifestyle amenities, new infrastructure and modern conveniences.

Here is your quick guide:


For eligibility on USDA loans, household income must meet USDA guidelines

Did you know that eligibility for the moderate income guaranteed loan program is at a limit $86,850 OR LESS for a family of one to four in the San Antonio-New Braunfels, TX MSA (Bandera, Bexar, Comal, Guadalupe, & Wilson Counties) as well as most other Texas counties? In the Kendall County, TX HUD Metro FMR Area the income limit is even higher and is increased to $107,750.  That means if a family of one to four making $107,750 OR LESS may qualify for the USDA program of 0% down in Kendall County, Texas.

If you have 5 or more people in your family, the income limits go even higher in Texas counties.

These income limits are higher than most people think and allow for a significant housing purchase for families who have not had the opportunity to save for conventional loan programs. Of course, as with other loan types, monthly debts are accounted for when qualifying under any programs and will ultimately determine the max purchase price. The max purchase price is different for everyone. Income qualifications do change and determination of qualifying income is always made by the USDA.

Be sure your client talks to the lender and confirms that their income qualifies and that the purchase price can be determined. Because information changes rapidly, The USDA income limits by county resource can be found here. Search your state then by county area.


Eligible and ineligible property location is determined by the USDA

The home must be located in an eligible rural area defined by USDA. Although the USDA is the authority on this program and property eligibility, Builder Boost has identified new home communities that may assist you in your process of finding these communities located in both list and map format.

Higher priced homes in eligible areas may qualify but the program is mainly geared for lower price points.


San Antonio New Home Communities



These Builder Boost resources of new home communities may help you fit your client’s area needs. Eligibility is not guaranteed by Builder Boost. The USDA maintains the locations of eligible property and which are subject to change from time to time. Determination of eligibility is always made by the USDA.

If you have a specific address or you know the location of the property by use of map, search the USDA rural property map on your own. It is important to know that new homes have new addresses and are not usually in the USDA database right away because property is newly developed. This does not mean that the property is ineligible, it just means that there is more research required to make eligibility determination. Search the USDA map for Single Family Housing Guaranteed.

Homebuyer eligibility and their approval is determined by the United States Department of Agriculture, Builder Boost always recommends starting directly with the home builder and qualified lender for the first steps. Your client’s circumstances and property eligibility will affect their ability to purchase under the USDA loan program.

Imagine the possibilities! Many people are under the misconception that they are required to have a lot of money in the bank to purchase a home. Educate prospective homebuyers who are currently saving for their down payment and bring them this opportunity of owning a new home much sooner than they thought possible. The energy savings, latest floorplans, community lifestyle amenities, proximity to major metropolitan areas, yet freedom from congestion will be an exciting discovery for them.

Possible USDA eligibility. No maximum loan limit with USDA Guaranteed Loans. Higher priced communities may qualify but the program is mainly geared for lower price points. Lender to verify all qualifying factors and eligibility of property.


Have a specific Buyer Need?
Leverage your time! Let our team help! It’s simple and free.


Get Exclusive New Home Inventory List
Last updated: 12-04-2023



Compare Listings