What is a USDA loan and do I qualify in Northeast Texas?
Reviewed August 2026 by Shannon Miles Group
A USDA loan is a zero-down-payment mortgage for properties in eligible rural areas. Many Northeast Texas communities qualify, including parts of Paris, Sherman, and surrounding areas. Income limits apply.
Understanding USDA loans.
USDA loans are one of the best-kept secrets in mortgage financing. They are backed by the U.S. Department of Agriculture and designed to help moderate-income buyers purchase homes in eligible rural and suburban areas.
Key benefits of USDA loans
- Zero down payment. No money down. This is the biggest advantage for buyers who cannot save a large down payment.
- Competitive interest rates. USDA rates are typically comparable to or slightly lower than conventional loan rates because the loan is government-insured.
- Low mortgage insurance. The upfront guarantee fee (typically 1% of the loan) and annual fee (0.35%) are lower than FHA mortgage insurance premiums.
- Flexible credit requirements. Most lenders look for a minimum score of 640, but some may be flexible for otherwise qualified buyers.
Eligibility requirements
- The property must be in a USDA-eligible rural area.
- Your household income must not exceed the area limit (varies by county and household size).
- The home must be your primary residence.
- You must have a stable income and acceptable credit history.
USDA loans in our area.
Most of rural Lamar County, Fannin County, Delta County, Hopkins County, Red River County, and surrounding areas qualify for USDA financing. Even some properties on the outskirts of Paris and Sherman can qualify. This is one of the best programs for first-time buyers in Northeast Texas.
The USDA loan is especially valuable in our area because it makes homeownership accessible for buyers who have good income but not enough saved for a down payment. Many of our clients are surprised to learn they qualify. A quick check with a USDA-approved lender tells you if you are eligible.
Is a USDA loan right for you?
- Check property eligibility. Use the USDA eligibility map to see if the property you are interested in qualifies. Most of Northeast Texas is eligible.
- Know the income limits. Income limits vary by county and household size. A USDA-approved lender can confirm whether you qualify.
- Plan for the guarantee fee. The upfront fee (about 1%) can be rolled into the loan amount. The annual fee (0.35%) is paid monthly.
- Work with a USDA-approved lender. Not all lenders offer USDA loans. We work with several local lenders who do and can connect you.
More answers you might find useful.
Think you might qualify for a USDA loan?
Call us or stop by the office at 2322 Lamar Ave. in Paris. We can connect you with a USDA-approved lender who will walk you through the process.