First Time Buyer Program

Atlanta FHA Program Details

This page updated and accurate as of February 13, 2026 USDA MTG HUB

FHA loans are by far one of the most popular mortgage loans available in Georgia today. The Federal Housing Administration (FHA) loan mortgage is great for Atlanta area home buyers that want to purchase a home with little money down.

The program offers GA residents the option of purchasing a home with only a 3.5 percent down payment. Here are the documentation and credit requirements needed to be approved for an FHA home loan. We will also look at some of the program benefits.

FHA Documentation Requirements:

Most of the general information needed to start will just be basic things you already know. However, in order to work up a complete loan approval, lenders will need the following:

The residence address where you have been living for the past two years
Social Security numbers for all borrowers on the application
Name and location of your employer(s) for the past two years, gross monthly salary. 2 years of consistent income. While you do not need to be at the same job for 2 years, we must be able to verify a 24-month job history. Gaps in employment can be explained, however, those need to be kept at a minimum. The current income statement and personal tax returns from the past two years must be presented to the lender at the time of asking. In addition to that, individuals who are self-employed will be required to present their balance sheet.
Information pertaining to the checking savings accounts and any other asset accounts.

FHA Credit Requirements:

FHA home loans provide the home buyer a chance to buy their first home with a low down payment. However, your ability to qualify for FHA-approved loans significantly depends on your FICO credit score. In recent years the FHA has made changes to its policies that affect the ability of an individual to buy a home. Currently, applicants must have a credit score of at least 620 in order to qualify for the max 96.5% financing. Some borrowers with lower credit scores can qualify with a larger down payment.

FHA Requirements Recap:

Steady employment for at least two years
A valid social security number
U.S. residency
Two years out of bankruptcy and four years out of foreclosure with good credit
A 3.5 percent down payment – can be in the form of a gift
100% FHA mortgages with down payment assistance now available to eligible first-time buyers
A 620 minimum credit score
A monthly payment must not exceed 35 percent of gross monthly income
Monthly debt must not exceed 45 percent of gross monthly income

Atlanta FHA Mortgage Highlights:

Generally easier to qualify than conventional loans
Lower down payment requirements, 3.5% compared to 5% for conventional loans
The home seller is permitted to pay buyers’ closing costs
Safe 30-year fix payment terms
Lower credit scores permitted
Generous loan amount limits that are $541,287 and higher (FHA Loan limits specific to the county)
FHA streamline refinance options available for all borrowers with an FHA loan

Home buyers in more rural locations in GA should also check into the USDA Mortgage here. The USDA program offers up to 100% financing in many locations just outside of the big cities. Please call us above, or just submit the Quick Form on this page for assistance.

Serving home buyers in all across the U.S. including metro Atlanta – Fulton, DeKalb, Gwinnett, Cobb, Clayton, Coweta, Douglas, Fayette, and Henry County.

Georgia First Time Home Buyer Programs

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Georgia first time home buyers have many options today to purchase a home with little to no down payment. Most of these programs today are tailored for first-time homeowners by offering flexible credit standards, secure fix interest rates and minimal money down.

Getting approval for a mortgage is often the first step in the home buying process. But unlike getting a car or a credit card loan, a home mortgage does require a bit more documentation.

In addition, there are different types of loan programs available that can lead to some confusion as to what loan might best suit someone’s needs. You can do all the research you want to get familiar with some of these programs but you do need to speak with an experienced loan officer that can craft a set of options from which to choose. Let’s take a closer look at what is available in today’s home loan marketplace.

Government & Conventional

Mortgage loans are generally broken down into two categories, a government loan and a conventional one. A government-backed loan is so-called because the loan carries some sort of inherent guarantee. This guarantee doesn’t guarantee a mortgage loan applicant a loan approval but does provide the lender with some degree of confidence when approving such a loan. There are three such programs, the VA home loan, USDA, and FHA mortgage programs, and can only be used to finance an owner-occupied property.

Conventional mortgage loans do not a government guarantee and the risk is placed entirely upon the mortgage company writing the loan. Should the loan ever go into default the lender endured the entire loss, foreclosing on the property and putting up the home for sale at a foreclosure option. Conventional loans fall into the conforming or jumbo category. A conforming loan means the maximum loan amount is $832,750 in Georgia and for most of the country for that matter.

Some more expensive locations known as “high-cost” areas have loan amounts even higher. Any loan that is above that amount is called a Jumbo mortgage. Most conventional loans today are underwritten to standards issued by mortgage giants Fannie Mae and Freddie Mac.

A third option that occupies a very small slice of the mortgage lending pie is a portfolio loan. A portfolio loan is a mortgage that does not conform to the typical government or conventional guidelines and the lender intends to keep the loan and not have the option to sell it to other lenders or to Fannie and Freddie. The lender keeps the approved loan in its “portfolio” with no intention of selling it in the secondary market.

Government Mortgage Programs for First Time Buyers

FHA Loans. FHA is easily the most popular first-time buyer program today. FHA does have a down payment requirement, but this is 3.5% of the value of the home. The FHA loan is not restricted to any particular class of borrower nor is the loan limited to certain areas and does not have a maximum income limit.

While the FHA program is not reserved for first-time buyers in Georgia it is extremely popular for them due to the low down payment requirement and low interest rates.

The Federal Housing Administration, or FHA, introduced the guidelines banks could use which provided universal standards banks could use and first introduced in 1934 as part of the National Housing Act of 1934. FHA loans carried a mortgage insurance policy that compensated lenders to 100% of the loss should the lender be forced to foreclose on the property as long as the lender followed prescribed FHA guidelines.

The FHA program requires two separate mortgage insurance premiums, an upfront and an annual one. The upfront premium is 1.75% of the sales price and rolled into the loan just like the other two government-backed programs. In addition, there is an annual premium of the outstanding loan amount and paid monthly. Think of this as PMI or monthly mortgage insurance.

We now offer many different down payment assistance programs for FHA loans, please contact us to discuss. Read more about FHA credit and down payment requirements on the FHA details page.

VA Loans. VA loans are those underwritten to guidelines set forth by the Department of Veteran’s Affairs. This program was first introduced way back in 1944 to help returning soldiers from WWII more easily assimilate into civilian life and part of the original “G.I. Bill.” The driving force behind this original home loan program took into consideration that soldiers didn’t have all that much time saving up for a down payment and closing costs while serving their country during wartime. To address this, the VA loan requires zero down payment and one of two such 100% financing programs available today.

Over the years, eligibility for a VA home loan has expanded to include not just veterans of the armed forces but to active duty personnel with at least 181 days of service. In addition, those who have served for at least six years with the National Guard or Armed Forces Reserves can also apply for a VA home loan as well as unremarried surviving spouses of those who have died while serving or the result of a service-related injury. In addition to not requiring a down payment, the VA home loan limits the types of closing costs the veteran is allowed to pay.

The government guarantee to the lender that approved the VA home loan compensates the lender for 25% of the loss. This guarantee is financed by what is referred to as the Funding Fee. This is expressed as a percentage of the loan amount and can vary slightly based upon the number of times the veteran uses the VA loan to buy a home as well as the type of loan. For a first-time buyer in Georgia for example using the VA loan program, the funding fee is 2.15% of the loan amount and is rolled into the loan amount.

For instance, a home is listed for sale at $300,000. The first-time buyers don’t need a down payment and the funding fee is 2.15% of that amount or $6,450. The funding fee is not paid out of pocket but instead rolled into the loan amount for a final loan amount of $306,450. VA loans do not have an extra monthly mortgage insurance premium as do the other two government loans USDA and FHA. Read more about VA purchase loans here.

USDA Rural Housing Loans. This loan program has been around for several years under different names but today the United States Department of Agriculture issues guidelines for the other zero down loan program besides the VA loan. USDA loans are available for first time home buyers but the qualification requirements are a bit different.

USDA loans are meant to help buyers in more rural or semi-rural areas more easily obtain financing as well as having no down payment requirement. Most of GA outside of metro Atlanta is eligible for USDA financing. The USDA loan also limits the amount of household income of those not only on the loan application but in the household as well.

For those who are considering a USDA loan, the first step is to make sure the potential property is in an approved zone. Your loan officer can help walk you through the process but you can also log onto USDA’s website where all you need do is enter the property address to see if the home is within an acceptable area.

If the property is in an acceptable area the borrowers must then calculate household income and fall at or below the maximum income limits established for the area by the USDA. These limits are set at 115% of the median income for the area. There are adjustments to this amount so it’s not exactly 115% but your loan officer can explain these limits to you. The USDA loan compensates the lender for 100% of the loss should the lender be forced to foreclose.

This guarantee is financed the USDA Guarantee Fee of 1.00% of the loan amount and rolled into the loan as an upfront fee. An annual fee is required which is 0.35% of the loan amount and paid in monthly installments. Using a $150,000 loan, the upfront fee is $1,500 resulting in a final loan amount of $101,500 and the annual fee is $525 and paid in installments of $43.75 If a first-time buyer wants a loan with 100% financing but is not VA-eligible, the USDA loan is an option.

Keep in mind that all the government loan programs listed above are reserved only for owner-occupied homes. Investment properties are not eligible.

Conventional Loans for First-Time Buyers

Conventional loans up to $832,750 are either approved using guidelines set by Fannie Mae and Freddie Mac. The minimum down payment for either program is 5% yet there are special programs that only ask for 3.0% down yet the 3.0% program is only for owner-occupied properties.

Conventional loans for first-time buyers are a good choice for those with a larger down payment. If a conventional loan is equal to at least 80% of the value of the property the lender will require a mortgage insurance premium. For those that can structure a mortgage where the first lien is at or below the 80% threshold, there is no monthly mortgage insurance. Contrast that requirement with some other programs that require mortgage insurance regardless of the difference between the value of the property and the amount borrowed.

Which of these is the ideal choice for a first time buyer? If you have funds saved up for a down payment and closing costs then you might consider a conventional loan that requires no monthly mortgage insurance or upfront mortgage insurance premium. If you do need or want a loan program with little or no down payment, then a government-backed loan might be the right fit.

Contact us today to discuss your options. Call the number above or just fill out the Quick Contact Form on this page.

Teacher Home Loan Options

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Teachers have some great government mortgage options available to them in 2026. Many teachers need a home mortgage solution that requires little to NO down payment. Let’s take a look at some of the best Teacher home loan options available in 2026.

USDA Rural Housing Mortgage – 100% Financing, Government backed.

You see “USDA” and the first thing you think is farms and ranches – or maybe even beef inspections? Many Teachers are still unaware that USDA & Rural Development offer regular home mortgages. The USDA 502 Guaranteed loan is a program designed to help rural communities expand by making homes in these areas affordable through easy credit requirements. USDA is currently the only 100 percent no money down mortgage available in the U.S. today (unless you have military VA benefits) The program is perfect for public service workers like school Teachers, Firefighters, EMT, Police who may have limited money saved for a down payment.

Here are some of the many benefits that this program offers to teachers:

USDA mortgages require no money down up to 101 percent financing ( One-time USDA guarantee Fee of 1.0% included in loan amount)
No time consuming requirements to get approved. No special class or education needed. Get pre-approved and out searching for a home all in the same day.
USDA are secure with low 30-year fix interest rates.
The home you decide to purchase doesn’t need to meet any “special requirements” as the home can be a short-sale, foreclosure, bank owned, by owner, or a regular sale. The home should only be located in defined USDA approved area (according to the map here) and be in good move in condition.
In comparison to FHA, USDA has much a lower monthly mortgage insurance – PMI cost.
USDA closing cost can be rolled into the loan in some cases or paid by the seller of the home you choose.
There are no maximum home purchase loan limits with USDA loans. Buyers get approved based on their total income/debt.
No assets as collateral are required to qualify for USDA loan
You can qualify for a USDA loan with a minimum credit score of 620
USDA does have household income limits, depending on the county and size of the household. Contact us to discuss in detail – applicants can submit the Quick Contact Form on this page.

FHA Mortgage – 96.5% Financing.

The standard Government backed FHA home loan is very similar to the USDA program above. However, this program does require a small 3.5% down payment. The down payment can be a gift, and come from a family member.

The big difference between the FHA and USDA mortgage is the property you purchase with FHA is NOT required to be in a designated approved area.
FHA also does not have income caps for the household.
Like USDA above, the FHA loan permits the home seller to pay the buyers closing costs.
FHA also permits co-signers – even if they are not going to occupy the home.
Secure fixed interest rates and no prepayment penalty. Move or pay off your loan anytime.
FHA loans can close in as little as three weeks.

Good Neighbor Next Door, FHA Niche Program

The Good Neighbor Next Door Loan is the HUD-FHA (Federal Housing Administration) niche program. It is a program that is focused on revitalizing communities, with the help of public service professionals, like teachers, and in return, helping them become homeowners.

Here’s how this program works:

Eligible single-family homes located in targeted communities (revitalization areas) are listed for sale through this program. These properties are available for purchase for 7 days.
To participate, all you need to do is submit your interest for a specific home. If more than two people submit an offer for the same home; the selection is made by random lottery.
In addition to this, to qualify you must meet all the requirements such as:
You can apply for the Good Neighbor Next Door program if you are employed as a full-time teacher by a state accredited public or private school that offers direct services to students from pre-kindergarten to 12^th grade
The school where you are employed at; must serve students from the area where your new home that you’re planning to purchase, is located.
HUD offers big discounts from the listed price of the home (often times 50%) however, the teacher (the borrower) must commit to live in the property for 3 years after purchase and contribute to the community’s revitalization

FHA HUD $100 Dollar Down Program

This program offers $100 down payment on select HUD owned homes. Buyers can learn more about the HUD 100 dollar down loan here.

So, if you are a teacher with limited finances, don’t let this stop you from realizing your dream of home-ownership. Interest rates are still attractive and buyers can often own a home for less than their current rent payments. The best part is this can be done with little to no money out of pocket.

USDA Mortgage Hub serves Teachers across the nation. Teachers that have questions or what to learn more about getting pre-approved can submit the Quick Contact Form on this page.

97% Conventional Loan Financing

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Years ago during the real estate boom, 97% Conventional loan financing was readily available for first time home buyers and the programs weren’t so exclusive. Many mortgage lenders were even offering 100% financing mortgages which worked quite well at the time. Then things started to change.

The mortgage industry experienced a downturn in foreclosures and tougher lending regulations seemed to end most of these mortgage programs. But things changing in 2026 as the housing markets continue to recover.

97% Conventional Mortgage Financing has made a recent comeback by Fannie Mae, through My Community Mortgage product and for a standard non-MCM Conventional Loan Product. These programs are meant to help first-time homebuyers who may not have the resources for a larger down payment, the program allows them to receive loans requiring little down payment. It is also great for homeowners whose homes have lost value since purchase but who are otherwise ineligible for the Home Affordable Refinance Program (HARP).

This program makes mortgages more accessible, sustainable and affordable. Fannie Mae offers guidelines and tools that enhance the benefits of 97% Conventional Mortgage Financing. The flexibilities inherent to the program are what distinguish it from other conventional mortgage financing options in the market.

97% Conventional Mortgage Highlights

The program provides a Maximum loan to value (LTV), Combined Loan to Value (CLTV), and High or Home Equity Combined Loan to Value (HCLTV) is 97%.
Manufactured homes are not eligible for 97% LTV loans.
Cash gifts may be used for down payments and reserves.
It limits the upfront monthly costs of mortgages.
It supports the long-term success of buyers.
Private Mortgage Insurance (PMI) cancels when the loan reaches 80% LTV.

97% Conventional LTV Home Buying Requirements

Only 30-year fixed rate mortgages are allowed.
Only available for low to moderate income families.
The program requires a minimum of 3% down payment.
May require homebuyer education prior to loan closings.
Borrowers are required to pay Private Mortgage Insurance (PMI).
At least one of the borrowers on the loan must be a first time home buyer.
The loan must be used for a 1 unit primary residence (including Condos and PUDs).
No second home or investment type purchases.
Applicants must score must be greater than 640 to qualify.

Other than these features, 97% conventional mortgage financing is quite similar to other conventional mortgage types. But because 97 % conventional mortgage insurance goes away at 80% LTV, it can become a better value over time, especially if you have high credit scores. The higher your credit scores, the cheaper 97% conventional mortgage funding will be. You can check your eligibility for the 97% conventional program and buy your dream home with a down payment of just 3%.

Questions about getting pre approved? Please connect with us today by calling Ph: 800-743-7556 or just fill out the Quick Contact form on this page.

2026 FHA Home Loan Benefits

This page updated and accurate as of February 13, 2026 USDA MTG HUB

The FHA loan program has remained a popular mortgage financing source for many home buyers across the nation. Many home buyers need home loan options that offer min down payment like the FHA program. In addition to the low 3.5% down payment requirement, FHA recently announced the monthly mortgage insurance is going down, making the home loan even more affordable for new buyers and current FHA mortgage holders.

In addition to a low 3.5% down payment, easy credit qualifying requirements, and backing by the federal government – FHA mortgages are an attractive option to many borrowers in the U.S. Donald Myers, FHA loan specialist, says that FHA loans will always play a big role in the housing market whether their costs rise or fall. Most buyers (especially first-time buyers) cannot qualify for bank conventional loans that require large 10% or 20% down payments.

Below we will look at all the 2026 FHA Home Loan Benefits:

Relax credit score and down payment requirements:

The FHA requirements for credit scores and down payments are far lower than for conventional loans. Borrowers can technically qualify for an FHA loan with credit scores of at least 580 credit score and a down payment of just 3.5 percent – according to FHA. While an FHA-backed mortgage with a credit FICO of 580 is “available” to borrowers, many lenders and banks will add their own in-house “overlays” on top of these minimum credit requirements.

Loans with the lowest credit scores tend to default at a much higher rate, and mortgage companies are afraid that if they issue too many loans that later fail, HUD will no longer allow them to write FHA-backed mortgages. Therefore, many borrowers will find they need to have credit scores of at least 620 to qualify for the max 96.5% financing.

FHA mortgage interest rates:

FHA loan rates are typically the lowest 30 / 15 year fixed rates available and lower than conforming loans. FHA Borrowers with credit scores of 680 will often qualify for the same interest rate as conventional borrowers with a score of 720 +. In addition, they will not be required to put as much money down.

FHA mortgage insurance premiums:

The biggest downside of FHA loans has long been the costs associated with the upfront and annual mortgage insurance premiums. However, since the interest rates on FHA loans are generally lower when compared to conventional, it oftentimes offsets the additional costs.

The upfront mortgage insurance premium (MIP) is 1.75 percent of the loan amount. That is $3,500 on a $200,000 mortgage. That cost is added to the principal balance of your loan. So your loan amount is actually $203,500.

Just to clear up any confusion, the annual mortgage insurance is actually the monthly insurance (PMI) that is added to your monthly payment. This is the monthly PMI rate, not the one-time funding fee of 1.75%. The new mortgage insurance reduction is a huge saving. On a $200,000 loan, the annual premium of 1.35 percent would cost borrowers $2,700. But with a premium of 0.85 percent, borrowers will only pay $1,700 for the same loan amount.

The lower annual rate does not apply to those applicants who are taking out 15-year fixed mortgage terms, these will remain the same. Borrowers can read all about the latest FHA mortgage insurance calculator 2026 here. Please also see the chart below – this compares the new and old FHA monthly mortgage insurance rates, the monthly saving is pretty good!

FHA closing costs:

FHA still permits home sellers to pay up to 6% of the loan amount to cover buyers’ closing costs. In conventional loans, sellers can only pay up to 3% in most cases. So this allows the FHA home buyer to put less money into the transaction. In some cases, a borrower can just pay the down payment, and have the seller pay all closing costs. Most first-time buyers can come up with enough money for a down payment, but then they have nothing else. So allowing the home seller to pay the tab on closing costs is a big help for many.

Secure backing by the U.S. government:

FHA loans are backed by the US government – Federal Housing Administration. The program offers safe secure fixed-rate terms with no pre-payment ( early payoff) penalties.

*Note, Florida home buyers have a special opportunity with the Florida Hometown Heroes Program. This state-sponsored down payment assistance program offers 5% (up to $35,000) of the home purchase price to assist with the buyer’s down payment, closing costs, and loan principle reduction.

Please call or submit the Quick Contact Form to learn more about any of the programs available.

Arkansas USDA Rural Loan-Good for You?

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Many home buyers purchasing property in one of Arkansas semi-rural communities have a great option with the 100% USDA loan. The United States Department of Agriculture & Rural Housing (USDA) still offers 100% financing through approved lenders and banks. The program requires no money down and has very competitive 30-year fix interest rates.

In addition to 100% financing, the USDA program costs less overall in regards to reduced mortgage insurance costs, over 50% when compared to the more popular FHA loan.

The USDA program has been around for many years and there have been some adjustments made over the years but the goal is still the same- to provide flexible mortgage options for those in rural or semi-rural areas. Even many locations just outside larger cities like Little Rock, Fort Smith, Fayetteville, Springdale and Jonesboro are still eligible.

Let’s discuss the basic USDA guidelines below:

Safe fixed interest rate– One of the great advantages of the USDA loan is the fixed 30-year interest rate. Compared to other traditional loans where the interest rates can vary, the interest rate remains the same for the entire life of the loan. No prepayment penalty or adjustable rate terms. This is good because the homeowners can plan out their fixed monthly expenses more easily.
100% financing – The Federal government insures or backs USDA loans, and allows 100% financing as a way to help develop and expand rural locations in Arkansas. The USDA mortgage also allows for the seller of the home to pay the buyers closing costs, up to 6%. With that home buyers can generally close on a home with little to NO money out of pocket.
Simple approval process – Getting qualified and approved for a USDA loan in AR quick and easy. Often times the entire pre-approval process can be done in minutes. There are no special requirements like classes or pre-education for first-time buyers to apply. Buyers just need to ensure they have reasonable credit and income below the max income limit for your County. Contact us to discuss below income limits in more detail.
No savings requirement – Home buyers are not required to have a certain amount of savings to be approved. Most conventional loans and FHA loans require down payments and savings reserves for buyers to get approved, but not the USDA program. Buyers can also receive gift funds if they choose to put money down.

Additional Information Home Buyers Should Know:

Credit check
It’s usually the pesky small things that can hurt your credit. If you think your credit needs some work, check it out in advance before you make an application. Keep in mind, your interest rate is tied to your credit score. Buyers with the highest credit scores (over 680) generally receive the lowest interest rate which can save a lot of money in the long run.

Credit score
As of 2026, a credit score of 640 or better is needed for the 100% USDA loan automated GUS approval. If you came out of a bankruptcy or foreclosure, or other financial hardship you would need to have maintained a perfect credit since (3-4 years) regardless of how high your current credit score may be. Remember, a 640 credit score alone does not guarantee loan acceptance.

Debt-to-income ratio
Solid review of buyers debt must be done by lenders to ensure the buyer can meet the obligation. Mortgage companies generally don’t want to see buyers total debt load that’s higher than 42 percent for a USDA mortgage approval. Buyers will also need (2) years of consistent employment with large gaps in employment. Not required to be 2 years with the same employer, just in the same line of work.

Home buyers that have questions can contact us by submitting the Quick Contact form on this page for fast service.

Proud to serve home buyers across the U.S. including – Little Rock, Fort Smith, Fayetteville, Springdale, Jonesboro, Conway, Rogers, Pine Bluff, Bentonville, Hot Springs, Benton, Sherwood, Texarkana, Jacksonville, Russellville

100 Percent USDA Loan Texas Teachers

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Most of the Teachers in Texas purchasing homes tend to be first time home buyers. Like most first time home buyers, down payment is often the main obstacle when purchasing a home. Most first time buyers just don’t have 10 or 20 percent down payment lying around for a mortgage down payment.

The good news is you still have options with USDA Rural Housing assuming you meet the basic eligibility criteria. The USDA 502 Guaranteed mortgage still allows for 100% financing in select rural defined locations around Texas. This government backed 30 year loan is perfect for teachers, police, firefighters or any other Texas public service worker that has little to no savings to purchase a home.

Please call us at Ph: 800-743-7556 anytime with questions, or just submit the quick contact form on this page.

USDA really only has two key factors to determine if you are eligible – location of the home and household income. Basically the house (single family home) must be located in a USDA approved area according to the USDA eligibility map here. Remember, USDA is not concerned about who the seller of the home is, just where the home is located as it must be a rural defined location.

It’s also a good idea not to automatically assume your location is not “rural eligible” You can easily check the property address on the map link above, some buyers are surprised to learn even certain outlying suburbs of cities like Dallas, Houston, Austin, San Antonio may still be eligible. If you need assistance finding USDA approved homes in Texas, please contact us below.

In addition to the actual location of the house, the income for the entire household must be below the USDA income limits found here.

If you find you meet the two key USDA loan eligibility factors above, everything else comes down to loan qualifying. Getting pre approved for a Rural Development loan is pretty much the same as other loan programs. Your credit score must be a min of 620 to be accepted by most banks and lenders. Your income should be documented with a stable job history as well. Since USDA doesn’t have set loan amount limits, your monthly debt to income ratios will determine the purchase price amount you qualify for.

Have questions? Contact us by calling or just submit the Quick Contact form located on this page for a fast response.

We serve home buyers across the U.S., include TX.

First Time Buyer Programs Colorado

This page updated and accurate as of February 13, 2026 USDA MTG HUB

First Time Buyer Programs Colorado: First time home buyers in CO has some great home financing options available in 2026. In the post below we talk about some of the popular mortgage programs like USDA, FHA, VA and the benefits of each.

100% USDA RD Home Loan

The complete name of the loan is the Rural Development Guaranteed Housing Loan Program, or RD for short. It is supported by the United States Department of Agriculture and offered through approved USDA lenders and banks. The program is only available on rural properties in select locations around Colorado. Don’t let the word “rural” fool you, many popular suburban locations just outside of Aurora, Castle Rock, Greeley, Fort Collins, etc are still eligible for USDA financing. You can check eligible locations and address here.

USDA Loan Benefits:

USDA is one of the only programs left that permits 100% financing – no down payment required
Great for Colorado Teachers, Fire Fighters, Police, etc. Flexibility for first time home buyers
USDA allows the home sellers to pay buyers closing costs.
Secure 30 year fix terms at low interest rates.
No restrictions on when you can move or sell your home, etc.
Buyers are not required to be first time home buyers.
No special class, down payment assistance programs needed. Applicants can be approved in minutes.
Any house that is in good repair and located in a USDA eligible location is ok, regardless of the home seller.
No loan amount limits with USDA, buyers qualify based on their debt to income.
Easy USDA refinance options available for home owners that currently have a USDA loan.

USDA Loan Requirements:

Buyers must have a min 620 credit score to be approved.
Solid work history for the past 2 years – no unexplained gaps in employment.
Household income must be below the county limit. Read more about household income limits here.
The home must be located in a USDA approved locations, see the map link above.
Mobile homes, rehab homes, land loan, lot loans, build on your own site financing NOT permitted. Home must be existing single family, approved condo or townhome in good repair.
Primary residence homes only.
Read more about USDA purchase FAQ’s here.

VA Home Loans

The VA loan program is a great benefit to active military and vets in Colorado. VA and USDA are the only two remaining 100% financing program available today. The program has been offered since 1944 and has opened up the doors to home ownership to many veterans and their families. The VA loan is one of the government loan programs that has less restrictions, and easy to qualify for.

The loan can be made without a down payment and has lower fixed interest than other types. The VA application and qualification process is similar to other types of government loans like FHA and USDA. Any interested former military must first apply for a Certificate of Eligibility through the VA, pick out the perfect house and sign a purchase agreement. Don’t have a COE, please contact us below for assistance. Once this is complete the appraisal, home inspection and underwriting process can start.

So exactly who is eligible for VA loans? Colorado vets who have served on active duty and who have been discharged, with the exception of a dishonorable discharge, can apply. A veteran, prior to applying, must have served 90 days during wartime or 181 continuous days during peacetime. Additionally, for veterans enlisted after September 7, 1980 or who began service after October 16, 1981, there’s a two-year requirement.

National guards and reservists have a six-year requirement within certain criteria. Surviving spouses have their own set of eligibility requirements. Also keep in mind VA loan benefits can be used more than once.

VA Loan Benefits:

100% financing, $0 down payment.
Lowest fixed interest rates of any mortgage program.
NO monthly mortgage insurance – or “PMI” as it’s more commonly referred to. This is a huge benefit for military buyers.
Any single family home, town home, approved condo is eligible. Must meet basic HUD standards in regards to condition. Pretty much all government loan programs follow this same protocol.
Seller can pay certain allowable closing costs on behalf of the home buyer.

VA Loan Requirements:

Must be eligible past or present military to be approved.
620 credit score required.
Loan amount limits generally follow basic conforming loan limits of $417,000
Stable employment with 2 year history.
Mobile / Manufactured homes not permitted.

Need more assistance on VA home loans? Please visit VA Mortgage Hub here.

FHA Home Loans

The FHA mortgage is a housing loan that is insured by the Federal Housing Administration (FHA) and offered through approved lenders and banks. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

The FHA program was created in response to the economic downturn that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable. Nowadays, FHA loans are very popular, especially with first-time home buyers in major metro areas like Denver, Colorado Springs, Pueblo, etc.

Typically an FHA loan is one of the easiest types of mortgage loans to qualify for in CO because it requires a low down payment and you can have less-than-perfect credit. An FHA down payment of 3.5% is required. Borrowers who cannot afford a traditional conventional down payment of 20 percent or can’t get approved for private mortgage insurance should look into whether an FHA loan is the best option for their personal scenario.

FHA Loan Benefits:

Up to 96.5% financing.
Low secure fixed rates – 15 year, 30 year, etc.
Sellers concessions permitted for closing costs.
No restrictions on home location like USDA.
No household income restrictions like USDA.
Streamline refinance options available for those home owners that currently have a FHA loan.

FHA Mortgage Requirements:

Must have a steady employment history for the past two years.
Must have a valid social security number, and have lawful residency in the U.S.
Must make a minimum down payment of 3.5 percent. The money can be gifted by a family member.
New FHA loans are only available for primary residence only.
Minimum credit score of 620 for maximum financing with a minimum down payment of 3.5 percent.
Minimum credit score of 600 for maximum LTV of 90 percent with a minimum down payment of 10 percent. FHA lenders will use a case-by-case basis to determine an applicants’ credit worthiness.
Typically you must be 4 years out of bankruptcy and have re-established good credit.
FHA does have loan amount limits depending on the County. See below.

For more detailed FHA information, please visit FHA Mortgage Source here.

USDA Mortgage Hub serves home buyers nationally 7 days a week. Please contact us with questions at ph: 800-743-7556 or just submit the Quick Contact form on this page.

USDA 502 Guaranteed or Direct Loan?

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Home buyers often ask us “What’s the difference between the USDA 502 Guaranteed or Direct loan? ” Most buyers are unaware that USDA Rural Housing offers two different home loan programs for home buyers. What program is right for you all depends on your household income.

In short, the USDA Direct loan is set aside for home buyers that have low to very low income. These loans are processed directly by the USDA only, as the name “direct” implies. The USDA 502 Guaranteed loan is geared towards moderate income borrowers, this program makes up the large majority of USDA loans in the U.S. today. This program is only offered through USDA approved lenders and mortgage companies, not directly through the USDA.

USDA Direct Loan Basics:
Also known as the Section 502 Direct Loan Program, USDA Direct Housing Loan is less common than USDA Guarantee loan program. The Direct loan is only available for low and very low income households to obtain home ownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. To apply for a USDA direct loan, applicants must contact their local USDA office below.

Who may apply for the USDA Direct loan?
A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.

Applicants must:

Be without decent, safe and sanitary housing
Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet
Agree to occupy the property as your primary residence
Have the legal capacity to incur a loan obligation
Meet citizenship or eligible non-citizen requirements
Not be suspended or debarred from participation in federal programs

Properties financed with direct loan funds must:

Generally be 1,800 square feet or less
Not have market value in excess of the applicable area loan limit
Not have in-ground swimming pools (pools are permitted under the Guaranteed program)
Not be designed for income producing activities

If you have questions about applying for a USDA direct loan, please contact the USDA here.

USDA 502 Guaranteed Program Basics ( offered exclusively by approved lenders and banks)
This program assists approved lenders in providing moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. USDA Guaranteed loans are the most popular type of USDA loan and allow for higher income limits and 100% financing for home purchases.

USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. All USDA Guaranteed loans carry 30 year terms and are set fixed interest rates.

Who may apply for the USDA 502 Guaranteed program?

Applicants must:

Meet income-eligibility, please see the 2026 USDA loan income limits.
Agree to personally occupy the dwelling as their primary residence
Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
Have the legal capacity to incur the loan obligation
Have not been suspended or debarred from participation in federal programs
Demonstrate the willingness to meet credit obligations in a timely manner (620 credit score required)
Purchase a property that meets all program criteria – approved USDA location.

What are some of benefits of a USDA loan?

USDA Guaranteed Loans require no down payment – 100% financing.
There are no prepayment penalties for USDA Rural Home Loans.
The home seller can pay the buyers USDA closing costs.
A USDA Rural Development Home Loan has lower monthly mortgage insurance when compared to other loan options.
USDA RD Loans are offered at terms of 30 years with a fixed interest rate
No special class or schooling requirements to apply. Home buyers can get approved in minutes.
A USDA Rural Development mortgage is available all rural areas of the country, provided a market exists for the property and the home meets HUD’s minimum property standards.
A USDA Rural Housing loan can be used to purchase a new or existing one family home in rural areas – regardless of who the home seller is.

Have questions about applying for a USDA Guaranteed loan? Please submit the Quick Contact Form on this page or call us.

Texas USDA Loan Basics

This page updated and accurate as of February 13, 2026 USDA MTG HUB

Texas home buyers can still purchase a home with NO down payment thanks to the USDA Rural Development loan. Many locations in Texas still qualify. This government backed 100% home mortgage offers first time buyers a way to purchase with little to no money out of pocket.

USDA ( also known as 502 Guaranteed loan, RD, Rural Development or Rural Housing) also has a lot of other advantages for buyers. Below we will discuss the Texas USDA loan basics and everything buyers need to know. If you have questions, please reach out to us by calling or just submit the quick contact form on this page.

Before we start, let’s discuss some of the advantages of the 100% USDA home loan:

USDA loan advantages:

USDA is the only mortgage program today (for civilians) that allows Texas home buyers to purchase with no down payment.
In addition to no down payment, USDA allows for buyers to get their closing costs paid by the home seller, or added into their loan under certain cases.
USDA loan applicants are NOT required to be first time home buyers.
No USDA loan amount limits – home buyers qualify based on their income and debt to income ratios.
Lower monthly mortgage insurance. USDA requires a monthly mortgage insurance costs each month like most home loans when the buyer is putting down less than 20%. The benefit with USDA is the monthly PMI costs is much less when compared to other home loans. Borrowers can calculate and compare with the USDA loan payment calculator here.
Applying for a USDA loan doesn’t require any special class, or down payment assistance – it’s already 100% financing. Borrowers can get pre-approved and start searching for a home all in the same day.
The USDA home inspection and appraisal requirements are the same as the other loan programs today – no special guide lines.
Home buyers are NOT required to have a minimum amount of savings.
Secure and safe 30 year fix terms at low interest rates.
Great USDA refinance options available to home owners in the future if needed.

USDA loan obstacles :

The property to be purchased must to be located in a USDA approved area. In addition the USDA program has income caps – please read below for more info on 2026 USDA eligibility.
Student loans – Student loan debt is not deferred when qualifying for a USDA loans. Because of this, USDA loan applicants with significant student loan debt may have encounter obstacles in regards to debt to income ratio limits.
Closing time frame – The USDA loan program is unique because the loan files are processed in two steps. First by the mortgage company, bank or broker originating the loan, then the file goes through a final review at the local USDA Texas office. This means that USDA loans will take an additional two weeks (give or take) to close when compared to other loans. Please note: USDA 502 Guaranteed loans can only be proceed by approved mortgage companies, not directly by the USDA. USDA only processes their “Direct” loan in house. This program is set aside strictly for very low income, subsidized housing.

Texas USDA Home Loan Eligibility

The USDA mortgage has a few core eligibility requirements that must be met in order to use the program. Let’s take a closer look below.

The location of the house – The house you decide to purchase must be located in a select rural approved area according to the USDA property map here. You can input the property address and check to see if the house resides in an eligible location. The home can be any single family, town home and select FHA approved condo. Mobile homes and manufactured homes are not allowed. If you need assistance finding USDA approved homes in your area, please contact us below.
The income for the household – The USDA Rural Development mortgage has income limits or “caps” in place. More importantly, the income caps apply to all income producers living in the house, even if they are NOT listed on the loan application. USDA limits vary based on the number of members living in the household, number of dependents, elderly and county. Contact us below to discuss in detail.

Texas USDA Loan Application Requirements

USDA loans really aren’t that much different than other home loans like FHA, VA, etc. USDA has standard qualifying guidelines that must be met. Let’s discuss the latest 2026 USDA guidelines below:

Credit Score – USDA lenders will want to see applicants have a 620 or greater credit score to be approved. However, a 620 credit score do not guarantee loan approved. All mortgage companies have additional requirements in place for applicants that have experienced a past financial hardship like foreclosure, short sale or bankruptcy. These are called “overlays” Example – if you have a 710 credit score, but had a foreclosure 2 years ago, you would likely need to wait a few more years.
Job/Income History- Two years of stable income will likely be needed. You are not required to have the same job for two years, just a stable history. Example: Let’s say you have been working as fireman for 3 years. You recently left one fire department and started working at another. In addition, you took a few weeks off between jobs. This is fine. Or maybe you needed to take a 3 weeks for hardship reasons – this likely would be okay as well. Recent graduates are the exception of this rule as they do not need a solid a two year job history. Self employed borrowers will need two years of tax returns. Any part time jobs will need two years of stable history to be included.
Debt to income – Like all other home loan programs, USDA has debt to income ratio limits. Borrowers can read more about this under the USDA eligibility section.
A copy of the borrowers bank statements will be needed during the approval process. Although USDA does not require a certain amount of savings, applicants will want to insure they can document any deposit out of the ordinary. Normal weekly, bi weekly or monthly payroll deposits are normal and to be expected. However, random deposits will be documented with a copy of the check, and deposit slip. Gift funds are allowed with USDA loans, just be sure to keep a proper paper trail when it comes time to document. Additionally, the gift donor may be required to provide their bank statements as well. These requirements are not exclusive to USDA loans, they are essentially required on all government loans today.

Serving the entire U.S including Texas- San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Laredo, Lubbock, Garland, Irving, Amarillo, Brownsville, Grand Prairie, Pasadena, Mesquite, McKinney, McAllen, Killeen, Waco, Carrollton, Abilene, Beaumont, Frisco, Denton, Midland, Wichita Falls, Odessa, Round Rock, Richardson, The Woodlands, Tyler, Tyler, Lewisville, College Station, San Angelo, Pearland, Allen, League City, Longview, Sugar Land, Edinburg, Mission

USDA Mortgage Hub is Texas’s leading source for USDA loans. Buyers that have questions or want to learn about getting qualified can call us or just fill out the Quick Contact form on this page.

Main navigation

First Time Buyer Program

FHA Documentation Requirements:

FHA Credit Requirements:

FHA Requirements Recap:

Atlanta FHA Mortgage Highlights:

Government & Conventional

Government Mortgage Programs for First Time Buyers

Let’s discuss the basic USDA guidelines below:

Additional Information Home Buyers Should Know:

100% USDA RD Home Loan

VA Home Loans

FHA Home Loans