USDA loans near San Antonio

What a USDA loan is

A USDA loan, officially the Single Family Housing Guaranteed Loan, is a mortgage from a regular lender that the U.S. Department of Agriculture backs. It's built for moderate-income buyers in rural and small-town areas.

• $0 down for eligible buyers.
• Lower ongoing fee than FHA mortgage insurance.
• Two tests: the home has to be in an eligible area, and your household income has to be under the limit.

I do USDA loans, and the hardest part for most buyers is simply knowing where they work. That's below.

Where USDA works around San Antonio

The city of San Antonio isn't eligible, and neither are several fast-growing suburbs. But eligible areas start not far outside the city. I checked the center of each of these towns on USDA's eligibility map on November 9, 2026:

Eligibility goes address by address, and boundaries can cut through a town or its outskirts. Homes just outside some "not eligible" towns can still qualify. USDA updates its map from time to time.

Check any address yourself on USDA's eligibility site (choose Single Family Housing Guaranteed, then Property Eligibility), or text me the address and I'll check it before you fall in love with the house.

Income limits

Your household income has to be at or below USDA's limit for the county where the home is. For 2026, in most of the San Antonio area that's:

• $119,850 for a household of 1 to 4 people.
• $158,250 for a household of 5 to 8 people.

Two things surprise people. First, USDA counts the income of every adult in the household, even one who isn't on the loan. Second, some deductions, such as for children and childcare costs, can lower the income that counts. I'll confirm the exact limit for your county and how your household's income is figured.

Credit and debt

• Credit: USDA has no official minimum, but most lenders look for 640 or higher for an automated approval.
• Debt-to-income: USDA's standard limits are 29% of your income for the house payment and 41% for all your debts. With a 680 or higher score and a strength like a long job history, those can stretch to 32% and 44%.
• Steady income: usually about two years of reliable income, in the same field or close to it.

What it costs

Instead of mortgage insurance, USDA charges two guarantee fees. For USDA's 2027 fiscal year (October 1, 2026 through September 30, 2027):

• Upfront fee: 1% of the loan, usually added to the loan instead of paid at closing.
• Annual fee: 0.35% of the balance, built into your monthly payment.

On a $280,000 home with $0 down, the 1% fee is $2,800, for a loan of $282,800. The annual fee starts at about $82 a month. For comparison, FHA's annual mortgage insurance on the same loan amount would be about $130 a month, on top of a 1.75% upfront fee.

USDA, FHA or VA?

• Eligible for VA? VA is usually the better deal: $0 down anywhere, no monthly fee, and no income limit.
• Buying in an eligible area under the income limit? USDA usually beats FHA: no down payment and a smaller monthly fee.
• Buying inside San Antonio, or over the income limit? Look at FHA or a conventional loan with 3% to 5% down, plus the down payment help I offer.

Home and closing cost rules

• It has to be your primary home. No rentals or second homes, and no income-producing farm.
• New construction and existing homes both work, including homes in subdivisions, as long as the address is eligible.
• The seller can help. Sellers can pay toward your closing costs, up to 6% of the price.
• Closing costs can sometimes go in the loan. If the home appraises above the price, USDA lets the loan go up to the appraised value, and the difference can cover closing costs.