USDA & VA 0%-down financing for rural Texas new construction
A Land & Home package in rural Texas often qualifies for USDA Rural Development and VA loans — both with 0% down — because the finished home sits on a code-compliant permanent foundation. Here's who qualifies and how to check.
Can you get 0% down on rural Texas new construction?
Often, yes. The reason a Land & Home package can reach USDA and VA 0%-down programs — which are otherwise hard to access on rural new construction — is structural: the finished home is placed on a code-compliant permanent foundation that meets loan-program requirements. That makes the package real property, so the same loan products that finance any house apply, including the government-backed zero-down programs.
The full range generally available on a Land & Home package:
| Program | Typical down payment | Who it fits |
|---|---|---|
| USDA Rural Development | Often 0% in eligible rural areas | Buyers in USDA-eligible areas within income limits |
| VA | 0% for qualifying veterans, no mortgage insurance | Veterans with valid entitlement |
| FHA | Typically 3.5% down, no income limit | Broad fallback when USDA/VA don't fit |
| Conventional | Varies | Buyers preferring conventional terms |
Most buyers aim for USDA or VA to take advantage of 0% down where they qualify. The same loan programs apply to both factory-built and BOYL packages.
Do I qualify for USDA financing?
USDA typically requires three things:
- Location — the property is in a USDA-eligible rural area. Check the property address on the USDA eligibility map first; most properties outside city limits qualify geographically.
- Income — your household income is at or below 115% of the area median income for your county and household size, updated annually. These limits are often higher than people expect. A preferred lender confirms the current limit for your county.
- Credit — generally a credit score around 640+.
If your income is above the USDA limit, VA or FHA is generally the right alternative.
Do I qualify for VA financing?
VA generally requires:
- Qualifying military service
- A valid Certificate of Eligibility (COE)
- Available VA entitlement
- A credit score that often runs in the 580–620+ range, depending on the lender
VA typically offers 0% down with no mortgage insurance. A preferred lender can pull your COE and confirm entitlement quickly from your service documentation.
One-time close vs. two-time close
How the loan is structured matters for new construction:
- One-time close (typically USDA, VA, FHA): land and home close in a single transaction, and the permanent loan converts at construction completion — no interim financing exposure. This is generally preferred for most buyers.
- Two-time close (typically conventional): land closes first, then a separate permanent mortgage closes when construction is complete. You carry the land loan during the construction window. This path is typical when you don't qualify for USDA/VA/FHA, are purchasing land first, or prefer conventional terms.
Confirm the specifics with your lender — every purchase scenario is unique.
How to check your 0%-down eligibility (step by step)
- Check USDA eligibility by entering the property address on the USDA eligibility map.
- Confirm your program fit — USDA income and credit thresholds, VA service and COE, or FHA as the broad fallback.
- Get pre-qualified with a lender who knows construction-to-permanent (one-close and two-close) loans.
- Pick the close structure that matches your program.
- Lock the package with a real all-in Budget Builder estimate so the lender sees one number, not three.
Loan-program rules, income limits, and credit thresholds change and vary by lender and situation. These are general guidelines, not commitments. A preferred lender confirms what you actually qualify for.
Next steps
- See your financing options — USDA, VA, FHA, conventional, and the lenders who handle these loans.
- Build your package estimate — walk into pre-qualification with a real package total.
- Read the buyer FAQ — income limits, credit, and how the loan converts at completion.