We write tons of information related to home buyers and USDA loan process. However, very rarely do we discuss important things Florida home sellers need to know. After all, many home sellers like to know what to expect in terms of their buyers financing and ability to actually close. First a little background, the USDA home loan, also known as the USDA Rural Development, 502 Guaranteed Housing Loan Program, or “Rd” Loan is a mortgage loan offered to rural property homebuyers by the United States Department of Agriculture. The USDA loan program is a government mortgage program that is backed by the USDA and provides a number of homeownership opportunities across Florida for little to no money down. Very similar to the other government home financing options like FHA and VA loans. Here is some information and things that home sellers should know –
- The USDA program does not have any set loan amount limits. The homebuyers qualify based on what their debt to income ratios permit. The limit for USDA loans is 29% for housing expense.
- Any single family home that is located in a USDA approved location is ok for financing. Single Family, Townhomes and select condos are all ok. No mobile or manufactured homes. Like all government home loans, the house does need to meet all HUD standards. It’s need to be immediately livable and good condition, cannot be a rehab type project. Again, pretty much the same as FHA and VA home loans. Single Family, Townhomes and select condos are all ok.
- Sellers are allowed to pay up to 6% of the buyers closing costs and pre paids.
- Sellers are not required to pay certain “non allowable” closing costs – like in the case of a VA loan. Saves home sellers money.
- The USDA housing program does not require any special home inspections.
- USDA appraisal process is essentially the same as a conventional loan. However, the value of any in ground swimming pool cannot be included ( This rule is expected to change in 2015)
- USDA closing times do take about 10 days longer when compared to FHA and Conventional loans. In Florida, the time it takes from contract to closing is typically 40-45 days….. not 60 or 90 days as many assume.
- The USDA mortgage allows more home buyers to enter the Florida housing market since the program permits 100% financing.
Sellers should have no concerns about a accepting a USDA buyers offer. Like many things in regards to mortgages, a lot comes down to the lender and their ability to communicate and close loans efficiently. Questions? Please call us at 904-302-6060 7 days a week, You can also fast track your request by submitting the information request form on the right side of this page.
Please sure to visit www.usdamortgagesource.com
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