Q&A – How long does the USDA mortgage closing process take?

Question:  I’m about to be under contract on my first home. I would like to have an idea on how long the USDA mortgage process takes to complete so I have time to prepare for my move.

Thank you – J. Naples / Orlando, FL

Answer: Once you are under a fully approved contract, the USDA mortgage closing process will take around 35-45 days to complete.  The exact time depends on the city/county your new home is located. Once the lender underwriting is complete, your USDA home loan has to go through a secondary approval process with the USDA / Rural Development office.  Each states USDA office has different turn times that can change frequently. However, 40 days is a safe bet to complete the entire processing/closing process here in Florida ( as of November / December  2014)

Need a USDA home loan pre approval or have questions? Please contact us at www.UsdaMortgageSource.com or just send  the short request form on the right side to be contacted →

USDA Mortgage Source is Florida’s Primary resource for all 100% USDA / Rural Development mortgages. Pensacola , Ocala , Clearwater , Bradenton and everywhere in between – please visit our main web site at www.UsdaMortgageSource.com or call 904-302-6060 to learn more about the benefits of 100% USDA / Rural Development home loans here in Florida. We are available to serve you seven days a week.

Servicing the following Florida cities and counties:

Apopka | Aventura | Boca Raton | Bradenton | Brandon | Cape Coral | Clearwater | Clermont |Cocoa Beach | Coconut Creek | Coral Gables | Crestview | Crystal River | Daytona Beach | DeLand | Deltona | Delray Beach | Destin | Dunedin | Englewood | Fernandina | Flagler Beach | Fort Lauderdale | Fort Myers | Fort Pierce | Fort Walton Beach | Gainesville | Green Cove Springs | Hallandale | Hobe Sound | Hollywood | Homestead | Inverness | Jacksonville | Lakeland | Lake City | Lake Mary | Live Oak | MacClenny |Melbourne | Miami | Milton | Mount Dora | Naples | Ocala | Ocoee |Ojus | Orange Park | Orlando | Ormond Beach | Palatka| Palm Bay | Panama City | Pensacola | Pompano Beach | Port Charlotte | Port St. Lucie | Punta Gorda | Santa Rosa | Sarasota | Siesta Key | Springhill | St. Augustine | St. Petersburg | Sunny Isles | Tallahassee | Tamarac | Tampa | Titusville | Venice | Vero Beach | Weeki Wachee | Wesley Chapel | West Palm Beach | Winter Garden | Winter Haven | Winter Park | Winter Springs | Zephyrhills | Florida | Fla |FL

Alachua | Baker | Bay | Bradford | Brevard | Broward | Calhoun | Charlotte | Citrus | Clay | Collier | Columbia | Dade | De Soto | Dixie | Duval | Escambia | Flagler | Franklin | Gadsden | Gilchrist | Glades | Gulf | Hamilton | Hardee | Hendry | Hernando | Highlands | Hillsborough | Holmes | Indian River | Jackson | Jefferson | Lafayette | Lake | Lee | Leon | Levy | Liberty | Madison | Manatee | Marion | Martin | Monroe | Nassau | Okaloosa | Okeechobee | Orange | Osceola | Palm Beach | Pasco | Pinellas | Polk | Putnam | St. Johns | St. Lucie | Santa Rosa | Sarasota | Seminole | Sumter | Suwannee | Taylor | Union | Volusia | Wakulla | Walton | Washington | County | 2014, 2015, USDA mortgage closing process

 

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Florida USDA Interest Rates

Great news for prospective new home buyers in Florida – USDA interest rates are currently at their lowest level in all of 2014.  Now is a great time to lock in and take advantage of ultra low USDA 30 year fix rates.  100% USDA Rural Development financing and super low rates makes this a great time to close on your dream home. Please browse our USDA blog here or visit our main website www.usdamortgagesource.com for all the loan requirements.   Current homeowner that already have a USDA mortgage should also see if refinancing their loan makes sense. The USDA Pilot Refinance program is a simple and streamline way to refinance your currently USDA loan to a lower rate. Regardless of your home’s current value as the program permits unlimited low to value!

If you have questions, please let us know by submitting the quick info request form on the right side of your screen.  You can also call us at 904-302-6060 seven days a week.

Serving –Alachua, Altamonte Springs, Anna Maria, Apalachicola, Apopka, Atlantic Beach, Auburndale, Aventura FL, Avon Park, Bal Harbour, Bartow, Bay Harbor Islands, Boca Raton, Bonita Springs, Boynton Beach, Bradenton, Brooksville, Cape Canaveral, Cape Coral, Casselberry, Celebration, Chipley, Cinco Bayou, Clearwater, Clewiston, Cocoa, Cocoa Beach, Coconut Creek, Coral Gables, Coral Springs, Crystal River, Dania Beach, Davie, Daytona Beach, Deerfield Beach, DeFuniak Springs, DeLand, Delray Beach, Deltona, Destin, Dunedin, Eagle Lake, Edgewater, Edgewood, Eustis, Fort Lauderdale, Fort Meade, Fort Myers, Fort Myers Beach,Fort Pierce, Fort Walton Beach, Fruitland Park, Gainesville, Greenacres, Green Cove Springs, Gulf Breeze, Gulfport, Haines City, Hallandale Beach, Hawthorne, Hialeah, Hialeah Gardens, Highland Beach, Hollywood FL, Holly Hill, Holmes Beach, Homestead, Hypoluxo, Indialantic, Jacksonville, Juno Beach, Jupiter, Key Biscayne, Key West, Kissimmee, LaBelle, Lady Lake, Lake Alfred, Lakeland, Lake Mary, Lake Park,Lake Wales, Lake Worth, Lantana, Largo, Lauderdale By The Sea, Lauderhill, Leesburg, Lighthouse Point, Longboat Key, Longwood, Maitland, Marco Island, Margate, Melbourne, Melbourne Beach, Milton, Minneola, Miramar, Mount Dora, Naples, Neptune Beach, New Port Richey, New Smyrna Beach, Niceville, North Miami, North Miami Beach, North Port, Oakland Park, Ocala, Ocean Ridge, Ocoee, Okeechobee, Oldsmar, Orange Park, Orlando, Ormond Beach, Oviedo, Palatka, Palm Bay, Palm Beach, Palm Beach Gardens, Palm Coast, Palmetto, Panama City, Panama City Beach, Pembroke Pines, Pensacola, Pinecrest, Pinellas Park, Plant City, Plantation, Pompano Beach, Ponce Inlet, Port Orange, Port St. Lucie, Punta Gorda, Rockledge, Royal Palm Beach, St. Augustine, St. Augustine Beach, St. Cloud, St. Pete Beach, St. Petersburg, Safety Harbor, Sanford, Sanibel, Sarasota, Satellite Beach, Seaside, Sebastian, Sewall’s Point, Shalimar, Stuart, Surfside, Tallahassee, Tamarac, Tampa, Tarpon Springs, Tavares, Temple Terrace, Titusville, Treasure Island, Valparaiso, Venice, Vero Beach, Wellington, West Melbourne, West Palm Beach, Weston, Wilton Manors, Winter Garden, Winter Haven, Winter Park, Winter Springs, FL. USDA interest rates, USDA lender, USDA brokers, 2015

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2015 USDA Purchase Loan Limits?

USDA Home Loan mortgages FloridaFlorida buyers interested in the USDA Rural Housing program often ask about the loan amount, or home purchase price limits?  Simply put, USDA doesn’t have a purchase price / loan amount limits in place like other loan programs –  FHA or Conventional loans as an example.  Instead homebuyers qualify based on their income and the corresponding USDA program debt to income limits. USDA wants to insure the buyers housing expense ( mortgage principal, interest, home insurance, and taxes) not to exceed 29% of their monthly gross income.  Housing expense, plus all of other monthly payments ( like car loans, etc) should not exceed 43% of the monthly gross income.

Since the USDA 502 Guarantee program has income limits per each county in Florida,  it will in turn “limit” the loan amount based on the debt ratio limits. Confused?  Let’s take a look at an example below:

Mary is a Florida school teacher and she wants to purchase her first home.  Mary makes an income of $39,000 per year. Her only debt on her credit report right now is her car payment, which is $315 per month.  Assuming Mary’s credit score, etc is sufficient, how much will she qualify for?

$39,000 / 12  = $3,250 gross income per month for Mary

Her housing expense cannot exceed 29% of the $3,250, which is $925.50

$925.50 is the max allowed monthly mortgage payment Mary will qualify for assuming all of her other qualifying factors are ok.

$925.50 monthly mortgage payment (with taxes, insurance, etc included) will be approximately $135,000 home purchase price.

Now, keep in mind the back end debt ratio limit (total debt limit) of 43%.   Mary’s housing payment of $925.50 +  her car payment of $315.00 = $1,240.50 per month.   The $1,240.50 is well below 43% “back end” debt ratio limit, so Mary is ok!

If you are a Florida homebuyer that has questions about your qualifying loan limits, please reach out to us by calling ph: (904) 302-6060 or just submit the quick info request on the right side → and a specialist will contact you ASAP.  USDA Mortgage Source is Florida’s 100% financing leader.

2015 USDA Purchase Loan Limits?

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USDA Home Loan Advantages 2015

USDA Home Loan mortgages FloridaUnless you have served in the military, USDA mortgages are the only zero money down loan program available to Florida home buyers in 2015.  Eligible borrowers will find it hard to find a loan program that offers better terms than USDA Rural Housing.

USDA Loans used to be considered “farmers loans” but things have changed some in recent years. Just about anyone looking to purchase a home outside a major metropolitan area can qualify for a USDA Loan. Even locations right outside of the larger cities like Orlando, Tampa, Tallahassee, Jacksonville, Gainesville, etc are mostly approved areas.  See the complete USDA eligibility map here.

Some of the eligibility requirements that determine if you qualify for a USDA loan for your home include where the home resides in, your current income and credit history, as well as the number of dependents you can claim.

USDA Home Loan Advantages 2015:

  • No Down payment is required. Yes, 100% financing in 2015 even here in Florida!
  • Flexible credit score guidelines. (Minimum credit score 640)
  • No maximum purchase price limit, or loan amount limit.
  • Closing costs can come from any source including gifts. USDA closing costs can also be paid by the home seller.
  • Competitive fixed 30-year fixed rates.
  • Low monthly mortgage insurance when compared to other loan programs over 80% Loan to Value.
  • The program isn’t reserved strictly for first time buyers. Second time buyers can also use the USDA program.

USDA eligibility criteria:

  • Occupy the property as your primary residence. No investment home purchases allowed.
  • Be a U.S. citizen, a U.S. non-citizen national.
  • Provide stable and dependable income for repayment ability.
  • Have a credit history that indicates a willingness to meet obligations as they become due.
  • Have an adjusted household income that is within Rural Development guidelines here based on the number of persons who will occupy the home.
  • Purchase a residential property that is located in a Rural Development eligible area.

Helpful USDA resources:

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USDA Loan Refinance for Underwater Homes

Florida USDA refinance underwaterMany Florida homeowners are currently “underwater” or “upside down”on their USDA mortgage and owe more than the home is worth.  This really isn’t front page news as many Florida homeowners continue the slow road back to recovery and building equity back in 2015.  The great news is that USDA & Rural Development offers a refinance program just for homeowners that have zero equity.   The new USDA Pilot refinance program allows homeowners with a USDA direct home loan or USDA 502 guaranteed home loan the chance to refinance to today’s low mortgage rates and possible save hundreds per month. The best part is, negative home equity is perfectly acceptable under the new program requirements.

The USDA Streamline Refinance is a pilot program only available to eligible USDA borrowers in the 19 hardest hit states by the recent recession. The eligible states include Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.

USDA Rural Development estimates that over 200,000 homeowners with USDA loans are eligible for the USDA Streamline Refinance. ( Please note we only service homeowners in Florida & Georgia)

USDA Refinance Qualifying Guidelines:

As with any home loan today, the new Pilot USDA Streamline Refinance has minimum approval standards listed below:

  • The home you’re refinancing must be your primary residence. You MUST currently have a USDA home loan (Regardless of  lender – it can be Chase, Wells Fargo, Bank Of America, etc.. we can help)
  • You must have made your last 12 months mortgage payments on-time with no late payments.
  • Your household income MUST still be below the USDA income limit for your state/county. The same rule applied when you originally received your USDA mortgage. Please see the current USDA income limits here.
  • Interest rate must be reduced by a minimum  of 1 percentage point.
  • If you have equity in your home, no cash out is permitted.
  • All closing costs AND the 2% USDA Rural Development guarantee fee can be included and rolled into the new loan. No out of pocket costs to the homeowner.

Credit score requirements are pretty loose assuming you have made your mortgage payments on time.  The process is quick and easy as no new appraisal or home inspection needed.  The best part is, no out of pocket cost to the homeowner!  All closing costs and new escrows can be added to the new loan. Everyone knows that mortgage interest rates are currently at their lowest levels in over a year, one simple call could save you hundreds of dollars per month. Call us at 904-302-6060 7 days a week with questions.

Please learn more about the USDA Rural Housing refinance program by reading the most common USDA refi Q&A here.  USDA Loan Refinance for Underwater Homes

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