How to Apply for USDA loan approval

USDA loan pre approvalPlease take few minutes to review the helpful video below on the USDA application  and how to apply for USDA loan approval.   Prepared homebuyers are less stressed homebuyers!   If you have questions about applying for USDA loan, just submit the short Info Request Form on the right side of this page for fast service. Mobile users can find the Info Request Form here.  You can also contact us at 7 days a week at  ph: 904-302-6060

 

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Martin – St. Lucie County 100% House Loan

USDA house FloridaMartin and St. Lucie home buyers still have an opportunity to purchase a home with NO down payment thanks to the Government backed USDA Rural Housing mortgage.  Many locations around Jensen Beach, Stuart, Palm City, Sewalls Point, North River Shores and Hobe Sound are still eligible and approved for the 100% RD home financing in 2015.  USDA home loans have many benefits in addition to being 100% financing:

  • Not only can a buyer purchase a home with $0 down, the buyers closing costs can be included into the loan or paid by the seller of behalf of the buyer. The benefits is buyers often times end up putting very little money into the transaction.  Buyers should be prepaid though to pay a refundable deposit when they go under contract ($250-$1,000)  This is customary for most purchase transactions in Fla.
  • Easy underwriting and approvals. In most cases a credit score of 640 will be needed.
  • Monthly mortgage insurance (PMI) is half the cost of comparable loans of FHA and Conventional loans.  If you are a homebuyer planning to do an FHA mortgage, be sure to take a close look at the USDA loan option simply for the cheaper mortgage insurance costs.
  • Safe and secure 30 year fixed terms. No adjustable rates or pre payment penalties to worry about.
  • USDA loan pre approvals take only 15 minutes, no big obstacles to jump through.  Just contact us below to get started today.

Interested buyers can review all the USDA FAQ’s here.

Ready to apply for a USDA loan? Just submit the short Info Request Form on the right side of this page for fast service. Mobile users can find the Info Request Form here.  You can also contact us at 7 days a week at  ph: 904-302-6060.

Even if you find you do not meet the USDA eligibility factors in regards to household income/location, please still contact us to discuss other low down payment mortgage options.

USDA Mortgage Source is Florida’s 100% RD loan leader.  Proudly serving Martin County, Indiantown, Jensen Beach, Jupiter Island, Ocean Breeze Park, Palm City, Sewall’s Point and Stuart FL.  St. Lucie County :  Fort Pierce, Hutchinson Island, Port St. Lucie, Martin – St. Lucie County 100% House Loan

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February 2015 USDA Interest Rates, Closing Times

Febuary 2015 USDA Mortgage InterestFebruary USDA home loan rates are starting off Feb pretty low, we are actually seeing rates start to flirt with “all time low territory” we saw a few years back.    As of February 2015, current USDA 30 year fixed rates are starting off the year much lower versus a year ago.   USDA 30 year interest rates are currently in the mid to high 3 percent range with 0 discount points by most Florida lenders and mortgage companies as we being February.

USDA home financing and borrowing costs can’t get much lower for first time buyers, they have a great opportunity right now. Be sure to look into owning a home with USDA financing before signing another lease this year  –  says Laura Summers , USDA mortgage specialist. 

Also remember if you are an existing homeowner that already has a USDA RD home loan, you still have options to refinance your loan into a lower rate and possibly save hundreds each month.  The USDA Pilot refinance program allows  Florida homeowners that currently have USDA mortgages to refinance into a lower interest rates, the best part is you can do so regardless of how “upside down” or “underwater” your home value is.  You don’t need any equity in your home. This program is designed for the homeowners that were hit the hardest in the housing market decline.  Additionally,  USDA streamlined paperwork and no new appraisal or home inspection is necessary,   You can read all about the USDA Pilot refinance requirements here.

As for closing times for February 2015 – USDA Rural Development is currently taking about 40-45 days to close.  The local Florida USDA office is currently taking about 14 business days just on their end of things from the time of lender / broker loan submission. Homebuyers that have questions about a specific loan already in process will need to contact their mortgage company or lender directly for timelines.

USDA Mortgage Source is Florida & Georgia’s 100% Rural Housing loan leader,  serving you Monday – Sunday, 9am – 8pm.  If you have questions about a new USDA loan pre approval, rates or maybe a refinance –  please contact us by submitting the short Info Request Form on the right side of this page Mobile users can find the Info Request Form here.  We are available to serve you  7 days a week at  ph: 904-302-6060

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Panama City USDA Home Loan Lender

Bay County Panama City USDA LoanPanama City has very limited 100% mortgage financing options left in 2015.  Thankfully most of Bay County and  Panama City Beach is still eligible for the NO money down USDA Rural Development Home Loan. The USDA RD loan is one of the last $0 down payment government mortgage programs for Florida civilians. The USDA mortgage program is designed to help promote homeownership less populated locations around Florida. Most of Bay County is still eligible for the program in 2015.   You can view the current USDA map here to check your area. If you have trouble, or need assistance, please submit the short Info Request Form on the right side of this page.  Mobile phone users can find the Info Request Form here.  You can also call us at 7 days a week at  ph: 904-302-6060

The USDA loan program will allow homebuyers to borrower up to 102% of the home’s appraised value. In addition, homebuyers can include closing costs into their loan assuming their appraised value is sufficient. Please read more about the USDA FAQ’s here.

A few benefits of a USDA Home Loan include:

  • 102% Financing,  No Down Payment required!
  • Low monthly mortgage Insurance (PMI) nearly half the amount of FHA mortgages.
  • No Loan Amount limits.
  • No Saving Reserve Requirements
  • 6% Seller Contribution Allowed for Closing Costs, 100% Gifted Closing Costs also allowed.
  • 30 year low fixed rate loan.
  • No Prepayment Penalty, Buyers can sell or move at any time.
  • Primary Residents only (no rentals/investments or vacation homes permitted)

To get approved and qualified for the USDA loan program, there are two main requirements that differ from the other government loan programs like the FHA or VA mortgage

  • Property Location: The home must be located in a Florida USDA eligible designated rural area of Bay County. Keep in mind, the seller of the home is not important, just where the home is located! Buyers can purchase a foreclosure, short sale, etc as long as the address is approved “eligible” on the map.
  • Income limits –  Each county has different USDA Income restrictions. The income limit is based on many different variables, please see the current USDA income limits for Bay County.

If you are a homebuyer and find you are not eligible for the USDA program based on income, etc – please contact us below to discuss other min down payment mortgage options.

See our main web site at www.UsdaMortgageSource.com  –  USDA Mortgage Source is your one stop Panama City USDA Home Loan Lender.  Proudly serving all of Bay County FL Monday – Sunday including –  Laguna Beach, Lynn Haven, Mexico Beach, Millville, Panama City, Panama City Beach, Parker, Rosemary Beach, Sand Hills, Sandy Creek, Southport, Springfield, and Youngstown FL, Bay County Rural Housing Development Houses For sale

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Lake County USDA Loan Guide

lake countyUSDA mortgages offer 100% financing in select locations around Florida.  The good news is Lake County is still eligible for the USDA Rural housing program in 2015.  The USDA program continues to grow in popularity with Lake County home buyers searching for 100% financing.  Eligible USDA areas of Lake County include –  Clermont, Lady Lake, Astor, Eustis, Fruitland Park, Grand Island, Groveland, Howey In The Hills, Leesburg, Mount Dora, Sorrento, Tavares and Umatilla.   As many buyers know, all the 100% home loan options in the past have evaporated.  However, USDA still offers zero money down, low 30 year fixed rates, and flexible qualifying in 2015.

The United States Department of Agriculture (USDA) sets the lending standards for the program, which is followed by all USDA approved lenders and banks in Florida.   Also known as the “RD” or “502 Guarantee” this program reduces costs for home buyers in rural and suburban areas. It is one of the most cost effective home buying programs in Lake County today.  Since its inception in 1949, the USDA Rural Development loan has helped over 1 million home buyers obtain housing with little or no money down. In fiscal year 2011 alone, nearly 150,000 homebuyers benefited from the USDA RD program.

Who is Eligible for a USDA Loan?

The USDA mortgage is available to applicants who meet household income and credit standards. By household income, we mean the USDA rural housing loan has income limits in place for household, see below for more details on limits for Lake County. Loan  qualification is pretty easy since the program doesn’t require a down payment or a high credit score. However, all applicants should have a min 640 credit score to be considered.  Home buyers should make sure they are looking at homes within USDA approved geographic areas, because the property location is the most important factor for this loan type.

USDA Approved Locations –  Eligible Map

As stated above, Lake County still remains 100% eligible. However, home buyers in Orange and Seminole County will want to check the map here for eligible areas as these counties are more populated and contain some ineligible areas.  The seller of the home is not important, but the house must be located in a USDA eligible area. If you have questions about the map, just submit the short Info Request Form on the right side of this page for help. Mobile users can find the Info Request Form here.  You can also contact us at 7 days a week at  ph: 904-302-6060

USDA Home Loan Income Limits

USDA 502 Guarantee loans are available to moderate household incomes, which the USDA defines as those earning up to 115% of the area’s median income. For instance, a family of four buying a property in Lake County can make $74,750 per year.

Typically, moderate households find they are well within limits for the program. The Florida USDA 502 Guaranteed income limits can be found here. It’s also important to keep in mind that USDA takes into consideration all the income of the household….even household members that are NOT one the loan application.  For instance, if a family has an elderly family members who receives social security, but is not on the loan, they will need to  disclose their income for USDA eligibility purposes. The elderly members income does not need to be on the loan application or used for mortgage qualification. But the lender will always verify at all household income when figuring  eligibility.

Key USDA Mortgage Features:

100% No Money Down Home Financing

Without a doubt this is the big draw as no other mortgage program in Florida permits 100% financing. The only exception would be a VA mortgage for military folks. USDA still allows for 100% financing of an eligible home’s purchase price, perfect for first time buyers in Lake County.  Conventional and FHA mortgage loans require a minimum 3.5 – 10% down payment, which is out of reach for many home buyers.

The USDA Guarantee Fee

The lender guarantee is partially funded by the USDA mortgage insurance premium, which is 2.0% of the loan amount. The loan also has a 0.50% annual fee (monthly PMI) Example for a $100,000 loan amount, the upfront guarantee fee is $2,000 and the monthly premium is $41.67.  The homebuyer can choose to roll the upfront fee into the loan amount or pay it at closing.  99% of buyers decide to roll the guarantee fee into their loan.  Compared to other loan types, the USDA mortgage insurance (PMI) fees are the lowest. Read more about USDA guarantee fees here.

USDA Low 30 Year Fixed Rates

Lenders and mortgage companies offer USDA loans at very low 30 year fix rates. Since the USDA backs the loans, the risk is less for lenders making USDA loans a safe bet.  USDA loan rates are often lower than those available for conventional and FHA loans. Home buyers who choose USDA often end up with lower monthly payments considering higher mortgage insurance fees associated with other loan types.  Remember, even if you are already approved for a FHA loan, consider a USDA loan as well just for the mortgage insurance savings.

USDA Closing Cost:

USDA loans allow the seller to pay for the buyer’s closing costs, up to 6% of the sales price. Borrowers can also use gift funds from family members to help pay closing costs. Closing costs can also be rolled into the buyers loan, given the appraised value is high enough to support.   For example, a home’s price is $120,000 but it appraises for $125,000. The borrower could open a mortgage for $125,000 and use the extra funds to finance closing costs.

USDA Savings Requirements:

Borrowers who don’t have all their closing costs paid for by the seller or otherwise need cash to close the loan will need to prove they have adequate assets. Two months bank statements will be required.  There’s also a requirement that the borrower can’t have enough liquid assets to put 20% down on a home. A borrower with enough assets to qualify for a conventional loan will not qualify for a USDA RD mortgage.

USDA 2015 Credit Score Standards:

Most lenders and banks will want to see a min 640 credit score for qualifying. It’s important to remember, a 640 score does not guarantee loan approval. There are also additional requirements in place for any applicant(s) that have had a past bankruptcy, short sale, foreclosures, etc.

USDA Mortgage Source is Florida’s local USDA loan leader, serving you 7 days a week!  Questions? just submit the short Info Request Form on the right side of this page for fast service. Mobile users can find the Info Request Form here.  You can also contact us at 7 days a week at  ph: 904-302-6060

Serving all of Florida including Lake, Seminole, Orange County –  Astor, Bassville Park, Clermont, Eustis, Forest Hills, Fruitland Park, Grand Island, Groveland, Howey-In-The-Hills, Lady Lake, Leesburg, Mascotte, Minneola, Montverde, Mount Dora, Mount Plymouth, Sorrento, Tavares, Umatilla, Orlando, Winter Garden, Lake County USDA Loan Guide

 

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