Thinking about purchasing a home, but have a limited down payment? The great news is nearly all of Florida’s panhandle is still approved and eligible for the 100% USDA Rural financing. Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Washington, Bay, Gulf, Calhoun and Jackson counties all have USDA-approved locations. In fact, many of these counties are 100 percent eligible for the USDA home loan. Below we discuss some of the USDA home loan advantages for first-time home buyers.
USDA Mortgage Advantages:
- $0 Down Payment Required with USDA Rural Development! The USDA program still allows no money down, 100% financing
- Low 30-Year Fix Rate with NO Pre-Payment Penalty. Competitive interest rates comparable to FHA loans (set by underwriting USDA lenders)
- 101% LTV (100% plus 1.0% one-time guarantee fee that is added to new loan)
- USDA Closing costs can be added to the loan if the appraisal value is higher than the sales contract price. Or paid by the home seller (up to 6%)
- Very low mortgage insurance – 2 times lower monthly PMI costs when compared to the FHA mortgage.
- No cash saving or large down payment is required from the borrower.
- No limits or caps on the maximum loan amount.
- No cash reserve requirements or min savings requirements.
- Backed by the U.S. Government.
- You are not required to be a first-time home buyer.
- Low fixed interest rates – some of the lowest of any mortgage program today.
- Any single-family home is ok regardless of seller – just has to be located in a USDA rural-defined location. Pretty much all of the Florida Panhandle outside of the immediate Pensacola, Fort Walton Beach, and Panama City area is covered under the USDA 502 Guarantee program. Contact us to discuss all the USDA-approved houses in your area. Ph: 800-743-7556
What are the steps to apply for a USDA mortgage?
Applying for a USDA Rural Development loan is pretty easy. We have outlined below the general information that will be needed (asked from you) during the USDA loan application process so you can be prepared.
- Complete (2) year living history.
- Complete (2) year employment work history.
- Income amounts for each household member – even if they are not listed on the loan application ( for income eligibility purposes)
- Savings – amounts in bank accounts and retirement accounts.
- The explanation for any derogatory ( late, collection) credit accounts.
- Credit report to be obtained by USDA lender – min 620 credit score needed to get approved.
This is the basic information that will be asked during the USDA loan application process. The USDA mortgage application process generally takes about 30 minutes on the phone to complete. All applicants can expect a loan pre-approval decision on the same day.
USDA Mortgage Source is Florida’s primary source for all USDA RD mortgages. Assisting home buyers in Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Washington, Bay, Gulf, Calhoun, and Jackson counties. Need help, or want to learn more? Please submit the short Info Form on the right side of this page for quick service. Mobile phone users can find the Info Request Form at the bottom of this page. You can also call us anytime at ph: 800-743-7556
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