USDA loans are great for first-time buyers looking for affordable housing in Florida. This government backed mortgage program still provides 100% financing with no down payment required. This is a big help, especially for first-time homeowners that may struggle with the down payment often required for conventional loans.
Home buyers can often qualify with a lower credit scores when compared to other loan programs. Additionally, USDA loans have attractive low interest rates and reduced monthly mortgage insurance that help keep monthly payments more affordable.
To be eligible for a Florida USDA Rural Development loan, there are certain requirements that must be met. Below, we have outlined the 100% USDA loan requirements for 2025. Please read below and contact us 7 days a week with any questions, we are happy to help.
USDA Loan Credit Score Requirements:
640 minimum credit score is required for automated GUS approval for the 502 Guaranteed program. However, this credit score requirement alone does not guarantee loan approval. Additional requirements may include – no repeated late payments on any credit tradelines within the last 12 months. No serious financial hardships like foreclosures, or bankruptcies within the last two years. Buyers with lower credit scores down to a 580, plus a small 3-5% down payment, can often be approved through manual underwriting.
Employment Work History:
Active two-year history with documentable income. Recent college grads that have just started in the workforce are exempt from this requirement. Applicants are still eligible if they have recently switched jobs, as long as they have no unexplainable extended gaps of employment.
Florida USDA Income Eligibility:
Florida USDA Income Eligibility:USDA has household income limits in place to be eligible for the program. In general, Florida households with 1–4 members can have a max $112,450 gross income per year. Some high-cost counties are even higher. Households with 5+ members can make even more, over $148,450 in certain counties. USDA also allows income deductions for dependents, child care expense, elderly, disabilities, etc.
Please note, the income limits apply to current household income at the time of closing, not expected future income. Please learn more about Florida 2025 USDA income limits here and contact us with any questions on how to calculate your household income.
Florida USDA Eligible Property Locations:
Any single-family home that is located in a rural defined USDA eligible location. Even though the program is focused on the development of more rural locations, many suburban locations just outside populated cities like Jacksonville, Orlando, Tampa, Gainesville, Sarasota, Ocala, etc. may still be approved. In fact, nearly 80% of Florida’s land mass is still eligible.
The property being purchased can be any normal real estate listing, short sale, foreclosure, by owner sale, etc. However, existing mobile homes are NOT permitted in most cases. The home must be a primary residence, and no investor rental purchases are permitted. The property cannot be a “rehab” or fix & flip project. The home must be livable, and in overall good repair that meets basic HUD requirements.
*Homebuyers that do not meet the income or property location requirements can contact us to learn about down payment assistance programs currently available in Florida.
Commonly Asked Questions:
Commonly Asked Questions:How long does the USDA mortgage closing and processing time take? – Generally, the closing process takes around 25–40 days to complete. USDA loans are unique in that they go through a two-tier approval process. Please learn more about USDA closing times here.
What is the max USDA Rural Development Financing – 100%, NO money down required! Home sellers can also pay closing costs for USDA home buyers. There are also no official loan amount limits with the 502 Guaranteed program. Home buyers qualify based on income limits put in place, and max allowed debt-to-income ratios. Please learn more about USDA loan limits here.
Does USDA Offer Refinance Options? – Yes, homeowners that currently have a USDA loan have the option of doing a rate-term refinance to lower their interest rate. Please learn more in the refinance link above.
Is USDA only for First Time Home Buyers? No, USDA can be used by any prospective home buyer that meets the eligibility guidelines. There is also no special homebuyer class needed to apply. Only primary owner occupied homes are permitted – no second homes or investment properties allowed.
My Realtor mentioned I cannot use the program if purchasing a home with a swimming pool? No, in the past the value of pools were not included in the overall appraised value of the home, this could sometimes cause an issue. That rule is no longer active, pools are just fine!
I understand the program doesn’t require a down payment, but what about USDA closing costs? How much can I expect to pay for this? Closing cost are generally 3.5-5% of the purchase price, depending on the sales price, property location, etc. The buyer has a few different options to include their closing costs into the loan. First, they can negotiate this on the contract, USDA permits the home seller to pay the buyer’s closing costs. Second, buyers can add or roll in their closing cost into their new loan. In order to do the second option, the home must appraise high enough to cover the closing costs being added.
Example: Ted is purchasing a home for $250,000 and needs $10,000 (4%) to help pay his closing costs and pre-paid home insurance and tax escrows. In this case, as long as the home appraises for $260,000+ Ted can roll in these closing costs into his loan.
Please read many more USDA FAQs here to learn more about general requirements and guidelines.
Have questions or ready to start your USDA loan application? Call us today, or just submit the Info Request Form on this page to connect with a specialist.
