Below, we have outlined the Florida 100% USDA Rural Development housing requirements for 2024. Please read below for the basic USDA mortgage guidelines here in FL and contact us with any questions 7 days a week, we are happy to help.
USDA loans are great for first-time buyers looking for affordable housing. The program offers 100% financing, no down payment required, and home buyers can often qualify with a lower credit scores when compared to other loan programs. Additionally, USDA loans have reduced monthly mortgage insurance, which helps keep the monthly payment more affordable. To be eligible for a Florida USDA Rural Development loan, there are certain requirements that must be met. These include:
USDA Loan Credit Score Requirements:
620 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 short sales, foreclosures, or bankruptcies within the last 2 years. Buyers with slightly lower credit scores can often be approved with a low 3-5% down payment.
Employment Work History:
Strong two-year history with documentable income. Recent college grads that have just started in the workforce are exempt from this requirement. Applicants are ok if they have recently switched jobs, as long as they have no unexplainable extended gaps of employment.
Eligibility Income Limits for USDA Housing:
In general, Florida households with 1–4 members can have a max $110,650 gross income per year. Some high-cost counties are even higher. Households with 5+ members can make even more, over $146,050 in certain counties. USDA also allows income deductions for dependents, child care expense, elderly, disabilities, etc. Please learn more about Florida USDA income limits here and contact us with any questions on how to calculate your household income.
Florida Eligible USDA Property:
Any single-family home that is located in a rural defined USDA eligible location. Even though the program is focused on more rural locations, many suburban locations just outside of 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. Furthermore, you do not have to be a first-time home buyer to use the USDA loan.
Max USDA Rural Development Loan Amount:
There is no official max loan amount with Rural Housing USDA. 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.
Other 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 different in that they go through a two-tier approval process. Please learn more about USDA closing times here.
Max USDA Rural Development Financing – 100%, NO money down required! Home sellers can also pay closing costs for USDA home buyers.
Does USDA Offer Refinance Options? – Yes, for homeowners that currently have a USDA loan, 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. There is also no special homebuyer class needed to apply. Only primary homes are permitted – no second homes or investment properties allowed.
Please read many more USDA FAQs here to learn more about general requirements and guidelines.
Have questions about the USDA housing application process? Call us today to learn more, or just submit the Info Request Form on this page.