The Florida USDA home loan program stands alone as one of the most affordable and “first time buyer” friendly mortgages in the state. One main reason why USDA loans are so attractive is because USDA Rural Housing is the only mortgage program available that requires absolutely no money down -100% financing.
Not only that, but USDA loans historically come with lower interest rates than traditional home loans, and come with 30 year fixed rates. USDA loans require low monthly mortgage insurance, come with 100% financing, and even allow for you to finance all your closing costs into the overall amount of the loan. This way, you can practically purchase and move into your Florida USDA eligible home, with little to no money upfront.
USDA Eligibility
One drawback to the USDA home loan program is that the program is not available in all Florida areas. Larger cities such as Jacksonville, Orlando, Tampa, Miami, are not eligible for USDA loans. However, many of the suburb locations around these cities are eligible. Example: Around Tampa – Wesley Chapel, Riverview, Ruskin, etc are eligible. Around Orlando – Winter Garden, Clermont, St. Cloud, etc are eligible. Around Jacksonville – St. Augustine, World Golf, Nassau county, Orange Park. The good news is about 80% of Florida is currently eligible.
Household income limits
In order to be eligible for a USDA loan, the household must meet certain USDA home loan requirements regarding income. USDA does limit the amount of income the household can make, please read about income limits here. Because the USDA rural home loan program was created to help lower income individuals and households afford mortgages in rural areas, there are various income limits in place to make sure more affluent individuals don’t abuse the program.
To be eligible for a USDA loan in Florida the applicant’s total annual household income must not exceed 115% of the average median income for that area. Income limits vary from county to county and from state to state, and are higher for households with 5 or more individuals. Generally speaking in Florida, the yearly income limit is around 110,650 for a household of 1-4 people (higher in some counties)
Credit
You must also have an average credit rating with no payments that are currently in collections. While there is no stated minimum credit score for the USDA home loan program, lenders will generally not work with an individual if their credit score is below 620. Take the time to clean up any old credit hiccups before you apply, this will help your application success greatly.
Also, if you have received a USDA loan in the past, and still currently live on a USDA eligible property, you may be eligible for the Florida USDA loan refinance program. Refinancing your current USDA loan will result in a lowering of your monthly mortgage principle and interest payments. Please read here about the USDA Pilot Refinance.
Questions? First time buyers just submit the quick request form on the right side of this page, or call 800-743-7556. Please the home page for more details.