If you thought you never had a chance at home ownership because of inadequate finances or low savings, then consider USDA Rural Housing Home Loan. Most of Polk County including Haines City is eligible for the program making it perfect for first time home owners. Interested home buyers that have questions can submit the short Info Request Form on the right side to speak to a loan specialist at anytime. Mobile users can find the Info Request Form here. You can also contact us at 7 days a week at ph: 800-743-7556
So What Exactly Is a USDA Home Mortgage?
The United States Department of Agriculture provides low-cost insured mortgage loans to suit a variety of purchase options. USDA Rural housing loans give home buyers a piece of mind with extremely low closing costs and no down payment requirements. Simply put, these are flexible zero down payment government backed loans. These loans are designed with a mission to promote home ownership among residents in rural communities like Haines City FL with low and moderate income – who have limited savings for a down payment.
Types of USDA Rural Housing Loans
The USDA loans can be divided into two types, USDA Guaranteed Loan and USDA Direct Loans. The USDA Guaranteed loan also known as the Section 502 Guaranteed Housing Loan is the most common type of USDA rural housing loan. This loan enables moderate income applicants in to acquire decent and sanitary housing in eligible rural areas throughout Polk County / Florida. The loan is processed and underwritten by approved USDA lenders in Florida.
To qualify for this loan, applicants must:
- Agree to occupy the housing as a primary residence
- Be a US citizen or Qualified Alien
- Have adequate capacity to meet loan obligations
- Not be suspended from participation in federal programs
- Have a credit fico score of at least 620
- Household income must be below the USDA income limits for your county.
This loan lends applicants up to 101 percent of the home’s appraised value ( 1.0% Guaranteed funding fee included into the loan as of 10/1/2016) And also allows buyers to include closing costs in the actual loan assuming the home appraises for higher than the sales price. It has a 30 year loan term with a low fixed rate.
The other type of USDA loan is the Direct Loan. This is not as popular as USDA Guaranteed Loan. It is only and exclusively available for very low income households (below 50% of the area median income) and offered only by the USDA / Rural Housing directly.
USDA Rural Development Loans vs. FHA and Conventional Loans
In comparison to conventional loans, USDA home mortgage offers a ton of benefits and protections to borrowers such as:
- Credit flexibility – Unlike conventional loans, USDA loans are not totally credit score focused. Although a 620 score is required to be considered.
- Low Mortgage Insurance – This alone allows you to save $50 to $250 per month depending on your loan size.
- Zero down payment – In comparison to FHA loan which has 3.5 percent down payment requirement, USDA Rural Housing home loans require no down payment in select locations making it extremely easy for borrowers to realize their home-ownership dream. Many locations in Polk County are still approved- Haines City, Davenport, Lake Wales and locations just outside of Lakeland and Winter Haven!
Types of Properties That Borrowers Can Purchase
Although USDA loan guidelines require borrowers to occupy the property as their primary residence, there is no restriction to the type of property that they can purchase. USDA loan allows borrowers to purchase from a variety of property types such as condos, single family residences and planned unit developments as long as they are located in a USDA approved zone. Manufactured homes are not permitted.
Home Buyers that would like to learn more should contact us at Ph: 800-743-7556. Please also submit the short Info Request Form to have a USDA loan specialist contact you today. Mobile users can find the Info Request Form here.
Haines City USDA Rural Loan – What You Should Know