USDA loans (Rural Housing, 502 Guarantee) are home loans that are insured by the United States Department of Agriculture and provide great opportunities to Florida first time home buyers. USDA Home Loans offer eligible borrowers affordable 30 year terms with 100% financing. That’s correct, No down payment needed in select Florida locations. if fact USDA is the only 100% home loan available today for non military borrowers.
Borrowers eligible for a USDA home loan must meet certain income guidelines. Also, the home being purchased must be located in an eligible rural area as defined by the USDA rural development loan program. Many parts of Lake County and even some parts of Orange County Florida are still eligible today – Groveland, Yalaha, Clermont, Winter Garden, Tavares, Mount Dora, Fruitland Park, etc. To discuss your location in more detail, just submit the short Info Request Form on this page for quick service. You can also contact us at 7 days a week at ph: 800-743-7556
What are the Benefits of USDA Mortgage Versus Conventional Mortgage?
USDA mortgage loans offer many benefits and protections that you won’t find in other home loan financing options:
- USDA Mortgages have more flexible credit qualifying terms, down to a 620 credit score.
- USDA Rural Loans require low monthly mortgage insurance (PMI) In fact the monthly PMI is 3x less to other loans.
- USDA loans have lower interest rates than comparable conventional loans. Fixed and secure 30-Year terms.
- USDA Mortgages require no down payment – 100% financing!
What Factors Determine if I am eligible for a USDA Loan?
To meet USDA loan eligibility requirements, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain a USDA approval through most banks and lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (42% ratio).
These ratios can be exceeded somewhat with what lenders call “compensating factors” Basically strong factors that make a positive contribution to the loan like great credit, low debt, money saved, etc. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found here. Families must be able to afford the monthly mortgage payments, including taxes, home insurance and homeowner association dues if applicable.
What Types of Property are Eligible?
While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, and single family residences. No investment, vacation homes or mobile or manufactured homes permitted.
What Is Needed To Start USDA Application?
Applicants want to have their basic income, asset information handy. Also the last 2 years name and address of past employers. The USDA application is simple, and often times completed over the phone in 10 minutes.
Central Florida borrowers can submit the short Info Request Form on this page for more information on applying for a USDA loan. You can also contact us at 7 days a week at ph: 800-743-7556.
Even if you aren’t eligible for USDA financing, please contact us to discuss other minimum down payment financing options. We service all of Florida including Leesburg, Groveland, Yalaha, Clermont, Winter Garden, Tavares, Mount Dora, Fruitland Park, Astatula FL, Lake and Orange County.