Naples remains a hot location for Florida real estate this year. However, many first time home buyers in Naples find it difficult to obtain mortgage financing due to the large down payments required by many home loan programs today. But there is one hidden secret – the 100% USDA Rural Development loan.
Many portions of Collier County are approved for the USDA rural housing mortgage. Why is this a good thing, you ask? Because it allows many first time homeowners in Naples that have little savings, the chance to purchase their dream home. First, a little background on the USDA 502 Guaranteed loan program.
The USDA loan (Single Family Guaranteed Housing Program) is a mortgage program that is insured by the U.S. Department of Agriculture (USDA) and provides home buyers a no down payment financing option in approved rural areas – Naples / Collier County is included.
The USDA program offers 100% financing to qualified home buyers and allows the closing costs to be paid by the seller or financed in the loan. The USDA RD loan also offers low 30 yr fixed interest rates. To be eligible for a USDA loan, there are a few factors that will be considered and those are your creditworthiness, USDA loan income restrictions, property location, etc.
USDA Mortgage Loan Eligibility in Naples:
In order to be eligible, the home must be located in a designated rural area. Collier County and Lee County both do have eligible locations. Interested homebuyers can contact us to discuss your location in detail –
Just submit the short Info Request Form on this page for fast service. You can also contact us 7 days a week by submitting the Info Request Form on this page.
To be eligible for a USDA Guaranteed Loan Program in Naples Collier County, loan applicants must:
- Meet income-eligibility – Please see the current USDA household income limits here.
- Occupy the home as a primary residence – no investment home purchases, etc.
- Be a U.S. Citizen, U.S. non-citizen national or Qualified Resident
- Has a credit history that demonstrates responsible use. Currently, a 620 score is required to be considered.
- Purchase a property that falls into the USDA approved location- Again most of Collier County / Naples FL is approved.
Benefits of the USDA Mortgages in Naples, FL:
There are many great benefits to a USDA Mortgage Loan for Naples home buyers, let’s take a look at some below.
- 100% and no down payment is the key benefit.
- The USDA Rural Home Loan Program gives borrowers the ability to finance closing costs into the loan itself – reducing how much money is needed for closing. The home seller can also pay USDA closing costs.
- Underwriting guidelines are more relaxed when compared to other conventional loan programs.
- Buyers are not required to be first time buyers – if you owned a home in the past, it’s ok!
- Homebuyers can purchase any home listed for sale – regular real estate sale, by owner type sale, foreclosure home, etc. The home is only required to meet standard HUD standards with regard to condition, basically a home that is in move-in condition.
Want to learn more about all the lender loan pre-approval requirements? Contact us 7 days a week by calling or just submit the quick info request form on this page. We are Florida’s leading USDA loan resource serving all home buyers in Florida.
