Home buyers in Charlotte / Lee County can still purchase a home with NO down payment. One of the biggest challenges for many Florida first time home owners lack is saving for a mortgage down payment. However, even with the widespread availability of “no-money-down programs” disappearing in the credit crisis of 2009, one government 100% program still remains: USDA Rural Development home loans – also know as RD or 502 Guaranteed loans. Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to purchase way out in the country to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods in Charlotte County and Lee County actually do qualify as rural development areas. For this program, the term “rural” really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhoods far outside of the city.
Many parts of Charlotte and Lee County qualify for the USDA loan program which could save home owners a considerable amount of money when compared to a FHA or conventional mortgages. In fact all of Punta Gorda, just south of Port Charlotte is eligible for USDA financing. In addition, many parts of West Lee County is also approved for USDA.
So what makes the USDA RD mortgage program so good for homebuyers?
No Down Payment Required – Unlike conventional and even FHA loans, Rural Development home loans do not require any down payment. This is especially beneficial for first time homebuyers around Punta Gorda. Saving up a down payment can be very difficult for younger buyers just starting out. Utilizing a USDA Home Loan means that is no longer an obstacle to home ownership.
Low Monthly Mortgage Insurance (PMI) – The monthly mortgage insurance on a USDA loan is much lower than it is for an FHA or conventional loan. This can greatly reduce your monthly mortgage payment, allowing you to qualify to buy a more expensive home, or allow you to put more money into savings every month.
Seller Paid Closing Costs – Sellers concession for closing costs allows the home seller to pay for some (or all) of your closing costs out of their proceeds from the sale of the home. Couple that with $0 down financing that is available, and you can be in a home without any of your own money, meaning you can keep your savings to cover any expenses like new furniture, etc
Financed Closing Costs – On some purchase transactions, foreclosures and short sales in particular, a sellers concession for closing costs may not be possible. A USDA loan allows the financing of the closing costs even if the seller will not agree to a sellers concession assuming the appraised value is high enough. All of the closing costs can be financed, up to 100% of the appraised value of the home. This is extremely beneficial when a seller’s concession is not an option.
Low 30 Yr Fixed Rates – USDA Home Loans offer a low fixed interest rate. This is a rate that starts low, and stays low. That gives you the peace of mind that your payment will not increase in the future and that your home will remain affordable for years to come.
More flexible credit requirements – Because a USDA Home Loan is insured by the government, we can offer USDA Home Loans to applicants that may not qualify for other types of home financing, including FHA loans. The current min credit score FICO is 620.
No Loan Amount Limits – While conventional loans have a maximum loan amount limit of $417,000, and FHA loan amount limits vary by county, the USDA Home Loans do not have a loan amount limit in Punta Gorda, Fort Myers and Cape Coral. This is especially useful in areas with lower FHA loan limits.
Home buyers that have questions, or want to learn about getting pre approved can submit the short Info Request Form on the right side of this page. Mobile users can find the Info Request Form here. We can be reached Monday – Sunday at ph: 800-743-7556 or visit www.UsdaMortgageSource.com
USDA Mortgage Source serves all Florida buyers including : Lee County – Alva, Boca Grande, Bonita Springs, Cape Coral, Estero, Fort Myers, Charlotte County Palm Island, Placida, Port Charlotte, Punta Gorda, Rotonda and Solana. USDA approved homes, Punta Gorda USDA Loan