USDA Rural Housing 502 Guaranteed loans remain a top choice for Florida first time buyers. The reason USDA remains so attractive is that the program still offers 100% financing and requires no down payment! Getting qualified for a USDA mortgage is pretty easy too, and often takes only 30 min to complete. Below we will outline all the important eligibility and qualifying requirements applicants should be aware of.
USDA Eligible Approved Locations:
USDA is a little different from other home loans in that the program is used to help expand and develop rural communities throughout the U.S. However, when many home buyers think “rural” they first think only farms or ranches way out in the country. The fact is the majority of Florida remains eligible for the program. Even many popular suburban locations just outside of major cities like Orlando, Jacksonville, Tampa, Ocala, Gainesville, and Tallahassee remain eligible and are still classified as rural. Home buyers can use the USDA map to input a property address to check eligibility. Using the map will also give you a sense of the overall approved boundaries in your area.
It’s important to note that home buyers can purchase any single family home, townhome or approved condo (regardless of the home seller) as long as the property is located within the eligible map boundaries. The home should also meet basic HUD requirements in regards to overall livability and safety, just like VA or FHA home loans.
USDA Income Limits For Household:
USDA Rural Development also requires that the household income is below a set limit, depending on family size, location, etc. Borrowers can read more about the latest 2019 USDA income limits here.
USDA Loan Qualifying:
If you are a home buyer that meets the eligibility standards above, the next order of business is the make sure you meet the loan qualifying requirements. The be approved for financing, most lenders and banks will require the following:
- 620 or greater credit score with no serious financial hardships in the previous 4 years.
- Proper utilization of credit/debt ver income. Buyers total monthly debt requirements with new mortgage expenses should not exceed 30% of their monthly gross income.
- Income and assets that can be documented via tax returns, bank statements, etc.
- Good two-year job history without any unexplained breaks in employment. Explainable long term gaps due to maternity, illness, etc, can be approved when documented.
What Makes USDA Home Loans So Great?
- Zero down payment required.
- Low mortgage insurance costs.
- Home buyers USDA closing costs can be paid by the property seller.
- Secure 30-year fix rates.
- Homeowners can sell/pay off their USDA loan anytime without penalty.
- Closings in as little as 30 days.
- Funding is readily available through approved USDA mortgage lenders and banks.
Learn more about USDA loans by talking with a specialist today. Please just call the number above or submit the Info Request form on this page for quick service.