Unless you have served in the military, USDA mortgages are the only zero money down loan program available to Florida home buyers in 2020. Eligible borrowers will find it hard to find a loan program that offers better terms than USDA Rural Housing.
USDA Loans used to be considered “farmers loans” but things have changed some in recent years. Just about anyone looking to purchase a home outside a major metropolitan area can qualify for a USDA Loan. Even locations right outside of the larger cities like Orlando, Tampa, Tallahassee, Jacksonville, Gainesville, etc are mostly approved areas. See the complete USDA eligibility map here.
Some of the eligibility requirements that determine if you qualify for a USDA loan for your home include where the home resides in, your current income and credit history, as well as the number of dependents you can claim.
USDA Home Loan Advantages:
- No Down payment is required. Yes, 100% financing even here in Florida!
- Flexible credit score guidelines. (Minimum credit score 620)
- No maximum purchase price limit, or loan amount limit.
- Closing costs can come from any source including gifts. USDA closing costs can also be paid by the home seller.
- Competitive fixed 30-year fixed rates.
- Low monthly mortgage insurance when compared to other loan programs over 80% Loan to Value.
- The program isn’t reserved strictly for first time buyers. Second time buyers can also use the USDA program.
USDA eligibility criteria:
- Occupy the property as your primary residence. No investment home purchases allowed.
- Be a U.S. citizen, a U.S. non-citizen national.
- Provide a stable and dependable income for repayment ability.
- Have a credit history that indicates a willingness to meet obligations as they become due.
- Have an adjusted household income that is within Rural Development guidelines here based on the number of persons who will occupy the home.
- Purchase a residential property that is located in a Rural Development eligible area.
Helpful USDA resources: