Did you know the USDA Loan Guidelines 2016 still permits 100% financing with no down payment? Most Florida home buyers know it’s hard to get a conventional mortgage type without having to pay a down payment at the minimum of 20 percent. 20% down payment is just out of reach for most home buyers, especially first time buyers. With USDA home loans, a family is now allowed to purchase a home without paying the unaffordable down payment. Homeowner is still possible even if you have limited savings. The USDA Home Loan does have a few eligibility requirements in regards to household income and location of the home (rural) Please read below for more details.
How Does the USDA Rural Housing Loan Program Benefit the Home Borrower?
- The usda loan is 100% financing and a secure 30 year fix term. USDA is the last remaining $0 down home loan in Florida. All USDA loans are guaranteed (backed) by the United States Department of Agriculture
- No loan amount limit. Home buyers qualify based on their debt to income ratios. Low fixed interest rates also save the borrower thousands of dollars over the life of their loan. Your closing costs can also be rolled into your loan by using gift funds or grants.
USDA Loan Eligibility in 2016
- First and foremost the house to be purchased must be located in a USDA approved location. Please see the USDA eligible map here. Many area’s around Tampa qualify for the USDA loan! Riverview, Ruskin, Wesley Chapel, Land O’ Lakes, Bradenton, Palmetto and Parrish FL to name a few.
- Household income must be below the limit, per county. Click here to read about income limits and USDA.
- Credit – most USDA lenders will require a minimum 620 credit score. This score does not guarantee loan approval as there are additional requirements in place for any borrower that has a past BK or foreclosure, etc.
- Work history – generally a min 2 year work history is required. Recent college grads are exempt from this rule.
Please read all the most frequently asked USDA questions here. Many locations in Hillsborough county (just outside of Tampa FL) are currently eligible for 100% USDA loans. Apollo Beach, Dover, Gibsonton, Lithia, Lutz, Mango, Orient Park, Plant City, Riverview, Ruskin, Seffner, Sun City Center, Tampa, Temple Terrace, Thonotosassa, Valrico. In addition, Pasco County – Land O’ Lakes, New Port Richey, Odessa, Port Richey, San Antonio, Wesley Chapel and Zephyrhills. Manatee County – Bradenton, Palmetto and Parrish
Questions about the USDA loan application for pre approval process? Please visit www.UsdaMortgageSource.com for more information or call 800-743-7556. You can also fast track your request by submitting the quick info request form here