Getting pre-approved for a Florida USDA loan isn’t much different than other mortgage programs like FHA, VA or Conventional loans. Below we have outlined some tips and things you will want to know before starting your USDA loan application.
Keep in mind the entire USDA Rural Development loan application process is typically done over the phone and only takes about 15 min to complete. Most of the information asked during the USDA loan app are things you know by heart, Ex: Current employer, address, income, birth date, social, etc.
Applicants will want to have a few documents handy when starting their loan application:
- Last 2 years of W2 and tax returns.
- Last 2 months of bank account statements.
- Last few pay stubs.
Below we have listed some common questions we receive from borrowers before the application. Take note as this is very helpful information:
- I want to switch jobs, do I need to be working on with my new employer for two years? No, you do not have to be employed with the same employer for two years. However, it is helpful that you have a constant two-year work history. It’s also a good idea to remain in the same line of work. As long as you don’t’ have any unexplained gaps in employment (over a month) you are fine. As for self-employed borrowers, you will need a min two-year history before your income can be considered by most lenders.
- I understand USDA Rural Development has income limits for the family? Yes, the USDA income limits can be found here. Applicants need to remember these household income limitations apply to everyone living in the house, even if that person is not listed on the mortgage loan application. Example: Dan and Mary are first time buyers looking to purchase a home in Volusia County. Both of them work full time and their combined income is $55,000 per year, well under the income limit of $103,500. In addition to their income, Mary’s mother Jean will also be living with them in the new house. Jean will not be on the mortgage application with Dan and Mary, however Jean has a part time job and her monthly income of $1,000 will need to be included in the household income limits. Even with this, their combined income will be below the limit.
- What if my income goes up and over the USDA limit in the future? USDA is only concerned with the household income at the time of closing, not the future.
- Should I find a house I like first and then get my USDA loan pre-approval? Actually the opposite, it’s best to make sure you are pre-approved and qualified before shopping for a home. In addition, your Realtor and home sellers will likely request this.
- How long does the USDA closing process take? Once you are under complete contract, the process with underwriting and inspections take about 40 days to complete. You will typically close on your new home 35 days after your contact is been agreed upon.
- My girlfriend and are planning to get married in the next year, can we both still be on the USDA mortgage application together even though we aren’t married now? Yes, it’s perfectly ok for you both to be on the application now.
- I’m a first time home buyer and my parents are giving me some money to help purchase a home, is this ok? For sure, USDA has no issue with gift funds from family, etc. Just be sure you can document the money property – make a copy of the check and save the deposit slip.
- Can I purchase a bank-owned foreclosure or short sale home with the USDA loan? You sure can! Just make sure the home is in good “livable” condition – basically a home you can move right into. Also, be sure the house is located in a USDA approved zone.
Home buyers can view many more USDA FAQ’s here Questions? Reach out to us by calling ph:800-743-7556 or just submit the quick request form to the right →
Florida & Georgia’s USDA loan leader serving: Lakeland FL, Sarasota, Tallahassee, Gainesville FLA, Ocala, Daytona, Deland, Deltona, Winter Garden, Clermont, St. Augustine, Orange City, Spring Hill, Winter Haven, Plant City, Fort Myers, Lake City, Destin, Pensacola, Jacksonville, Orlando, Lakeland, Kissimmee, Brandon, Naples, Lake City, Riverview , Macon, Albany, Savannah, Atlanta.
USDA Loan Pre-Approval Qualifying Advice