While considering the USDA mortgage loan, you must first understand that there are certain eligibility criteria that need to be met. One of the biggest benefits of the USDA home loan mortgage in Florida is that it requires no down payment, making it easier for especially first time home buyers in Florida. However, since you can borrow as much as 100 % of the total value of the property, it is not surprising that there would certain requirements to fulfill in order to get the loan approved. The USDA /Rural Housing loan guidelines will be discussed in this article to help you decide if you are eligible for the USDA mortgage loan.
The major requirements that need to be fulfilled by the applicant are as follows:
- The applicant must be a bonafide US citizen. If he is an alien then he should possess the necessary immigrant qualifications or should be legally admitted to the US as a permanent resident.
- The borrower must either have adequate income or should have a dependable.
- It is essential that the applicant have a decent credit history and timely payment over the last year. 620 credit score min is required.
- The applicant’s total debts must be lower than 41 per cent of his total monthly income.
- The applicant’s adjusted yearly income should not exceed the moderate income limit that exists in the area of his residence. Additionally, the income of all the other adults in the applicant’s home should be included in the total income of the household. Any additional adjustments to the applicant’s gross income such as the costs of childcare must be incorporated so that they meet the household income requirements.
- The applicants mortgage payment along with his insurance and tax should not exceed around 29 per cent of his total monthly income. The exact amount depends on other factors.
- The home that the borrower intends on purchasing should be located in a rural area that comes under the designated list of approved eligible areas USDA’s loan policies.
Questions about USDA qualifying requirements? Please submit the short information request form on the right side of your screen. Or call us at 800-743-7556. Serving all of Florida 7 days a week
Located in a more populated location in Florida? Learn more about the FHA home loan by clicking here.
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