Florida has long been regarded as a prime spot for residences and business establishments alike. The Sunshine State delivers just about anything the whole world can offer. With a population close to 25 million made up of a diversity of races, Floridians have a continuous need for homes to call their own.
The USDA has two loan programs for single family households available for Florida’s rural areas.
USDA Direct Rural Housing Loans
Designed For:
Very Low Income Household – These are households with an area median income (AMI) of below 50%.
Low Income Household – These are households with an area median income (AMI) between 50 and 80%.
Moderate Income Household – These are households with an area median income (AMI) between 50 and 80%.
Perks:
– No down payment
– Low monthly mortgage insurance
– Low closing costs which can also be included in the loan depending on the appraisal
USDA Guaranteed Rural Housing Loans
Designed For:
Higher Income Household – These are households with an income not higher than 115% of the median household income for the area.
Perks:
– 100% home purchase financing
– Low monthly mortgage insurance
– Low closing costs which can also be included in the loan depending on the appraisal
– Fixed rate 30-year term
Eligibility factors for a USDA loan and other information
To qualify for a USDA loan in Florida;
- An applicant’s monthly housing costs have to meet 29 percent of his or her gross monthly income. That means the applicant’s property taxes, mortgage principal and interest, as well as insurance must be of a 29% ratio to the gross monthly income.
- Most lenders will require a 620 Fair Isaac Company (FICO) credit score.
- It’s a safe assumption the credit backgrounds will be checked.
- Applicants or families have to be of inadequate housing. However, they also have to be capable of paying the monthly mortgage including taxes and insurance.
- Applicants need to have sufficient income to be able to pay their housing costs including all monthly debts at a 41% ratio. Higher debt to income ratios allowed on a case by case basis.
There isn’t any set maximum loan amount but your debt-to-income ratios (29/41 ratios) are going to be the determining factors regarding how much an eligible applicant can get. The information for the maximum loanable amount that an applicant can borrow in Florida can be found at https://www.rurdev.usda.gov/SupportDocuments/FL%20Direct.pdf.
In financing, the maximum loanable amount isn 100%. Furthermore, a 1% USDA RD Loan guarantee fee is added to the loan instead of being a separate payment that will have to come out of the borrower’s pocket. This then makes it a total of 101%.
Contact us today to learn more.