USDA Home Loans In Florida

What is the Florida USDA Home Loan Program?

The USDA home loan program in Florida is a mortgage program meant to assist low- and very-low-income applicants in getting good, safe, and sanitary housing in rural areas that meets specific criteria. This program, also known as the Section 502 Loan Program, provides financial help to applicants to boost their repayment potential. Under certain conditions, qualifying individuals and families can buy or build a new single-family house with no money down, rehabilitate their existing home, or refinance their current mortgage.

The USDA Guaranteed Loans (USDA Section 502 Guaranteed Loans) are a mortgage program for applicants with low and moderate incomes. This program provides authorized lenders with a 90% loan note guarantee, allowing borrowers to finance up to 100% of their loans. USDA-guaranteed mortgage loans in Florida enable applicants to buy homes with no down payment, less stringent eligibility requirements, and better interest rates.

Eligibility Requirements of USDA Guaranteed Home Loans

To qualify for a USDA loan, the household’s income must satisfy specific guidelines, and the home must be located in a rural area as defined by the USDA. The USDA home loan program is restricted to rural areas that qualify, but there are exceptions. The eligibility of a property for a USDA loan is determined by the program’s mission to strengthen rural communities, including rural area designation, occupancy, and home condition.

The eligibility requirements for a USDA Guaranteed Home Loan in Florida include:

• Income eligibility:

The applicant’s household cannot exceed the area median income (AMI) of 115% in the area they want to buy.

• Primary residence:

Applicants must agree to occupy the dwelling as their primary residence personally. No second homes or investment properties are allowed.

• Citizenship or residency status:

Applicants must be U.S. citizens, U.S. non-citizen nationals, or Qualified Alien.

• Location of the property:

The home to be purchased must be located in an eligible rural area as defined by the USDA.

• Creditworthiness:

Applicants must be able to prove creditworthiness, typically with a credit score of at least 640.

• Stable and dependable income:

Applicants must have a stable and dependable income to ensure they can repay the mortgage.

• Willingness to repay the mortgage:

Generally, applicants must have a history of 12 months with no late payments or collections.

• Housing costs:

Your monthly housing costs (mortgage principal, interest, taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio).

Benefits of a USDA Guaranteed Home Loan

The benefits of a USDA Guaranteed Home Loan include:

• Zero down payment:

USDA loans offer 100% financing, allowing homebuyers to purchase a home without making a down payment.

• No private mortgage insurance:

Unlike conventional mortgages, USDA loans do not require private mortgage insurance, making them more affordable.

• Flexible closing costs and lender fees:

Closing costs and lender fees can be rolled into the loan, reducing the upfront costs for homebuyers.

• Use of gift funds, grants, and seller concessions:

USDA loans allow the use of gift funds, grants, mortgage credit certificates (MCC), and seller concessions to help cover the costs of purchasing a home.

• Low mortgage interest rates:

USDA Guaranteed Home Loans often have lower interest rates than conventional mortgages, making them more affordable for homebuyers.

• 30-year fixed-rate mortgage

USDA loans come with a 30-year fixed-rate mortgage, providing stability and predictability for homebuyers.

• Wide variety of property types covered:

USDA loans cover various property types, including single-family homes, condos, and townhomes, as long as they are used as primary residences.

• Support for low- and moderate-income borrowers:

The USDA loan program is designed to assist low- and moderate-income individuals and families in becoming landowners, promoting rural prosperity, and enhancing the quality of life in a rural area.

Apply for a USDA Home Loan in Florida

USDA home loans are intended to be as affordable and accessible as possible, and so is Capital Home Mortgage’s application process. A streamlined workflow enables us to close loans more quickly and provide superior customer service.

We understand that the mortgage application process can be intimidating, particularly for first-time homebuyers and those previously denied a mortgage loan. Therefore, we ensure that our clients receive all the assistance they require.

Your hassle-free home-buying experience starts here. Contact Capital Home Mortgage today at (239) 310-5599!