Many Florida home buyers assume the days of no down payment home loans are long gone. Even more are not aware that USDA Rural Development still offers 100% financing in slected locations around Florida. That’s right; it is still possible to achieve your dream of homeownership with little or NO money down. USDA mortgage program stand a head above all the rest in the loans for housing industry. Except for the military, there is no other entity around that provides a zero down payment plan for borrowers to start a home of their own.
This is not to say that the USDA is going to hand out the money to the prospective homeowner directly because they only insure the loan. This reassures the lender as it reduces their risk of losing a substantial amount should the borrower or home owner default.
It is important to note that although the USDA offers this program to virtually everyone (First time homeowners, move up buyers, etc) it is a different story altogether at the lender’s end. They have their own requirements that the borrower needs to fulfil before any loan is approved.
- There is a mortgage application form has to be completed and then submitted to the recognized lender.
- Paycheck stubs, tax returns, bank statement copies and other supporting documents have to be attached with the application form.
- The lender collates all the submitted information and proceeds to analyze them to either approve or deny the application of the mortgage.
- In the event of an approval, the home being purchased gets an appraisal followed by the title work.
- A closing is conducted which the borrower has to attend to get the home. This is also the time when the borrower-turned-owner will start paying the monthly mortgage and other monthly dues.
- Closing costs can be included! The USDA mortgage covers 100% of the loan and will also allow closing costs to be paid by the home seller, or rolled into the loan with a higher appraisal.
Remember, USDA housing is only for primary residences, no investment or vacation home permitted. The house must be located in a USDA eligible location and household income must be under the USDA limit. Each Florida County has different income limits based on household size, etc. To learn more about USDA financing in Florida, please click here. Serving all of Florida including Deltona, Leesburg, Spring Hill, Winter Haven, Lakeland, Bartow, Sebring, Lehigh Acres, Palm Coast and Middleburg FL
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