USDA Rural home buyers can receive up to 100% financing on their next home with a USDA Rural Loan. Many locations around St. Johns & Flagler County like St. Augustine and Palm Coast still remain mostly approved for 100% USDA Rural loans. The USDA 502 Guaranteed home loan program was designed to assist moderate income residents in St. Johns and Flagler County in purchasing a home by providing easy approval standards and great rates. Home buyers must purchase a home within the eligible rural areas and have a household income that does not exceed the established limits for the area where the home is located. Please see the St. Johns and Flagler County USDA RD income limits here.
Some benefits of a USDA 502 Guaranteed Loan in Palm Coast, St. Augustine included:
- Zero down payment, Up to 100% financing.
- Alternate credit may be accepted (includes detailed payment history on rental payments, utility bills, telephone/mobile services and television service) Please note non traditional credit can only be used if an applicant does not have a credit score. Non traditional credit can not be used to offset bad credit. Current credit fico score requirements are 620.
- No limit on purchase price, or loan amount limits with USDA.
- 30 YR fixed terms. No early payoff charges.
- Eligible property types include existing homes, new construction, Planned Unit Developments (PUD’s), eligible condominiums, short sales, foreclosures located in a USDA RD eligible locations.
- Gift/Grant Funds and Seller Concessions are allowed for closing costs – up to 6%.
- Not limited to first time homebuyers, any eligible homebuyer can apply even move up buyers.
USDA like all government home loans require monthly mortgage insurance. Below you will find the current 2015 USDA mortgage insurance rates and up front funding ( Guarantee) amounts.
- Purchases, 2.00% upfront fee paid at closing, based on the loan size
- Refinances, 2.00% upfront fee paid at closing, based on the loan size
- For both purchases and refinances, 0.50% annual (monthly ) fee, based on the remaining principal balance
Example: homebuyer with a $200,000 loan size in St. Augustine Florida would be required to make a $4,000 upfront mortgage insurance premium payment, plus $83.33 monthly mortgage insurance. The up front USDA mortgage premium is normally included (rolled into) the home buyers loan. The main benefit is the USDA loan program is the monthly mortgage insurance (PMI) is almost half the costs of the FHA loan.
Palm Coast, St. Augustine home buyers interested in applying for a USDA mortgage? We are available to assist you 7 days a week. For quick service please submit the “Request Contact” form at the top right side of your screen. Mobile users can find the short Request Contact Form here. Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest home loan info.
Palm Coast, St. Augustine USDA Mortgage Company – update 2015