There are many reasons first time homeowners apply for a USDA Guaranteed Home Loans before any other. First and foremost, USDA is the only home loan program in Florida that still offers 100% financing with no money down! Many rural and small community families and individuals may be eligible to become homeowners with the help of a USDA guaranteed home loan. Even many popular suburbs around Tampa, Orlando, Tallahassee, Gainesville, Jacksonville, Tampa and Ocala are eligible!
When the federal government agrees to guarantee a loan, lending institutions can help buyers while incurring less risk. Through USDA’s Guaranteed Rural Housing Loan Program, low- and moderate-income people can qualify for mortgages even without a down payment. That’s right, 100% financing is still possible in Florida.
So why is the USDA Home Loan so attractive to first time home buyers? USDA Home Loan requirements are realistic and overseen by the United States Government and Rural Housing. The USDA Guaranteed Home Loan has less stringent guidelines than a conventional mortgage and allows some flexibility that typical loan programs do not. The following are some requirements and allowances provided by the USDA which makes this decision and easy one for you and your family.
- Your repayment ability is based on the following ratios: Principle, Interest, Taxes, and Insurance(PITI) divided by gross monthly income must be equal to or less than 29 percent
- Total debt divided by gross monthly income must be equal to, or less than, 41 percent
- Guaranteed loans can be made on either new or existing homes
- Existing homes must be structurally sound, functionally adequate, and in good repair
- There are no loan amount limits
- Loans may be for up to 100 percent (102 percent if the guarantee fee is included in the loan) of appraised value or for the acquisition cost, whichever is less
- 100% financing, no down payment
- Mortgages are low 30-year fixed rates with low mortgage insurance costs.
- Loans may include funds for closing costs, the guarantee fee, legal fees, title services, cost of establishing an escrow account and other prepaid items, if the appraised value is higher than sales price.
- Sellers may contribute to the buyer’s closing costs – up to 6%
- Home buyers make application with participating lenders
- Buyers must personally occupy the dwelling as a primary home.
- Loans may be made to refinance either existing USDA Rural Development Guaranteed housing loans or Section 502 Direct housing loans
USDA rural housing is a great choice for first time buyers with limited cash for a down payment. Florida Teachers, Fire, Police services as well.
Have questions? 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 visit www.FiveStarsMortgage.com for the latest mortgage info.
Already have a USDA loan? please ask about the USDA Pilot refinance program.