Are you a home buyer in Leesburg considering a 100% USDA loan? If so you want to aware of certain eligibility requirements that need to be fulfilled in order to obtain loan approval. The objective of taking a USDA mortgage loan is to finance the purchase of a home in a rural area like Lake County. One of the biggest benefits of the USDA Rural Housing program is that it requires no down payment, making it easier for potential first time borrowers. However, since you can borrow as much as 100 % of the total value of the property, there would certain requirements need to be met to get approved. Below we will discussed these requirements so you can decide if the USDA loan is right for you.
The other major requirements that need to be fulfilled by the applicant are as follows:
- The applicant must be US citizen or permanent resident.
- The borrower must either have adequate income or should have a dependable. Generally a two year employment history is needed.
- It is important that the applicant have a good credit history with a min 620 credit score.
- The applicant’s total debts must be lower than 41 % of their total monthly gross income.
- The applicants adjusted yearly income should not exceed the moderate-income limit that exists Lake County. Buyers can see the most recent 2015 USDA income limits here. Additionally, the income of all the other adults in the applicants home should be included in the total income of the household. Any additional adjustments to the applicant’s gross income such as the costs of childcare can be deducted to help meet the eligibility requirements.
- The applicants mortgage payment along with his insurance and tax should not exceed 29% of their total monthly income.
- The home being purchased must be in good working order and be located in a USDA qualified location. Single family homes, townhomes, condos only, no manufactured homes. The good news is ALL of Lake County is approved – Leesburg, Clermont, Eustis, Groveland, Lady Lake, Mount Dora, Tavares and Umatilla FL
There are many USDA benefits when compared to FHA and standard conventional loans. Below we have listed a few:
- 100% financing with no down payment
- First time buyer is not required, the USDA Rural Development loan can be used by move up buyers as well.
- No class needed to apply, get pre approval in under 30 min.
Applicants that have questions about the USDA program can 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 feel free to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.
Lake County – Clermont, Eustis, Fruitland Park, Groveland, Howey-In-The-Hills, Lady Lake, Leesburg, Mascotte, Minneola, Mount Dora, Mount Plymouth, Okahumpka, Paisley, Sorrento, Tavares, Umatilla – USDA mortgage loan eligibility Leesburg FL
Buyers that do not meet the USDA eligibility requirements can learn more about the FHA loan here.