100% home financing is hard to find these days, especially in Florida. There are only a few options left – VA and USDA. USDA is often overlooked, now is the time to discover the benefits of USDA and how it can help you purchase a home with little money out of pocket. Most people think in order to get a USDA loan the property has to be way out in the county….not true. You would be surprised the houses that are USDA eligible, many properties right around town.
USDA home loans are offered in many areas as determined by the United States Department of Agriculture.. The USDA’s mission is to help moderate to lower income households obtain home loans at reasonable mortgage rates. USDA home loans offer many advantages to qualified borrowers.
USDA mortgage loans allow for purchase and no cash out refinances of primary residences. Some benefits of USDA Rural Housing :
- 100% financing – no down payment needed.
- Closing costs can be rolled into the loan, if the appraised value is higher.
- Borrower does not have to be a first time buyer.
- Income limit have recently increased – 74K+ for a single person in most of Florida. Many more home buyers can now qualify.
- Low monthly mortgage insurance when compared to FHA loans
- No asset or automatic reserve requirements
- Gifts allowed for closing costs, plus seller can pay as well.
- Lower credit scores allowed – 640 min
Eligible USDA property types include single family homes and condominiums.
Some common Q&A listed below –
- Is there a min credit score with the USDA home loan? Yes, 640 for all parities on the loan application. No repeated late payments in the last 12 months or outstanding judgments. Any bankruptcy must have been discharged for 3 years min. If you do not have credit scores, financing still may be possible through alternated credit history.
- What property types are eligible for USDA financing? Single Family Residences located in approved USDA eligible areas. Mobile and manufactured homes are not eligible unless purchased new from the dealer direct. In this case, only the dealer would arrange the financing through USDA. Only primary residences eligible, no investment property purchases allowed.
- What type of job history is required? Usually a 2 year job history required, except for recent college graduates.
Read many more FAQ’s located here – http://www.usdamortgagesource.com/blog/frequently-asked-usda-rural-housing-loan-questions/
Please contact us at https://www.fivestarsmortgage.com/usda-rural-loan for any information related to USDA loans here in FL.