Florida buyers thinking about purchasing a home this fall should take note of some USDA program updates fall 2014. First, the USDA approved area, or map, could be changing drastically October 1st 2014 as USDA is set to update the eligible areas. See the current eligible location map. What does this mean you might ask? Basically many locations that are currently eligible for the program will not be after Oct 1st. Keep in mind the USDA approved eligibility map has not been updated in a long time, any update is long overdue. The good news is a lot of central FL still qualifies today for the USDA program today – many locations around Lakeland, Kissimmee, Winter Garden, Plant City, Orlando, Winter Haven, etc, qualify.
Homebuyers that are interested in the no money down USDA loan should take note. Also USDA mortgage loans like nearly all other loans, require mortgage insurance. Effective October 1, 2014, the monthly mortgage insurance on a USDA loan will increase to .50%. This is up from the current .40%. EX: $100,000 loan amount, the new mortgage insurance costs would be $41.87 a month, up from the current $33.49 a month. While none of like increased costs, USDA mortgages still have the lowest mortgage insurance costs of any home mortgage program, and is still an great value. FHA loans as one example require 1.35% for monthly mortgage insurance…. Ouch! In addition, USDA still permits 100% financing, the VA loan program (military) is the only other $0 down mortgage in Florida.
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