Florida first time home buyers in Pasco, Wesley Chapel, Land O Lakes and surrounding communities can still purchase their dream home with NO down payment thanks to the 100% USDA Rural Housing Mortgage. The USDA loan has many advantages for first time home owners with little or no cash savings. We have outlined a few below. Please contact us with questions regarding the loan application or pre approval process at 800-871-2630 or visit – https://www.fivestarsmortgage.com/usda-rural-loan
Super Low Monthly Mortgage Insurance (PMI) Premiums:
The USDA loan has relatively low mortgage insurance requirements, particularly when compared with the FHA and conventional mortgages. USDA charges 2% of the loan amount as an upfront premium at closing (that may be financed) and a .30% annual fee on the remaining balance. This results in much lower mortgage insurance compared to other loan programs like conventional and especially FHA loans. Even if you are a home buyer that has the down payment required for a FHA loan, you should still look close at the USDA loan due to the reduced mortgage insurance costs. Buyers can read more about the USDA mortgage benefits here.
No Loan Limits with USDA Rural Housing:
The USDA loan does not have loan limits as is the case with other loan programs. The loan amount is limited only by the applicant’s income and other qualifications like debt to income ratios. Families in moderate income bracket with strong qualifications often can obtain a USDA loan for a higher amount than they would with other government and conforming conventional loans.
No Big Savings or Reserve Requirement with USDA Rural Housing:
There is no requirement for cash reserves with the USDA loan, in contrast to other programs like FHA that require reserves equal to a several mortgage payments. This means more opportunities to families who have limited cash savings. Of course the more cash reserves or liquid financial assets a family has, the stronger the application, but a lack of assets alone will not automatically disqualify them.
Up to 6% Seller Concessions for closing costs is allowed:
In addition to being 100% financing, USDA will permit the home seller to pay all the buyers closing costs and pre paid reserves for taxes, insurance. Or the buyer can choose to roll in all closing costs with a higher supported appraisal. The end result is very little to no out of pocket expense from the home buyer.
No Seasoning Requirement for Title:
Some loan programs like FHA have a flipping rule that prevents a family from buying a home from a seller who has held title for less than 90 days. USDA Rural Housing loan does not have a flipping rule. This gives families the full range homes on the market including “flip” type homes rehabilitated by real estate investors. Any single family residence is eligible as long as the home is physically located in a USDA approved location. USDA loans can be used in a large selection of suburbs, towns, and rural areas, and all property types are allowed: Single-family homes, townhomes, condos. Existing mobile homes are not permitted. The Florida USDA eligibility map can be found here.
Homebuyers can also read the most frequently asked USDA loan questions here.
Serving all of Pasco and Hillsborough County including Land O’ Lakes, New Port Richey, Odessa, Port Richey, San Antonio, Shady Hills, St. Leo, Trinity, Wesley Chapel and Zephyrhills, Apollo Beach, Balm, Bealsville, Bloomingdale, Brandon, Carrollwood Village, Dover, Gibsonton, Lithia, Lutz, Mango, Orient Park, Plant City, Riverview, Ruskin, Seffner, Sun City Center, Tampa, Temple Terrace, Thonotosassa, Valrico, Wimauma
Contact Five Stars at Ph: 800-871-2636 or visit www.FiveStarsMortgage.com