The USDA loan program (also known as a rural development loan) is one of the best mortgage loans available to qualifying borrowers. In Florida, the USDA loan can be used to finance 100% of the purchase price of a home. This means that there is no down payment required and you typically can get a lower interest rate when compared to other loans such as conventional loans and some FHA loans or VA loans.
USDA loans are applicable only for borrowers with no more than 115% of the average median income (AMI) limit for the county they will reside in, as defined by Fannie Mae. Click here to lookup the Area Medium Income.
In addition, the home being purchased must be a single-family house and the borrower’s primary residence. As such, USDA loans cannot be used to purchase second homes or investment properties.
The USDA loan is also insured by the government, which protects the lender from defaults. This works to your advantage because most USDA lenders allow for more lenient guidelines, as the loan payment is guaranteed.
To be eligible for a USDA loan in Florida, you must have a good credit history and meet the income requirements. You must also be a U.S. citizen or legal permanent resident. The USDA loan program is open to all qualified borrowers, so you don’t have to be a first-time home buyer to apply.
In addition to specific requirements for the borrower, the subject property must also reside in an eligible rural as defined by the United States Department of Agriculture. Click here to lookup the property on the USDA Rural Development website.
For more information on USDA loans and how to obtain one, please contact a loan officer from The Wholesale Mortgage Firm today. We are here to help you every step of the way!
1% Loan Amount
* Down Payment Requirement Can be 3% in some scenarios for First Time Homebuyers
** $0 PMI Payment with less than 20% down payment limited to select scenarios and mortgage lenders
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