To qualify for USDA, borrowers must typically live in small towns—often rural, but not necessarily—and have enough income to pay the mortgage, but not too much income. They are available to first-time and repeat home buyers.

Primary residences in almost every area of Florida, outside of the major metropolitan areas, can be purchased with USDA home loans, including homes in Fort Myers, Naples, Marco Island, Bonita Springs, and many other Florida locations.

1. Loan Income Limits – USDA loans are designed to promote homeownership in households with “modest means” only. Consequently, the agency will not guarantee mortgages that exceed its maximum income limits, which vary by area and size of household. Income limits in Florida.
2. 100% Financing – Most other home mortgage programs require at least a small down payment ranging from 3% to 20% or more of the home’s purchase price. USDA mortgages allow borrowers to finance 100% of the price of the home with no money down. The USDA also allows the seller of the property to pay the closing costs for the buyer.
3. Credit Requirements – In general, borrowers should have a credit score of at least 640 and have no late housing payments for at least one year. At least three years must have passed since a foreclosure or Chapter 7 bankruptcy.  Applicants must also have dependable two-year employment histories and meet the USDA debt-to-income requirements.
4. Mortgage Insurance Premiums – USDA loan fees are very competitive when compared to other low down payment programs.  Borrowers will be required, however, to pay two fees. The Up Front Guarantee, which equals 1% of the proposed loan amount, can be added to the loan balance to be paid over time. The Annual Fee, which acts just like monthly mortgage insurance. This premium is about 70% lower than the Mortgage Insurance Premium charged for comparable FHA loans.

All USDA guaranteed loans are fixed-rate mortgages; there are no adjustable rate terms available. In addition to traditional single-family homes and condos, these loans can also be used to help purchase manufactured and modular homes.

Core Financial can help you learn more about USDA home loans in Florida, find out if you qualify, and avoid the red tape and bureaucratic hassles that often come along with government loan programs.

We are dedicated to meeting the home financing needs of all Florida home buyers. Call us 24/7 at (239) 287-3691 to find out more.

NMLS ##25258- Rates, Programs, Guidelines are subject to change without notice.

This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval.