I was doing USDA RD loans in Florida ( or United States Department of Agriculture Rural Development) back in the ‘good ol days' before the bust. Back when almost no one else was doing them. I couldn't get anyone in my office to listen to me.
The USDA RD loan in Florida program is true 100% financing, you can finance your closing costs into your loan, your seller can pay for everything, and rates are 30 year fixed and low.
The USDA RD loan in Florida program that I was utilizing for my customers was incredible. I have helped so many people that I have lost count.
The USDA RD loan in Florida, or anywhere, is even better than FHA or the old Fannie Mae 100% loan!
"Why?" you ask?
1. The USDA RD loan in Florida, or anywhere, does offer true 100% financing.
2. There is no limit or cap on the amount of seller credit towards closing costs, prepaids and escrows
3. The seller can even contribute discount points to lower the rate
4. Closing costs can be financed in to the mortgage (when was the last time you heard that?)
5. Rates are low
6. 30 year fixed rate with no prepayment penalty
7. 2-1 Buydowns are available
The number one question I always receive is based on number 4 above. Yes, closing costs can be financed into the USDA RD loan in Florida, or anywhere, loan request.
The base loan amount will be the contract price. Add the closing costs, prepaids, and escrows to that figure. As long as the house appraises for that amount, and the customer can be approved for the higher figure, their mortgage can pay for everything!
The caveats are though, that the property must be in a USDA RD eligible area. These USDA RD loan eligible areas are outside of the heavier populated metropolitan areas. Some counties are entirely USDA RD loan eligible and some counties are partially USDA RD loan eligible.
Contact me and I can let you know in less than 5 minutes.
There is also a household income threshold. For instance, in the Orlando MSA, the income limits are $74,050 for a household of 1 to 4 and $97,750 for a household of 5 to 8.
The limits aren't bad but you have to be careful. Every income that is living in the household will be counted in this aspect, even if they are not on the mortgage loan request.
And, very recently, we are doing USDA RD loans in Florida in-house here at my office.
Look like a hero to your customers and call me anytime, Andy Brown, "Not just another mortgage guy..." 4047-472-3443, 888-774-4410 ext 232, or email me ABrown@GoFFMC.com
I am looking forward to helping you.
Andy Brown, "Not just another mortgage guy..."
Fidelity Funding Mortgage Corp