North Florida homebuyers should take note that Columbia & Baker County are still eligible for the 100 percent USDA Rural Housing program. USDA (Rural Development) is a great fit, especially for first time home owners that have little cash saved up. The USDA program has invested almost $20 billion in 2014 to help nearly 140,000 families nationally buy and improve their homes. The program is designed to expand Florida's rural communities by making home ownership affordable. USDA offers Lake City and Macclenny home buyers low 30 year fix interest rates with no down payment needed. Many buyers are surprised to find just how accessible the program is. Let take a look at some basic program requirements below. Home buyers that have questions should call us at ph: 904-302-6060 or visit www.UsdaMortgageSource.com
USDA Rural Housing home loans are government backed and typically used by low to medium income households to purchase homes in eligible "rural defined" locations throughout FL. USDA home loans are available nationwide to all qualified home buyers. The general guidelines for the loan program are the same throughout all eligible areas in the US.
There are two different types of USDA loan programs interested home buyers should know about:
Direct USDA program: These loans are processed directly by the local USDA service office. These loans are strictly for very low income households and income thresholds vary by region.
USDA 502 Guaranteed program: These loans are catered to more of a average household incomes. Most USDA loans fall into the 502 Guaranteed program. Due to the higher volume, the 502 loans are processed and underwritten only by approved USDA lenders and banks, and are insured through the USDA’s Rural Development program. The 502 Guaranteed program allows home buyers to get a low interest rate, even without a down payment.
USDA Loan Terms
The standard term is a 30 year fix with interest rates that are comparable with any other 30 year government mortgage programs. Because of the terms of a USDA home loan, payment are lower than most other loans on the market today. There is no maximum loan amount. There is a yearly fee that is .5% of the loan amount per year broken down into 12 monthly payments - monthly PMI.
USDA Loan Eligibility
First and foremost the home being purchased must be located in a USDA approved area - all of Columbia & Baker County is ok. Lake City, Fort White, Glen St. Mary, Macclenny, Sanderson are approved locations. The home seller can be anyone, the home just needs to be located in a USDA approved area.
Second - The income for the household must be below the income limit set for the county. See the 2015 USDA Income Limits here.
USDA Loan Approval
To be eligible the applicants middle credit score must be at least a 620 with no major financial issues in the last 4 years - bankruptcy, short sale, foreclosure, etc. The standard debt to income (DTI) ratios for the USDA RD mortgage is 29%/41% of the gross monthly income of the applicants. USDA will sometimes allow slightly higher ratios with strong compensating factors. There are no guidelines on the amount of applicants per loan, however, non occupying co-borrowers are not allowed, therefore, applicants must provide evidence that they will live in the house.
Home Standards
The USDA’s Rural Development home loan program requires that the home being purchased meets standard HUD handbook guidelines 4150.2 and 4905.1. These guidelines are typical for all government backed loan like FHA or VA. Any problem with the home being purchased that would impact safety and livability could be an issue. Small issues are not a concern and should be expected. USDA is more concerned with major safety issues - think major electric issues, HVAC, roof issues, etc. Existing manufactured housing is not permitted unless it is already financed with an USDA loan. However, most lenders and banks will not process mobile/ or manufactured housing loan requests in any capacity.
Interested home buyers can contact us below for more infomation - 7 days a week.
Serving all of North Fla including - Fort White, Lake City, Lulu, Watertown, Columbia County, Baker County, Glen St. Mary, Macclenny, Sanderson, Jasper, Live Oak
