100 percent mortgage financing is getting more difficult to come by in Florida. Many home buyers, especially first time buyers, want to purchase a home on their own but find it hard to save the 3.5-10% down payment required by many mortgage programs. The VA mortgage is certainly the best 100% mortgage option available today, assume you have VA benefits and eligibility. But what if you don’t have a military background, and no VA loan benefits? Are there any good VA loan alternatives? Mortgage options for you to purchase to home with no money down?
The answer is yes, the USDA (United States Department of Agriculture) still offers 100% home loans in Florida to qualified home buyers. Like the VA loan, the USDA loan is a secure Government-backed 30 year fixed mortgage with relaxed qualifying criteria. Let’s take a look at some of the loan qualifying and eligibility requirements for the USDA Rural Housing mortgage.
First, the USDA loan (also commonly referred to as a Rural Development, RD, or 502 Guarantee loan) is available to ALL homebuyers, you are NOT required to be a first-time buyer. USDA loan applicants will generally want to ensure they have a 620 + credit score to be eligible. In addition, a steady credit payment history over the last year with no bankruptcy or foreclosures in the last 4 years. Like all home loans, a steady employment history of 2 years will be needed ( no big gaps of employment) along with provable income.
Important USDA loan eligibility requirements: First, the home you purchase MUST be located in a USDA approved area, contact us to discuss your location in detail. You can input the property address to find out if the home is approved. Who is selling the house to you is not important – the home can be a bank foreclosure, short sale, home being sold “by owner” The home is just required to be in good repair and something the home buyer can occupy safely after closing. Second eligibility factor, the income for the household must be BELOW the USDA income limits posted here.
USDA loan benefits: USDA mortgages ( along with VA mortgages) are the only 100% home loans in Florida. USDA loans offer secure 30 year fixed rate terms, no early loan pay off penalty. In addition there is no special class, grants or down payment assistance needed since the loan is 100% financing. USDA also allows the home seller to pay the buyers closing costs.
FL & GA home buyers that have questions about getting approved for the USDA program – please visit USDA Mortgage Source or call 800-743-7556 7 days a week. Even if it appears you do not meet the eligibility factors, please contact us to discuss other min down payment financing options.