The Ocala USDA home loan program has become the top choice for many first time home buyers Marion County. The Ocala USDA home loan offers several benefits, keeping in mind the limited savings most first time lack. The USDA 502 Rural Housing program allow buyers to purchase with no money down – in fact this is the only 100% home loan in Ocala for non veterans. We listed some helpful benefits of the USDA mortgage program below. Please contact USDA Mortgage Source below with any questions.
- Safe fixed interest rate– One of the great advantages of the USDA loan is the fixed 30 year interest rate. Compared to other traditional loans where the interest rates can vary, the interest rate remains the same for the entire course of the loan. No pre payment penalty or adjustable rate (ARM) terms. This is good because the home owners can plan out their fixed monthly expenses.
- 100% financing – The Federal government insures or backs USDA loans, and allows 100% financing as a way to help develop and expand rural locations in Marion County. The USDA mortgage also allows for the seller of the home to pay the buyers closing costs, up to 6%. With that home buyers can generally close on a home with little to NO money out of pocket.
- Loan qualifying made easy – Getting qualified and approved for a USDA loan in Ocala is quick and easy. Often times the entire pre approval process can be done in minutes. There is no special requirements like first time buyers class, or education that is needed to apply. Buyers just need to insure they have reasonable credit (over 620) and income below the max limit set for Marion County. Contact us to discuss income limits in more detail.
- Approved Locations – The USDA 502 Guaranteed program only for certain rural locations in Marion County. The good news is most of Marion county just outside of Ocala is approved. Silver Springs, Santos, Belleview, Summerfield among others are currently approved.
- Buyers don’t need big savings – Applicants don’t need any savings to be approved. Most conventional loans require large down payments and savings reserves for buyers to get approved, but not the USDA program. Buyers can also receive gift funds if they choose to put money down.
Ocala USDA home loan applicants need to know what to expect before starting the approval process. Knowing what to expect will always help your chances in successfully getting your USDA loan approved. Below we have listed some things to consider :
Solid review of buyers debt must be done by lenders to insure the buyer can meet the obligation. Bank and lenders don’t want to see total debt load that’s higher than 41 percent for a USDA mortgage approval. Buyers will also need two years of consistent employment with large gaps in employment.
It’s usually the pesky small things that can hurt your credit. If you think your credit needs some work, check it out in advance before you make application. Keep in mind, your interest rate is tied to your credit score. Buyers with the highest credit scores ( over 680) generally receive the lowest interest rate which can save thousands over the long term.
As of 2015 – 2016, a credit score of 620 or better is needed for the 100% USDA mortgage. If you came out of a bankruptcy or foreclosure, or other financial hardship you would need to have maintained a perfect credit since (3-4 years) regardless of current credit score. Remember, a 620 credit score do not guarantee loan approval.
USDA Loan Application and Closing Process:
- A full application will have to be filled out that detail everything about you which will be used in figuring out whether you’re eligible for the USDA loan. The rate and the terms of the loan will also be determined largely by the information in your application and credit score. The complete USDA application process takes about 30 minutes to complete. In the event the application is pre-approved, and you get an approved purchase contract, you will get the disclosure documents which are essentially mortgage disclosures that have all the fine details regarding the terms, interest rates, cost and payments of the loan.
- The mortgage disclosures are to be signed and returned along with other documents such as your bank statements, drivers license, income pay stubs, etc., for verification purposes. Usually these documents are prepped and readied well before the loan application is submitted to the lender.
- The mortgage company processor will review and verify all documents and requests for missing or any additional documents from the borrower if need be. Upon completion, the documents are then submitted to the underwriter for approval.
- The underwriter will send a loan conditions list detailing any additional information or documents needed from the buyer.
- Once the buyer completes the needed items on the list, the file is sent back to the lender, bank or broker for final approval. After this the closing is set up with the title agent, buyer and seller. The USDA closing time in Florida is approximately 45 days from start to finish.
Questions? Contact USDA Mortgage Source at www.UsdaMortgageSource.com