Let’s talk about the 100% financing USDA Rural Housing home loan. Obviously to be eligible for a VA home loan applicants must be current or past military. But what about all the other borrowers in Florida that aren’t military, what options do they have for 100 percent financing? USDA is another government backed home loan that helps fill the gap for borrowers that have limited saving for a down payment.
Great for first-time homeowners, the program is offered through approved USDA lenders and backed by the United States Department of Agriculture. The USDA mortgage program (also known as the Rural Housing, RD, Rural Development or 502 Guaranteed loan) offers 100% no money down in select locations around Florida. Below, we will discuss some of the details and things to know before applying for the USDA home loan:
- The house you purchase must be located in a USDA approved location according to the eligible property map here. The home doesn’t need to be sold by a certain seller, just located in one of the approved FL locations.
- The income for the family purchasing must be below the USDA county USDA income limits.
- All the other loan qualifying criteria are very similar to the other government home loans like VA and FHA. Applicants will need a 620+ credit score, a steady job with income that can be documented, and reasonable debt to income ratios to qualify.
- The USDA loan allows for 100% financing with no down payment. Home sellers can also pay all the borrowers closing costs, or they can roll closing costs into their loan in certain cases.
- USDA monthly mortgage insurance costs – known as “PMI” is less when compared to the Conventional and FHA mortgage.
- Borrowers are not required to take any class or fill out any special paperwork. Just a standard 15-min loan application similar to all other loan programs.
The USDA loan program is especially great for first time home buyers that have limited money cash saved up. However, the program is NOT limited to just first time home buyers and 100% financing. In fact, homeowners can opt to put 3%, 5% or 10% down payment is they choose.
Home buyers can visit www.UsdaMortgageSource.com or call Ph: 800-743-7756 to learn more.