Oviedo Florida USDA Home Loan eligibility is determined by Rural Development, and is made available for low to moderate income individuals.
The United States Department of Agriculture (USDA) Guaranteed Home Loans have been helping residents who have low-to-moderate but steady income in financing a home, even with no down payment.
For the borrowers, there is an available option of up to 100% financing with no down payment required.
If you are thinking of purchasing a Oviedo home in a rural area, we can help you find out if it is eligible for a Florida USDA Home Loan.
- Common Questions
Basic USDA Loan Eligibility Requirements
The United States Department of Agriculture (USDA) Guaranteed Home Loans was created to help residents who have a low to moderate, but steady income in obtaining a home, even with no down payment needed. The first major requirement must be that the home is located in an eligible rural area; rural areas usually have a population of less than 25,000.
Basic USDA Guaranteed Loan Eligibility Requirements Include:
- An adequate and steady source of income of up to 115% of adjusted area median income (AMI)
- Decent credit history
- Unable to qualify for conventional mortgage credit
- The applicant must not be delinquent on any tax or non-tax debts, and there cannot be any judgement liens against the applicant’s property for a debt owed to the government.
The Rural Development has a method of determining a household’s income by using two formulas, such as:
- 1.) The burden of principal, interest rates, and insurance (PITI) must be 29% less than the gross monthly income.
- 2.) The total monthly debts must be 41% or less than the gross monthly income.
The USDA Loan Program is not limited to first time buyers. The loans were set up to assist eligible homebuyers, regardless of whether they have previously or currently own a home. However, there are some important things to consider regarding USDA occupancy requirements.
If you are worried that you may not meet these conditions. call (888) 891-4946 to speak with one of our loan officers as we may still be able to help you. Meet the requirements. or want us to verify your eligibility? Give us a call today!
Determining USDA Eligibility in Florida
The United States Department of Agriculture (USDA) Guaranteed Home Loan Program helps lenders in becoming more open to lending to lower income families who may not meet requirements of other conventional mortgages. USDA Home Loans can be used to purchase new or existing dwellings and even new manufactured homes.
A USDA Guaranteed Home Loan can be used to:
- Buy a new or existing single-family home
- Modular homes
- Approved condominiums
- Buy a new manufactured home
Oviedo USDA Rural Housing Loans are only for your primary Oviedo residence and must be in livable condition. While the USDA home loan can be used on a new manufactured home (permanently installed), the loans may not be available for existing manufactured homes, unless the home had been financed with a USDA Loan originally. These homes need to be modest in size, design, and costs. They must meet building codes and located in an eligible rural area. Keep in mind, pools are not allowed.
Eligibility Requirements for USDA Guaranteed Loans
For those that live in a qualifying suburban town (generally with less than a population of 25,000), a USDA Home Loan may be the perfect option for purchasing a home. The government created the USDA Loan Program to encourage growth in our nation’s small communities, and today it remains the last real, no money down loan still in existence.
In order to qualify for a USDA Guaranteed Home Loan, you must meet the program’s requirements:
– An adequate and steady income of up to 115% of adjusted area median income (AMI)
– Decent credit history
-Unable to qualify for conventional mortgage credit
-The applicant must not be delinquent on any tax or non-tax debts and there can not be any judgement liens against the applicant’s property for a debt owed to the government.
First, the home MUST be in a designated Oviedo USDA rural area, and the borrower must not exceed the income limit set for that particular area.
There is no minimum credit score set to qualify for the USDA Rural Development Loan, but you must be able to show the willingness and ability to repay mortgage obligations. A credit check indicating no more than one late payment in the past 12 months is generally acceptable with indicating a willingness to repay. You must be able to verify income for the last 2 years.
Determining Applicant Eligibility
- The applicant cannot have had a previous Rural Development loan that resulted in a loss to the government, unless the reason was beyond the control of the applicant’s, and with it being a determined fact by the Rural Development.
- The applicant cannot presently own a home in the local commuting area in which is up to par, functionally adequate and large enough to accommodate the needs of the applicant’s household.
- The applicant must be a citizen of the U.S., if the applicant is a non-citizen, he/she must be a qualified alien.
- The applicant must have the legal capacity to take on the loan obligation.
- The applicant must personally or have the ability to occupy the property as a permanent home.
Oviedo USDA home loans are available for new or existing single-family homes, modular homes, townhomes, approved condos, or new manufactured homes. An existing manufactured home must have been financed with a Guaranteed Rural Housing Loan before it can qualify.
USDA Eligibility Frequently Asked Questions
While the following FAQ’s are from the official USDA Home Eligibility site, we realize that you may have specific questions about your unique scenario that the comments below may not answer. Please feel free to call us any time at 866-699-5219 to speak with a Oviedo USDA loan expert who will hold your hand through the qualifying and eligibility process.
Why do the government only offer these loans in certain areas?
Typically, smaller communities do not have the lending presence that a major metropolitan area may have available,that is why the government is trying to promote living in these smaller communities. In doing so, this also helps with economic improvements.
How much down payment is required for a USDA Guaranteed Home Loan?
There is no down payment required for qualified individuals.
How does Rural Housing determine eligibility?
The Rural Housing determines an applicant’s eligibility using two formulas. In order to determine if the individual will be able to take on the responsibility of a mortgage, the burden of principal, interest , taxes, and insurance (PITI) must be 29% or less of the gross monthly income. Secondly, the Debt-to-Income must be 41% or less of the gross monthly income.
What are the correct Upfront and Annual guarantee fees?
The Upfront fee is 2% of the loan amount and the Annual fee is of .40%