USDA Information Center
USDA Home Loans Florida
Florida USDA home loans are primarily used to help families, or individuals, purchase homes in Florida rural and suburban areas. A USDA home loan provides an excellent opportunity for first time homeowners, or buyers struggling to get a home loan in today’s rigorous mortgage market. Florida USDA loans come with 100% guaranteed financing, low 30 year interest rates, and require absolutely no money down. In fact, the Florida USDA home loan program is one of the last remaining mortgage programs in the country that require absolutely zero money down for the purchase of a home.
Types of Florida USDA Loans
Florida currently offers two types of USDA home loans.. These are USDA Guaranteed Rural Housing Loans and USDA Direct Rural Housing Loans. USDA Guaranteed Home Mortgage Loans are the most common type of Florida USDA home loan available. USDA Guaranteed Home Mortgages allow for higher income limits than the USDA Direct Rural Housing loan, come with 100% guaranteed financing, and carry a 30 year mortgage term at a low fixed rate. USDA Guaranteed Home loan applicants may have a total adjusted income of up to 115% of the median household income for that area.
USDA Direct Rural Housing Loans are less common than USDA Guaranteed housing loans and are only available for low, to very low income households. Low income is defined by the USDA to be between 50 and 80% of the area median income, while very low income levels is defined to be anywhere below 50%. USDA Direct Housing Loans often come with slightly better interest rates, and a longer period to repay the loan, usually 33-37 years.
There are several factors that determine if you will be eligible for a Florida USDA home loan. First off, you must choose a home that is within a USDA eligible area. USDA eligible areas are any rural or suburban area of the state, or any area with less than 10,000 residents. However, some areas in Florida, especially in surrounding communities around Orlando, Tampa, Tallahassee, and Jacksonville, allow populations of up to 25,000 residents to be USDA eligible. To find out more information about specific areas of Florida that may be eligible, contact your nearest USDA representative.
To qualify for a USDA home loan your monthly housing costs, including mortgage principal, property taxes, and insurance, must meet a specified percentage of your gross monthly income. You must be have a good credit history, with a FICO score between 620-640 to be considered. You must be able to afford a standard mortgage, and have enough income to pay all your housing costs, plus any additional debt you may have.
Need More Information?
Call our toll free USDA home buyer help line (863) 812-5581 and one of my USDA home buying specialists will be happy to answer any questions you may have. You can also click here to request information via email. We look forward to hearing from you.