When shopping for a home near Cape Coral, it might not occur to you to consider a “rural” housing loan. But the USDA mortgage program is available in Florida, and may be just the lending product you need to save on a new home.
What is a USDA Loan?
USDA home loans are insured by the US Department of Agriculture (USDA). The program is income-based, and requires that you purchase a home in a “rural” location. But what many homebuyers do not realize is that both the income limits and the definition of a “rural” area according to the USDA are quite flexible.
This means that many opportunities exist to buy a home with an affordable USDA mortgage in Florida.
Florida USDA Mortgage Benefits
Why apply for a USDA mortgage in FL? Here are some of the incentives:
- You may have zero down payment requirement.
- The USDA does not cap the size of the house you purchase, so long as it is not much larger than most other homes in the same area.
- You can qualify for competitive mortgage rates with a USDA loan even if your credit score and DTI ratio are not ideal.
- While a USDA mortgage requires that you pay for mortgage insurance, it comes with a discount.
- In some scenarios, the seller may cover some of the closing costs.
With a USDA-insured mortgage, you can buy, build or repair a home, or purchase a vacant lot.
Qualifying for a USDA Home Loan in Florida
Do you qualify to buy a home in FL with a USDA mortgage? These are the basic criteria:
- There are income requirements to qualify for USDA loans. When you call us for your consultation, we can check to see whether you come in under these income caps.
- The address of the home you wish to purchase must be located in a “rural zone” according to the USDA. We can also look this up for you during your consultation.
- You can only apply for a USDA home loan as a legal resident of the USA.