USDA Mortgages, also known as “USDA Home Loans,” “USDA Rural Development Loans,” or “Section 502 Loans,” are administered through a network of USDA-approved lenders and backed by the U.S. Department of Agriculture. They offer 100% financing for eligible borrowers and eligible properties, as well as many benefits that are not available in conventional loan programs.
It may come as a surprise to learn that USDA Home Loans are not “just for farmers” or just for properties in the middle of nowhere! Although the home you are considering must be located in a “rural” area, the USDA’s definition of a rural area is quite liberal.
Many small towns across the country meet the USDA requirements, but many suburban areas, including Estero, Naples, Bonita Springs, and many other Florida locations, also qualify.
Call the Core Mortgage Team today at (855) 554-CORE to find out if you qualify for a USDA Home Loan in Estero, Lee County, or elsewhere in Florida.
USDA Loan Highlights
- Purchase a primary residence with no down payment
- Buyers must personally occupy the home following the purchase
- No first-time buyer requirements
- Eligible in most rural, non-metropolitan areas
- 30-year, fixed-rate mortgage at market interest rates
- Low mortgage insurance premiums
- No prepayment penalties
- Flexible credit requirements
- Seller may contribute toward buyer’s closing costs
- Gifts allowed for closing costs
- Eligible for streamline (no cash-out) refinancing
USDA Property & Income Requirements
If you would like to purchase a home with a USDA loan, there are property and income requirements that must be met in order to qualify for financing.
Any town or city located outside a major urban or metropolitan area with a population of fewer than 20,000 people is technically considered “rural” by the USDA. You can use the USDA eligibility search to check the eligibility of an exact address.
You must occupy the home you want to buy with a USDA loan and, in general, the home must be single-family residences, condos, and manufactured and modular homes. No investment or rental properties are allowed, and homes with an in-ground pool will not qualify for a USDA loan.
In terms of income, the USDA Home Loan program is designed to help low- to moderate-income borrowers purchase a home in a USDA-eligible rural area.
In order to qualify, you must be able to document your current income, have decent credit, and show that you have the financial ability to repay the loan. The combined income of all members of your household cannot exceed 115% of the median income for Florida.
The USDA has a very useful income eligibility tool which allows you to calculate your eligible income, make certain deductions, and see if your income qualifies.
Do you have questions about USDA Home Loans in Estero? The Core Mortgage Team can help! We have licensed loan originators standing by to assist you.
Call us 24/7 at (855) 554-CORE or (239) 431-5889 to find out more, or use our online form to contact us
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