The USDA offers home loans through the Rural Development Guaranteed Housing Loan Program, commonly known as USDA loans. Here are some key points about doing a USDA Purchase:

• USDA loans are designed to help families with low to moderate incomes buy homes in rural areas. Eligibility is determined by the property’s location and the applicant’s income.
• There are income limits based on the number of people in the household. The income limits vary by location. The goal is to assist those who may not qualify for traditional financing.
• Debt To Income Ratio is VERY important when vetting out borrowers. The front ratio is incredibly important and can’t be over.
• Standard Debt To Income Ratio guidelines 29/41 – including manual, FICO >620
• Elevated manual/refer Debt To Income Ratio guidelines 32/44 – requires compensating factors and >680 FICO
• Elevated GUS approved Debt To Income Ratio guidelines 34/46 – >680
• Make sure you include current housing expense
• Stable income 
• .50 Student loan repayment when reporting as $0
• While the credit score requirements for USDA loans are generally more flexible than conventional loans, applicants should have a reasonable credit history.
• No derogatory credit in the last 12 months

Some Product Highlights:

• Manual underwriting available
• Non-Traditional credit allowed
• No FICO’s Allowed
• Min 620 FICO
• SFR, Townhomes, & Condominiums
• 100% Financing – NO DOWNPAYMENT

Upfront and Annual Mortgage Insurance:

Upfront 1.00%. One significant benefit of USDA loans is that they typically do not require a down payment. This can make homeownership more accessible for those with limited funds.

Annual MI charged monthly .35%

USDA Property Eligibility Tool. To qualify for a USDA loan, the property must be located in an eligible rural area. The USDA provides an online map where you can check the eligibility of a specific address.

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Lots of available areas in Florida.

USDA Income Limit Map The income limits are a key factor.  In Florida most areas are $103,500 for a household of four, more when the household exceeds 4. You must include ALL household income.

It’s important to note that the information provided here is a general overview, and specific details may vary. If you’re considering a USDA loan, it’s advisable to contact us as we are a USDA-approved lender for the most accurate and up-to-date information based on your circumstances.