The United States Department of Agriculture (USDA) Rural Development offers housing assistance programs to rural and suburban families throughout the country. A couple of different options are available for Florida residents. The USDA Single Family Housing Guaranteed Loan Program is a loan available to low and moderate-income families. With this program, the USDA insures loans offered by local lenders. On the other hand, USDA Single Family Housing Direct Home Loans are offered directly by the USDA. These direct loans are available only to low and very-low income households and are offered in the form of a subsidy. 5 Star Financial Group offers guaranteed and direct USDA loans throughout Tampa, Riverview, Valrico, Wimauma, and nearby Florida areas.
USDA Guaranteed Loans offer a variety of benefits including very low interest rates, no money down, and the ability to finance closing costs. To take advantage of the program, applicants will first need to meet a few requirements.
- The home being purchased must be the borrower’s primary residence.
- Total Household income must be less than or equal to 115 percent of the median income for the area.
- The home must be located in an eligible area.
- Applicants will need an acceptable credit history and be able to afford the mortgage payments, taxes, and mortgage insurance.
Each guaranteed loan will require two mortgage insurance premiums. An upfront premium of 1% of the purchase price will be due and is generally added borrower’s mortgage balance. An annual premium of .35% of the annual mortgage balance will need to be paid monthly as part of your mortgage payment.
The USDA Direct Loan Program Low is an option available only to very-low income families. The goal of the direct loan program is to help families that are without safe and sanitary housing. Low income is classified as between 50 and 80 percent of the area median income (AMI) while very-low income is below 50% of the AMI. This program is often referred to as the Section 502 Direct Loan Program. To be eligible, applicants must:
- Be unable to obtain a loan from other sources.
- Meet specific income requirements.
- Be without safe and sanitary housing.
The home being purchased must:
- Be the borrower’s primary residence and be located in an eligible area.
- Be 2,000 square feet or less, not have a market value in excess of the applicable area loan limit, and not have an in-ground pool.
At 5 Star Financial Group, our goal is to make homeownership a reality for all families throughout Tampa, Riverview, Valrico, Wimauma, and the surrounding Florida areas. USDA Rural Development loans can be a great option for Florida residents with low to moderate income. Contact us to learn more about your USDA loan options.