USDA Mortgages Florida

USDA is a great program for customers that live in rural areas. Please see this handy lookup tool to see if the area you are purchasing in falls within the boundaries of the program.

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

Here are some highlights of this government sponsored program

• 100% Financing
• There is no monthly mortgage insurance charge but there is a 2% funding fee that is financed
• Available for low to moderate income families in rural areas
• The ratios for the borrowers must be below 29% and 41%
• This loan is not limited to First Time Homebuyers
• No Prepayment Penalty
• 30 Year Fixed Rate Loan
• No Reserve Requirements
• Minimum 640 Middle Credit Score
• Generally this program is available in communities that have under 20,000 people.

News Bulletin : March 9, 2011: Similar to the way FHA adjusted fees, USDA has decided to lower upfront fees financed into the deal and raise annual premiums paid by customers on a monthly basis.  

    Why are they doing this? More money of course. Structuring their fees this way they are able to earn more on an annual basis versus capturing premiums only when people purchase or refinance. This extra money is being used to help customers who are in dire straits and need loan modifications or counseling of some type.

USDA- USDA will allow for 100% financing in designated rural areas. Minimum 640 credit score. This program is no longer available for manufactured homes. The home needs to be in a rural area. Here is a lookup tool to see if the location qualifies. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

$100 Down Program - HUD will allow you to purchase an existing foreclosure for $100 down plus closing costs. Always remember to ask us about structuring the financing where we get the seller to pay some of your closing costs. This keeps even more of your money in your pocket that you can use for other things such as upgrades.

Fannie Mae Foreclosures - Fannie Mae has a program that allows for 97% financing without mortgage insurance on Fannie Mae held foreclosures. This is essentially FHA financing without the mortgage insurance. Fannie Mae foreclosures are everywhere and sometimes avoiding the mortgage insurance will save as much as $100 per month.

More: Government Loan Programs