This program has many flexible features not found in conventional and FHA loans. It is aimed specifically at rural areas. All counties in Florida EXCEPT Broward, Monroe and Pinellas are totally eligible or mostly eligible for this loan. To see if a property is eligible, simply type in the property address at http://eligibility.sc.egov.usda.gov/
Advantages
No down payment required
No Mortgage Insurance
No cash reserves required
No seller contribution limit
No Prepayment Penalty
Loan up to 102%* of appraised value allowed…not the lesser of the Sale Price or Appraisal
Loan amount can include closing costs and pre paids up to appraised value
No stated maximum loan amount; maximum loan based on repayment ability
No First Time Homebuyer Requirement
New and existing homes OK
Fully amortized 30-year fixed rate loan
No minimum credit score required…common sense underwriting allowed
No minimum cash contribution required from borrower
No limit on CLTV (combined loan to value) when soft second financing such as SHIP or HOME is used for closing costs and pre paids
No limitation on source of funds for closing costs. No seasoning requirement
100% gifted closing cost or down payment assistance permitted
Non traditional credit may substitute for lack of traditional credit history
No derogatory credit explanations required when credit score is 620 or above
Qualifying ratios of 29%/41%....[29% PITI (principal, interest, taxes and insurance) to Income and 41% Total Debt to Income - however standard ratios may be exceeded with documented compensating factors]
Automatic ratios waiver of 31%/43% for homes built after January 2000
Conventional type loan packaging with only 1 extra form required
Competitive rates (set by underwriting lenders) with attractive fee income
*Appraisal may be exceeded by amount of Guarantee Fee
Abbreviations:
SHIP – State Housing Initiatives Partnership: a state funded housing program
HOME- Federal Affordable Housing Program
Maximum Adjusted Gross Housing Income:
NOTE: The GROSS income limits can be much higher than the ADJUSTED income limits shown in this table
Counties
1 person
2 person
3 person
4 person
5 person
6 person
7 person
8 person
All Florida CountiesEXCEPT those listed below
48,000
54,800
61,700
68,550
74,050
79,000
85,000
90,500
Clay, Duval, Nassau, St. Johns
48,500
55,500
62,400
69,350
74,900
80,450
86,000
91,550
Collier
56,200
64,250
72,250
80,300
86,700
93,150
99,950
106,000
Palm Beach
51,850
59,250
66,650
74,050
79,950
85,900
91,800
97,750
Okaloosa
50,400
57,600
64,800
72,000
77,750
89,300
89,300
95,050
Broward, Pinellas, Monroe are NOT eligible
If the projected dependable income exceeds the limits, certain adjustments can be made, such as childcare expenses for children age 12 years or younger and paid to someone outside of the family and one $480.00 annual deduction can also be taken for anyone under 18 or a student who is not one of the applicants. Other deductions are also available – please see your loan specialistfor more information.
Other Eligibility Criteria:
Do not own a suitable dwelling
Insufficient resources to secure a conventional 80% loan without the guarantee
U.S. citizen or permanent resident or qualified alien
Financed dwelling will be primary residence
For more information about eligibility or loan criteria please contact:
