This is just an informational post to inform Winter Haven, Florida home buyers interested in no money down mortgages that the USDA Rural Development Single Family Home Loan program is funded and ready to go!
As a recap of my previous posts on the USDA Home Loan program, I’ve provided the following rules breakdown:
Winter Haven, FL: USDA Rural Development Single Family Home Funding Rules
Here are the high points of the program.
- No Down Payment
- 30 year fixed rate
- 102% LTV (100% plus guarantee fee)
Finance Closing Costs If Appraisal Is Higher Than Sales Contract
- No Mortgage Insurance
- No cash contribution required from borrower
- Income Limits (by county)
- Unrestricted gifts, no need to document source
- No Maximum Loan Amount
- No Cash Reserve Requirements
Acceptable credit history:
- Credit history with willingness to meet obligations
- Streamlined credit approval when primary applicant has a middle credit score above 620
- No minimum credit scores
- Lack of credit is not derogatory
- Caution for applicant(s) with multiple layers of risk such as:
- Payment shock
- Low credit scores;
- Ratio waiver
- Credit waivers
- 2-1 buy downs
Other eligibility criteria:
- Borrower does not currently own a home
- Borrower has insufficient resources to secure conventional mortgage
- Borrower is a U.S. citizen or permanent resident or qualified alien
- Borrower has the legal capacity to own a home
- Home purchased will serve as borrower’s primary residence
Loan-To-Value (LTV) and Loan Limit:
- 100% LTV plus the amount of the guarantee if financed
- Loan amount can exceed appraised value by the amount of the guarantee fee
- There is no loan limit
- Limiting factors will be ratios and income limit
Property requirements:
- New or proposed home construction:
- Both new and existing: Private well water quality must meet local and state code.
- New manufactured homes: Rural Development will finance new manufactured homes through approved dealer-contractors. List of approved dealer-contractors (thru USDA) and details on how new manufactured homes can be financed.
- Modular homes: New or existing modular homes can be financed the same as stick built homes.
- Condo: Rural Development can finance if it meets the standards for Fannie Mae, Freddie Mac, VA, or FHA.
- Town home: Same as condo. A town home must have provisions for maintenance such as HOA.
Refinance: When and if refi funds become available, the
- Guarantee Fee is .5% of the loan amount
- 100% Appraisal Value
- No Mortgage Insurance
Prohibited Loan Purposes:
- Co-signors not residing in the household
- In-ground swimming pools
- Construction draws
- Furniture and personal property
- Income producing property
- Non-essential buildings and land
- Previously occupied manufactured homes
Did You Catch All That?
If not, here’s the translation:
Not every community qualifies-but if it does, this Rural Development mortgage loan is one of the best deals for Winter Haven homebuyers out there!
What Polk County, Florida areas qualify for the USDA Rural Development Loan Program?
This program is for low and very low income buyers, usually below 80% of the median income in the county where the home they purchase is located. Once we are sure that your desired home is located in the correct general area of Polk County, we’ll run a check by it’s address to make sure that it is indeed a qualified residence.
Use this map as an initial visual… it will blow your mind! (Note: The dark yellow areas are NOT eligible, the lighter white areas are good to go!)
Funding Level for the USDA Rural Development Home Loan Program
$10 Billion has been set aside for the USDA Rural Development mortgage program (yes, that’s billion with a B). According to the USDA, about 25% has been used to fund the “purchase transactions only” that have been on HOLD since January 9, 2009.
In addition, with the passing of the Annual Appropriations Bill, they claim they will have plenty of money (in addition to the balance of the $10 billion) for the rest of the year!
Remember that Polk County, Florida is perhaps one of THE largest markets in Florida for this USDA Rural Development loan program. Contact me or call me at 863-604-3019 if you have any questions or would like my help making sure you do not miss out on this excellent and unique home ownership opportunity.
Interested in an FHA Mortgage? Call me at 863-604-3019 or apply online, and we’ll get you set up!
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Kevin Sandridge
The Florida Mortgage Pro
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
Email: kevin.s@sigfunding.com
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