USDA Home Loans in Florida

USDA Home Loans in Florida

USDA Home Loans in Florida

USDA Home Loans in Florida

Have ever walked down a lane in Florida thinking you could be so lucky if you had a chance to own a home there? It may be a fleeting thought but if you’re serious about owning a home in Florida, USDA home loans can be an excellent financing option.

USDA Home Loans in Florida

Many homebuyers in Florida are still unaware of the available loan options for home buying. Not surprisingly, many have not heard of USDA loans. USDA home loan is a unique loan program that enables residents in Florida to transform their homeownership dreams into reality. The primary goal of the USDA loan programs is to encourage people buy or build homes in the rural areas, which would ensure prosperity and improvement of the quality of life in these areas.

Unlike conventional loans, USDA loans are specifically designed for people belonging to the lower strata of the society. USDA home loans have made it possible for the residents of Florida to buy homes without paying any sum as down payment. Though the underwritings are very flexible for these loans, you still need to qualify certain eligibility criteria.

The two main types of home loans offered by USDA are:

  • USDA Guaranteed Rural Housing Loans
  • USDA Direct Rural Housing Loans

Both of the home loan programs in Florida have benefits and perks that no other loan program has. To make you familiar with the benefits, we’ll discuss them in details:

USDA Home Loans in Florida

Benefit 1: No Down Payment Required for USDA Loans

The biggest benefit that USDA home loan offers is 100% financing for home buying. Then comes the ‘no down payment’ factor. USDA home loans are available for first time home buyers as well as repeat buyers. The biggest hurdle that first time buyers face is collecting enough cash for down payments, which is required by most of the conventional loan programs. USDA identified this problem and introduced the ‘No Down Payment’ loans. If you take an FHA loan you’ll have to put down 3.5% and for conventional loans 5% down payments. So now you know what makes USDA loans so affordable.

Benefit 2: Low Interest Rates

With USDA loans you have the benefit to enjoy low interest rates. You don’t pay any down payment and still have to pay low interest rates. What can be better than this? With conventional loans, the interest rates vary depending upon the credit history and the down payment, but with USDA loans the interest rate is fixed. Low interest means you save thousands in the overall interest payment throughout the loan tenure.

Benefit 3: Low PMI (Monthly Private Mortgage Insurance)

USDA Home Loans in FloridaAll conventional loans require you paying a PMI in addition to the actual mortgage. In fact, all loan programs where the loan-to-value is lower than 80% require a PMI.  So if you take a USDA home loan, you’ll have to pay PMI but the advantage is that it is the lowest among any other loan program and the interest rates does not change with down payments, like traditional loan programs.

Benefit 4: Most Lenient Credit Guidelines

This is the only government backed loan program that provides financing to those having bad credit histories. The 3rd party USDA approved lenders may check other requirements like utility bills, rent, phone bills etc. to approve a loan if your credit history is too limited.

Benefit 5: Upfront PMI Financing

USDA loans require you paying an upfront premium which is 2% of the total loan amount. The advantage is that the borrower can combine this fee into the loan itself. So you don’t have to pay all the money at once.

So if you’ve been thinking of buying a property in Florida, USDA home loans can be your best option for refinancing. To know more about USDA home loans and how you can benefit from them, call us today!