USDA Loan

USDA loans are an attractive option for homebuyers because they offer zero down payment and low interest rates. Backed by the United States Department of Agriculture (USDA), these loans help low-to-moderate income buyers achieve homeownership. The USDA loan program is specifically designed to promote growth in rural areas and some suburban areas, offering homeownership opportunities to families outside major metropolitan regions.

To qualify for a USDA loan, the property must be located in an area that the USDA defines as rural, typically with a population of under 35,000. In addition, some suburban areas may also meet the USDA’s eligibility criteria. The eligibility maps change as communities grow and develop, but you do not need to own a farm or raise livestock to qualify for a USDA loan.

USDA loans are a great way for first-time homebuyers or low-income buyers to purchase a home with little to no upfront costs.

Overview

How To Qualify for a USDA Loan

Your household income must be below the USDA’s limits for your area, which vary by location and family size.
he home must be in an eligible rural area, as defined by the USDA, typically with populations under 35,000. Some suburban areas may also qualify.
While there’s no strict minimum, most lenders prefer a credit score of at least 620.
You should have a steady income, typically with at least two years of consistent employment.
The USDA generally allows a debt-to-income ratio of up to 41%.
The property must be your primary home, not an investment or vacation property.

USDA Loan FAQs

How do I qualify for a USDA loan in Florida

To get approved for a USDA loan in Florida, the property must be located in an eligible rural area, as defined by the USDA. Your household income must meet the USDA’s income limits for Florida, which vary by county and family size. While there’s no strict credit score minimum, most lenders prefer a score of at least 620. You’ll also need a stable income, typically with two years of employment history, and a debt-to-income ratio under 41%.

What areas in Florida are USDA eligible?

Popular USDA-eligible regions in Florida include parts of Orange County, Brevard County, Hernando County, Flagler County, and Santa Rosa County, among others.

To find specific USDA-eligible areas in Florida, use the USDA’s online eligibility map, which allows you to search by address or county.

What is the max income for a USDA loan in Florida.

In Florida, the maximum household income limits for USDA loans vary based on the program and household size.

USDA Guaranteed Loan Program:

For households with 1 to 4 members, the income limit is $112,450.
For households with 5 to 8 members, the limit increases to $148,450.

These limits apply to most areas; however, certain high-cost regions may have higher income thresholds. For more information refer to the USDA MAP.

USDA Direct Loan Program:

Income limits for the Direct Loan Program are generally lower and vary by county and household size. For example, in some areas, the limit for a 1-4 member household starts at $32,600. It’s essential to check the specific limits for your county. To determine the exact income limits for your area and household size, you can use the USDA’s income eligibility tool. Keep in mind that these limits are subject to change, so it’s advisable to verify the current figures when considering a USDA loan.

How long does it take the USDA to approve a loan?

The average USDA loan approval can take anywhere from 30 to 60 days. This depends on your situation and what has to be reviewed and approved. Our experienced mortgage loan officers will be able to give you a better time frame estimate for your qualification.