USDA Loans in Florida

One of the most popular states for tourism is Florida. Covering 65,755 square miles it is the third most populous state with almost 20 million who call Florida home. The capital of Florida is Tallahassee and the median home value for the state of Florida is $167,500 although the USDA home loan program is still a very popular choice. The Atlantic Ocean is the eastern coastline of Florida with Alabama and Georgia along the northern border with the Gulf of Mexico along the panhandle.

Even though Florida real estate can in fact be rather expensive, some of the most expensive in the United States, there are some surprising areas where the USDA home loan can be used and is being used today in areas near Orlando, Tampa, Jacksonville and Tallahassee as well as other places throughout the state. While the USDA home loan provides financing for 'rural' properties, you'll be surprised where USDA loans can actually be used. For instance, if you want to buy in Leon, Orange, Hillsborough or Duval counties and you want a zero down loan, try the USDA option first.

» Check Your Income Limits in Florida

Guaranteed USDA Loan Florida

If you want to buy a property in Florida. The cheapest way to do it is to purchase the home with a mortgage from the government backed USDA loan program. There are a large number of lenders in Florida that are willing to lend you the money to buy your home under this program.

Under this program, you can get a mortgage for 100% of the assessed value of the property. This is huge, because it means that you can borrow the full value of the property without having to put up any deposit. It is a complete dream loan scheme.

If that wasn’t enough on its own, the interest rates are exceptionally low. But that’s not it. They are fixed low rates for the duration of the loan. This means that if the national interest rates rocketed for example, you would have the luxury of knowing that your interest rates were secure for the entire term of the mortgage. That is an amazing deal.
Further down this page, you will be able to find the county locations in Florida where the Guaranteed USDA loan program is in place.

Anyway, that is a brief introduction to the Guaranteed USDA Home Loan program in Florida. Please read on as we cover other important aspects that you should know about regarding this mortgage scheme.

Benefits of a USDA Loan For People Living In Florida

Ultimately, there is no cash downpayment required to obtain a property included in the USDA housing loan covering rural and suburban areas in Florida. Considering that the selection of properties went through rigorous filtering, would-be homeowners are assured of a home that offers privacy, safety, and tranquillity that is typical of a country life.

Furthermore, compared to the mainstream loan options, the USDA housing loan has more lenient credit requirements. Underwriters can accept credit scores as low as 620 and even forgive credit blemishes such as previous unpaid balances and bankruptcies, provided that the loan applicant has shown genuine interest in revamping his financial standing. Sample measures include timely payment of dues within the last 24 months preceding the application.

The USDA loan mortgage rates are relatively lower than those of other loan types and its closing costs that only range from 2% to 5% of the contract price can either be shouldered by the seller or re-financed, as assisted by the government. Gift funds may also be used to cover closing costs.

USDA Loan Requirements

Borrowers will be assessed of their credit-worthiness by means of credit scores. For USDA Loan, it must be 640 which in some cases is lowered to 620. Loan assessors will derive records from 3 different bureaus (i.e., Equifax, TransUnion, and Experian) and varying credit scores will be computed for their median. Other loan requirements include absence of delayed payments (30 days max) within the last 12 months, absence of accounts turned into collections within the last 12 months, and absence or delinquent federal debts or tax liens. Medical collections are subject to explanations.

In the absence of credit scores, the government requires 2 to 3 trade lines (e.g., gym memberships, utility and rent payment history, insurance) on which to base your financial capacity to pay. While proof of assets is not necessary, it may help support your loan application.

USDA Loan Eligibility

The government enlists two major eligibility conditions for a borrower to qualify for a USDA loan and be able to utilize the housing program as intended. Firstly, a borrower must meet the income eligibility requirement. In every county, the median of all household incomes is determined and the USDA loan applicant’s income must not exceed the median by above 115%. Anyone earning in the family, not in school, and above the legal age will be added to the family income. Otherwise, if they are 18 years old and non-earning, then a letter is required.

In the event of excess, factors such as the number of dependents living within the household, members deemed disabled, child care expenses, hospitalization costs, and other similar expenses are all counted. This is how considerate the government is towards loan applicants since their goal is to help citizens, not monetize them. Secondly, the property chosen must be within the area approved by USDA. In Florida, several properties are enlisted for the USDA housing loan and can be viewed online.

Income Limits

The following form part of the household income: salaries, tips, bonuses, commissions, overtime payments, housing and other allowances, and income generated from agricultural activities. Whereas, the following is not included in the calculation: future income, government housing allowance under Section 8, income earned by dependents or those under the legal age, and income from aid. All these factors will be scrutinized further especially when the collective income surpasses the county-wide median by 115%. Increase of income after the loan approval as in the case of marriage will only matter if and when the loan will be refinanced.

Income requirements include: copy of passport, driver’s license, or social security ID, copy of W2s or 1099s, ITRs for business and personal in the last 2 years, recent payslips, recent bank statements (within the last 2 months), court decrees for alimony income and child support, and recent pension, disability, or retirement award statements.

Debt-to-Income (DTI) ratios are also considered by loan assessors to ensure that no more than 29% goes to mortgage and total debt does not run beyond 41% of the household income.

» Check Your Income Limits in Florida

Interest Rates

Monthly interest rates are determined by market forces, not just income and liabilities, so their values generally fluctuate over time. For USDA Loans, rates remain fixed throughout the term. Loan terms are set at 15, 25, and 30 years. Property value also matters, so it becomes wise to use the USDA Loan calculator to anticipate monthly interest payments.

Generally speaking, loan processes appear complex and exhausting, strict even. But USDA loans are designed to facilitate below-average income to afford decent houses and uplift lives.

Counties & Cities in Florida Eligible for a USDA Loan

CountyApproved City | TownApproved City | TownApproved City | Town
Broward CountyCooper CityLauderdale LakesParkland
Dania BeachWest ParkWilton Manors
Lighthouse PointSouthwest RanchesLazy Lake
Broadview ParkPembroke ParkLauderdale-by-the-sea
Pine Island RidgeRoosevelt GardensHillsboro Beach
Washington ParkBoulevard GardensFrankin Park
Sunshine AcresSea Ranch LakesHillsboro Pines
Pinellas CountyEast LakeTarpon SpringsSeminole
Safety HarborOldsmarGulfport
St. Pete BeachTreasure IslandSouth Pasadena
Kenneth CityMadeira BeachIndian Rocks Beach
BelleairTierra VerdeFeather Sound
Bay PinesHarbor BluffsRidgecrest
Redington ShoresBelleair BluffsGandy
Belleair BeachRedington BeachIndian Shores
North Redington BeachBelleair Shore
Duval CountyJacksonville BeachBaldwinAtlantic Beach
Neptune Beach
Lee CountyEsteroSuncoast EstatesOlga
San Carlos ParkSt. James CityPalmona Park
Cypress LakePine ManorBurnt Store Marina
IonaBuckinghamHarlem Heights
VillasMatlachaGateway
Three OaksPage ParkWhiskey Creek
AlvaPinelandSanibel
BokeeliaCaptivaFort Myers Beach
Punta RassaMatlacha IslesMcGregor
Pine Island CenterTiceFort Myers Shores
Polk CountyHaines CityJan Phyl VillageEagle Lake
InwoodCrystal LakePolk City
BartowCombee SettlementHighland City
Fort MeadeFussels CornerWaverly
AuburndaleWillow OakCrooked Lake Park
Lake WalesWahnetaLake Hamilton
Lake AlfredDavenportLoughman
GibsoniaBabson ParkLakeland Highlands
DundeeBradley JunctionWinston
AlturasHillcrest HeightsMedulla
MulberryHighland ParkCypress Gardens
KathleenBrewsterFuller Heights
Frostproof
Brevard CountyMerrit IslandIndian Harbour BeachIndialantic
RockledgeMimsPalm Shores
Satellite BeachCocoa WestMelbourne Village
Cape CanaveralSouth Patrick ShoresWest Melbourne
Grant-ValkariaMiccoJune Park
CocoaSharpesPort St. John
Melbourne BeachCocoa BeachMalabar
Volusia CountyDelandOrmond-by-the-SeaGlencoe
New Smyma BeachSamsula-SpruceOak Hill
EdgewaterDaytona Beach ShoresPierson
DeBaryWest DeLandNorth DeLand
South DaytonaPonce InletDeLand Southwest
Holly HillLake HelenDeLand
Orange CityDeLeon Springs
Pasco CountyLand O' LakesNew Port Richey EastDade City North
Bayonet PointShady HillsOdessa
HolidayDade CitySt. Leo
New Port RicheyZephyrhills SouthSan Antonio
ElfersZephyrhills WestLacoochee
ZephyrhillsTrinityCrystal Springs
Trilby
Seminole CountyCasselberryLake MaryFern Park
LongwoodHeathrowWekiva Springs
Forest CityGenevaChuluota
Midway
Sarasota CountyVeniceSiesta KeyDesoto Lakes
North SarasotaOspreyNokomiss
Sarasota SpringsSouth Gate RidgeLongboat Key
South VeniceWarm Mineral SpringsFruitville
South SarasotaGuld Gate EstatesPlantation
Bee RidgeRidge Wood HeightsLaurel
VamoSouthgateThe Meadows
Venice GardensKensington Park
Manatee CountySouth BradentonWest SamosetSamoset
Bayshore GardensCortezEllenton
PalmettoWest BradentonWhitfield
MemphisHolmes BeachAnna Maria
Bradenton BeachLongboat Key
Collier CountyImmokaleeLely ResortGolden Gate
OrangetreeChokoloskeeNaples
LelyGoodlandNaples Manor
VineyardsPlantation IslandMarco Island
Everglades City
Marion CountySilver Spring ShoresDunnellonMclntosh
BelleviewReddick
Osceola CountyBueneventura LakesCampbellYeehaw Junction
Celebration
Lake CountyClermontUmatiliaOkahumpka
Lady LakeAstatulaFerndale
LeesburgSilver LakePittman
MinneolaMontverdeAltoona
EustisAstorGroveland
Fruitland ParkYalahaLisbon
TavaresHowey-in-the-HillsMount Plymouth
MascotteLake Mack-Forest HillsPaisley
Lake KathrynMount DoraSorrento
Pines Lakes
Escambia CountyFerry PassWest PensacolaGonzalez
CantonmentEnsleyGoulding
BelleviewMyrtle GroveCentury
BrentWarringtonMolino
St. Lucie CountyLakewood ParkFort Pierce SouthIndian River Estates
Fort Pierce NorthWhite CitySt. Lucie Village
Leon CountyWoodville
Alachua CountyAlachuaHawthorneMicanopy
NewberryArcherLa Crosse
High SpringsWaldo
St. Johns CountyPonte Vedra BeachSt. Augustine BeachSawgrass
Palm ValleySt. Augustine ShoresButler Beach
Fruit CoveNocateeVilano Beach
St. AugustineSt. Augustine SouthHastings
Crescent Beach
Clay CountyLakesideAsbury LakeMiddleburg
Fleming IslandGreen Cove SpringsOrange Park
Bellair-Meadowbrook TerracePenney FarmsKeystone
Okaloosa CountyCrestviewBakerShalimar
NicevilleLake LorraineLaurel Hill
WrightOcean CityCinco Bayou
Fort Walton BeachValparaisoDestin
Mary Esther
Hernando CountyNorth Weeki WacheeHernando BeachSpring Lake
BrookridgeHill 'n DaleNobleton
Ridge ManorWeeki Wachee GardensIstachatta
South BrooksvilleMasaryktownLake Lindsey
High PointWisconPine Island
Bayport
Bay CountyLynn HavenSpringfieldPretty Bayou
CallawayLower Grand LagoonMexico Beach
Panama City BeachParkerUpper Grand Lagoon
Laguna Beach
Charlotte CountyPunta GordaClevelandGrove City
Rotonda WestHarbour HeightsManasota Key
Charlotte HarborCharlotte ParkSolana
Santa Rosa CountyPaceHolleyBerrydale
MiltonBagdadMunson
Gulf BreezeJayMulat
Mount CarmelFidelisCobbtown
Martin CountyPalm CityPort SalernoRio
StuartIndiantownJupiter Island
Hobe SoundNorth River ShoresOcean Breeze
Jensen BeachSewall's Point
Indian River CountySebastianGiffordWinter Beach
Vero Beach SouthWest Vero CorridorWabasso Beach
Florida RidgeFellsmereRoseland
Vero BeachIndian River ShoresWabasso
North BeachSouth BeachOrchid
Citrus CountyHomosassa SpringsSugarmill WoodsLecanto
Pine RidgeInvernessFloral City
HernandoCitrus HillsCrystal River
Citrus SpringsHomosassaBeverly Hills
Inverness Highlands SouthInverness Highlands NorthBlack Diamond
Sumter CountyWildwoodCenter HillWebster
Lake PanasoffkeeBushnellColeman
Flagler CountyFlagler BeachBunnellBeverly Beach
Highlands CountySebringSylvan ShoresPlacid Lakes
Avon ParkLake Placid
Nassau CountyYuleeFernandinaCallahan
Fernandina BeachHilliard
Monroe CountyKey WestIslamoradaCudjoe
Key LargoBig Pine KeyNorth Key Largo
MarathonStock IslandKey Colony Beach
Islamorada, Village of IslandsTavernierDuck Key
Layton
Putnam CountyPalatkaCrescent CityBardin
InterlachenWelakaEast Palatka
Pomona Park
Columbia CountyLake CityFive PointsFort White
Watertown
Walton CountyDeFuniak SpringsFreeportPaxton
Miramar Beach
Jackson CountyMariannaCottondaleCampbellton
GracevilleGrand RidgeBascom
MaloneGreenwoodJacob City
SneadsAlford
Gadsden CountyQuincyChattahoocheeGretna
MidwayHavanaGreensboro
Suwannee CountyLive OakWellbornBranford
Okeechobee CountyOkeechobeeTaylor CreekCypress Quarters
Levy CountyWillistonInglisCedar Key
Williston HighlandsBronsonYankeetown
Manatee RoadAndrewsMorriston
ChieflandEast WillistonOtter Creek
East Bronson
Hendry CountyClewistonPort LaBelleHarlem
LaBelle
DeSoto CountyArcadiaSoutheast Arcadia
Wakulla CountyCrawfordvilleSopchoppySt. Marks
Panacea
Baker CountyMacclennyGlen St. Mary
Hardee CountyWauchulaZolfo SpringsOna
Bowling GreenGardner
Bradford CountyStarkeHamptonBrooker
Lawtey
Washington CountyChipleyWausauEbro
VernonCaryville
Taylor CountyPerry
Holmes CountyBonifayEstoNoma
Ponce de LeonWestville
Madison CountyMadisonGreenvilleLee
Gilchrist CountyTrentonBell
Dixie CountyCross CityHorseshoe Beach
Gulf CountyPort St JoeWewahitchka
Union CountyLake ButlerWorthington SpringsRaiford
Calhoun CountyBlountstownAltha
Hamilton CountyJasperJenningsWhite Springs
Jefferson CountyMonticelloLloydAucilla
WacissaWaukeenah
Glades CountyMoore HavenBuckhead Ridge
Franklin CountyCarrabelleEastpointApalachicola
Lafayette CountyMayoDay
Liberty CountyBristolHosfordSumatra

Counties & Cities in Florida NOT Eligible for a USDA Loan

CountyCity | TownCity | TownCity | Town
Broward CountyHallandale BeachDeerfield BeachMiramar
North LauderdalePlantationHollywood
Oakland ParkSunriseTamarac
LauderhillPombano BeachPembroke Pines
MargateDavieCoconut Creek
WestonCoral SpringsFort Lauderdale
Pinellas CountyDunedinPinellas ParkPalm Harbor
St. PetersburgClearwaterLargo
Duval CountyJacksonville
Lee CountyNew Fort MyersFort MyersLehigh Acres
Bonita SpringsCape Coral
Polk CountyWinter HavenLakeland
Brevard CountyTitusvilleMelbournePalm Bay
Volusia CountyOrmond BeachDaytona BeachDeltona
Port Orange
Pasco CountyWesley Chapel
Seminole CountyWinter SpringsSanfordAltamonte Springs
Oviedo
Sarasota CountySarasotaNorth PortPlantation
Manatee CountyBradenton
Marion CountyOcala
Osceola CountySt. CloudPoincianaKissimmee
Escambia CountyPensacola
St. Lucie CountyFort PiercePort St. Lucie
Leon CountyTallahassee
Alachua CountyGainesville
Hernando CountySpring Hill
Bay CountyPanama City
Charlotte CountyPort Charlotte
Santa Rosa CountyNavarre
Flagler CountyPalm Coast

Florida USDA Loan (infographic)

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