Florida USDA Mortgages
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Florida USDA home mortgages has the unique responsibility of coordinating Federal assistance to rural areas of the state and nation. The Rural Development mission is to help rural Americans to improve the quality of their lives.
Each year, Florida USDA mortgages create or preserve tens of thousands of rural jobs, build and update rural infrastructure and create or improve more than 60,000 units of quality rural housing. To multiply the impact of its programs, Florida USDA mortgages is working with State, local and Indian tribal governments, as well as private and nonprofit organizations and user-owned cooperatives.
Rural Development programs are administered through Florida USDA network of offices.
Rural Housing and Community Programs
Decent, affordable housing is indispensable to vibrant rural communities. Florida USDA mortgages help finance new or improved housing for over 60,000 moderate-, low- and very low income families each year. No rural community can thrive without adequate community facilities, so Florida USDA home mortgages also help rural communities finance, construct, enlarge or improve fire stations, libraries, hospitals and medical clinics, industrial parks, and other community facilities.
Florida USDA mortgages offers direct and guaranteed loans to help very low- to moderate-income rural households purchase, construct, repair, or relocate homes. The Home Improvement and Repair Programs provide loans for very low-income homeowners to remove health and safety hazards and make homes accessible for people with disabilities. Elderly very low-income homeowners who cannot afford to repay a Home Improvement and Repair loan may be eligible for a grant. Through the Self-Help Program, Rural Development provides funding to technical assistance providers who work with groups of 6 to 10 families to build their own homes.
Rural Rental Housing Loans finance construction of rental housing for low- and moderate-income individuals and families and cooperative housing for elderly or disabled persons. Rental Assistance enables low income tenants to pay no more than 30 percent of their income for rent.
Community Facilities Direct Loans, Loan Guarantees and Grants are used to construct, enlarge, extend, or otherwise improve community facilities providing essential services in rural areas and towns.
Recent Information about the Rural Development Housing Loan Program
Interest in the USDA’s development lending program is growing because of the nation’s credit crunch and because private lenders have stopped offering loans with no money down.
To qualify for a Florida USDA mortgage loan, a borrower can’t have income that exceeds 115 percent of the median county income, and the loans are restricted to areas with lower population density – generally towns of no more than 25,000 residents. Big city home buyers aren’t eligible for the loans, but residents of many of America’s fast growing towns are. The loans that come through the program are made by private lenders, then insured by the government and sold to Ginnie Mae which is a federal agency that sells mortgages to investors.
The success of the Florida USDA mortgages comes at a time when easy home financing is getting much harder to find. In October, Congress terminated a popular program that allowed sellers to fund down payment “gifts” for new home loans backed by the FHA. Next year, the FHA will require a minimum 3.5 percent down payment on all new loans, up from 3 percent, and private lenders often require a minimum 5 percent down payment.
Such restrictions do not apply to loans backed by the Florida USDA mortgages, which is best known as the guardian of the nation’s food supply. In fact, some buyers can finance 102 percent of the home price, factoring in a 2 percent USDA insurance fee meant to cover loan losses. The loans also don’t require borrowers to pay for monthly mortgage insurance. That means that Florida USDA home mortgages typically carry lower monthly payments than FHA loans, even in cases when the size of the loan is larger.