Riverview, FL USDA Home Loans vs Riverview FHA Home Loans: Which is Right for You?
Homeownership is a dream for many people. To make it achievable for a wider range of individuals, there are various mortgage programs available. Among the most popular are USDA Home Loans and Riverview, FL FHA Home Loans. Both of these loan programs aim to assist buyers, especially those with low-to-moderate incomes, but they serve different populations and have distinct criteria. Let’s delve into the differences and similarities of these two loan types to help you decide which one might be right for you.
Riverview, FL USDA Home Loans
1. What it is: The Riverview, FL USDA Home Loan program is backed by the United States Department of Agriculture (USDA). It’s designed to help rural residents, especially those with lower incomes, purchase homes.
2. Eligibility:
- Location: Homes must be located in eligible rural areas as defined by the USDA.
- Income limits: There are maximum income limits, which vary based on the size of the household and the county in which the property is located.
- Credit score: While the USDA doesn’t have a set credit score requirement, most lenders require at least a 640 score.
3. Benefits:
- No down payment: USDA loans allow for 100% financing.
- Competitive interest rates: Often lower than conventional loans.
- Low mortgage insurance: The upfront guarantee fee can be rolled into the loan, and the annual fee is generally lower than FHA mortgage insurance.
4. Limitations:
- Geographic restrictions: The program is limited to certain rural areas.
- Income caps: Not suitable for those with higher incomes.
Riverview, FL FHA Home Loans
1. What it is: FHA Home Loans are backed by the Federal Housing Administration (FHA). This program aims to help those with low-to-moderate incomes and Riverview first-time homebuyers purchase homes. 2. Eligibility:
- Credit score: Borrowers need a minimum credit score of 580 to qualify for the 3.5% down payment. Those with scores between 500-579 can still qualify but will need a 10% down payment.
- Debt-to-Income Ratio (DTI): Generally, the ratio should be less than 43%, but exceptions can be made with compensating factors.
- Mortgage Insurance: Borrowers are required to pay both an upfront and an annual mortgage insurance premium.
3. Benefits:
- Low down payment: Requires only 3.5% down with a 580 credit score.
- Flexible credit requirements: Suitable for those with lower credit scores.
- Assumable mortgage: An Riverview FHA loan can be assumed by a future buyer, which can be a selling point in a rising interest rate environment.
4. Limitations:
- Mortgage insurance: FHA loans come with both upfront and ongoing mortgage insurance premiums.
- Loan limits: There are maximum loan amounts, which vary by county.
Which is Right for You?
Your decision between a USDA Home Loan and an Riverview FHA Home Loan will largely depend on your individual circumstances:
- Location of Desired Property: If you’re looking at a home in a rural area, the USDA loan might be the best fit. If you’re considering urban or suburban areas, an FHA loan may be the only option among the two.
- Down Payment: If you don’t have a down payment, a USDA loan, with its 100% financing, can be attractive.
- Credit Score: If you have a lower credit score, the FHA loan might be more forgiving.
- Income: Remember that USDA loans in Riverview, FL have income caps which could rule out higher earners, while FHA loans in Riverview, FL do not.
To make the best decision, consider speaking with a mortgage professional who can provide advice tailored to your situation. Both Riverview, FL USDA and FHA loans offer opportunities for homeownership, but the right one for you will depend on your personal and financial circumstances. Questions about the Riverview, FL USDA and FHA loan options? Call today (888)416-4805.
We service the following areas for FHA and USDA loans.
Learn more about Riverview
Riverview is an unincorporated census-designated place in Hillsborough County, Florida, United States. It is located south of Brandon. The population was 107,396 in the 2020 census, up from 71,050 in the 2010 census.
Many of Tampa Bay’s radio and television stations broadcast from an antenna farm in the Riverview area, on Boyette Road, east of town. Riverview is home to Bell Creek Nature Preserve.
Riverview was founded in 1885 on the Alafia River’s north shore. However, in the 1830s settlers arrived on the south side of the river at an area formerly known as Peru (pronounced “Pe-Roo”) because Peru was an indigenous name for “straight part of the river”. Peru existed for nearly 100 years and was one of the oldest settlements in central Florida. It wasn’t until the 1940s that Riverview absorbed Peru, and now claims the south side of the Alafia River. The Peruvian Mining Company, which mined phosphate from the Alafia, took its name from the settlement. The term “Alafia” is translated as “River of Fire” due to the phosphorus on the early riverbottom glowing at night.
The area’s first school was built in 1893, inside the Peru Baptist Church. The area called Riverview began to be populated on the north side of the river. The two communities were connected by a river ferry. Soon after, a bridge was constructed from sections of a bridge that once spanned the Hillsborough River in downtown Tampa. The post office periodically was moved from the Riverview side to the Peru side of the river and back, causing much tension. The Riverview name eventually came into usage in the early 1940s by the post office to relieve just such confusion with the mail. Peru has disappeared from all but the earliest maps. Some of Peru’s or Riverview’s settlers include the Barnes, Bourgees, Boyettes, Brandons, Buzbees, Hackneys, Hancocks, Hartleys, Mansfields, Moodys, Simmons, Scotts, Symmes, Topes, Thompsons, Whitts, and the Yeomans. The area founded by the Boyette family is now the community of Boyette, located in the eastern part of the Riverview CDP.
The first commercial poultry farm in Florida was established by Emmet and Myrtle Tope in Riverview in 1921.