Highland City, FL USDA Eligibility

USDA Eligibility Guide

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Highland City, FL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Highland City, FL USDA Rural Development Loan, is designed to assist low-to-moderate-income households in purchasing homes in eligible rural and some suburban areas. Here are the general eligibility requirements:

1. Property Eligibility:

    • The home must be located in a USDA-eligible rural or suburban area around Highland City, FL. The USDA provides an online tool to help potential borrowers determine if a specific property is in an eligible area.
    • The property must be used as the borrower’s primary residence.
    • The home must meet all local codes and program regulations.

2. Applicant/Household Eligibility:

    • U.S. citizenship or permanent residency is required.
    • The borrower must be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet.
    • The applicant must have a stable and dependable income, typically verified by two years of consistent employment. The income must also be sufficient to cover the mortgage payment, including taxes and insurance.
    • The household’s adjusted income must be at or below the applicable low-to-moderate income limit for the area.
    • A reasonable credit history. While a specific credit score is not mandated, a credit score of 640 or higher is typically required for streamlined processing. However, those with lower scores may still be eligible but may undergo a more stringent evaluation.

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    3. Income Limits:

    • Income limits vary by county and household size. You’ll need to check with our Highland City, FL USDA service center or the USDA’s online tools to see specific limits.

    4. Loan and Debt Ratios:

    • Typically, a 29/41 ratio is followed. This means that 29% or less of your monthly income can go towards your mortgage (Principal, Interest, Taxes, and Insurance) and 41% or less of your monthly income can go towards your total debt (this includes the mortgage and other debt obligations). Exceptions can be made in certain circumstances.

    5. Other Requirements:

    • Borrowers must personally occupy the dwelling as their primary residence.
    • The borrower must be legally able to take on the loan obligation.
    • First-time homebuyers are required to take a homeowner counseling class in some situations.

    6. Loan Terms:

    • The loan term is typically 30 years.
    • No down payment is usually required.
    • The interest rate can be set by the lender but is subject to USDA review.

    7. Guarantee Fee and Annual Fee:

      • The USDA charges an upfront guarantee fee, which can be rolled into the loan amount.
      • There’s also an annual fee, which is a percentage of the remaining principal amount, typically spread out in monthly installments.

    It’s crucial to remember that while these are the general requirements for Highland City USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Highland City, FL USDA home loan professionals. Get pre-approved with our easy and stress free Highland City, FL USDA home mortgage today.

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    Mortgage Resource Center

    More About Highland City, Florida

    Highland City is a census-designated place (CDP) in Polk County, Florida, United States. The population was 2,051 at the 2000 census. It is part of the Lakeland–Winter Haven Metropolitan Statistical Area.

    The modern-day area of Highland City was the site of the United States Army’s Fort Fraser, established in 1837 during its war with the Seminole Indians. Zachary Taylor, former U.S. President, commanded the fort for a short period. Fort Fraser was abandoned shortly after its construction.

    In 1885, the Pemberton Ferry Branch of the South Florida Railroad was completed between Lakeland and Bartow. The area now known as Highland City was the only stop between the two larger cities. The stop, and eventual village, was named for the Haskell brothers, who were early investors in the South Florida Railroad. E. B. Haskell was a newspaper publisher from Boston, Massachusetts and his brother Dr. C. C. Haskell, of Maitland, Florida, was an original stakeholder in the South Florida Railroad. In addition to the town of Haskell, the South Florida Railroad’s #6 locomotive was named the E. B. Haskell.

    The Haskell freight depot was built by the railroad company along the roadway that would later become U.S. Highway 98. (In 1958, the depot was demolished due to its proximity to the roadway, and was replaced by a new freight building). The first postmaster (and also the first freight agent of the depot) in Haskell, Thomas A. Goode, was appointed on February 9, 1887.

    Developer W. F. Hallam had begun to develop the Lakeland Highlands area by 1924. Hallam built the Hallam Country Clubhouse in the area west of Highland City and the road accessing the clubhouse became known as Clubhouse Road. The development of the Highlands also brought an influx of new residents to the Haskell community.