USDA Eligibility Guide
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Ocoee, FL USDA Loan Eligibility Guide
1. Property Eligibility:
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- The home must be located in a USDA-eligible rural or suburban area around Ocoee, 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:
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- 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 Ocoee, 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:
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- 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 Ocoee USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Ocoee, FL USDA home loan professionals. Get pre-approved with our easy and stress free Ocoee, FL USDA home mortgage today.
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More About Ocoee, Florida
Ocoee (/əˈkoʊ.i/) is a city in Orange County, Florida, United States. According to the 2019 US Census population estimate, the city had a population of 48,263. It is part of the Orlando–Kissimmee–Sanford, Florida Metropolitan Statistical Area.
In the mid-1850s, Dr. J.D. Starke, stricken with malaria, took a group of slaves, similarly stricken, to the north side of an open pine wooded lake that provided clear and clean water to avoid further malaria outbreaks. The camp built by the group provided a base of operations from which to commute during the day to work the fields near Lake Apopka and rest at night. As the camp grew into a village, it took the name Starke Lake, a name the lake upon which the group settled bears to this day. The city’s population increased further after the American Civil War as Confederate soldiers and their families settled into the area, including Captain Bluford Sims and General William Temple Withers who wintered at the location. Captain Sims received a land grant for a 74-acre parcel to the west of Starke Lake in what is now the downtown portion of Ocoee on October 5, 1883. In 1886, Captain Sims, along with a group of original settlers, led an effort to have the town platted and changed the name to Ocoee, after a river he grew up near in Tennessee. Ocoee is a Cherokee Indian word anglicized from uwagahi, meaning “apricot vine place” and this inspired the choice of the city’s flower.
Bluford Sims began groundbreaking work in budding wild orange trees while in Ocoee. His commercial citrus nursery was the first in the United States in Ocoee, supplying many other groves in Florida with their first trees as well as shipping young citrus trees to California. The construction of the Florida Midland Railroad in the 1880s spurred growth in the area and many more settlers moved in.
On November 2, 1920, after July Perry and Mose Norman, two Black men, attempted to vote and encouraged other Black people to vote, the entire Black population of the town was attacked by a mob organized by the Ku Klux Klan. On the night of the massacre, white World War I veterans from throughout Orange County murdered dozens of African-American residents. At least 24 Black homes were burned, the institutions constituting the Black community were destroyed, and Perry was lynched. Before the massacre, Ocoee’s Black population numbered approximately five hundred; after the massacre, however, the Black population was nearly eliminated. For more than 40 years, Ocoee remained an all-white sundown town. In 2018, the city commission issued a proclamation formally acknowledging the massacre and declaring that Ocoee is no longer a sundown town.
Ocoee was incorporated in 1922 (or 1923) and became a city in 1925.