Cedar Key, FL USDA Eligibility

USDA Eligibility Guide

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Cedar Key, FL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Cedar Key, 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 Cedar Key, 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 Cedar Key, 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 Cedar Key USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Cedar Key, FL USDA home loan professionals. Get pre-approved with our easy and stress free Cedar Key, FL USDA home mortgage today.

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    Mortgage Resource Center

    More About Cedar Key, Florida

    Cedar Key is a city in Levy County, Florida, United States. As of the 2020 census, its population was 687. The Cedar Keys are a cluster of islands near the mainland. Most of the developed area of the city has been on Way Key since the end of the 19th century. The Cedar Keys are named for the eastern red cedar Juniperus virginiana, once abundant in the area.

    While evidence suggests human occupation as far back as 500 BC, the first maps of the area date to 1542, when it was labeled “Las Islas Sabines” by a Spanish cartographer. An archaeological dig at Shell Mound, 9 miles (14 km) north of Cedar Key, found artifacts dating back to 500 BC in the top 10 feet (3.0 m) of the 28-foot-tall (8.5 m) mound. The only ancient burial found in Cedar Key was a 2,000-year-old skeleton found in 1999. Arrow heads and spear points dating from the Paleo period (12,000 years old) were collected by Cedar Key historian St. Clair Whitman and are displayed at the Cedar Key Museum State Park.

    Followers of William Augustus Bowles, self-declared “Director General of the State of Muskogee”, built a watchtower in the vicinity of Cedar Key in 1801. The tower was destroyed by a Spanish force in 1802. In the period leading up to the First Seminole War, the British subjects Alexander Arbuthnot and Robert Ambrister used the Cedar Keys to deliver supplies to the Seminoles. The Cedar Keys may have been a refuge for escaped slaves in the early 1820s, and an entry point for the illegal slave trade later that decade.

    During the Second Seminole War, the United States Army established Fort No. 4 on the mainland adjacent to the Cedar Keys. (The name “No. 4” was later applied to a boat channel next to the fort, and then to a railroad trestle and a highway bridge over that channel.) In 1840, General Zachary Taylor requested the Cedar Keys be reserved for military use for the duration of the war, and that Seahorse Key be permanently reserved for a lighthouse. In 1840, General Walker Keith Armistead, who had succeeded Zachary Taylor as commander of United States troops in the war, ordered construction of a hospital on what had become known as Depot Key. (The island’s name may reflect the establishment of a depot there by Florida militia general Leigh Read. The primary depot for the U.S. Army in Florida at the time was at Palatka, Florida.) Depot Key was the headquarters for the Army in Florida, but Fishburne states headquarters was not in a fixed place, but wherever the commander was.

    Cantonment Morgan was established on nearby Seahorse Key by 1841 and used as a troop deployment station and as a holding station for Seminoles who had been captured or who had surrendered until they could be sent to the West. A hurricane with a 27-foot (8.2 m) storm surge struck the Cedar Keys on October 4, 1842, destroying Cantonment Morgan and causing much damage on Depot Key. Some Seminole leaders had been meeting with Army officers at Depot Key to negotiate their surrender or a retreat to a reservation in the Everglades. After the hurricane, the Seminoles refused to return to the area. Colonel William J. Worth had declared the war to be over in August 1842, and Depot Key was abandoned by the Army after the hurricane.