Davenport, FL USDA Eligibility

USDA Eligibility Guide

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Davenport, FL USDA Loan Eligibility Guide

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

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    More About Davenport, Florida

    Davenport is a city in Polk County, Florida, United States. While the city of Davenport itself is very small, the area north of the city close to Interstate 4 and US 27 is experiencing explosive growth. It is part of the Lakeland–Winter Haven Metropolitan Statistical Area. The population was 9,043 at the 2020 census.

    The settlement in the area now known as Davenport was established in 1838 when the US military set up Fort Davenport during the Second Seminole War, about 12 miles north of the present site of Davenport. The fort was one of a number built at 20 mile intervals along a trail from Fort Brooke to Fort Mellon. The fort only lasted a few years. The fort was named for Colonel William Davenport, who served as the local U.S. commander in the war. There is no known documentary evidence to support an alternative claim that the city was named for a railroad conductor.

    The modern city of Davenport had its start in the 1880s when the South Florida Railroad was extended to that point. The settlement was first known as Horse Creek, for the creek first recorded on a US Army survey of 1849 which flows past the site to enter Snell Creek and eventually Lake Hatchineha in the Kissimmee River system. A post office was established at Horse Creek in 1884, and the name of the post office was changed to Davenport in 1886. Davenport was incorporated in 1915.

    The South Florida Railroad opened a station half a mile north of the present site of the city. The railroad line was acquired by the Plant System in 1893, and the Atlantic Coast Line Railroad in 1902. In 1926, it was replaced by a new station in the downtown area. It was later closed in the 1970s. From 1958 to 1986 there was a second station, the Vertagreen Railroad Station, opened only for the transportation of fertilizer and not for public use.

    Davenport is located within the Central Florida Highlands area of the Atlantic coastal plain with a terrain consisting of flatland interspersed with gently rolling hills.