USDA Eligibility Guide
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Eustis, 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 Eustis, 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 Eustis, 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 Eustis USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Eustis, FL USDA home loan professionals. Get pre-approved with our easy and stress free Eustis, FL USDA home mortgage today.
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More About Eustis, Florida
Eustis is a city in Lake County, Florida, United States. It is part of the Orlando–Kissimmee–Sanford Metropolitan Statistical Area. The population was 23,189 at the 2020 census.
The City of Eustis holds a festival every year which begins on the last Friday of February and runs through Sunday and has been held since 1902. This festival, referred to simply as GeorgeFest, is recognized today as the longest ongoing annual event held in honor of George Washington, first President of the United States.
The people of Eustis, on the east shore of Lake Eustis, took their time deciding on a name. First it was Highlands, then Pendryville, and finally Lake Eustis, itself named about 1825 for General Abraham Eustis. General Eustis, prominent in the Seminole Wars, had skirmished with the Indians on the south shore, near present-day Tavares, Florida. In 1876, A.S. Pendry homesteaded and set out a citrus grove. In 1877 he opened the Ocklawaha Hotel. The post office in the lobby carried the sign “Pendryville”.[citation needed]
Before railroads came in the 1880s, Eustis was a busy port for steamers plying Lakes Harris, Eustis, Dora, and Griffin. In 1883 the “Lake” was dropped and the town became just Eustis. Although the U.S. opened up the area for homesteading in the 1850s, settlement was delayed by the Civil War. Surveying was finally completed in 1875 and settlement began in earnest. Among the earliest settlers was Guilford David “G.D.” Clifford, who established a store and began the first mail service for the new settlement. It was in the Clifford General Store second floor meeting hall that the town’s first churches were formed. Episcopal, Methodist, and Presbyterian groups all organized and held services there before they had their own buildings.
The first homes were those of D.W. Herrick, A.D. Herrick, and Henry Key. In 1881 Clifford and Smith built the first general store in the building later occupied by A.D. and C.D. Miller. A big year was 1878 when the town’s first telegraph line connected Eustis, Leesburg, and Sanford. The railroad arrived in 1880, the first train coming from Astor to Fort Mason, where passengers and freight made lake steamer connections to Leesburg, Helena, Yalaha, Bloomfield, Lane Park, and Tavares. Bertie Clifford was the first baby born before Eustis was incorporated in 1883, and Edith Hutchins the first baby of the newly incorporated town. D.W. Herrick was the first mayor. G.D. Clifford’s dream home in Eustis was designed in 1894 but the Big Freeze of 1894–1895 postponed its completion until 1911. Says Eustis historian Louise Carter, “Even though the freeze brought the town’s economy to a standstill, Mr. Clifford kept his lakefront general store open and extended credit until people could recover.”