Freeport, FL USDA Eligibility

USDA Eligibility Guide

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Freeport, FL USDA Loan Eligibility Guide

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

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    More About Freeport, Florida

    Freeport is a city in Walton County, Florida, United States. It is part of the Crestview–Fort Walton Beach–Destin metropolitan area. As of the 2020, the population recorded by the U.S. Census Bureau was 5,861.

    Freeport is said to have been established circa 1830. It was called Freeport due to an absence of fees to use the dock (‘free port’) at the junction of Four Mile Creek and Lafayette Creek.

    Historically, the economy of Freeport was largely dependent on the local timber industry through sawmills and logging, as well as the processing of turpentine.

    After the introduction of the railroad in Defuniak Springs, Freeport lost its position as the economic powerhouse in Walton County. Today it has a sizeable population of people who serve at Eglin AFB.

    Freeport is located at 30°30′09″N 86°07′49″W / 30.502430°N 86.130255°W / 30.502430; -86.130255. The city is located along U.S. Route 331 and Florida State Road 20. U.S. 331 runs from north to south to the east of the city, leading north 17 mi (27 km) to DeFuniak Springs, the Walton County seat, and south 11 mi (18 km) to U.S. Route 98 near Santa Rosa Beach. FL-20 runs from west to east through the main part of the city, leading east 17 mi (27 km) to Ebro and west 24 mi (39 km) to Niceville.