Iona, FL USDA Eligibility

USDA Eligibility Guide

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Iona, FL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Iona, Florida

    Iona is an unincorporated community and census-designated place (CDP) in Lee County, Florida, United States. The population was 16,908 at the 2020 census, up from 15,404 at the 2010 census. It is part of the Cape Coral-Fort Myers, Florida Metropolitan Statistical Area.

    A strong EF2 tornado struck the town on January 16, 2022, causing major damage and injuring three people.

    Iona is located in southwestern Lee County at 26°31′N 81°58′W / 26.517°N 81.967°W / 26.517; -81.967 (26.510,-81.959). It is bordered to the west by Punta Rassa, to the east by Harlem Heights, and to the northeast by McGregor. Its northern boundary is the tidal Caloosahatchee River, across which is the city of Cape Coral. The southern edge of the community is Summerlin Road (County Road 869). McGregor Boulevard crosses the community from northeast to southwest. Iona is 4 miles (6 km) northeast of the causeway to Sanibel Island and 11 miles (18 km) southwest of the center of Fort Myers.

    According to the United States Census Bureau, the Iona CDP has a total area of 10.2 square miles (26.5 km2), of which 6.6 square miles (17.1 km2) are land and 3.6 square miles (9.4 km2), or 35.32%, are water, primarily in the Caloosahatchee River estuary.

    As of the census of 2000, there were 11,756 people, 6,023 households, and 3,740 families residing in the CDP. The population density was 1,648.5 inhabitants per square mile (636.5/km2). There were 9,290 housing units at an average density of 1,302.7 per square mile (503.0/km2). The racial makeup of the CDP was 97.47% White, 0.41% African American, 0.17% Native American, 0.48% Asian, 0.01% Pacific Islander, 0.83% from other races, and 0.63% from two or more races. Hispanic or Latino of any race were 3.94% of the population.