USDA Eligibility Guide
“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”
Jacksonville, 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 Jacksonville, 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 Jacksonville, 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 Jacksonville USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Jacksonville, FL USDA home loan professionals. Get pre-approved with our easy and stress free Jacksonville, FL USDA home mortgage today.
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More About Jacksonville, Florida
Jacksonville is a city located on the Atlantic coast of northeastern Florida, the most populous city proper in the state and the largest city by area in the contiguous United States as of 2020. It is the seat of Duval County, with which the City of Jacksonville consolidated in 1968.
City-county consolidation greatly increased Jacksonville’s official population and extended its boundaries, placing most of Duval County’s population within the new municipal limits; Jacksonville grew to 900 square miles (2,300 km2), making it the largest city by area in the contiguous United States.
As of July 2022, Jacksonville’s population was 971,319, while the population of Duval County was about 1 million. After consolidation, Jacksonville became the most populous city in Florida and the Southeastern United States, and the largest in the South outside the state of Texas. With a population of 1,733,937, the Jacksonville metropolitan area ranks as Florida’s fourth-largest metropolitan region. The metropolitan area consists of Clay County, St. Johns County, Nassau County, and Baker County.
Jacksonville straddles the St. Johns River in the First Coast region of northeastern Florida, about 12 miles (19 kilometers) south of the Georgia state line (25 mi or 40 km to the urban core/downtown) and 350 miles (560 km) north of Miami. The Jacksonville Beaches communities are along the adjacent Atlantic coast. The area was originally inhabited by the Timucua people, and in 1564 was the site of the French colony of Fort Caroline, one of the earliest European settlements in what is now the continental United States. Under British rule, a settlement grew at the narrow point in the river where cattle crossed, known as Wacca Pilatka to the Seminole and the Cow Ford to the British. A platted town was established there in 1822, a year after the United States gained Florida from Spain; it was named after Andrew Jackson, the first military governor of the Florida Territory and seventh President of the United States.
Harbor improvements since the late 19th century have made Jacksonville a major military and civilian deep-water port. Its riverine location facilitates Naval Station Mayport, Naval Air Station Jacksonville, the U.S. Marine Corps Blount Island Command, and the Port of Jacksonville, Florida’s largest seaport by volume. Jacksonville’s military bases and the nearby Naval Submarine Base Kings Bay form the third largest military presence in the United States. Significant factors in the local economy include services such as banking, insurance, healthcare and logistics. As with much of Florida, tourism is important to the Jacksonville area, particularly tourism related to golf with the PGA Tour headquarters located in nearby Ponte Vedra Beach. People from Jacksonville are known as Jacksonvillians and, informally, as Jaxsons or Jaxons (both derived from Jax, the shortened nickname for the city).