Key West, FL USDA Eligibility

USDA Eligibility Guide

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Key West, FL USDA Loan Eligibility Guide

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

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    More About Key West, Florida

    Key West (Spanish: Cayo Hueso) is an island in the Straits of Florida, within the U.S. state of Florida. Together with all or parts of the separate islands of Dredgers Key, Fleming Key, Sunset Key, and the northern part of Stock Island, it constitutes the City of Key West.

    The island of Key West is about 4 miles (6 kilometers) long and 1 mile (2 km) wide, with a total land area of 4.2 square miles (11 km2). It lies at the southernmost end of U.S. Route 1, the longest north–south road in the United States. Key West is about 95 miles (153 km) north of Cuba at their closest points. It is also 130 miles (210 km) southwest of Miami by air, about 165 miles (266 km) by road, and 106 miles (171 km) north-northeast of Havana.

    The city of Key West is the county seat of Monroe County, which includes a majority of the Florida Keys and part of the Everglades. The total land area of the city is 5.6 square miles (14.5 km2). The population within the city limits was 26,444 at the 2020 census. The official city motto is “One Human Family”.

    Key West is the southernmost city in the contiguous United States and the westernmost island connected by highway in the Florida Keys. Duval Street, its main street, is 1.1 miles (1.8 km) in length in its 14-block-long crossing from the Gulf of Mexico to the Straits of Florida and the Atlantic Ocean. Key West is the southern terminus of U.S. Route 1, State Road A1A, the East Coast Greenway and, before 1935, the Florida East Coast Railway. Key West is a port of call for many passenger cruise ships. The Key West International Airport provides airline service. Naval Air Station Key West is an important year-round training site for naval aviation due to the tropical weather, which is also the reason Key West was chosen as the site of President Harry S. Truman’s Winter White House. The central business district is located along Duval Street and includes much of the northwestern corner of the island.

    At various times before the 19th century, people who were related or subject to the Calusa and the Tequesta inhabited Key West. The last Native American residents of Key West were Calusa refugees who were taken to Cuba when Florida was transferred from Spain to Great Britain in 1763.