Marco Island, FL USDA Eligibility

USDA Eligibility Guide

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Marco Island, FL USDA Loan Eligibility Guide

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

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    More About Marco Island, Florida

    Marco Island is a city and barrier island in Collier County, Florida, located 20 miles (32 km) south of Naples on the Gulf Coast of the United States. It is the largest barrier island within Southwest Florida’s Ten Thousand Islands area, which extends southerly to Cape Sable. Marco Island is home to an affluent beach community with resort amenities.

    Two bridges provide road access to the island via Florida State Road 951 and County Road 92.

    There are two public access locations with parking and amenities (Tigertail and South Beach), a private beach complex for residents (Residents’ Beach), and a private parking area for residents (Sarazen Park at South Beach), and two other public access points (with no amenities). Offshore island beaches, such as Keewaydin, are accessible by boat or tour.

    Marco Island is a principal city of the Naples–Marco Island Metropolitan Statistical Area. The population was 15,760 at the 2020 census. The population more than doubles in size during the winter season.

    Parts of the island have some scenic, high elevations relative to the generally flat south Florida landscape. The island has a tropical climate; specifically a tropical wet and dry or savanna type (Aw under the Köppen system). It is known for its distinct wet and dry seasons, with most of the rainfall falling between the months of June and October.