USDA Eligibility Guide
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Melbourne, 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 Melbourne, 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 Melbourne, 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 Melbourne USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Melbourne, FL USDA home loan professionals. Get pre-approved with our easy and stress free Melbourne, FL USDA home mortgage today.
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More About Melbourne, Florida
Melbourne (/ˈmɛlbərn/) is a city in Brevard County, Florida, United States. It is located 72 miles (116 km) southeast of Orlando and 175 miles (282 km) northwest of Miami. As of the 2020 Decennial Census, there was a population of 84,678. The municipality is the second-largest in the county by both size and population. Melbourne is a principal city of the Palm Bay – Melbourne – Titusville, Florida Metropolitan Statistical Area. In 1969, the city was expanded by merging with nearby Eau Gallie.
Evidence for the presence of Paleo-Indians in the Melbourne area during the late Pleistocene epoch was uncovered during the 1920s. C. P. Singleton, a Harvard University zoologist, discovered the bones of a mammoth (Mammuthus columbi) on his property along Crane Creek, 1.5 miles (2.4 km) from Melbourne, and brought in Amherst College paleontologist Frederick B. Loomis to excavate the skeleton. Loomis found a second elephant, with a “large rough flint instrument” among fragments of the elephant’s ribs. Loomis found in the same stratum mammoth, mastodon, horse, ground sloth, tapir, peccary, camel, and saber-tooth cat bones, all extinct in Florida since the end of the Pleistocene 10,000–8,000 BCE. At a nearby site a human rib and charcoal were found in association with Mylodon, Megalonyx, and Chlamytherium (ground sloth) teeth. A finely worked spear point found with these items may have been displaced from a later stratum. In 1925 attention shifted to the Melbourne golf course.
A crushed human skull with finger, arm, and leg bones was found in association with a horse tooth. A piece of ivory that appeared to have been modified by humans was found at the bottom of the stratum containing bones. Other finds included a spear point near a mastodon bone and a turtle-back scraper and blade found with bear, camel, mastodon, horse, and tapir bones. Similar human remains, Pleistocene animals and Paleo-Indian artifacts were found in Vero Beach, 30 miles (48 km) south of Melbourne, and similar Paleo-Indian artifacts were found at the Helen Blazes archaeological site, 10 miles (16 km) southwest of Melbourne.
The first settlers arrived after 1877. They included Richard W. Goode, his father John Goode, Cornthwaite John Hector, Captain Peter Wright, Balaam Allen, Wright Brothers, and Thomas Mason. Three of these men, Wright, Allen, and Brothers were black freedmen.
The city, formerly called “Crane Creek”, was named Melbourne in honor of its first postmaster, Cornthwaite John Hector, an Englishman who had spent much of his life in Melbourne, Victoria, Australia (which was in turn named after the British Prime Minister William Lamb, 2nd Viscount Melbourne). He is buried in the Melbourne Cemetery, along with many early residents in the area. The first school in Melbourne was built in 1883 and is on permanent exhibit on the campus of Florida Institute of Technology. By 1885, the town had 70 people. The Greater Allen Chapel African Methodist Episcopal Church was founded in 1885 and is still active.