Mexico Beach, FL USDA Eligibility

USDA Eligibility Guide

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Mexico Beach, FL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Mexico Beach, Florida

    Mexico Beach is a city in Bay County, Florida, United States. It is located 25 miles (40 km) southeast of Panama City. The population was 1,060 at the 2020 census. The community was extensively damaged by Hurricane Michael on October 10, 2018. The Federal Emergency Management Agency (FEMA) declared the community “wiped out” in the aftermath of the hurricane’s devastating impact.

    Mexico Beach was incorporated in 1966. Before Hurricane Michael, “the town was “old Florida,” … a collection of 50-year-old bungalows and newer vacation homes on stilts,” where tourists walked on white sand beaches.

    On November 22, 1985, Hurricane Kate’s eye passed over Mexico Beach. Category 2 winds and tides destroyed beachfront homes and businesses.

    Hurricane Michael made landfall near Mexico Beach on October 10, 2018, just before 1 p.m. local time with maximum sustained winds of 160 miles per hour (260 km/h), the first Category 5 hurricane to make landfall in the United States since Hurricane Andrew in 1992. Michael made history as the third strongest (by pressure) and fourth strongest (by wind speed) landfalling storm in the continental United States. The storm caused extensive damage to the community, and to the nearby Tyndall Air Force Base. Nearly all homes were totally destroyed. Brock Long, the FEMA administrator, told CNN that Mexico Beach was “wiped out” and referred to the community as “ground zero”. The elementary school and city hall were among the buildings devastated; the pier washed away, and the water tower was knocked down.

    A report by the State indicated that roughly 285 people in Mexico Beach had declined to evacuate the area, although some of those may have left before the peak of the storm. Three people from Mexico Beach were listed among the deaths due to the hurricane. At that time, Mayor Al Cathey told residents it might be months before electricity, water, and plumbing were restored.