Miami, FL USDA Eligibility

USDA Eligibility Guide

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Miami, FL USDA Loan Eligibility Guide

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

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    More About Miami, Florida

    Miami (/maɪˈæmi/ my-AM-ee), officially the City of Miami, is a coastal metropolis and the seat of Miami-Dade County in South Florida. With a population of 442,241 as of the 2020 census, it is the second-most populous city in the U.S. state of Florida after Jacksonville. It is the core of the much larger Miami metropolitan area, which, with a population of 6.14 million, is the second-largest metropolitan region in the Southeast and ninth-largest metropolitan region in the United States. Miami has the third-largest skyline in the U.S. with over 300 high-rises, 58 of which exceed 491 ft (150 m).

    Miami is a major center and leader in finance, commerce, culture, arts, and international trade. Miami’s metropolitan area is by far the largest urban economy in Florida, with a gross domestic product of $344.9 billion as of 2017. According to a 2018 UBS study of 77 world cities, Miami is the third-richest city in the U.S. and the third richest globally in purchasing power. Miami is a majority-minority city with a Hispanic and Latino population of 310,472, or 70.2 percent of the city’s population, as of 2020.

    Downtown Miami has one of the largest concentrations of international banks in the U.S. and is home to several large national and international companies. The Health District is home to several major University of Miami-affiliated hospital and health facilities, including Jackson Memorial Hospital, the nation’s largest hospital with 1,547 beds, and the Leonard M. Miller School of Medicine, the University of Miami’s academic medical center and teaching hospital, and others engaged in health-related care and research. PortMiami, the city’s seaport, is the busiest cruise port in the world in both passenger traffic and cruise lines. Miami is the second-largest tourism hub for international visitors after New York City. Miami has sometimes been called the “Gateway to Latin America” because of the magnitude of its commercial and cultural ties to the region.

    In 2022, Miami ranked seventh in the U.S. in business activity, human capital, information exchange, cultural experience, and political engagement. It is the second-most visited city in the U.S. after New York City with over five million visitors as of 2019.

    Miami was named after the Miami River, derived from Mayaimi, the historic name of Lake Okeechobee and the American Indians who lived around it. Miami is sometimes colloquially referred to as The 305, Magic City, Gateway to the Americas, Gateway to Latin America, Capital of Latin America, and Vice City.