USDA Eligibility Guide
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Navarre, 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 Navarre, 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 Navarre, 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 Navarre USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Navarre, FL USDA home loan professionals. Get pre-approved with our easy and stress free Navarre, FL USDA home mortgage today.
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More About Navarre, Florida
Navarre is a census-designated place and unincorporated community in Santa Rosa County in the northwest Florida Panhandle. It is a major bedroom community for mostly U.S. military personnel, federal civil servants, local population, retirees and defense contractors. Due to Navarre Beach and the 4 miles (6.4 km) of beach front on the Gulf of Mexico thereof, as well as several miles of beaches within the Navarre Beach Marine Park and the Gulf Islands National Seashore, it has a small, but rapidly growing community of nature enthusiasts and tourists. Navarre has grown from being a small town of around 1,500 in 1970 to a town with a population estimated at 43,540 as of 2020, if including both the Navarre and Navarre Beach Census Designated Places.
Navarre is about 25 miles (40 km) east of Pensacola and about 15 miles (24 km) west of Fort Walton Beach. The community is roughly centered on the junction of U.S. Route 98 and State Road 87. It is part of the Pensacola–Ferry Pass–Brent Metropolitan Statistical Area (more commonly referred to as the Pensacola Metro Area), and is the second largest community in the metropolitan area, according to a study. Navarre is the third-largest community in the Florida Panhandle.
Navarre is the principal community of the census-defined Navarre-Miramar Beach-Destin Urbanized Area. The community is known for the natural environment, swimming, picnic spots, and its beach.
In 1693 Spanish explorers Carlos de Sigüenza y Góngora and Admiral Andrés de Pez y Malzárraga set sail from Veracruz. A skilled cartographer, scientist, mathematician, and theologian, Sigüenza was responsible for scouting and mapping possible sites of Spanish colonization in Northwest Florida during the expedition. While traveling in the area of East Bay in April 1693 the Spanish discovered what is today called the East Bay River. In honor of Captain Jordan de Reina, an officer who had taken part in the Barroto-Romero voyage of 1686 as well as Sigüenza’s in 1693, the Spanish dubbed the waters on which they traveled, “The River Jordan”.
On April 11, 1693, while sailing up East Bay River, sailors aboard the Spanish ships noticed a group of Native Americans observing from a camp near the shore. In order to greet the natives, a landing party was sent out. By the time the Spanish reached the shore, however, the Native Americans were gone. As the Natives quickly abandoned camp the Spanish discovered half-cooked pieces of buffalo meat sitting over a fire, along with a fierce dog guarding the site. Due to the great number of oak trees in the area the campsite was named “El Robledal,” meaning “The Oakgrove” in Spanish. After erecting a wooden cross and leaving gifts for the natives, the Spaniards continued their exploration upriver. Upon later return to El Robledal, the explorers noticed that their gifts had been taken. In return, the natives had also constructed a wooden cross and left a buffalo hide as a peace offering. The earliest known map of Robledal dates from 1693, the same year as the Pez-Sigüenza Expedition. Three years later, in a 1698 map by Don Andrés de Arriola y Guzmán (the first governor of a settlement in the Pensacola area after the Tristán de Luna y Arellano colony was abandoned), Robledal is again noted.