Navarre, FL USDA Loans VS FHA Loans

Navarre, FL USDA Home Loans vs Navarre FHA Home Loans: Which is Right for You?

Homeownership is a dream for many people. To make it achievable for a wider range of individuals, there are various mortgage programs available. Among the most popular are USDA Home Loans and Navarre, FL FHA Home Loans. Both of these loan programs aim to assist buyers, especially those with low-to-moderate incomes, but they serve different populations and have distinct criteria. Let’s delve into the differences and similarities of these two loan types to help you decide which one might be right for you.

Navarre, FL USDA Home Loans

1. What it is: The Navarre, FL USDA Home Loan program is backed by the United States Department of Agriculture (USDA). It’s designed to help rural residents, especially those with lower incomes, purchase homes.

2. Eligibility:

  • Location: Homes must be located in eligible rural areas as defined by the USDA.
  • Income limits: There are maximum income limits, which vary based on the size of the household and the county in which the property is located.
  • Credit score: While the USDA doesn’t have a set credit score requirement, most lenders require at least a 640 score.

3. Benefits:

  • No down payment: USDA loans allow for 100% financing.
  • Competitive interest rates: Often lower than conventional loans.
  • Low mortgage insurance: The upfront guarantee fee can be rolled into the loan, and the annual fee is generally lower than FHA mortgage insurance.

4. Limitations:

  • Geographic restrictions: The program is limited to certain rural areas.
  • Income caps: Not suitable for those with higher incomes.

Navarre, FL FHA Home Loans

1. What it is: FHA Home Loans are backed by the Federal Housing Administration (FHA). This program aims to help those with low-to-moderate incomes and Navarre first-time homebuyers purchase homes. 2. Eligibility:

  • Credit score: Borrowers need a minimum credit score of 580 to qualify for the 3.5% down payment. Those with scores between 500-579 can still qualify but will need a 10% down payment.
  • Debt-to-Income Ratio (DTI): Generally, the ratio should be less than 43%, but exceptions can be made with compensating factors.
  • Mortgage Insurance: Borrowers are required to pay both an upfront and an annual mortgage insurance premium.

3. Benefits:

  • Low down payment: Requires only 3.5% down with a 580 credit score.
  • Flexible credit requirements: Suitable for those with lower credit scores.
  • Assumable mortgage: An Navarre FHA loan can be assumed by a future buyer, which can be a selling point in a rising interest rate environment.

4. Limitations:

  • Mortgage insurance: FHA loans come with both upfront and ongoing mortgage insurance premiums.
  • Loan limits: There are maximum loan amounts, which vary by county.

Which is Right for You?

Your decision between a USDA Home Loan and an Navarre FHA Home Loan will largely depend on your individual circumstances:

  • Location of Desired Property: If you’re looking at a home in a rural area, the USDA loan might be the best fit. If you’re considering urban or suburban areas, an FHA loan may be the only option among the two.
  • Down Payment: If you don’t have a down payment, a USDA loan, with its 100% financing, can be attractive.
  • Credit Score: If you have a lower credit score, the FHA loan might be more forgiving.
  • Income: Remember that USDA loans in Navarre, FL have income caps which could rule out higher earners, while FHA loans in Navarre, FL do not.

To make the best decision, consider speaking with a mortgage professional who can provide advice tailored to your situation. Both Navarre, FL USDA and FHA loans offer opportunities for homeownership, but the right one for you will depend on your personal and financial circumstances. Questions about the Navarre, FL USDA and FHA loan options? Call today (888)416-4805.

We service the following areas for FHA and USDA loans.

Learn more about Navarre

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.