USDA Eligibility Guide
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New Smyrna Beach, 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 New Smyrna 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:
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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 New Smyrna 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:
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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 New Smyrna Beach USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our New Smyrna Beach, FL USDA home loan professionals. Get pre-approved with our easy and stress free New Smyrna Beach, FL USDA home mortgage today.
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More About New Smyrna Beach, Florida
New Smyrna Beach is a city in Volusia County, Florida, United States, located on the central east coast of the state, with the Atlantic Ocean to the east. The downtown section of the city is located on the west side of the Indian River and the Indian River Lagoon system. The Coronado Beach Bridge crosses the Intracoastal Waterway just south of Ponce de Leon Inlet, connecting the mainland with the beach on the coastal barrier island. Its population is 30,142 in 2020 by the United States Census Bureau.
The surrounding area offers many opportunities for outdoor recreation; these include fishing, sailing, motorboating, golfing, and hiking. Visitors participate in water sports of all kinds, including swimming, scuba diving, kitesurfing, and surfing. In July 2009, New Smyrna Beach was ranked number nine on the list of “best surf towns” in Surfer. It was recognized as “one of the world’s top 20 surf towns” by National Geographic in 2012. It has also been dubbed “The Shark Bite Capital of the World.”
The area was first settled by Europeans in 1768, when Scottish physician Dr. Andrew Turnbull, a friend of James Grant, the governor of British East Florida, established the colony of New Smyrna. Dr. Turnbull had married Gracia Dura Bin (some sources give her name as Maria Gracia Rubini), the daughter of a Greek London merchant from the Ottoman city of Smyrna (modern-day İzmir in Turkey) and named the settlement in honor of his wife’s birthplace, and the homeland of some of those in his future labor force who were Greek from the Mani peninsula. No one had previously attempted to settle so many people at one time in a town in North America.
Turnbull recruited about 1,300 settlers, intending for them to grow hemp, sugarcane, and indigo, as well as to produce rum, at his plantation on the northeastern Atlantic coast of Florida. The majority of the colonists came from Menorca (historically called “Minorca” in English), one of the Mediterranean Balearic Islands of Spain, and were of Catalan culture and language. Around 500 or so came from the Mani peninsula of Greece.
Although the colony produced relatively large amounts of processed indigo in its first few years of operation, it eventually collapsed after suffering major losses due to insect-borne diseases and Indian raids, and growing tensions caused by mistreatment of the colonists on the part of Turnbull and his overseers. The survivors, about 600 in number, marched nearly 70 miles north on the King’s Road and relocated to St. Augustine, where their descendants live to this day. In 1783, East and West Florida were returned to the Spanish, and Turnbull abandoned his colony to retire in Charleston, South Carolina.