Ocala, FL USDA Eligibility

USDA Eligibility Guide

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Ocala, FL USDA Loan Eligibility Guide

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

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    More About Ocala, Florida

    Ocala (/oʊˈkælə/ oh-KAL-ə) is a city in and the county seat of Marion County, Florida, United States. Located in North Florida, the city’s population was 63,591 as of the 2020 census, making it the 54th-most populated city in Florida. Ocala is the principal city of the Ocala metropolitan area, which had a population of 375,908 in 2020.

    Home to over 400 thoroughbred farms and training centers, Ocala is considered the “Horse Capital of the World”. Notable attractions include the Ocala National Forest, Silver Springs State Park, Rainbow Springs State Park, the College of Central Florida, and the World Equestrian Center.

    Ocala is named after Ocale (also Cale, Etocale, and other variants) a Timucua village and chiefdom recorded in the 16th century, the name of which is believed to mean “Big Hammock” in the Timucua language. Another possible meaning of the name is “song or singer of admiration or glorification”. The Spaniard Hernando de Soto’s expedition recorded Ocale in 1539 during his exploration through what is today the southeastern United States. The site of Ocale has not been found, but historians believe it was located in southwestern Marion County, near the Withlacoochee River. References to Ocale, Olagale, and Etoquale occur in 16th and early 17th century sources, but do not specify a location. A Spanish mission named San Luis de Eloquale was established by 1630. Milanich believes the mission was near the Withlacoochee River. Eloquale is not named in a 1655 list of missions, and Ocale (and its variants) disappears from history.

    In the late eighteenth and early nineteenth centuries, Creek people and other Native Americans, and free and fugitive African Americans sought refuge in Florida. The Seminole people formed. After foreign colonial rule shifted between Spain and Great Britain and back again, in 1821 the United States acquired the territory of Florida. After warfare to the north, in 1827 the U.S. Army built Fort King near the present site of Ocala as a buffer between the Seminole, who had long occupied the area, and white settlers moving into the region. The fort was an important base during the Second Seminole War and later served in 1844 as the first courthouse for Marion County.

    The modern city of Ocala, which was established in 1849, developed around the fort site. Greater Ocala is known as the “Kingdom of the Sun”. Plantations and other agricultural development dependent on slave labor were prevalent in the region. Ocala was an important center of citrus production until the Great Freeze of 1894–1895. During the Reconstruction era Ocala was represented by several African Americans in the Florida House of Representatives and on the local level.