Palm Bay, FL USDA Eligibility

USDA Eligibility Guide

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Palm Bay, FL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Palm Bay, Florida

    Palm Bay is a city in Brevard County, Florida, United States. The city’s population was 119,760 at the 2020 United States census, making it the most populous city in the county and the largest by land mass. The historic section of the city lies on the mouth of the Turkey Creek and the Palm Bay. Palm Bay has historically expanded south and to the west. The newer section is mostly situated west of Interstate 95 and south of the Tillman Canal.

    Palm Bay is a principal city of the Palm Bay−Melbourne−Titusville Metropolitan Statistical Area, which had a population of 606,612 at the 2020 census.

    The Ais people, attracted to the mouth of Turkey Creek at the Indian River by freshwater springs, fish, oysters, and wildlife, are thought to have been the first inhabitants in the Palm Bay area.

    The earliest place names for this area on early maps of the late 1700s were Turkey Creek, Elbow Creek and Crane Creek. An 1870 map of the Indian River by John Andrew Bostrom shows the area void of any settlements within about 15 miles of Turkey Creek. The first prominent European-American settler was John Tillman in the late 1870s. Tillman’s wharf marked the mouth of Turkey Creek at what became known as Palm Bay on the Indian River.

    By the late 1880s, Tillman was operating a profitable orange and banana grove on the north shore of the creek. He had the most notable banana grove on the Indian River. Tillman’s wharf also attracted settlers, as it was a steamboat stop.