Palm Beach Shores, FL USDA Eligibility

USDA Eligibility Guide

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Palm Beach Shores, FL USDA Loan Eligibility Guide

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

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    More About Palm Beach Shores, Florida

    Palm Beach Shores is a town in Palm Beach County, Florida, United States. The town is part of the Miami metropolitan area of South Florida. The population was 1,330 at the 2020 US census.

    The town occupies the southern tip of Singer Island. It borders the City of Riviera Beach on the north, the Atlantic Ocean on the east and Lake Worth Lagoon on the west. On the south, the Palm Beach Inlet separates it from the town of Palm Beach. Florida’s easternmost point is in Palm Beach Shores. The town contains many mid-century homes, many of which have been restored or are being restored, giving the town the charming character of “a slice of old Florida”.

    According to the United States Census Bureau, the town has a total area of 0.4 square miles (1.0 km2). 0.2 square miles (0.52 km2) of it is land and 0.1 square miles (0.26 km2) of it (34.21%) is water.

    As of the 2020 United States census, there were 1,330 people, 635 households, and 319 families residing in the town.

    As of the 2010 United States census, there were 1,142 people, 521 households, and 225 families residing in the town.