Palm Springs, FL USDA Eligibility

USDA Eligibility Guide

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Palm Springs, FL USDA Loan Eligibility Guide

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

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    More About Palm Springs, Florida

    Palm Springs is a village in Palm Beach County, Florida, United States, situated approximately 61 mi (98 km) north of Miami. The village’s name was likely derived from the resort city of Palm Springs, California. Located in the east-central part of the county, Palm Springs is situated north of Atlantis, east of Greenacres, west of Lake Clarke Shores and Lake Worth Beach, and southwest of West Palm Beach. The 2010 United States census recorded the village’s population at 18,928, which increased to 26,890 in the 2020 census. Palm Springs is also located within the Miami metropolitan area of South Florida, which had a population of approximately 6,138,333 people as of 2020.

    William A. Boutwell operated a dairy farm on 5 acres (2.0 ha) of land in modern-day Palm Springs beginning in 1927, which expanded to about 700 acres (280 ha) prior to his retirement in 1956. One year later, the Florida Legislature approved a charter establishing the village of Palm Springs as Palm Beach County’s 30th municipality on May 31, 1957. At the time of incorporation, the village consisted only of farmland, a dairy barn, and no permanent residents. Within two years, around 800 homes had been built, and four schools were constructed in or near Palm Springs between 1959 and 1970. The first village hall was erected in 1960.

    Palm Springs has been expanding through annexation since 1998, more than doubling the village’s land area and population within a few decades. Also around that time, the village government began planning for a new municipal complex, which opened in the mid-2000s. By 2010, Palm Springs became the first municipality in Palm Beach County in which a majority of its residents are of Hispanic or Latino ancestry. The village is also the home of the Fulton-Holland Educational Services Center, the headquarters of the School District of Palm Beach County.

    Residents of Lake Worth (now the city of Lake Worth Beach) proposed to town commissioners in May 1922 that a municipal country club and golf course be constructed to attract winter tourists. According to The Lake Worth Herald, the facility would be located west of the town at “Section 19, Township 44 South, Range 43 East”, an area that is now part of Palm Springs. However, a referendum held in the following month rejected the proposal by a narrow margin. Instead, Lake Worth’s municipal golf course opened along the Intracoastal Waterway in November 1926. Commissioners nonetheless approved an ordinance that month to annex 1,800 acres (730 ha) of land west of the city’s boundaries, extending as far as 660 ft (200 m) west of Military Trail; this included parts of modern-day Palm Springs.

    In 1927, then-Lake Worth vice mayor William A. Boutwell, who moved to the area from Massachusetts earlier in the 1920s and owned a grocery store and masonry supply company in the city, began dairy farming on 5 acres (2.0 ha) of land in modern-day Palm Springs – in addition to the farmland he owned in Lake Worth. Over time, his dairy farm expanded to occupy approximately 700 acres (280 ha), while the Boutwell Dairy herd increased to more than 1,000 Guernsey cattle in the vicinity of Congress Avenue and Forest Hill Boulevard (then named Selby Road) at its peak, becoming one of the largest dairy farms in Florida. Additionally, William A. Boutwell invented half-and-half creamer in Lake Worth. He retired in 1956, while his family sold the remaining farmland and livestock by 1965.