USDA Eligibility Guide
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Palmetto, 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 Palmetto, 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 Palmetto, 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 Palmetto USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Palmetto, FL USDA home loan professionals. Get pre-approved with our easy and stress free Palmetto, FL USDA home mortgage today.
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More About Palmetto, Florida
Palmetto is a city in Manatee County, Florida, United States. As of the 2020 census, the population was listed as 13,323. It is part of the North Port–Sarasota–Bradenton metropolitan statistical area.
A post office called Palmetto has been in operation since 1868. Samuel Sparks Lamb is considered the “Father of Palmetto,” having surveyed and plotted the city at its outset and donated several plots of land. He owned a general merchandise store in town. Samuel Sparks Lamb was from Clarke County, Mississippi, and arrived in the area near the Manatee River in 1868 establishing Palmetto. The city received its name from the palmetto trees near the original town site. Palmetto was first incorporated in May 1893 as a village, with its first mayor being P.S. Harlee. Palmetto was reincorporated as a city in 1897 and in the following years grew. In 1902 with the arrival of the railroad, the center of town moved from the waterfront to the Seaboard Air Line train station, served by the Sarasota Branch from Turkey Creek near Plant City through Palmetto to “Bradentown” and Sarasota. By 1921, the Atlantic Coast Line Railroad was operating a Tampa Southern Railroad Branch from Tampa to Palmetto and “Bradentown”.
Compiled during the late 1930s and first published in 1939, the Federal Writers’ Project’s Florida guide listed Palmetto’s population as 3,043 and described it as:.mw-parser-output .templatequote{overflow:hidden;margin:1em 0;padding:0 40px}.mw-parser-output .templatequote .templatequotecite{line-height:1.5em;text-align:left;padding-left:1.6em;margin-top:0}
A dolomite mine existed in Palmetto on the Manatee River from the 1950s to 1974. Several failed attempts were made to redevelop the property. In 1974, the property was almost sold for residential development, but the company backed out due to the economic recession that was occurring. In 1978, a proposal was made to create a residential community on the site. The site’s master plan contained a nationwide motel chain with a restaurant, high-rise apartments along the Manatee River, single-family houses, and a shopping center built around a lake created from mining activities. The former 214-acre (87 ha) dolomite mine site was bought by WC Riveria Partners. It was then redeveloped in 1998 as Riveria Dunes, a residential community with a marina, townhouses, and homes.
Palmetto is in central Manatee County, on the north side of the tidal Manatee River, across from the city of Bradenton, the county seat. According to the United States Census Bureau, the city has a total area of 5.8 square miles (15 km2), of which 5.3 square miles (14 km2) are land and 0.5 square miles (1.3 km2) 8.26%, are water.