USDA Eligibility Guide
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Siesta Key, 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 Siesta Key, 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 Siesta Key, 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 Siesta Key USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Siesta Key, FL USDA home loan professionals. Get pre-approved with our easy and stress free Siesta Key, FL USDA home mortgage today.
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More About Siesta Key, Florida
Siesta Key is a barrier island off the southwest coast of the U.S. state of Florida, located between Roberts Bay and the Gulf of Mexico. A portion of it lies within the city boundary of Sarasota, but the majority of the key is a census-designated place (CDP) in Sarasota County. Siesta Key is part of the North Port–Bradenton–Sarasota Metropolitan Statistical Area.
From the 19th century to the early 20th century, Siesta Key was known by a variety of names, including Little Sarasota Key and Sarasota Key. The first attempts to develop the key were by the Siesta Land Company in 1907, consisting of Harry Higel, Captain Louis Roberts, and E.M. Arbogast. The company platted the northern end of the key as Siesta on the Gulf as well as dredged bayous and built docks.
The only access to Siesta Key was by boat or ferry until the first bridge connecting it to the mainland was completed in 1917. The bridge was replaced in 1927 with an addition of a second bridge located on the southern end of the key. The entire key officially was recognized as Siesta Key by 1952.
According to the United States Census Bureau, the CDP has a total area of 3.5 square miles (9.0 km2), of which 2.4 square miles (6.1 km2) is land and 1.1 square miles (2.9 km2), or 32.08%, is water.
Siesta Key is made up of four main districts: Siesta Beach, Crescent Beach, Turtle Beach, and Siesta Key Village. It contains a suburban residential area located on the Siesta Key barrier island on the West coast of Florida, just west of the town of Sarasota. The community on Siesta Key consists of single-family homes, condominiums, retail shops, and art galleries.