South Miami, FL USDA Eligibility

USDA Eligibility Guide

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South Miami, FL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About South Miami, Florida

    South Miami is a city in Miami-Dade County, Florida, United States. The city is part of the Miami metropolitan area of South Florida. The population was 12,026 as of the 2020 census.

    South Florida had been roamed by Native Americans (Tequesta, Calusa, and Jaega), probably for centuries, before white pioneers advanced through Little Hunting Ground (later known as Miami’s Coconut Grove neighborhood) to Big Hunting Ground (now known as the Cutler neighborhood of Palmetto Bay).

    Wilson Alexander Larkins (1860–1946) was 36 years old when he, his wife (Katie Estelle Burtashaw) and five children, and their livestock arrived in Fort Dallas (now the Lummus Park Historic District of Miami) in 1896. He purchased property west of Red Road and Sunset Drive, where he built a home and barn. He also built the first general store east of that area in 1898 at what is known today as Cartagena Plaza or Cocoplum Circle (actually in Coral Gables). As the community grew, he established a post office in the community. Larkins became the first postmaster, a role he held for sixteen years; he named the area “Manila”, but the majority of the settlers, who began building homes around his store, preferred the name of “Larkins” in his honor.

    A depot was placed along the Florida East Coast Railway in 1904, and in the same year, John Moses Dowling built the first house within what is now South Miami city limits. His son-in-law opened the first store on the west side of the tracks, called the White Palace Grocery.

    Other prominent historic families have historic buildings and streets named for them, such as Dorn Avenue (Southwest 59th Avenue) and the Shelley Building, among others. Harold W. Dorn and his brother Robert moved to the area in 1910; their primary interest was growing mango and avocado. Mary E. Dorn was the first president of the Cocoplum Thimble Club, the first Women’s club in Larkins. In 1925, the Dorn brothers built the Riviera Theatre at 5700 South Dixie Highway; in 1934, Charles T. Fuchs moved his Holsum Bakery from Homestead to South Miami and turned the Riviera Theatre Building into a bakery.