South Palm Beach, FL USDA Eligibility

USDA Eligibility Guide

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South Palm Beach, FL USDA Loan Eligibility Guide

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

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    More About South Palm Beach, Florida

    South Palm Beach is a town located in Palm Beach County, Florida, United States. The town is part of the Miami metropolitan area of South Florida and situated on a barrier island between the Atlantic Ocean and the Intracoastal Waterway. The entire town is approximately .mw-parser-output .frac{white-space:nowrap}.mw-parser-output .frac .num,.mw-parser-output .frac .den{font-size:80%;line-height:0;vertical-align:super}.mw-parser-output .frac .den{vertical-align:sub}.mw-parser-output .sr-only{border:0;clip:rect(0,0,0,0);clip-path:polygon(0px 0px,0px 0px,0px 0px);height:1px;margin:-1px;overflow:hidden;padding:0;position:absolute;width:1px}5⁄8 of a mile (1.0 km) long along South Ocean Boulevard (Florida State Road A1A), its only street. It is between the Town of Palm Beach to the north and the Town of Lantana and its public beach to the south.

    The town was incorporated in 1955 with several condominium buildings and four single-family homes. Many condominiums were constructed, contributing to the town’s growth in the early 1970s. The fire station served for town meetings until 1993 when a town hall was built.. As of the 2020 census, the population was 1,471.

    South Palm Beach is located at 26°35′30″N 80°2′15″W / 26.59167°N 80.03750°W / 26.59167; -80.03750 (26.591746, –80.037525).

    South Palm Beach is bordered to the north by the Town of Palm Beach; to the east by the Atlantic Ocean; to the west by the Intracoastal waterway (known locally as the Lake Worth Lagoon); and on the south by the town of Manalapan as well as Lantana’s public beach.

    According to the United States Census Bureau, the town has a total area of 0.9 square kilometers (0.35 sq mi), of which 0.3 km2 (0.12 sq mi) is land and 0.5 km2 (0.19 sq mi) (60.61%) is water.