Southwest Ranches, FL USDA Eligibility

USDA Eligibility Guide

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Southwest Ranches, FL USDA Loan Eligibility Guide

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

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    More About Southwest Ranches, Florida

    Southwest Ranches is a town in Broward County, Florida, United States. It is a suburban community part of the Miami metropolitan area and is located on the eastern edge of the Everglades, 15 miles (24 km) southwest of Fort Lauderdale and about 22 miles (35 km) northwest of Miami. It is unusual in that it consists of three non-contiguous areas, albeit they are in close proximity; the two largest being separated by 1,455 feet (0.443 km). It became the county’s 30th incorporated place in 2000 to avoid annexation into Pembroke Pines and to preserve its semirural lifestyle. Because the area has many horse ranches and is located in the southwestern part of Broward County, residents chose “Southwest Ranches” over other potential town names.

    The population at the 2020 census was 7,607. The town includes the former census-designated places of Country Estates, Green Meadow, Ivanhoe Estates, Rolling Oaks, and Sunshine Ranches (as well as subneighborhoods Landmark Ranch Estates and Sterling Ranch Estates), all of which are now Southwest Ranches neighborhoods. To support its rural-equestrian lifestyle, the town has developed many equestrian trails.

    Prior to European colonization, the Tequesta were the native people in the southeastern part of Florida for almost 2,000 years from 500 BCE to the 18th century CE when the Spanish conquered Florida. In the 1970s archeologist excavated a Tequesta burial site, with artifacts that go back to more than a thousand years, that was part of a former Everglades tree island. There is also an old Indian trading post in the town.

    In 1996, Pembroke Pines proposed a bill to the Broward County Legislative Delegation to annex all the unincorporated areas between Griffin Road, Sheridan Street, Flamingo Road, and SR 25 into Pembroke Pines. Hundreds of citizens from the unincorporated area of Southwest Ranches packed the delegation hearing in November 1996 at Pembroke Pines City Hall to protest this takeover and to call for the right to form their own city. As a result of this grassroots effort, the State Legislature passed a bill in the 1997 session that called for a vote of Southwest Ranches’ citizens in March 2000; they could be annexed into either Pembroke Pines or Davie, or become a new city.

    Southwest Ranches Homeowners Association was an umbrella group composed of individual homeowners associations in the Southwest Ranches area. Anyone belonging to an individual homeowners association was also automatically a member of the group, with full voting rights. In 1997, its members agreed to actively promote incorporation of a new city for the area and formed a political committee to explore this option. A feasibility committee was appointed to determine if a new city would be viable. They would have to know if revenues would be adequate to cover the costs of running a city. Dr. Milan Dluhy of Florida International University was contacted and asked to complete a formal feasibility study; Dluhy had produced many such studies for groups that subsequently became successful cities. The committee also contacted Moyer and Associates, the company that provides contract services to Weston.