St. Augustine, FL USDA Home Loans vs St. Augustine FHA Home Loans: Which is Right for You?
Homeownership is a dream for many people. To make it achievable for a wider range of individuals, there are various mortgage programs available. Among the most popular are USDA Home Loans and St. Augustine, FL FHA Home Loans. Both of these loan programs aim to assist buyers, especially those with low-to-moderate incomes, but they serve different populations and have distinct criteria. Let’s delve into the differences and similarities of these two loan types to help you decide which one might be right for you.
St. Augustine, FL USDA Home Loans
1. What it is: The St. Augustine, FL USDA Home Loan program is backed by the United States Department of Agriculture (USDA). It’s designed to help rural residents, especially those with lower incomes, purchase homes.
2. Eligibility:
- Location: Homes must be located in eligible rural areas as defined by the USDA.
- Income limits: There are maximum income limits, which vary based on the size of the household and the county in which the property is located.
- Credit score: While the USDA doesn’t have a set credit score requirement, most lenders require at least a 640 score.
3. Benefits:
- No down payment: USDA loans allow for 100% financing.
- Competitive interest rates: Often lower than conventional loans.
- Low mortgage insurance: The upfront guarantee fee can be rolled into the loan, and the annual fee is generally lower than FHA mortgage insurance.
4. Limitations:
- Geographic restrictions: The program is limited to certain rural areas.
- Income caps: Not suitable for those with higher incomes.
St. Augustine, FL FHA Home Loans
1. What it is: FHA Home Loans are backed by the Federal Housing Administration (FHA). This program aims to help those with low-to-moderate incomes and St. Augustine first-time homebuyers purchase homes. 2. Eligibility:
- Credit score: Borrowers need a minimum credit score of 580 to qualify for the 3.5% down payment. Those with scores between 500-579 can still qualify but will need a 10% down payment.
- Debt-to-Income Ratio (DTI): Generally, the ratio should be less than 43%, but exceptions can be made with compensating factors.
- Mortgage Insurance: Borrowers are required to pay both an upfront and an annual mortgage insurance premium.
3. Benefits:
- Low down payment: Requires only 3.5% down with a 580 credit score.
- Flexible credit requirements: Suitable for those with lower credit scores.
- Assumable mortgage: An St. Augustine FHA loan can be assumed by a future buyer, which can be a selling point in a rising interest rate environment.
4. Limitations:
- Mortgage insurance: FHA loans come with both upfront and ongoing mortgage insurance premiums.
- Loan limits: There are maximum loan amounts, which vary by county.
Which is Right for You?
Your decision between a USDA Home Loan and an St. Augustine FHA Home Loan will largely depend on your individual circumstances:
- Location of Desired Property: If you’re looking at a home in a rural area, the USDA loan might be the best fit. If you’re considering urban or suburban areas, an FHA loan may be the only option among the two.
- Down Payment: If you don’t have a down payment, a USDA loan, with its 100% financing, can be attractive.
- Credit Score: If you have a lower credit score, the FHA loan might be more forgiving.
- Income: Remember that USDA loans in St. Augustine, FL have income caps which could rule out higher earners, while FHA loans in St. Augustine, FL do not.
To make the best decision, consider speaking with a mortgage professional who can provide advice tailored to your situation. Both St. Augustine, FL USDA and FHA loans offer opportunities for homeownership, but the right one for you will depend on your personal and financial circumstances. Questions about the St. Augustine, FL USDA and FHA loan options? Call today (888)416-4805.
We service the following areas for FHA and USDA loans.
Learn more about St. Augustine
St. Augustine (/ˈɔːɡəstiːn/ AW-gə-steen; Spanish: San Agustín [san aɣusˈtin]) is a city in and the county seat of St. Johns County located 40 miles (64 km) south of downtown Jacksonville. The city is on the Atlantic coast of northeastern Florida. Founded in 1565 by Spanish explorers, it is the oldest continuously inhabited European-established settlement in what is now the contiguous United States.
St. Augustine was founded on September 8, 1565, by Spanish admiral Pedro Menéndez de Avilés, Florida’s first governor. He named the settlement San Agustín, for his ships bearing settlers, troops, and supplies from Spain had first sighted land in Florida eleven days earlier on August 28, the feast day of St. Augustine. The city served as the capital of Spanish Florida for over 200 years. It was designated as the capital of British East Florida when the colony was established in 1763; Great Britain returned Florida to Spain in 1783.
Spain ceded Florida to the United States in 1819, and St. Augustine was designated one of the two alternating capitals of the Florida Territory, the other being Pensacola, upon ratification of the Adams–Onís Treaty in 1821. The Florida National Guard made the city its headquarters that same year. The territorial government moved and made Tallahassee the permanent capital of Florida in 1824.
St. Augustine is part of Florida’s First Coast region and the Jacksonville metropolitan area. Since the late 19th century, St. Augustine’s distinctive historical character has made the city a tourist attraction. Castillo de San Marcos, the city’s 17th-century Spanish fort—constructed out of the sedimentary rock coquina—continues to attract tourists.
The first European known to have explored the coasts of Florida was the Spanish explorer and governor of Puerto Rico, Juan Ponce de León, who likely ventured in 1513 as far north as the vicinity of the future St. Augustine, naming the peninsula he believed to be an island “La Florida” and claiming it for the Spanish crown.