Venice, FL USDA Eligibility

USDA Eligibility Guide

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Venice, FL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Venice, Florida

    Venice is a city in Sarasota County, Florida, United States. The city includes what locals call “Venice Island”, a portion of the mainland that is accessed via bridges over the artificially created Intracoastal Waterway. The city is located in Southwest Florida. As of the 2020 Census, the city had a population of 25,463. Venice is part of the North Port–Sarasota–Bradenton metropolitan statistical area.

    The area that is now Venice was originally the home of Paleo-Indians, with evidence of their presence dating back to 8200 BCE. As thousands of years passed, and the climate changed and some of the Pleistocene animals that the Indians hunted became extinct, the descendants of the Paleo-Indians found new ways to create stone and bone weapons to cope with their changing environment. These descendants became known as the Archaic peoples. Evidence of their camps along with their stone tools were discovered in parts of Venice. Over several millennia the culture and people who lived in the area changed. The peoples who the Spanish encountered when they arrived in 1500s were mound-builders. Venice lay in a boundary area between two cultures, the Tocobaga and the Calusa, and so you can find evidence of each in the area.

    The 1800s is when the area saw the first wave of “European” settlers. Venice was first known as Horse and Chaise because of a carriage-like tree formation that marked the spot for fishermen. In the 1870s, Robert Rickford Roberts established a homestead near a bay that bears his name today, Roberts Bay. Francis H. “Frank” Higel, originally from France, arrived in Venice in 1883 with his wife and six sons. He purchased land in the Roberts’ homestead for $2,500, equivalent to $79,000 in 2022, to set up his own homestead. Higel established a citrus operation involving the production of several lines of canned citrus items, such as jams, pickled orange peel, lemon juice, and orange wine. Higel established a post office in 1885 with the name Eyry as a service for the community’s thirty residents. In February he was appointed as postmaster but the office was shut down months later, in November 1885, with services moving back to Osprey. In 1888, another post office was established, this time with the name Venice, a name Higel himself suggested because of its likeness to the canal city in Italy.

    During the Florida land boom of the 1920s, Fred H. Albee, an orthopedic surgeon renowned for his bone-grafting operations, bought 112 acres (45 ha) from Bertha Palmer to develop Venice. He hired John Nolen to plan the city and create a master plan for the streets. Albee sold the land to the Brotherhood of Locomotive Engineers and retained Nolen as city planner. The first portions of the city and infrastructure were constructed in 1925–1926.

    According to the United States Census Bureau, the city has a total area of 16.6 square miles (43.1 km2), of which 15.3 square miles (39.5 km2) is land and 1.4 square miles (3.5 km2), or 8.19%, is water. The climate of Venice is humid subtropical, bordering very closely on a tropical savanna climate, thus featuring pronounced wet and dry seasons.