Vernon, FL USDA Eligibility

USDA Eligibility Guide

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Vernon, FL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Vernon, Florida

    Vernon is a city in Washington County, Florida. The population was 687 at the 2010 census; according to the U.S. Census Bureau’s 2018 estimates, the city had a population of 690.

    Vernon is named for George Washington’s Virginia home, Mount Vernon. The pioneer town was the site of a major Indian settlement. Vernon held the county seat until 1927 when the seat was moved to Chipley.

    Vernon became known as “nub city” in the 1950s and 1960s for a high number of limb loss insurance claims made in the area. Vernon was featured in Errol Morris’ 1981 documentary film Vernon, Florida.

    The city sits on the Holmes Creek where during the 1880s the creek was used as a shipping route to Bonifay and other nearby towns. The creek was also used to ship gopher tortoises due to the high value their shell carried at that time.
    The town gained infamy in the late 1950s and early 1960s due to the improbably high percentage of residents who put out insurance claims on lost limbs, to the point that many speculated that residents of the town were intentionally dismembering themselves for the insurance money. Although there is no real evidence to support these speculations, these insurance claims from Vernon, with a population of 500–800, accounted for as many as 2/3 of claims nationally.

    Vernon is located at 30°37′18″N 85°42′42″W / 30.62167°N 85.71167°W / 30.62167; -85.71167 (30.621699, –85.711628).