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USDA Loans in Florida. Review & Criteria to Get USDA Home Loan

– USDA Loans in Florida –

USDA Loans in Florida – Curious to find out more about how Florida USDA home loans work? In this article, we will focus specifically on USDA Home Loans in Florida, particularly the Benefits of the USDA Loan in Florida highlighting eligible areas and the USDA Income Limits in Florida.

Who may apply for Florida USDA home loans? 

How USDA Home Loans Work?

This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe, and sanitary dwellings as their primary residence in eligible rural areas.

Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.

USDA-guaranteed mortgage loans in Florida give people the ability to buy homes with no down payment and are easier to qualify for or allow lower credit borrowers to qualify. USDA home loans also come with better interest rates – since the Department of Agriculture guarantees your loan against default.

Minimum Qualifications for USDA Loans

At a minimum, USDA guidelines require:

  • S. citizenship or permanent residency
  • Ability to prove creditworthiness, typically with a credit score of at least 640
  • Stable and dependable income
  • A willingness to repay the mortgage – generally 12 months of no late payments or collections
  • Adjusted household income is equal to or less than 115% of the area median income
  • The property serves as the primary residence and is located in a qualified rural area

Lenders may have their own internal guidelines and requirements in addition to those set by the USDA’s Rural Development program.

USDA Loan Credit Requirements

Applicants must show stable and dependent income and a credit history that demonstrates the ability and willingness to repay the loan.

There is no minimum credit requirement for the USDA loan. However, applicants with a credit score of 640 or higher are eligible for the USDA’s automated underwriting system. Applicants below the 640 mark may still be eligible, but they are subject to manual underwriting, which can mean more stringent guidelines.

To determine creditworthiness, your lender will review items such as:

  • Credit score
  • Repayment patterns
  • Credit utilization
  • Length of credit history

Applicants without established credit may still be eligible but will require credit verification from alternate sources, such as rent payments, utility payments, and insurance payments. Policies on this can vary by lender and other factors.

USDA Loan in Florida

The USDA Loan in Florida is a popular program and many locations are eligible. The Rural Housing Loan can be challenging to qualify for but offers more competitive interest rates, no money down and low mortgage insurance compared to Conventional Mortgages and FHA Loans in Florida.

USDA Loan Benefits in Florida

  • No Money Down – Most times, when applying for a USDA loan, Florida borrowers are not required to put any money down.
  • Low-Interest rates – At United Fidelity Funding, we offer some of the more competitive rates in the nation, but on top of that USDA Loans in Florida have some of the lowest rates of all which allows your payment to be more affordable.
  • Reduced Mortgage Insurance – the USDA Mortgage Insurance premium is the lowest of any loan program, calculated at .35% of the loan amount per year, which is then divided by 12 to determine the monthly installment added to your mortgage payment.

Who may apply for Florida USDA home loans? 

Who may apply for Florida USDA home loans? 

  • Meet income- USDA eligibility
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • If you have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria
  • Credit background will be fairly considered.

Florida USDA Loan Advantages Include:

  • 100% Financing, no down payment needed.
  • Buyers closing costs can also be paid by the home seller.
  • Safe and secure 30-year fix rate terms with low-interest rates.
  • Not limited to strictly first-time buyers, all qualified home buyers can apply.
  • Less monthly mortgage insurance costs when compared to Conventional or FHA loans.
  • Lower credit scores are often accepted down to 600, even lower for home buyers that have a down payment.

USDA Income Limits and Requirements in Florida

Another challenge to qualifying for a USDA Loan in Florida is the income restrictions and debt-to-income ratio requirements.


USDA loans in Florida count the entire HOUSEHOLD’S income when determining if you’re eligible. The household’s income must be below the area median as defined by the tables below. 

So even if a person isn’t on the loan, the lender must verify that person’s income and include it towards the USDA income limits in Florida.

Debt-to-Income Ratio

The USDA does not have loan limits, meaning you can borrow as much as you can qualify for. Instead, they have some strict debt-to-income ratio requirements which limit how much you can qualify for.

  • Monthly Debt Payments – to qualify for a USDA loan in Florida, your monthly minimum debt payments as reported on credit cannot exceed 31% of your gross (before taxes) monthly income.
  • Overall Debt Payments + House Payment – additionally, the USDA requires that the new mortgage payment plus your minimum debt payments be below 43% of your qualifying monthly income.


The credit score for a USDA loan is 640. This generally needs to be 3-6+ months of the mortgage payment and the money needs to be in checking, savings, or retirement accounts.

USDA Income Limits Florida

USDA Income Limits Florida

For 90% of USDA eligible areas in Florida, the household income limit is capped at $82,700/year for 1-4 person households and goes up to $109,150/year for 5+ person households.

If you are looking to get a USDA loan in Florida, I hope this helped. However, you could try other options instead of getting a loan, including;

  1. Borrow from a retirement account
  2. Borrow from your parents
  3. Get a co-signer
  4. Borrow from your insurance policy
  5. Seller financing
  6. Rent to own
  7. Save more for a down payment

We hope this article was useful and educative, do well to share these messages with friends and loved ones. If you have a question, kindly drop your comments below.

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