USDA Loans – Bradenton, Sarasota, Palmetto, Parrish, Venice, Port Charlotte, Florida

Sunrise Financial has the ability to help you with USDA loans, which are given through the United States Department of Agriculture. 

Officially, this program is labeled the “USDA Rural Development Guaranteed Housing Loan Program”. Some even refer to it as the “Section 502 Loan”, which stems from its standing in the USDA’s charter.

Another common alias is “Rural Housing Loans”. 

No matter if you’re a first-time home-buyer from Bradenton looking for a loan without a large down-payment requirement, or a repeat-buyer aspiring to acquire maximal space at a bargain in Sarasota, Team Sunrise is here to assist you with the USDA loan!

This 30-year fixed loan was designed to attract buyers to consider residing in approved rural areas outside the center of a city. However, suburban areas that meet qualifications may be eligible. Manufactured and modular homes are also qualified, and 100% of a property’s sales price can be financed. 

The USDA imposes property requirements in this program to enforce its loans are exclusively applied to rural areas. To ensure your location is indeed eligible, it’s encouraged that a USDA loan specialist be consulted. 

The general guideline is properties located in areas with a population of less than 10,000 are eligible. Properties with less than 20,000 people in areas that lack a significant amount of mortgage credit are also suitable. 

USDA loans are also attractive due to their relaxed credit prerequisites and lack of maximum loan limits. Loan amounts are decided by several factors, including credit score, debt-to-income ratio, prior rental/mortgage payment history and income. 

These are government-backed loans, with qualifying status not being difficult to achieve for buyers. Popular 0% down-payment terms are featured, as well as low rates due to USDA loans being guaranteed against losses by the Department of Agriculture.

Therefore, banks have little risk and mortgage rates are typically lower than other government-sponsored loan agreements. Often times, closing concludes within a 45-day period. 
Essentially, USDA mortgage rates are more favorable than FHA loans, VA loans and conventional mortgages.

Specifically to FHA loans, mortgage insurance premiums via USDA loans are significantly lower, with the annual mortgage premium of a USDA loan being at four-tenths of 1% per year. 

Mortgage guarantees, however, will not occur when a household surpasses its area income limit. This is due to this loan program being keen to households with limited means.

Furthermore, a household’s yearly income may not eclipse no more than 15% of the median for a household in its area, with consideration given to a household’s capacity. An extra 8% is added for households of more than eight members with a cap of four additional members.

With Sunrise Financial excelling in areas such as Bradenton and Sarasota, below are the income limits for the programs in those locations:

Program     One Person Two Person Three Person Four Person Five Person  Six person Seven Person Eight Person
Very-Low Income $22,900 $26,200  $29,450 $32,700 $35,350 $37,950 $40,550 $43,200
Low Income $36,600 $41,850 $47,050  $52,300 $56,500 $60,650 $64,850 $69,050
Mod. Inc-Guar. Loan $75,200 $75,200 $75,200 $75,200 $99,250 $99,250 $99,250 $99,250

Specifically for a home, the USDA mandates state-licensed inspectors perform an inspection to verify if the housing is suitable for its standards. Inspectors will abide by measures such as:

•    Operational cooling and heating units
•    No pest/termite damages
•    Running water, plumbing and sewage disposal
•    Functionally modern electrical systems 

Homes must be in good structural standing, functioning sufficiently and in satisfying repair. If the home is in a state of deterioration, buyers are permitted to use funding to improve the home’s condition. 

USDA loans can also appeal to buyers who would like to construct a new home in a rural area. Under this premise, buyers must be aware of their area’s dwelling standards prior to the start of new construction.

The process entails buyers selecting a state-licensed contractor that must be approved by their loan officer. After approval, the buyer, loan officer and contractor meet to verify if the building plans are up to the standards established by the USDA. Once the construction is complete and considered satisfactory, the contractor will receive their final payment.

For those who are looking to refinance, the USDA does offer a pair of notable programs in the USDA Rural Refinance Pilot program and the USDA Streamline Refinance Program.

USDA loans are among the many loan programs we at Sunrise Financial can help you with! Call us today at (941) 758-6303