USDA Loan Sarasota, Florida
USDA Mortgages Gives Home Buyers a Chance to Purchase Their Own Home, Complete with 100% Financing
Sarasota area is booming as a pleasant residential area and retirement destination, and this has impacted housing and living costs. Bradenton is more residential and close enough to the Tampa area that some make the commute, while also being close enough to that area that many weekenders make the trip south to enjoy Bradenton’s beaches. Venice is a small coastal city some 12 miles south of Sarasota. The downtown areas of all three cities are pleasant and walkable, with plain, sprawling suburbs surrounding Bradenton and Sarasota towards the north-south I-75 corridor. There is plenty to do, and the area is strategically to provide a smaller city lifestyle while taking advantage of the greater set of city services available in the Tampa-St Petersburg area. Read more about Sarasota...
The USDA loan is one of the most attractive and flexible first time home buyers loans available to low and moderate income first time homebuyers purchasing a home in designated rural areas. Under this USDA loan homebuyers program offers a 100% financing , with NO monthly mortgage insurance premium charged to home buyer. The upfront 2% USDA Guarantee fee may be added to the loan amount.The purpose of USDA Loans is to encourage economic growth in rural areas. This is done through the USDA Rural Development Program.
It was designed to give moderate to low income families an opportunity to secure a low interest mortgage in rural communities with populations of 20,000 or less.
As these areas grow, there can be sustained growth in the economy for years to come.
Highlights of the USDA loan:
- USDA loans are not just for farmers; however you must locate a home in a designated rural area.
- Offer low rates and 100% financing. The only home loan program that includes the closing cost into the financed loan amount.
- USDA loans offer better terms that conventional, with no monthly mortgage insurance saving you 1000's.
- USDA home loans can be used to purchase a new or existing single family home in any designated USDA approved area.
How much is the closing costs and pre-paid escrow with a USDA loan?
The exact amount of closing costs, etc will depend on many different variables like your loan amount, current tax assessment on the home, homeowners insurance policy amount, among many other items. Generally speaking 3-6% of the sales price is a good estimate depending on how high the sale price is.
Will the taxes and home insurance be included in the monthly mortgage payment?
As for the taxes and home insurance, this will be included or “escrowed” as part of your monthly mortgage payment, along with the USDA mortgage insurance, as required by USDA. So your monthly mortgage payment will include Principal, Interest, Taxes, Home Insurance and Mortgage Insurance. In addition, your taxes and home insurance will automatically be renewed for you each year.
Your path to home ownership starts here. Give us a call today to learn more about our USDA Home Loans