(Mar 20, 2023)
USDA loans are available in all parts of Florida, including Broward County. They're designed to help promote home ownership in less populated locations around the state, so they're available to anyone who lives in an area with a shortage of affordable housing.
If you're interested in applying for a USDA Rural Development Home Loan, keep reading for tips on how you can get started!
Are you a Hometown Hero? Find out your eligibility for the Hometown Heroes Loan Program in Broward County, Florida.
What Are USDA Loans?
In the past, if you wanted to buy a house in the suburbs, you had to go through a long and complicated process. You needed to fill out an application with your income and credit score, get pre-approved by a bank, and then wait for a couple of months while they worked on your loan. And if you got approved? You also had to wait even longer while the bank figured out what kind of loan package they could give you.
This meant that many aspiring suburban homeowners just gave up on their dreams of owning a home—and instead rented apartments or bought homes in less-desirable neighborhoods.
But now there's an easier way: USDA loans! These mortgages are backed by the government and are designed specifically for low- and moderate-income families living in rural areas or suburban communities underserved by banks. They provide low down payments and generous mortgage terms (up to 30 years), which means that borrowers don't have to wait as long after applying before their loans are approved.
And because these loans are backed by the government—which means they're subject to fewer risks than private loans—they're generally easier to get approved than private ones.
Benefits of USDA Loans in Broward County
The USDA is an excellent option for anyone looking to buy a home because they offer low rates, flexible credit guidelines, and closing cost assistance. Here are some of the most incredible benefits:
Low Monthly Private Mortgage Insurance (PMI)
For those who have bad credit or have never bought a house before, private mortgage insurance (PMI) can be pretty costly. However, with the USDA program in Broward County, all buyers can save money on their monthly PMI payments because all loans qualify for zero PMI. This means you won't have to worry about paying hundreds of dollars monthly to keep your mortgage afloat!
Flexible Credit Guidelines
In addition to saving money on your monthly PMI payments, borrowers under the USDA program in Broward County can also benefit from having flexible credit guidelines that allow them to qualify for more loans than other programs.
Lower-Than-Market Interest Rate
The low-down payment loans offered by USDA are usually calculated with the total value of your home, including the value of any improvements. They come with a fixed interest rate lower than the other mortgage options in Broward County.
This makes it easier to afford your monthly mortgage payments while making it less likely that you will have to pay higher insurance premiums or private mortgage insurance (PMI).
No Down Payment
Most of these loans have no down payment requirement, which means you can get approved without paying any money up-front. If you already own another home and have good credit, there may be no need for additional mortgage insurance fees!
This is especially helpful if you're looking for a second home or want to refinance an existing loan into a new one.
Closing Cost Assistance
The government covers the closing costs when you buy your home with a USDA loan. The same holds for repairs and improvements made to your home. You should always consult an experienced loan officer before making any improvements to your house, as it may affect the total amount of money you can borrow.
Eligibility For USDA Loans While Living in Broward County
There are several things that you need to do when applying for a USDA Loan:
- You must be a U.S. citizen.
- The house must be your primary residence.
- Your household income must not exceed 115% of the median income in Broward County.
- You cannot have any credit score below 620.
- Your debt-to-income ratio (DTI) must be 41% or less.
- The population of 10,000 or less in areas that are in open country or are rural
- The population is 20,000 or less and is not located in a Metropolitan Statistical Area (MSA).
- The area severely lacks mortgage opportunities for low- and moderate-income borrowers.
Eligible USDA Property in Broward County
For your new house to qualify as Eligible USDA Property, it must be located in a USDA-eligible location. This means that it must be located in an area that was designated as such by the USDA.
This includes:
- Foreclosure areas
- Short-sale areas
- Sale/purchase areas
- Homeownership areas
Income limits for USDA Loans In Broward
The USDA loan programs do not require you to make large down payments. However, the USDA does require that your income is below certain levels. The current income limits for USDA loans in Broward County are as follows:
- 1 to 4 members - $90,300
- 5 to 8 members - $119,200
The above income limits are subject to change at any time by the USDA. The loan maximums will also vary depending on Braward's house market and whether or not you have a co-borrower. For example, if you are applying for a USDA loan with two other people who are also applying for a loan, your monthly payment would be higher than if only one person was applying for a loan.
Do USDA Loans Require Mortgage Insurance?
PMI is a unique product that insures lenders in case borrowers default on their payments and causes them to lose money. It's an essential part of any mortgage program because it protects lenders from having to pay back all or amount of the loan if someone defaults on it. So no, USDA loans don't require PMI; only conventional loans have PMI, and only on those loans where the borrower has less than 20% equity in their home.
Why? Because when you think of government-backed mortgages, like FHA or USDA, you think of low down payments and low-interest rates. And that's because of the federal government's guarantee! But private mortgages aren't guaranteed by the federal government. The private lender knows they're taking a risk when they issue a loan to someone with less than 20% equity in their home, so they charge extra insurance premiums to ensure they're covered if things go wrong.
Outdoor Activities That Make Broward County Attractive To HomeBuyers
Broward County, Florida. It's a place you've probably heard of. But have you ever considered it an outdoor paradise?
Broward County is one of the best places to find outdoor activities in all of Florida. The county is home to some of the most popular parks in the state, and these parks are great for hiking, biking, camping, and more! You can enjoy many kinds of wildlife at these parks, including deer and alligators.
Some of the best outdoor activities in Broward County include:
Fort Lauderdale Tours
There are tours to take advantage of the city's natural beauty, but also some fun things to do during the day!
Here are some suggestions:
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Coastal Kayak Tour - Take a tour through the beautiful bays and inlets of Fort Lauderdale.
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Sunset Cruise - Enjoy drinks as you sail around Fort Lauderdale's coastline to see the sunset over the skyline of Fort Lauderdale.
- A tour at Fort Lauderdale Segway Tour - Take a Segway tour and hear stories from local historians while learning about Florida's history and culture on this unique mode of transport. The Segway tours are perfect for anyone who wants to experience Fort Lauderdale in a new way or someone who has never ridden one before! You can even rent one from the store if you don't have your own.
Everglades Cruise, Airboat, and Hike Full-Day Tour Led By Master Naturalist
Everglades cruise, airboat, and hike: it's the perfect full-day tour for anyone who loves being in nature. You'll get to see some rare wildlife and visit an old trading post that was washed away by rising waters… but you'll also get to do all of this with an expert naturalist guide.
Start your day by cruising down the River of Grass in an airboat. You'll see alligators in their natural habitat, and you can even stop at a manatee's nest if you feel like running over some rare wildlife.
Afterward, take a boat ride up the Ten Thousand Islands and visit the old trading post that once stood before being washed away by rising waters. Finally, head out into Big Cypress Preserve for some hiking and driving around—you might even find yourself spotting some elusive panthers!
90-Minute Parasailing Adventure in Fort Lauderdale
Parasailing is the best way to see Fort Lauderdale. Think of it as a 90-minute helicopter ride without the fear of death. Your parasailor will take you on a Gold Coast tour, including views of South Florida and the Bahamas. You'll be able to see everything from oceanfront mansions to downtown skyscrapers in one swoop!
Parasailing is super fun—the whole family can enjoy it! And if you're worried about dropping into the water, don't be. While parasailing is inherently risky, your parasailor will always ensure you're safe before setting off for adventure.
Shared Sportfishing Trip from Fort Lauderdale
When you're looking for a way to enjoy the great outdoors, finding an activity that doesn't require a boat can be challenging. But with this small-group excursion, you don't have to worry about securing a charter. This trip is ideal for solo travelers or smaller groups who want to meet other fishing enthusiasts.
You'll head out on Ocean Reef Marina's deep-sea fishing vessel, where you can troll for sailfish, wahoo, mahi-mahi, and tuna. With your guide at the helm, your day will be spent enjoying the ocean while catching some of the most sought-after fish in Fort Lauderdale waters.
Throw an Intimate Picnic at Hollywood Beach
If you're looking for a fun way to get out of the city and into nature, consider heading to Hollywood Beach.
The beach is just a few miles from downtown Fort Lauderdale and is known for its beautiful water, white sand, and great restaurants. There are also several areas where you can rent paddle boats or kayaks to explore the ocean. This is the best place to take advantage of the great outdoors before it gets too hot.
The best time of day to go is around sunrise (it'll be too dark otherwise). You'll want to arrive early enough to watch the sun rise over the horizon and make its first appearance in Florida!
Water sports at Pompano Beach
You've never had so much fun on the ocean!
Pompano Beach is one of the world's best places to go water sports. The name of this beach comes from a species of inshore tropical game fish which were abundantly swimming in the warm waters of the Atlantic Ocean. You'll find plenty of fun and excitement on this beach, including surfing, kitesurfing, paddleboarding, and kayaking.
It's also a great place to relax. The water here is warm—perfect for swimming and playing in the waves. And there are many other activities like fishing or hanging out with friends that you can do while enjoying the sunsets and sunrises over the ocean.
Shopping Sawgrass Mills
Sawgrass Mills is one of the most popular shopping malls in the United States. It's located in Sunrise, Florida, and it's home to over 300 retail stores. If you're looking for designer clothes, jewelry, electronics, toys, beauty products, sporting equipment, and more—this is the right place!
The mall is large enough to accommodate everyone. It has over 220,237 square meters of land area—about half an acre! The mall includes an aquarium, multiple restaurants and cafes for you to choose from (and there are plenty), and a movie theatre with live performances on weekends.
Family Excursions at Flamingo Gardens in Fort Lauderdale
If you've ever been to Flamingo Gardens in Fort Lauderdale, you know it's not just a pretty place. It's a hidden gem in the heart of Broward County and a must-see for anyone who loves nature and wildlife.
Sprawled on 60 acres, Flamingo Gardens is home to protected wildlife—the flamingos, bobcats, panthers, and more!
If you're looking for a tour that offers entertainment and education… this is the tour for you. If your kids are into bird watching or love being educated about nature, this trip is perfect! The four-hour excursion will take you through the different sections of Flamingo Gardens, including the wetlands, where you can see all sorts of birds and animals, plus learn about their habits and behaviors.
Buying a Home in Broward County, Florida
If you're you are dying to live in Broward County and would like to take advantage of the zero down payment USDA loans to make that possible, follow these steps:
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Step 1 - Find a home that fits your income.
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Step 2 - Talk to a reputable lender about your eligibility for this loan.
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Step 3 - Fill out an application form with your financial information, including how much you're willing to pay toward closing costs and how much income you make per month. You'll also need proof of this income if it differs from your checking account statement.
- Step 4 - Once the lender has approved your loan, they will send you an application packet with all the details about your loan application and the terms of their offer. Also, visit the USDA fact sheet and get more information.
Say "Bye" to PMI and "Hello" to 0
The time has come to get rid of the private mortgage insurance policy and say "Bye" to PMI and "Hello" to 0 because the USDA Loans in Broward County, Florida, are here. But if you haven't heard about these USDA loans, this is your lucky day because you now have a resource at your beck and call to help you sort through all the confusing information about these home loans.
You can leave those many hours spent on the internet doing the research behind and never again place another call to your loan officer. Just get on with your life and apply for a loan today because the sooner you do, the sooner you can buy that house of your dreams!
(Mar 20, 2023)
