Are you located in a more rural area of Florida? If so, maybe the 100% USDA home loan can benefit you.
Some background – The USDA Rural Development Home Loan is the last remaining no down payment government-insured mortgage program for Florida civilians.
The USDA mortgage program is designed to help promote homeownership in less populated locations around Florida. Many people assume the USDA loan program is only for farmers or ranchers, not true.
Even some major metropolitan areas have outlining suburbs that still qualify as USDA eligible property locations. Select locations around major Florida cities like Jacksonville, Orlando, Tampa, Gainesville, Ocala, Tallahassee, and Pensacola still have USDA-eligible locations around them. Interested homebuyers can click here to view USDA-eligible zones in their location.
The USDA loan program will allow homebuyers to borrow up to 101% of the home’s appraised value. In addition, homebuyers can include closing costs into their loan assuming their appraised value is sufficient.
Some benefits of a USDA Home Loan include:
- 101% Financing, No Down Payment required!
- Lower monthly mortgage insurance (PMI) when compared to alternative programs. The one-time USDA funding fee is included in your loan.
- No Loan Amount limits.
- No Cash Reserve Requirements
- 6% seller contribution allowed for closing costs
- 100% Gifted Closing Costs allowed
- 30 year fixed rate loan at low market interest rates
- No Prepayment Penalty
- Primary Residents only (no rentals/investments or second homes permitted)
- 640 min credit score required for automated GUS approval. Lower credit scores down to 600 can be accepted on case by case basis with manual underwriting
- USDA streamline assist refinance programs available to homeowners that want to take advantage of lower mortgage rates in the future. The USDA streamline refinance is helpful for borrowers that purchased a home in the last few years when interest rates were higher.
To qualify for the USDA loan program, there are two main requirements that differ from the other government loan programs (FHA or VA loan program)
Property Location: The home must be located in a Florida USDA-eligible designated rural area. Nearly 80% of Florida’s land mass still qualifies for the program. This includes many “not so rural” suburbs just outside of big cities. Buyers can find the complete USDA eligibility map here. Remember, the seller of the property is not important, just where the property is physically located.
*Note this requirement does not apply to homeowners that currently have a USDA backed loan and inquiring about a streamline refinance.
Each county has different USDA income restrictions, and the income limit is based on many different variables like property location, family size, etc. For most of Florida and the rest of the country, the household income is limited to $122,800 for a family of 1–4 members.
The limit goes even higher, up to $162,100 for larger families of 5+ members. Some locations like Jacksonville, Naples, Orlando, etc are even greater. The USDA Rural Housing income limits are valid for 2026, please click here to learn more.
Don’t meet the USDA eligibility requirements? Contact us today to learn about the other 100% down payment assistance program available in nationwide.
Questions about USDA / RD home loans? Call us above or just submit the Info Request form below. Please also visit our blog for the latest Florida USDA home loan information.
