No Money Down Home Loans for Flagler County

by Lynn on August 28, 2011

There’s a little known mortgage source for homes in Flagler County. As of right now (the maps are changing October 1st), Flagler County homes are eligible for USDA home loans. There are income caps and other eligibility requirements for buyers, but for low to moderate income buyers, these loans may be the best option.

USDA home loans can be for up to 103.5% of the property value. The catch is that income cannot be more than 115% of the median income for the area where the home is located. I’m not an expert on these loans, so I’m not going to quote any income number for the county. The best thing is to go to USDA Mortgages to get more information and apply. In addition, you’ll need above a 620 credit score for the best rates.

You can’t be loaded down with a lot of other debt to get this loan. The debt to income ratios are 29/41 for USDA loans. That means that 29% of your income can go against monthly mortgage and fees payments and you can have no more that 41% debt when you add credit cards, car loans and other debts to the mortgage payments.

The USDA also expects you to live in the home, so this loan is not available for second or vacation homes. USDA home loans are an excellent option for buying Flagler Country or Palm Coast homes for sale.

Note:  Both the eligibility maps and the structure of USDA home loans are changing on October 1st. The rate structure will reduce the loan origination fee and add a monthly mortgage insurance premium. From what I’ve been able to tell, it won’t affect monthly payments very much at all. The eligibility map changes are unknown, but we’ll publish a post when they come out in October.

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