Help with USDA loans being a first time home buyer....

Asked by Kristin, Milton, FL Wed Sep 30, 2009

payment assistance only to find out that it was discontinued by Pres. Bush's bill in Oct. 2008. My new avenue is trying to find a step by step on a USDA loan. Per their website, we would qualify for the guarantee loan only. It does say that it is 100% financed so we would not need a down payment. How do I go about getting this loan? I hear the actualy process takes a long time, how could I rush things to get the tax credit? How is the cap on the loan limit determined? If 102% is borrowed of the apprasial amount, can we use that toward home improvement? Lastly, I was told that many of the properties that need alot repairs will not qualify for the USDA loan...what constitutes as "alot of repairs?"

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James Gordon…, Agent, Hamilton, OH
Wed Sep 30, 2009
For USDA loans the cap is determined by your income there is no max price on the property. You do need to get together with a loan officer that has closed USDA loans in the past.

Here is a link to Florida and you can check for areas that are eligilble for USDA loans.…

Just to give you an idea here is a copy of the checklist that is recommended to be used when the apraiser is at the property.
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1 vote
Nicole St. A…, Agent, Pensacola, FL
Sun Feb 14, 2010

If you are still looking for a home, I can definitely help you! Most local lenders are approved to do the Rural Development loans which offer the 100% financing. Although I see you have the map address, locally, rural development includes all of Pace, Milton, Cantonment, and Beulah west of 11 Mile Creek Rd. I have a house for sale- 3/2 on a 1/3 acre in Beulah on Woodside Rd. 100% move in ready, completely remodeled, and qualifies for the Rural development loan! It als includes Gulf Breeze (east of Proper of course) and Navarre!

Usually alot of repairs for a loan sake means rotted wood, a bad roof, missing floor covering, etc. If the carpet is stained and in bad shape, you should still be able to qualify for the loan as long as there aren't big holes or missing peices of the floor. Of course, you never want to buy a house with a leaky roof so they would check that, and check to make sure it has a functioning a/c unit, inside and out, hot water heater, etc. Appliances are not usually something they check for.

Let me know if you need help here locally and still havent found a house! i know a few local lenders I can refer you to in order to get your pre-approval which allows you to start shopping for houses!

Thanks and have a great day,
Nicole St. Aubin, Realtor
Realty Masters of FL
(850) 473 3983 phone
0 votes
, ,
Wed Sep 30, 2009
Kristin, we are an approved USDA lender. You can finance up to 102% of the appraised value. That extra 2% covers the USDA fee. If the home appriases for more than the sales price you can finance the entire loan and closing costs.

USDA homes are in certain areas and below is a link that you can determine if the home you want to buy is in a USDA area.

Make sure you check the household income in the eligibilty website. It is a little tricky and if you are close but over there are certain items that we can subtract from your income to make sure you fit the income requirement.

If there are cosmetic repairs needed it should not be a huge issue, but anything that is structural or suggests structural problems will not be allowed.

If you would like to discuss in more detail, I would be glad to help.

Andrew Kashella
0 votes
, ,
Wed Sep 30, 2009
Here is the USDA webstie. The process should not take any longer than a conventional mortgage.…
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Susan Rood, Agent, Niceville, FL
Wed Sep 30, 2009

We have a local USDA office located in Crestview. Diane Collar is the area director, she can be reach by phone at 850-682-2416 ext 128 or by email at She should be able to help you or direct you to someone local who can.
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