The 100% USDA Loan Program remains one of the top first-time buyer programs in Florida. After all, this special program does not require any down payment there are also no maximum loan amounts. This program has been around Nassau County for years but the popularity has risen in recent years. Why? Zero down loan programs have mostly disappeared in recent years. Yet this popularity can also present a problem, unlike other mortgage programs…scarcity.
The USDA mortgage program funds are provided by Congress annually in the federal budget. And when the money’s gone, it’s gone for the year. That is until Congress authorizes additional funds via a continuing resolution. When the funds are provided, lenders can make USDA loans and when the funds run out, lenders have to wait until there’s more money to fund the program.
Other programs available in Nassau County including those underwritten to Fannie Mae, Freddie Mae, FHA or VA standards are funded by the lender and the source of funds is never-ending. If a lender wants to raise more capital in which to place more mortgage loans they can sell the loans they currently have, work off of a pre-arranged credit line or even open up their vault.
Not so USDA. When the program is funded it’s “first come, first served” for all USDA applicants. That means when the program has money available, you need to contact your USDA lender and get your loan package approved as soon you can. This is especially important in light of the current low-interest rates we are seeing today.
If you think the property you’re looking for can qualify for a 100% USDA loan in Nassau County, pick up the phone and call us right away to see if this special program is right for you!
Read more about USDA loans here, please contact us above with questions on how to get started.