Want to get a home in Tampa Bay Florida? Then you have just a couple of home financing options, but the best option currently is USDA Loan for Land. A USDA home loan is a government-backed loan with a no-down-payment mortgage.
USDA stands for United States Department of Agriculture. While it’s a government agency, they’re known for providing USDA mortgage loans for farming, forestry, and food.
History of USDA Loan for Land
The inception of the USDA home loan goes back to 1949 when the American Housing Act was passed. The law was passed after World War 2 when the US housing market was in short supply, causing millions of families to share homes.
When the law was passed, it cleared the route for the homeless and the needy. Some loans had waived their requirements for a down payment. The same goes for the USDA Mortgage loan, which was backed by the US Department of Agriculture.
How do USDA Home Loans work?
USDA rural land loans or home loans have a unique work process. When you avail of a USDA loan, the U.S Department of Agriculture guarantees your mortgage to lenders. This assures the lender that their payment will be made regardless of anything. Thus, lenders have to bear less risk, and they can offer lower interest rates compared to other mortgage providers in the country.
Types of USDS Home Loan
If you’re looking for a USDA Mortgage loan, then you should know that there are only two available types.
15-year fixed-rate loans
30-year fixed-rate loans
No Adjustable-Rate Mortgages, also called ARMs, are available to all home buyers throughout the USA. This is done with the help of the U.S Department of Agriculture’s Loan Program.
How to Qualify For a USDA Home Loan?
If you want to get USDA rural land loans, then you’ll have to meet the eligibility criteria. Here’s how you can qualify for a USDA home loan:
You have to be a legal permanent U.S citizen.
You have to prove your creditworthiness.
You need to have and maintain a dependable income.
Your household income should match 115% of the area’s median income or lower.
You have to be a primary resident in a rural area.
