If you’ve spent any time looking at mortgage financing, you’ve probably seen or heard the term USDA loan. But what is a USDA loan, and is it possible for anyone to use one? This guide explains USDA loans, how to use them, and what they’re good for.
What is a USDA Loan?
A USDA loan is a type of loan backed by the U.S. Department of Agriculture, or USDA. These loans are designed to help low-to-moderate income families and individuals purchase homes or other real estate in rural areas of North Florida, including farms and acreage. The USDA also offers a guarantee for certain loans that can make it easier for borrowers to qualify.
Related: How Much Property Do You Need to Own Horses in North Florida?
Who Qualifies for a USDA Loan?
Qualifying for a USDA loan depends on several factors, including income level and credit score. In general, borrowers must meet certain criteria to be eligible:
- Have an acceptable credit history
- Meet certain income limits (generally lower than conventional loan requirements)
- Have the ability to pay off the loan
- Be a U.S. citizen or eligible non-citizen
Can You Use a USDA Loan to Buy a House?
Yes, you can use a USDA loan to purchase an existing home or build a new one in an eligible area of North Florida. These areas are typically rural or semi-rural and include some cities as well. This type of loan is particularly helpful for first-time homebuyers because it offers better terms than a conventional mortgage loan.
Can You Buy Farmland With a USDA Loan?
Yes, you can use a USDA loan to purchase farmland in an eligible area of North Florida. There are certain restrictions, however. For example, the land must be used for agricultural purposes and can’t be used as a second home or for speculative investment. In addition, you may need to meet additional requirements such as having at least one year of farming experience prior to applying for the loan.
Related: 10 Benefits of Buying Recreational Land in North Florida
Where Can You Get a USDA Loan?
You can get a USDA loan through an approved lender, such as banks or credit unions. The USDA also offers direct home loans and guaranteed loans to eligible borrowers who meet certain criteria. Be sure to research the different options available to you before selecting a loan type and applying for financing.
Are You Buying a Home or Land for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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