USDA Eligibility Guide
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Largo, FL USDA Loan Eligibility Guide
1. Property Eligibility:
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- The home must be located in a USDA-eligible rural or suburban area around Largo, FL. The USDA provides an online tool to help potential borrowers determine if a specific property is in an eligible area.
- The property must be used as the borrower’s primary residence.
- The home must meet all local codes and program regulations.
2. Applicant/Household Eligibility:
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- U.S. citizenship or permanent residency is required.
- The borrower must be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet.
- The applicant must have a stable and dependable income, typically verified by two years of consistent employment. The income must also be sufficient to cover the mortgage payment, including taxes and insurance.
- The household’s adjusted income must be at or below the applicable low-to-moderate income limit for the area.
- A reasonable credit history. While a specific credit score is not mandated, a credit score of 640 or higher is typically required for streamlined processing. However, those with lower scores may still be eligible but may undergo a more stringent evaluation.
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3. Income Limits:
- Income limits vary by county and household size. You’ll need to check with our Largo, FL USDA service center or the USDA’s online tools to see specific limits.
4. Loan and Debt Ratios:
- Typically, a 29/41 ratio is followed. This means that 29% or less of your monthly income can go towards your mortgage (Principal, Interest, Taxes, and Insurance) and 41% or less of your monthly income can go towards your total debt (this includes the mortgage and other debt obligations). Exceptions can be made in certain circumstances.
5. Other Requirements:
- Borrowers must personally occupy the dwelling as their primary residence.
- The borrower must be legally able to take on the loan obligation.
- First-time homebuyers are required to take a homeowner counseling class in some situations.
6. Loan Terms:
- The loan term is typically 30 years.
- No down payment is usually required.
- The interest rate can be set by the lender but is subject to USDA review.
7. Guarantee Fee and Annual Fee:
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- The USDA charges an upfront guarantee fee, which can be rolled into the loan amount.
- There’s also an annual fee, which is a percentage of the remaining principal amount, typically spread out in monthly installments.
It’s crucial to remember that while these are the general requirements for Largo USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Largo, FL USDA home loan professionals. Get pre-approved with our easy and stress free Largo, FL USDA home mortgage today.
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More About Largo, Florida
Largo is the third largest city in Pinellas County, Florida, United States, as well as the fourth largest in the Tampa Bay area. As of the 2020 Census, the city had a population of 82,500, up from 69,371 in 2000.
Largo was first incorporated in 1905. In 1913, it became the first municipality in Pinellas County to adopt a council-manager government. It switched back and forth between “town” and “city” a few times, and became a city again in 1974. It was an exporter of agricultural products until the 1960s population growth began to transform it into a bedroom community. From 1905 to 2010, Largo grew in area from .mw-parser-output .frac{white-space:nowrap}.mw-parser-output .frac .num,.mw-parser-output .frac .den{font-size:80%;line-height:0;vertical-align:super}.mw-parser-output .frac .den{vertical-align:sub}.mw-parser-output .sr-only{border:0;clip:rect(0,0,0,0);clip-path:polygon(0px 0px,0px 0px,0px 0px);height:1px;margin:-1px;overflow:hidden;padding:0;position:absolute;width:1px}9⁄16 of a square mile (1.5 km2) to about 19 square miles (48 km2), and in population from about 300 people to more than 70,000. Largo began as a rural farming community and became the third largest city in Florida’s most densely populated county.
Largo is a sister city to Tosayamada, Kōchi, Japan, and has been named a National Arbor Day Tree City for 32 years in a row.
The native inhabitants of the Largo area were the Tocobaga Indians. They are also known as the Safety Harbor culture from their archeological remains near present-day Safety Harbor. The Spanish came to Florida in the 16th century. In the 18th century, the Tocobaga had been virtually destroyed after years of exposure to European diseases, Spanish settlement efforts and warfare between Spain and England. The Largo area, like the rest of Pinellas County, was largely deserted. In 1763, Spain transferred sovereignty of Florida to the United Kingdom. In 1783, Florida fell to Spanish sovereignty once again until it was transferred to the United States in 1821. By 1845, a surveyor recorded the location of Lake Tolulu, apparently south of present-day East Bay Drive and roughly where the Largo Central Park Nature Preserve is today.
Later homesteaders to the Largo area included the families of James and Daniel McMullen, around 1852. The McMullens and other settlers raised cattle, grew citrus and vegetables and fished. During the Civil War, many Largo area residents fought for the Confederate States of America. James and Daniel McMullen were members of the “Cow Cavalry” driving Florida cattle to Georgia and the Carolinas to help sustain the war effort. Other area residents served on blockade runners. Still others left the area to serve in the Confederacy’s armies. After the war, Largo area residents returned to farming, ranching, and raising citrus. The Orange Belt Railway reached the area in 1888. By this time Lake Tolulu had been renamed Lake Largo, and residents of the community west of the lake adopted the name “Largo”.