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2006 4.9 Satisfied (39 Votes)
2002 4.5 Satisfied (47 Votes)
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FMHA stands for Farmers Home Administration. It is an abbreviation for a government agency that helps farmers and rural communities. The agency provides loans and grants to help farmers buy land, equipment, and supplies. It also helps rural communities with housing, water, and sewer projects.
Property type limitations: You can only use a USDA loan for primary residences. Income-producing investment properties or vacation homes cannot be purchased with a USDA loan. Income limits: Even if youre interested in living in a rural area, you may earn too much to qualify for a USDA loan.
The main difference between these loans lies in their eligibility requirements and purposes. FHA Loans are backed by the government and are available for a broad range of borrowers, while USDA Loans are specifically designed for low to moderate-income individuals living in rural areas.
The agency, created after the Great Depression, was first formed to make loans affordable to farmers and other potential home owners, who might not qualify under more traditional loan programs. The FHA insures loans against default so that lenders can relax requirements needed to qualify for a mortgage.
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