PG County MD and Charles County MD Home buyers should also consider a USDA Loan. I know somebody who just brought a house in Indian Head,MD. He thanked me because people told him that he never thought that he could buy a house but he was able to buy a house in Indian Head,MD using a USDA Loan.
Unfortunately many real estate agents and lenders are not aware that there are still lenders offering and yes CLOSING USDA Rural Development Loans.
In Maryland and Virginia this program is HUGE for the houses that are selling the most 200-300k. If you look at the maps on USDALoanHome.com, you can see that there are very few areas that are not eligible for this program. I have heard many false statements from agents who are not familiar with this program so I have outlined them below and in have listed the highlights in my video.
Here are a few of the misstatements I hear -
First - Rural Development Loans are only for houses deep in the country in extremely rural areas - WRONG I certainly don't live in the "country" and neither do most of my clients. Some do but its a huge misconception.
Second - USDA Mortgages are tricky WRONG! Yes they have a separate approval through the USDA office but the guidelines allow for many things that would never fly on a FHA or Conventional loan especially when it comes to credit and HELLO there are a few buyers who don't have 740+ credit scores! Our USDA Office is turning loans in 48 hours right now and I can speak directly with our representative any time I need to.
Third - USDA Loans are for people who don't make much money. If you look at the income limits for areas in MD, the limit is either $89,150 or $92,600. Using MD income limits you could potentially buy a $400,000 house with an USDA Loan. In Virginia the lowest the income limit is 74,050 and the highest is 92,600
Here is a list of the current guidelines for USDA Mortgages. (Other lenders may require higher credit scores) I also have a breakdown of these guidelines on my USDA Website.
- Up To 103.5% Financing (Funding Fee Can Be Financed)
- No Down Payment Requirement
- No Monthly Mortgage Insurance
- 600 Minimum Credit Score - 620 without penalty
- House Must Be Located Within Eligible Areas
- Household Income Must Fall Below Income Limits For Your Area
- Only 30 Year Fixed Rates
- Must Be Your Primary Residence
- 3.5% Funding Fee Can Be Financed
- You Can Not Have Enough Liquid Assets To Afford 20% Down Payment (401k, IRA, Checking Account etc.)
- For more information, please visit my website http://usdaloanhome.com or call 877-987-9009
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