If you’re looking to buy a house in Southern Maryland, specifically in Calvert County, Charles County, or St. Mary’s County, a USDA loan could be a perfect fit for you. With USDA loans, low- to moderate-income families can achieve the dream of homeownership in eligible rural areas. Let’s dive into the details of what a USDA loan is, its benefits, eligibility requirements, and more.
What is a USDA Loan?
For qualified rural and suburban homebuyers, a USDA loan with backing from the United States Department of Agriculture offers affordable home financing options. This loan program aims to improve the economy and quality of life in rural America by providing low-interest mortgages with zero down payments.
Benefits of a USDA Loan
- No Down Payment: One of the most significant benefits is the ability to purchase a home without a down payment.
- Competitive Interest Rates: USDA loans often come with lower interest rates compared to conventional loans.
- Flexible Credit Requirements: USDA loans have more lenient credit requirements, making them accessible to a larger number of buyers.
- Low Mortgage Insurance: The mortgage insurance premium for USDA loans is lower than that of FHA loans, reducing monthly payments.
Eligibility Requirements
1. Location Eligibility
Rural and suburban areas are the target audience for USDA loans. In Southern Maryland, many areas in Calvert County, Charles County, and St. Mary’s County qualify. To check specific property eligibility, you can visit the USDA’s property eligibility site here.
2. Income Requirements
USDA loans have income limits based on the size of the household and the area’s median income. The income limits are adjusted annually. For the most recent income limits, refer to the USDA income limits documentation. As a general guideline:
- Moderate income is defined as 115% of the area’s median income.
- For a family of 1-4 members, the income limit is approximately $90,300.
- For a family of 5-8 members, the income limit is around $119,200.
3. Credit Requirements
The USDA does not set a minimum credit score requirement, but lenders typically require a score of at least 640 to qualify for the program’s automated underwriting system. Those with lower scores can still qualify with manual underwriting, given that they meet other financial standards.
4. Property Requirements
The property must meet USDA property requirements, such as adequate size, functional utilities, adherence to safety standards, and serving as the primary residence.
Cities in Southern Maryland Qualify for USDA Loans
- Lusby, MD
- Lexington Park, MD
- Prince Frederick, MD
- Leonardtown, MD
- Great Mills, MD
- La Plata, MD
- Mechanicsville, MD
- Hughesville, MD
These cities and surrounding areas offer potential homebuyers the opportunity to benefit from USDA loan advantages.
Contact an approved lender.
For personalized assistance with USDA loans in Southern Maryland, you can contact Jeffrey Halbert, an approved lender. His expertise can guide you through the process, ensuring you take full advantage of the USDA loan program.
Contact Information:
- Jeffrey Halbert
- First Home Mortgage
- Phone: (301) 327-5800
- Email: [email protected]
By leveraging a USDA loan, you can make your dream of owning a home in Southern Maryland a reality. Whether you’re looking at a cozy house in Lusby, a townhouse in Lexington Park, or any other eligible area, USDA loans provide a path to affordable homeownership.
For more detailed information, contact realtor Kenneth Powell or Jeff Halbert today.