USDA Loan Guidelines

USDA Loan Guidelines


No Down Payment

Absolutely no down payment is required which allows you to literally buy as house with NO money if the closing costs have been covered.

Up to 102% financing

Allows you to finance in the guarantee fee into the mortgage.

.4% Annual Mortgage Insurance (Paid Monthly)

Very low monthly mortgage insurance compared to FHA 1.35% (April 1, 2012)

2% Guarantee Fee

The USDA Guarantee Fee or USDA Funding Fee is required on all USDA guaranteed loans. This keeps the government program funded and protects investors in event that the borrower defaults on the loan.

USDA Loan After Bankruptcy

USDA Loan Chapter 13 Bankruptcy1 year into making payments on time and you are re-establishing credit.
USDA Loan After Chapter 7 Bankruptcy3 years after discharge under normal circumstances and 2 years if there were circumstances beyond your control i.e. death of primary income earner, loss of job, medical bills.

USDA Loan After Foreclosure Foreclosure must have been dismissed for more than 36 months measured by discharged or dismissal date.

620 Minimum Credit Score

Flexible Credit and Expanded Qualifying Ratios. Borrowers with non-traditional credit histories may be eligible.

The House Must Be Within USDA Eligible Areas

I have provided maps for all the USDA Loan Eligible Areas in Maryland.  Please call 443-624-9398 to determine if the house your are looking at is eligible if its not clear on the map.

Household Income Must Fall Below Income Limitations For Your Area

Income is calculated for EVERYONE working in the home. Click here to see the USDA Income Limits For Maryland Counties

Only 30 Year Fixed Rate

There are no 15 or 20 year or ARM USDA mortgages available.

House Must Be Your Primary Residence

You can not obtain a USDA mortgage for a vacation home, second home or investment property.

USDA Loan Guidelines

USDA loan guidelines USDA loan guidelines

These are the main USDA guidelines, for more details and questions about your specific situation or to apply Call 443-624-9398