St. Mary's County Maryland - USDA Rural Development Home Mortgage Loan - No Money Down - 100% Financing
Home buyers thinking about purchasing a home in St. Mary's County, can do so in any part of the County outside of California, Lexington Park, and Patuxent River, and are eligible for a special loan program available through the U.S. Department of Agriculture Rural Development Loan Program designed to promote moderate income housing opportunities in rural communities.
The USDA Rural Loan promotes home ownership by offering No Money Down Financing or 100% Mortgage Financing, with No Monthly Mortgage Insurance requirements, and flexible sources allowed for paying a home buyers closing costs. This loan program is available for rural areas, which is the vast majority of the County and includes the towns of Abel, Callaway, Compton, Drayden, Morganza, Park Hall, Ridge, Scotland, and St Inigoes. The property must not have an in-ground pool and the land value can't exceed 30% of the properties overall value.
The USDA Loan is only offered using a safe 30 year fixed rate mortgage. The borrowers on the mortgage loan must have a minimum 620 middle credit score and the combined household income can't exceed $92,600 based on a family size of four and less, and $122,250 for a family size of five and more. Should the combined family income exceed these thresholds USDA Rural Loan allows for certain deductions to be applied toward reducing the gross income in order to qualify for the USDA Loan. Reference the St. Mary's USDA Rural Income Loan Calculator to calculate a households adjusted income.
Despite being the only No Money Down Loan program that is available to everyone; not all Realtors and Loan Officers are proficient at the USDA Loan Program. Instead of discussing the USDA Rural Loan and its No Down Payment Requirements, these Realtors and Loan Officers often instead promote FHA as the best first time home buyer loan program. However, since USDA Loan doesn't require a down payment, while FHA requires a 3.5% down payment, and USDA monthly payment is less than FHA due to the lack of a required Monthly Mortgage Insurance premium, eligible home buyers should consider the USDA Loan as a superior option to FHA. Bottom line with USDA the home buyers either saves on their monthly mortgage payment or can opt to purchase more house for the same payment as FHA. To determine how much can be saved with the USDA Loan program go to the online USDA Vs. FHA Comparison Calculator.
To learn more about the USDA Rural Development Mortgage Loan go to MarylandUSDA.com or call (410) 552-5912 so you can quickly get answers to your mortgage loan questions and determine your eligibility for this No Money Down Loan Program.