USDA Loans in Chesapeake Ranch Estates

Yes its true, as of October 1, 2012 there will be no more USDA or Rural Development loans in the Chesapeake Ranch Estates in Lusby Maryland. Unfortunately after the most recent census they are no longer considered eligible per the population density.

This is really unfortunate as there is an abundance of 175k – 250k houses that are often purchased by first time home buyers and working class families who don’t have a lot of money to put down.

The next alternatives are FHA and Conventional. Even though we have 3% and 5% conventional loans available they are very credit score sensitive and will still carry higher monthly MI than current USDA Loans. As for FHA, they require 3.5% down and the annual MI is 1.25% compared to USDA monthly mortgage insurance which is .4% as of October 1, 2012

A 250k mortgage will be $150.63 higher each month using FHA vs USDA with a required down payment of $8,750