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Maryland 100% Financing USDA Mortgage - Learning Center.

The USDA loan is made available to eligible buyers who meet the guidelines and the property requirements. Not all areas in Maryland will qualify as eligible locations For the 100% financing available through the USDA loan program. This means the USDA is Maryland zero down payment home loan.

Think you have to live on a farm or be a farmer to get a USDA 100% Home loan financing? Here are the basics of the qualifying guidelines:

  •     Must income qualify and the property must be in designated area. (Verify with us, request a quote)
  •     Have to personally occupy the dwelling.
  •     Be a citizen of the United States or be admitted for permanent residency.
  •     Non-occupant co-borrowers are not permitted.
  •     Generally, borrowers must sell their existing home.

Understanding a Maryland Zero Down Payment 100% Financing USDA Home Loan.

The USDA 100% Maryland home loan financing is a Government insured home buying program that may require zero down payment when purchasing a home.

This program is available to most U.S. Citizen meeting the credit, income and asset requirements and purchasing a property that meets this loans property guidelines.
A common misconception about the USDA loan is that it has to be used to buy a property that is a farm. The loan is made use of to help promote home ownership in rural areas (basically, outside cities and major suburbs). The USDA determines the rural locations that are considered viable for USDA 100 percent home loan. These areas change with census data.

The borrowers general requirements for the USDA loan state that the borrower(s) must be either U.S. citizens or permanent resident aliens.
In addition : the loan can only be used for the primary residence and it must be owner occupied. This means that a non-occupying co-borrower is not allowed. So, someone cannot co-sign the loan unless they live in the home.
Although this program is run by the USDA and banks follow those guidelines in lending the banks and lenders may add additional guidelines.

In general, the USDA requires that a household income may not exceed 115% of the area's median income.
In Maryland, for example: (most counties) With 1-4 members of the household, the qualify medium income is $93,450. With  5+ members of the household the maximum medium income is $123,350. Please note : this is just an example, these numbers vary across the state for eligible areas/property.

The income requirements may be adjusted based on certain income deductions allowable.
It is possible that a borrower may have assets of 20% of the property purchase price and may not qualify and have to obtain conventional financing
There are recommended debt to income ratios for qualifying.
The standard is 29/41, if you exceed these qualifying ratios then you may present compensating factors. A middle credit score of 640 for each applicant is recommended. There can be compensating factors for lower scores.

Common documents needed when utilizing a Maryland 100% USDA Mortgage loan.

Original pay stubs for the previous month - but you should save at least the last 3 months.
Copies of your W2 for the last 2 years - be sure you have them for all borrowers on the loan.
For refinances - Copy of homeowners insurance - if you use a specific agent you should have their contact information available for the lender.
Copies of asset information - such as proof of money for closing costs  (if needed), 3 months worth of statements from your savings & checking accounts and investment records for mutual funds, stocks, bonds or other liquid investments.

Here are some simple steps to follow for Maryland USDA 100% home loan buyers:

  1. Gather the necessary documents (listed above  ‘Common Documents’)
  2. Search out if USDA is available in the area you would like to buy.
  3. Get general idea, based on income and debts, for what you may qualify for using the How Much Can I afford mortgage calculator.
  4. Now you are ready to get your USDA home loan quote direct from a loan officer. Take all the information you have and consider getting a credit report. Then request a rate quote.
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