The USDA Rural Development Loan Program offers first time homebuyers and move-up buyers:
 | 100% Financed Mortgage, No Money Down, $0 Down Payment |
| USDA Monthly Mortgage Insurnace Premiums 74% less than a comparable FHA Loan |
| Flexible Credit Requirements |
| Safe, Secure 30 Year Fixed Rate Mortgage |
| No Maximum Loan Amount |
| With Seller Help, No Out-Of-Pocket Closing Costs |
| Most Property Types Allowed |
Latest News - USDA Rural Development Loan Programs
USDA to USDA Refinancing Is Back
Date: October 14, 2010Source Document
Questions or Comments Regarding This Information?
The U.S. Department of Agriculture Rural Development program will start providing Conditional Commitment for the Single Family Housing Loan Program for refinance transactions in fiscal year 2011, which started October 1, 2010. The new Guarantee Fee will be 1% of the loan amount.
Conditional Commitment means that USDA will provide their loan approval "subject to the availability of congressionally appropriate funds." Lenders can continue to close these loans as scheduled and as soon as these funds become available then the Loan Note Guarantee requests will be processed by USDA.
What this means to you. If you currently have a USDA loan you can now refinance the mortgage into a new USDA loan and take advantage of today's historically low interest rates.
To learn more about your refinancing options through the USDA Rural Development Loan Program complete contact form or call (866) 747-2882 to speak to your local Maryland loan professional.
USDA Funding Update – Fiscal 2011
Date: October 1, 2010Source Document
Questions or Comments Regarding This Information?
The U.S. Department of Agriculture Rural Development program will provide Conditional Commitment for the Single Family Housing Loan Program for purchase transactions in fiscal year 2011, which started October 1, 2010. The Guarantee Fee will be 3.50% of the loan amount.
What does Conditional Commitment mean? For lenders Conditional Commitment means:
- USDA will accept applications (just for purchase transactions at this time), underwrite, approve and issue a "Conditional Commitment."
- Lenders will continue to fund loans allowing for settlements to occur.
- Once funds become available USDA will fund the loans and lenders will receive a Loan Note Guarantee.
- Lenders stand the risk of default prior to the Loan Note Guarantee being issued.
If you are considering financing an upcoming home purchase using a USDA loan and want to learn more about your financing options through the USDA Rural Development Loan Program complete the contact form or call (866) 747-2882 to speak to your local Maryland loan professional.
USDA Funding Is Back
Date: September 8, 2010Questions or Comments Regarding This Information?
Yesterday – September 7, 2010 – USDA Rural Development announced that beginning September 8, 2010 it will once again start issuing Conditional Commitments without the "subject to funding" language. Going forward Conditional Commitments will be issued through the end of the Federal Government fiscal year, which is September 30, 2010. In addition, USDA announced that its automated approval engine, GUS or Government Underwriting System, has been updated to reflect previously announced changes to the USDA Commitment Fee.
Prior to new loans being approved for Conditional Commitment, USDA will need to clear the backlog of loans that have Conditional Commitments with the "subject to the availability of funds" statement that lenders have been funding since May 26, 2010.
This is fantastic news for lenders that have continued to close and fund USDA Rural Development Loans since May 26, 2010 as these loans required the lender to assume a level of risk pertaining to changes to the borrower's financial condition and default potential of the borrower. To combat this additional exposure to risk, many Underwriters have been approving loans much more conservatively since May 26.
Now that Underwriters once again have access to GUS, homebuyers using the USDA loan program will find that:
- Credit and debt ratio waivers will once more become available
- Borderline applicants will more readily obtain credit approval
- Underwriting turn times will improve as Underwriters are no longer required to manually underwrite each file
USDA Announces Increased Income Limits
Date: June 2, 2010Source Document
Questions or Comments Regarding This Information?
The income limits for the USDA Guaranteed Rural Housing (GRP) Program have increased effective June 2, 2010. While the increase in Maryland is less than $1,000, considering that family incomes have stagnated over the last year, any increase is helpful in qualifying more homebuyers for this loan program.
Based on the increase new maximum income limits are as follows:
| County | Income 1-4 | Income 5-8 |
|---|---|---|
| Allegany | $93,150 | $122,950 |
| Anne Arundel | $93,450 | $123,350 |
| Baltimore | $93,450 | $123,350 |
| Calvert | $101,000 | $133,300 |
| Caroline | $93,150 | $122,950 |
| Carroll | $93,450 | $123,350 |
| Cecil | $93,450 | $123,350 |
| Charles | $101,000 | $133,300 |
| Dorchester | $93,150 | $122,950 |
| Frederick | $93,450 | $123,350 |
| Garrett | $93,150 | $122,950 |
| Harford | $93,450 | $123,350 |
| Howard | $93,450 | $123,350 |
| Kent | $93,150 | $122,950 |
| Montgomery | $101,000 | $133,300 |
| Prince Georges | $101,000 | $133,300 |
| Queen Anne's | $93,450 | $123,350 |
| Somerset | $93,150 | $122,950 |
| St Mary's | $93,450 | $123,350 |
| Talbot | $93,150 | $122,950 |
| Washington | $93,150 | $122,950 |
| Wicomico | $93,150 | $122,950 |
| Worcester | $93,150 | $122,950 |
Remember that USDA does allow for the total household income to be higher than these income limits provided that certain adjustments or reduction to income can be made including:
- Documentable childcare expenses for children age 12 and under
- $480 per child for anyone under 18
- $480 for any student other then one of the applicants
- $400 for each disabled or handicapped individual who is not one of the applicants
- Medical expenses for any elderly family member
