USDA Guaranteed Home Loans in Maryland and Virginia

USDA Guaranteed loans are designed to help eligible low- and moderate-income households purchase a primary residence in an approved rural or suburban area. Despite the program’s name, many eligible locations are outside traditional farmland and may be within commuting distance of larger communities.

The program is offered through approved mortgage lenders and backed by the USDA Single Family Housing Guaranteed Loan Program.

USDA Loan Highlights

• Potential 100% financing: No down payment is required when the sales price does not exceed the property’s appraised value.
• 30-year fixed-rate mortgage: The guaranteed purchase program uses a fixed interest rate and fully amortizing term.
• Primary residences only: The home must be occupied as the borrower’s primary residence.
• Eligible property location required: The property’s address must qualify under USDA’s geographic eligibility rules.
• Household income limits apply: Adjusted household income generally may not exceed 115% of the applicable area median income.
• Closing costs: Eligible closing costs may be paid by the borrower, seller or other permitted sources. In certain cases, costs may be financed when the appraised value supports the higher loan amount.

Property Eligibility

USDA determines eligibility by property address. Some areas that appear suburban may qualify, while nearby addresses may not. Check a home’s current status using the official USDA property eligibility map.

Property eligibility boundaries can change, so an address should be checked when you are considering a particular home.

Household Income Eligibility

USDA evaluates household income differently from the income used solely to qualify for the mortgage. Income from adult household members may need to be included in the program-eligibility calculation even when that person is not a borrower. Certain deductions and exclusions may apply.

You can review estimated limits using the official USDA income eligibility tool. We can also help calculate the applicable adjusted household income for a specific property and household.

USDA Guarantee Fees

USDA Guaranteed loans currently include a 1% upfront guarantee fee and a 0.35% annual fee. The upfront fee may generally be financed into the mortgage, subject to program rules. The annual fee is typically collected as part of the monthly payment. Fee levels can change, so we will confirm the current amounts with your loan comparison.

Credit and Qualification

USDA does not mean automatic approval. Borrowers must document qualifying income, assets, credit history and the ability to repay the mortgage and other obligations. Automated underwriting findings and lender requirements also apply.

We review the full file rather than relying on a single credit-score number. If USDA is not the best fit, we can compare it with FHA, VA, conventional and available down payment assistance options.

USDA Guaranteed Loans vs. USDA Direct Loans

The loan described on this page is the USDA Single Family Housing Guaranteed Loan Program, which is originated through an approved private lender.

USDA also operates a separate Direct Loan Program for qualifying low- and very-low-income applicants. Direct loans are applied for through USDA Rural Development rather than through our mortgage team.

Is a USDA Loan Right for You?

A USDA loan may be especially useful if you want to preserve savings, the property is eligible and your household income falls within the applicable limit. Before making an offer, we can check the address, household-income eligibility and overall loan qualification.

Program availability, geographic boundaries, fees and eligibility requirements are subject to change. This information is educational and is not a commitment to lend.