USDA Loans in Cumberland, MD
When you’re interested in buying a home outside city limits, in a less populated area, the USDA home loan can help you do that. The Department of Agriculture supports these loans to help maintain the wellbeing of small towns and suburbs, filled with homeowners to develop the area. If you’d like to buy or renovate a rural home in Cumberland, MD, or nearby areas in PA, or WV, consider a USDA mortgage.
USDA Mortgage Overview and Benefits
USDA home loans were designed to help people with low or moderate incomes purchase homes in smaller communities and rural areas. The mortgages loans require no down payment and offer low interest rates to ensure they are affordable. Interest rates of only 1 percent may be possible.
To qualify, you must have a good credit score, but it does not need to be top tier. Before choosing a home, you’ll need to verify whether or not it is located in an area considered to be rural by the USDA. Sometimes areas that are very close to a city are still considered eligible by the USDA. Your lender can double-check to make certain for you.
Choosing the Right Type of USDA Home Loan
There are multiple types of USDA mortgages to suit various home-buying situations, including:
Single-Family Direct Loans: These loans are applied for directly with the local USDA office, while the other types listed are obtained through a bank or mortgage lender. In order to qualify for the direct mortgage from USDA, your household income must be below 80 percent of the area median income and the home must be relatively modest. Further qualifications may include a fairly good credit score and your home must be in a rural area on the USDA map.
Single-Family Guaranteed Home Loans: Your household income must not exceed 115 percent of the local median income. To qualify, you must have a fairly good credit score. You must also verify that it is located in a rural area, as defined by the USDA map.
Rural Repair and Rehab Loans: These loans may also include some grant money, which need not be repaid. The purpose of this loan is to allow low-income homeowners (receiving less than half the local median income) to keep their homes in safe condition and in proper repair. If your rural home has developed roof leaks, structural problems, or unsanitary issues (such as plumbing problems or mold growth), the repair and rehabilitation loan is for you. To be eligible, you must be unable to get an affordable loan or credit line elsewhere. To receive grant funds, you must be at least 62 years old and unable to repay a loan.
Mutual Self-Help Mortgage: With this home loan, low-income rural families can work together to build their new homes. The loans are targeted to families without the financial means to build their own homes or to buy a safe rural home. The families who benefit from these loans must perform the majority of the labor when the homes are built. Income limits for the self-help home loan are set at 80 percent of the median income for the area. Your family must fall below the income limit, must lack safe housing, and must be unable to get a loan or credit from any other source besides USDA.
How to Apply for a USDA Loan in the Cumberland Area
If you believe you qualify for one of the USDA loan types, or have questions about the mortgage, talk to a Homespire Mortgage representative. We provide a simple lending process and we will be happy to guide you through the application procedure. We serve the local areas of Frostburg, MD, Cumberland, MD, Lonaconing, MD, and Westernport, MD from our headquarters in Cumberland. In WV, we provide mortgages in Short Gap and Keyser, and in PA we serve the Bedford areas.