Maryland USDA Loans 2026
Zero down payment USDA financing for eligible Maryland buyers. Eligible areas, income limits, and how to determine if USDA is an option for your Maryland home purchase.
USDA Eligible Areas in Maryland
USDA loans are available in areas that USDA designates as rural or semi-rural. Contrary to the name, many suburban and even some smaller city neighborhoods qualify. However, the dense urban cores of Baltimore City and the closer-in Washington D.C. suburbs generally do not qualify.
General Eligibility Patterns in Maryland
| Area | USDA Eligibility | Notes |
|---|---|---|
| Baltimore City & inner Baltimore suburbs | Not eligible | Classified as urban |
| Close-in Montgomery & Prince George’s suburbs (near DC) | Largely not eligible | Classified as urban/urbanized |
| Outer Montgomery, Frederick, Charles, Calvert counties | Check by address | Mixed — many outer/rural pockets are eligible |
| Eastern Shore (Talbot, Queen Anne’s, Caroline, Dorchester, Wicomico, Somerset, Worcester, Kent) | Broadly eligible | Strong USDA market |
| Southern Maryland rural pockets (St. Mary’s, Calvert, Charles) | Check by address | Rural areas outside base/town centers often eligible |
| Western Maryland (Washington, Allegany, Garrett counties) | Broadly eligible | Most of this region qualifies |
| Carroll & Harford counties (outer areas) | Check by address | Rural/exurban pockets often eligible |
Always verify by address. USDA eligibility is determined at the property address level, not the county level — a rural pocket can sit minutes from an ineligible suburb. Use the USDA eligibility map at eligibility.sc.egov.usda.gov to check any specific Maryland address before assuming eligibility or ineligibility.
Maryland USDA Income Limits
| Household Size | Standard Moderate-Income Limit (FY2026) |
|---|---|
| 1–4 person household | $122,800 |
| 5–8 person household | $162,100 |
Metro-area limits run higher than the standard. USDA publishes a higher moderate-income limit for many metropolitan counties, and those figures change on their own schedule. Rather than print numbers that may be out of date, check your exact county against USDA’s official lookup: USDA income eligibility tool. The authoritative source is HB-1-3555 Appendix 5 (FY 2026, PN 657, effective July 13, 2026).
USDA loans have household income limits — all members of the household count, not just borrowers. The qualifying limit is 115% of the area median income (AMI). USDA’s 2026 baseline income limit for a 1–4 person household in standard (non-high-cost) areas nationwide is ~$122,800 (5–8 person households qualify for a higher limit). This baseline applies to most of Maryland’s USDA-eligible rural counties.
DC-metro county limits run higher — verify the exact figure. USDA income limits are set per county/area based on local area median income, and Maryland’s DC-metro counties (Montgomery, Frederick, Charles, Calvert) have meaningfully higher area median incomes than the Eastern Shore or Western Maryland, which typically pushes their USDA income limit above the ~$122,800 national baseline. Because this figure changes by county and is updated periodically by USDA Rural Development, get your exact county limit at eligibility.sc.egov.usda.gov or from a USDA-approved lender rather than relying on the baseline figure alone.
USDA vs. FHA for Maryland Buyers
| Factor | USDA | FHA |
|---|---|---|
| Down payment | 0% | 3.5% |
| Location restriction | Yes — rural/suburban only | No — anywhere |
| Income limit | Yes — ~115% of AMI, varies by county | No income limit |
| Mortgage insurance | 0.35%/year | 0.55%/year |
| Upfront fee | 1.0% (financed) | 1.75% (financed) |
| Best for Maryland buyer | Eastern Shore, Western MD, or rural pockets, income eligible | Urban/DC-metro buyers or above income limit |
USDA Loan Requirements in Maryland
USDA publishes the following standards for the Section 502 Guaranteed Loan Program, which assists approved lenders in providing low- and moderate-income households the opportunity to own a primary residence in eligible rural areas. Income limits and property eligibility depend on location; both are covered above for Maryland.
| Requirement | USDA Standard |
|---|---|
| Household income | Cannot exceed 115% of median household income |
| Occupancy | Must personally occupy the dwelling as a primary residence |
| Citizenship | U.S. citizen, U.S. non-citizen national, or qualified alien |
| Credit score | No program minimum — applicants must demonstrate a willingness and ability to handle and manage debt |
| Loan term | 30-year fixed rate only |
| Property use | Cannot be an income-producing property |
| Acreage | No set acreage limits |
| Property types | Detached, attached, condominium, PUD, modular, or manufactured |
Closing costs and reasonable, customary expenses associated with the purchase may be included in the transaction. The program is governed by 7 CFR Part 3555 and USDA’s technical handbook HB-1-3555; full terms are published on USDA’s Section 502 Guaranteed Loan Program page.
How to Apply for a Maryland USDA Loan
Applications are submitted through USDA Rural Development’s network of approved lenders. USDA provides a 90% loan note guarantee to the approved lender, and the lender you select handles the entire loan application process, working with Rural Development staff to ensure the loan is guaranteed through the agency.
- Confirm the address is in an eligible rural area. USDA’s eligibility site lets you enter a specific address for a determination, or search the map to review general eligible areas.
- Check your household income against the limit for your Maryland county using USDA’s income eligibility tool.
- Contact a USDA-approved lender. USDA publishes a list of active lenders that is searchable by state.
- Compare more than one lender. USDA does not endorse any specific private-sector lender and encourages borrowers to comparison shop for the best service and financial options available.
USDA accepts applications for processing from approved lenders on an ongoing basis from October 1 through September 30. To begin, USDA directs applicants to contact an approved lender to review the requirements for completing an application.
