Maryland Business

By: Ben Mook

Just read an article in the most recent Business Week edition about home loans backed by the US Dept. of Agriculture (USDA Home Loans: Subprime Redux?). Gist of the article is that the loan program offers $0 down and 100% financing, conditions awfully similar to those subprime loans that have wreaked so much havoc.

A quick look at eligible areas for the program on the USDA website shows that there are some prime areas in the state. Links to search for eligible areas are on the left side.

Obviously, most of the urban areas in Baltimore City, Baltimore County, Howard County and others are ineligible but there are pockets that might work.

Is this a viable tool to get people in homes? Or, will it be another program that will cause headaches down the road?