Clarksville Maryland Western Howard County - No Money Down Zero Down Home USDA Rural Mortgage Loans
Howard County home buyers can "have their cake and eat it to" when purchasing a house in Clarksville Maryland and the surrounding areas in Howard County Maryland. The reason is the USDA Rural Loan Program that provides moderate income households the ability to purchase a house in a rural community with No Money Down, No Monthly Mortgage Insurance Premiums, and when you work with a USDA proficient Mortgage Lender and Realtor No Out-Of-Pocket Closing Costs.
To qualify for the USDA Rural Development Loan home buyers need to make less than $92,600 with a family household size of four or less and $122,250 for a family size of five or more (see below if income exceeds this amount). The house must be "move-in" condition, have a land value less than 30% of the appraised value, and not have an in-ground swimming pool.
The benefits from the USDA Rural Loan Program are as follows:
- $0 Down Payment Requirement
- $0 Monthly Mortgage Insurance Premiums
- $0 Cash Needed For Settlement:
- the USDA Rural Development Loan allows for up to 6% of the purchase price to cover seller paid closing cost help
- if the house appraises for more than the purchase price the difference between appraised value and purchase price can be used to cover a home buyers closing cost and escrows. The USDA Rural Loan is the only loan program that allows for the appraised value to be used to establish the maximum loan amount
- combination of these two
- Extremely flexible credit requirement with a minimum 620 middle credit score
- House types allowed include single family homes, townhomes, and condominiums
The USDA Rural Loan Program is the best no-to-low down payment mortgage payment for borrowers who aren't eligible for the VA Loan. Compared to a FHA Loan, the USDA Rural Loan doesn't require a down payment and no monthly mortgage insurance premium. The cash flow savings achieved by using the USDA Loan can be determined by using USDA Vs FHA Cash Savings Calculator. Borrowers will find when using the USDA Loan Program, even though the loan amount is larger (since there isn't any down payment), the monthly payment is LESS.
Other online tools available to buyers considering using the USDA No Money Down Loan include:
- USDA Zero Down Program Guidelines
- USDA Loan Income Qualifying Calculator - should the household income exceed $92,600 with a family household size of four or less and $122,250 for a family size of five or more there are USDA Loan approved "deductions" that can reduce the gross income allowing the borrower(s) to still qualify for the USDA Loan.
Start your home search for houses in and around Clarksville Maryland that are currently listed for sale:
To learn more about the USDA Rural Development Mortgage Loan go to MarylandUSDA.com or call (410) 552-5912 to quickly get answers to your mortgage loan questions and determine your eligibility for the USDA No Money Down Loan Program. To learn about houses that qualify for this No Money Down Program contact my local USDA expert: Ken Johnson at Re/Max Advantage at (443) 799-8617.