100% Financing, No Down Payment loans in Anne Arundel and Calvert Counties!

Are you dreaming of purchasing a new home, but you are not quite able to pull together a 3.5%-5% required down payment? The USDA Rural Development Loan may be a great option for you!

Traditionally, FHA loans require a 3.5% down payment, equaling about $10,500 cash down on a $300,000 home. To the average buyer, that can be a hefty amount of cash to have to come up with in order to qualify to purchase a new home. For some, it is simply unattainable. The USDA Rural Development Loan is available to assist buyers with low to moderate income levels achieve home ownership in Maryland by working with local lenders to offer 100% financing to buyers who meet the eligibility requirements for properties in approved rural areas. A buyer who qualifies for this loan will not have to make any down payment at all, and will be able to finance 100% of the purchase price.

The Rural Development loan assists buyers in purchasing home in approved rural areas only. The property must be located in one of the approved rural areas in order for it to qualify. Some of the cities that are approved in Southern Anne Arundel County are Shady Side, Lothian, Harwood, Tracy’s Landing, Deale, and parts of Davidsonville among others. If you are thinking of purchasing a home in Calvert County-good news! The entire county is considered rural and therefore any property in Calvert county will qualify to be purchased using the USDA Rural Development Loan.

Of course, there are eligibility requirements that a buyer must meet in order to qualify. The income requirements vary based on the number of people in a household (children included). For instance, a household of 4 people including 2 adults and 2 children could qualify to purchase a home in the approved rural areas in Southern Anne Arundel County if the income in the household does not exceed $96,150. There are deductions that can be made in income for things like daycare expenses and such, in order for a buyer’s income to qualify. Additionally, the buyer will have to meet certain credit requirements, but unlike typical loans the credit requirements are flexible and some non-traditional credit histories may be acceptable.

The interest rates on the USDA Rural Development Loan are competitive with the average market rates. All of the loans are based on 30 year fixed mortgage rates. Additionally, this loan allows the seller to pay up to 3% closing of the buyers closing costs, essentially meaning the buyer might not have to come up with any cash out of pocket in order to purchase a home.

I know this might sound too good to be true, but believe me, it is true! I am currently working with buyers who are using the USDA Rural Development Loan to purchase a home in Calvert County. They are a sweet family of 5 who met the income eligibility and credit requirements. We found an amazing home for them, wrote the offer and are now waiting for settlement at the end of next month! They do not have to make any down payment at all, and the seller is paying all of the closing costs for them.

If you would like more information on the USDA Rural Development Loan, or if you have any questions about home ownership in Maryland, please feel free to give me a call or send me an email anytime! I am happy to help you!

Jennifer Novak
“Turning Your Dreams into an Address”
301-370-9789-Cell
Novakdreamhomes@gmail.com-Email

 

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