Ellicott City Columbia Maryland - No Money Down Zero Down Home Mortgage Loans
Money Magazine ranked Ellicott City and Columbia as the second best place to live in it annual survey of "100 Best Places To Live In America." What makes owning a home even better in Ellicott City or Columbia is the ability to purchase a house No Money Down, No Monthly Mortgage Insurance, and when you work with the right Mortgage Lender and Realtor No Out-Of-Pocket Closing Costs.
There are many areas within Columbia and Ellicott City that qualify for no money down financing through the USDA Rural Development Program. That's "No Money Down Financing" as in No Down Payment, 100% Mortgage Financing, and Zero Down Mortgage Loan.
Yet there's more! In addition to the 100% Mortgage Financing this loan program has No Monthly Mortgage Insurance and the ability for the home buyer to not have to come up with ANY CASH at the settlement table to cover closing costs and escrows. And since these houses are located in Howard County there is the added benefit of a school district that is ranked #1 in Maryland and property taxes dramatically less than in certain neighboring Counties.
Start your home search for houses in and around Ellicott City and Columbia that are currently listed for sale:
There are guidelines that perspective buyers should be aware of when evaluating the USDA Loan Program which include the following:
- Minimum middle credit score for all borrowers - 620
- Maximum household income:
- $122,250 for a family size of five or more
- $92,600 for a family size less than five
- household income exceeds these limits? Reference Howard County USDA Mortgage Loan Calculator to determine if deductible items can be applied to reduce the gross income for qualification purposes
- In ground pools - not allowed
- Land value - 30% or less of the overall property value
- House Condition: "move-in" condition, no rehab projects allowed
- Property location - USDA Rural Development Eligible Area
Out-of-pocket cash required to close can be minimized or eliminated by having the seller pay via a "seller closing cost credit" the home buyers settlement costs and escrows. Also, the USDA Loan Program is the only loan program available that will let the difference between an appraised value (assuming the house appraises for more than the sales price) and the sales price to be applied toward covering the home buyers closing costs. Bottom line a home buyer can purchase a house in Columbia and Ellicott City Maryland with no out-of-pocket costs.
With the USDA Loan a home buyer can purchase more house than a FHA Loan. Here's how: this No Money Down Loan Program has 0% down and No Monthly Mortgage Insurance Premiums, while FHA requires a 3.5% down payment and has a Monthly Mortgage Insurance Premium Requirement. This means 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. To determine how much less cash is needed to purchase a house and the monthly payment savings use the USDA Vs FHA Cash Savings Calculator. The USDA monthly payment savings can be converted back into a higher purchase price and/or mortgage amount without exceeding the anticipated payment of a FHA loan.
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.