No Money Down Loan | USDA Loan | Rural Development Loan

by Brian Mayer on November 26, 2010

No Money Down Loan

no money down loan

no money down loan

A USDA Loan is a true no money down loan. Technically you can put a down payment on a USDA Loan however its not a requirement.

Closing Costs

The closing costs on a USDA Loan can be paid for by the sellers up to 6% plus there are many other options to cover the closing costs. So not only can you can purchase your new home with no money down you can buy a house with no money! There is even a way to get money at the settlement table.

When you put a contract on a house, you typically secure your offer with a deposit to let the seller know that you are backing up your offer with real money and that you are serious. This is called an Earnest Money Deposit otherwise known as an “EMD.” You are allowed to receive your earnest money deposit back at the settlement table so your no money down loan could get you money at the settlement table. That makes for a happy settlement!

USDA No Money Down Loans will have a lower payment for the same loan amount than a FHA Loan and does not require 3.5% down (like FHA) and has less than 1/3 of the monthly mortgage insurance .3% vs 1.25%

No Money Down Loan

Right now only USDA and VA loans are true no money down loans and VA loans are only available to active and retired military so for most people a USDA Loan is the way to go. The two main hurdles of a USDA loan is the USDA income limit and the location eligibility both of which are determined by the location of the property you are trying to purchase.

no money down mortgage

no money down mortgage

No Money Down Loan

Most often a USDA loan is the logical choice considering the low 620 credit score requirement and the no money down ability!

In Maryland if your family makes around That’s right, making under 92k with a 620 credit score and decent job history are all most people need to get into a home. I think if more people knew how easy it was to buy a home, more people would be inspired to purchase today – especially with the low interest rates.

Learn more about the USDA Guidelines

If you want to speak with a USDA specialist please call 443-624-9398

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