by Kenneth Powell | Jul 17, 2024 | Home Buyers Guide
If you’re looking to buy a house in Southern Maryland, specifically in Calvert County, Charles County, or St. Mary’s County, a USDA loan could be a perfect fit for you. With USDA loans, low- to moderate-income families can achieve the dream of homeownership in eligible rural areas. Let’s dive into the details of what a USDA loan is, its benefits, eligibility requirements, and more.
What is a USDA Loan?
For qualified rural and suburban homebuyers, a USDA loan with backing from the United States Department of Agriculture offers affordable home financing options. This loan program aims to improve the economy and quality of life in rural America by providing low-interest mortgages with zero down payments.
Benefits of a USDA Loan
- No Down Payment: One of the most significant benefits is the ability to purchase a home without a down payment.
- Competitive Interest Rates: USDA loans often come with lower interest rates compared to conventional loans.
- Flexible Credit Requirements: USDA loans have more lenient credit requirements, making them accessible to a larger number of buyers.
- Low Mortgage Insurance: The mortgage insurance premium for USDA loans is lower than that of FHA loans, reducing monthly payments.
Eligibility Requirements
1. Location Eligibility
Rural and suburban areas are the target audience for USDA loans. In Southern Maryland, many areas in Calvert County, Charles County, and St. Mary’s County qualify. To check specific property eligibility, you can visit the USDA’s property eligibility site here.
2. Income Requirements
USDA loans have income limits based on the size of the household and the area’s median income. The income limits are adjusted annually. For the most recent income limits, refer to the USDA income limits documentation. As a general guideline:
- Moderate income is defined as 115% of the area’s median income.
- For a family of 1-4 members, the income limit is approximately $90,300.
- For a family of 5-8 members, the income limit is around $119,200.
3. Credit Requirements
The USDA does not set a minimum credit score requirement, but lenders typically require a score of at least 640 to qualify for the program’s automated underwriting system. Those with lower scores can still qualify with manual underwriting, given that they meet other financial standards.
4. Property Requirements
The property must meet USDA property requirements, such as adequate size, functional utilities, adherence to safety standards, and serving as the primary residence.
Cities in Southern Maryland Qualify for USDA Loans
These cities and surrounding areas offer potential homebuyers the opportunity to benefit from USDA loan advantages.
Contact an approved lender.
For personalized assistance with USDA loans in Southern Maryland, you can contact Jeffrey Halbert, an approved lender. His expertise can guide you through the process, ensuring you take full advantage of the USDA loan program.
Contact Information:
By leveraging a USDA loan, you can make your dream of owning a home in Southern Maryland a reality. Whether you’re looking at a cozy house in Lusby, a townhouse in Lexington Park, or any other eligible area, USDA loans provide a path to affordable homeownership.
For more detailed information, contact realtor Kenneth Powell or Jeff Halbert today.
by Kenneth Powell | Jul 13, 2024 | Home Buyers Guide
Misconceptions can easily ensnare you in the constantly changing housing market. Let’s discuss three common real estate myths and uncover the truths behind them.
Myth 1: You Need a 20% Down Payment
Myth: You need a 20% down payment to buy a home. Truth: Not anymore! Many lenders offer loans with much lower down payments, some as low as 0-5%. Additionally, there are various assistance programs for first-time buyers, such as the MMP, Chenoa, USDA Loan, VA Loan, and special grants available based on location and occupation. These programs can significantly lower the barrier to homeownership.
Myth 2: The only ideal time to buy is spring.
Myth: Spring is the only ideal time to buy a home. Truth: While spring is typically a busy season, excellent deals are available throughout the year. Home prices tend to rise month by month, so purchasing as early as possible can be advantageous. Every season offers unique opportunities in the real estate market.
Myth 3: It’s Always Better to Buy than Rent
Myth: It’s always better to buy than rent. Truth: The decision to buy or rent depends on your circumstances. Homeownership can be a wise investment and a wonderful way to accumulate wealth. In Maryland, home appreciation increased by an average of 6% in 2024, with Charles County seeing over 8% and Calvert County over 10.6%. Homeowners who bought in 2021 have experienced significant increases in home equity, whereas renters have faced rising rents. Before making a decision, consider factors such as lifestyle, job security, and financial readiness.
According to the Federal Reserve, homeowners had a median net worth of $396,200 in 2022, compared to renters, who had a median net worth of just $10,400. This stark difference highlights the financial benefits of homeownership.
For more tips and information, visit contact Ken Powell at 240.237.78555. Stay informed and make the best decisions for your real estate needs!
by Kenneth Powell | Jul 9, 2024 | Homeowners Guide
Are you thinking about selling your home in Lusby, MD? Before you put your house on the market, there are essential steps to take to ensure a smooth and profitable sale. Here are seven critical things every homeowner should do before listing their home for sale in Lusby.
1. Assess Your Home’s Condition
Take a good look at your home’s current condition. Identify any visible issues, such as cracks in the walls, leaks, or damaged flooring. It’s essential to have a clear understanding of what needs fixing to attract potential buyers.
2. Consult with a Local Real Estate Expert
Having a local real estate expert like Ken Powell walk through your home can provide invaluable insights. Ken can recommend necessary repairs and improvements that will make your home more appealing to buyers. His expertise ensures that you’re making the right investments without overspending. Contact Ken Powell at c: 240.237.7855 or o: 240.583.1183.
3. Complete Necessary Repairs
Before listing, address any major and minor repairs. Fix leaky faucets, replace broken tiles, and repair any faulty electrical outlets. Replace damaged window screens and blinds, service the HVAC system, and replace dirty air filters. Buyers are more likely to make an offer on a well-maintained home, and it can help you avoid price negotiations over repair issues later.
4. Boost Your Curb Appeal
First impressions matter. Enhance your home’s curb appeal by cleaning up the yard, planting flowers, trimming bushes, and new mulch, cutting away limbs that are overhanging the home, and painting the front door. A welcoming exterior can entice potential buyers to take a closer look.
5. Declutter and Depersonalize
Remove personal items, family photos, and excess furniture. Decluttering creates a more spacious and inviting environment. Potential buyers need to envision themselves living in the space, and too many personal items can distract them from that.
6. Deep Clean Every Corner
A spotless home gives the impression of a well-cared-for property. Deep clean every corner of your home, including carpets, windows, and appliances. Wipe down baseboards, cabinets, door frames, and handles, clean fan blades, clean light fixtures; and replace dim and blown light bulbs. Consider hiring professional cleaners to ensure your home shines from top to bottom.
7. Get a Professional Home Valuation
Understanding your home’s market value is crucial. Use our online valuation tool to get an accurate estimate of your home’s worth in the current market. This will help you set a competitive price that attracts buyers while ensuring you get the best possible return. Request your home valuation here.
By taking these steps, you’ll be well-prepared to list your home for sale in Lusby, MD. If you need expert advice or assistance with the selling process, don’t hesitate to reach out to Ken Powell. With extensive experience and local knowledge, Ken is here to help you every step of the way.
Contact Information: Ken Powell
Phone: c: 240.237.7855; o: 240.583.1183
Valuation Request
Optimize your home-selling process by following these essential steps and working with a trusted real estate professional. Your journey to a successful home sale in Lusby starts here!
by Kenneth Powell | Jul 3, 2024 | Uncategorized
When buying a home in the DMV area (District of Columbia, Maryland, and Virginia), it’s crucial to understand the various expenses involved in the process. One significant cost to consider is the closing cost, which typically ranges between 2 and 5% of the final sales price. For cash buyers, this is usually around 2%. These settlement fees cover all costs required to transfer the home from the current owner to the buyer and are separate from the down payment. Here’s what you need to know about closing costs, along with an example of how they can impact your home purchase budget.
What Are Closing Costs?
Closing costs encompass a range of fees and expenses that are necessary for the legal transfer of property ownership. They encompass a variety of fees and expenses necessary for the legal transfer of property ownership, including, but not limited to:
- Transfer and Recordation Taxes: These are fees that the state or local government levies in order to record the transfer of the property deed.
- Recording Fees: The local government charges fees to officially record the new deed and mortgage documents.
- Loan Origination Fees: The lender’s charges for processing the loan application and underwriting the mortgage. These fees vary based on the type of loan, the lender, interest rates, and the buyer.
- Court Fees: Fees for any legal processes required during the transaction.
- Lawyer Fees: Legal fees for the attorneys involved in preparing and reviewing closing documents.
- Title Insurance and Search Fees: Costs for ensuring the title is free of liens and verifying the property’s legal ownership.
- Appraisal and Inspection Fees: These are fees for professional evaluations of the property’s condition and market value.
Closing Costs vs. Down Payment
It’s important to note that closing costs are separate from your down payment. While the down payment is a percentage of the home’s purchase price paid upfront to secure the loan, closing costs are additional fees paid at the end of the transaction to facilitate the transfer of ownership.
Example Scenario
Let’s use the following example to show the costs associated with buying a $400,000 home:
- Purchase Price: $400,000
- Down Payment: 3.5%
- 3.5% of $400,000 = $14,000
- Closing Costs: 4%
In this scenario, the buyer needs to prepare a total of $30,000 upfront, which includes $14,000 for the down payment and $16,000 for closing costs.
Bottom Line
Understanding closing costs and how they differ from your down payment is essential for budgeting and financial planning when buying a home. By being informed about these expenses, you can better prepare for the home buying process and avoid any last-minute surprises. Always consult with your real estate agent and financial advisor to get a detailed breakdown of the costs associated with your specific transaction.
If you have any questions or need further assistance, feel free to reach out. I’m here to help you navigate the complexities of home buying and ensure a smooth and successful transaction.
by Kenneth Powell | Jun 25, 2024 | Charles County Market
The real estate market in Charles County is currently characterized by a low inventory level and high demand, making it an exciting yet challenging environment for both buyers and sellers. Here’s a comprehensive look at the latest market data and what it means for you.
Low Inventory, High Demand
The Months Supply of Inventory is currently at 1.47, indicating a significantly low inventory level compared to the demand for homes. Over the past year, the 12-Month Change in Months of Inventory has decreased by 25.76%, highlighting that the market has become even more competitive. This low supply and high demand environment is pushing homes to sell quickly and often above their list price.
Quick Turnover
Homes in Charles County are flying off the market, with the Median Days Homes are On the Market standing at just 15 days. This rapid turnover time underscores the urgency for buyers to act fast once they find a suitable property. The competitive nature of the market means that homes are selling almost as soon as they are listed.
Strong Sales Prices
The List to Sold Price Percentage is 100.7%, meaning that homes are typically selling for slightly above their list price. This metric indicates that buyers are willing to pay a premium to secure a home in this competitive market. Additionally, the Median Sold Price of $448,950 shows that home prices are holding strong despite the low inventory and high demand.
Why Buy Now?
- Start Building Equity: Buying a home now allows you to start building equity immediately. As home values continue to rise, so does your investment. Waiting could mean paying more for the same property in the future, which delays your opportunity to generate equity.
- Rising Home Prices: With the competitive nature of the market, waiting for interest rates to drop might result in higher home prices. The current trend shows that sales prices are increasing month after month. Buyers who wait may end up paying significantly more than they would today.
The Bottom Line
The Charles County real estate market is fast-paced and competitive, characterized by low inventory and high demand. Buyers need to be prepared to move quickly and make strong offers, while sellers can expect strong returns on their investment.
Advice for Buyers:
- Act Quickly: With homes selling rapidly, it’s essential to act fast when you find a property you like.
- Be Prepared to Pay a Premium: Understand that in this competitive market, offering above the list price might be necessary to secure your desired home.
- Consider Long-Term Benefits: While interest rates are an important factor, the potential for rising home prices means that buying now could save you money in the long run by avoiding higher future prices.
In conclusion, the current market conditions in Charles County present a unique opportunity for buyers to invest in real estate and start building equity. Don’t miss out on the chance to secure a home in this thriving market.
For more information or to start your home search, feel free to contact us. We’re here to help you navigate this competitive market and find the perfect home for you.
