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Types of Homebuyers Mortgage Loans for Buyers in Fairhope, AL

Here is a list of the available mortgages loans in Fairhope, AL:

Conventional Mortgages

The most well-known sort of home loan is most likely this one. One thing to remember, the government does not insure conventional mortgages.

  • Primary houses, second homes, and investment properties are all covered.
  • Typically, a 3 to 5 percent down payment is required.
  • The interest rate is slightly higher than the federal government’s guaranteed rates.
  • When you have at least 20% equity in your house, you can opt-out of private mortgage insurance.
  • In most cases, higher credit scores are required.
  • When compared to government loans, they provide more extensive loan amounts.

Jumbo Mortgages

The term “non-conforming conventional loan” refers to a loan that does not meet the requirements of Fannie Mae and Freddie Mac. A Jumbo Loan is defined as a loan that exceeds $453,100 in 2018.

  • Expect a substantial down payment of 10%-20%
  • You’ll be required to have at least 10% of the loan amount in cash.
  • This loan is ideal for people who want to buy a luxury home, build excellent credit, and have an above-average income level.
Government Mortgage Loans

Government Mortgage Loans

Federal Housing Administration (FHA)

  • Borrowers with low credit scores (500 below) who are not eligible for conventional loans may benefit from this.
  • Only primary residents qualify for this loan
  • Allows for the highest debt to income ratios.
  • A down payment of 3.5 percent is required for a credit score of 580, while a down payment of 10% is required for credit scores of 500.
  • A funding fee of 1.75 percent is added to the loan amount.
  • It has mortgage insurance that lasts the life of the loan

VA (Veterans Administration)/Military Assistance

  • Offers $0 down payment for United State’s military servicemen and women, including their spouses.
  • There is a funding fee, but it can be rolled into the mortgage or paid outright at closing.
  • Has no private mortgage insurance

USDA (US Department of Agriculture)

  • Option for a 0% down payment
  • Borrowers with low to moderate-income who buy a home in a rural region can benefit from this loan.
  • The standards for a credit score are greater than those for an FHA loan.
  • The property’s location has to be qualified.
  • This loan is for primary residences.
  • A funding fee of 1.35 percent is added to the loan amount.
  • Is covered by mortgage insurance for the duration of the loan.

HFA Homeownership Programs

AHFA has financing programs that fit the need of many Alabama residents.

Some of them are the following: 

  • Step Up Program
  • Affordable Income Subsidy Grant

Mortgage Lenders in Alabama 

The following are among the best Mortgage Lenders in Alabama:

  • PrimeLending
  • AxosBank
  • Chase
  • ConsumerDirect
  • PNC BANK
  • New American Funding
  • Carrington Mortgage Service
  • AmeriSave
  • Freedom Mortgage
  • QuickenLoans

No credit check loans in Alabama Mortgage 

A no-credit-check loan does not need the borrower to provide a FICO score credit check from the applicant. Potential borrowers concerned about their credit score or credit history may find this interesting.

The following are the basic mortgage guidelines for the HUD Agency:

  • To be eligible for a 3.5 percent down payment FHA loan, you’ll need a credit score of 580.
  • FHA loans are available to borrowers with FICO scores of less than 580 and credit scores of less than 500.
  • Alabama FHA Loans do not require the payment of outstanding collections and charge-offs to be eligible.

Private mortgage loans in Alabama

Below is the list of some private mortgage lenders in Alabama:

  • RCN Capital
  • Conventus
  • American Heritage Lending
  • Temple View Capital
  • Avatar Financial Group
  • LendingOne
  • HouseMax, Funding LLC
  • Flatiron Realty Capital
  • i Fund Cities
  • Yieldi LLC

Fairhope home buying tips

Search for lenders who offers the best deal

Look for lenders willing to give you discounts or even cover some of the fees like the closing costs.

Work with professionals

We recommend working with a REALTOR in your Fairhope, AL home search. They provide the assistance you need in your home buying journey.

Final Thought

If you can’t afford the entire cost on your own, a mortgage is a must.

There are many real estate opportunities available for homebuyers in Fairhope, AL. If you’re planning on moving to Alabama, contact us today! We’re happy to help you explore the best possible options available for you.

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