Alabama FHA Loans

If you are looking to buy property in Alabama then you want to seriously consider an Alabama FHA mortgage. The FHA loan offers some of the most competitive home loan rates and programs, but still there are a lot of finer details that you may miss out on. Alabama is fast turning out to be the new condominium destination apart from the other real estate options that are also available.

An Alabama FHA Loan is insured by the Federal Housing Administration, which is one of the divisions of Department of Housing and Urban Development or HUD. FHA loans offer flexible credit guidelines. There are certain criteria and requirements that you will have to meet in order to apply and get an Alabama FHA Home Loan. Some of the criteria are:

• You should be able to show a good credit payment history for the previous 12 months
• If you have filed for bankruptcy then you should be in Chapter 13 bankruptcy and need to be paying on time or in Chapter 7 bankruptcy but discharged for at least 2 years.
• An FHA loan also entitles you to apply for a home loan with a market limit that is in sync with that specific area's FHA loan limits.
• FHA loans don't have any income restrictions.

Some of the major benefits that you can enjoy with an FHA loan in Alabama are:

• All types of closing costs may be paid by the seller
• There is only a 3% down payment
• Down payment programs are allowed

The most important part is to find a good or reputable Alabama mortgage company like 1st Continental Mortgage Any Alabama FHA lender must be approved by HUD in order to originate the FHA home loan program.

Our FHA Loan program in Alabama is very competitive, beneficial and regarded as an outstanding mortgage opportunity for any home buyer or homeowner. You need to know that the Federal housing authority or FHA does not originate the FHA home loans, which are basically funded under the FHA loan category. They will only insure FHA mortgages, which have been underwritten by an approved FHA mortgage lender like 1st Continental Mortgage, or placed with a lender by a HUD approved mortgage broker.

The Federal Housing Administration was actually created by congress in 1937 to provide more Americans with an opportunity at buying a home through financing options that were not present at the time. Before FHA came into the picture, owning a home meant a huge down payment of anywhere between 30 to 50%, plus the loans were offered through the local community banks with limitations in the form of terms and conditions. FHA revolutionized the mortgage lending industry for the average America.

As an Alabama Mortgage originator, 1st Continental Mortgage charges standard FHA Lending Fees, which normally don't change. On top of that you get a great mortgage rate, which is independent of your credit scores. The home inspection and home appraisal are the two costs, which need to be paid for before closing. So if you haven't closed then you won't have to pay any other lender fee.

There are various types of loan costs involved in an Alabama FHA loan, as a AL FHA borrower, there are also certain fees you cannot be charged. Below is a simple list and not all items may apply to you:

• The lenders fee: This includes underwriting, loan processing, wire transfers, loan origination, credit report, funding, and prepaid interest.
• Closing Costs: This includes settlement, closing, title inspection, title search, insurance binder, warehouse, owner policy and lender policy.
• Various government costs: These would include recording fee, document tax, state document tax, appraisals, home inspection and termite inspection.

When you are considering an Alabama FHA mortgage lender, there are certain considerations or finer points that you need to check. At 1st Continental Mortgage we strive hard to meet our own and your expectations:

• The mortgage lender should offer you a competitive FHA Interest Rates
• They should have flexible FHA Loan qualification guidelines
• The mortgage company should have creative financing solutions
• They should offer simple interest, fixed and adjustable interest rates for more variation and choice
• The lending company should offer low rate debt consolidation loans
• They should have the FHA 203k loan for home rehabilitation and improvement
• They should be a true, full service FHA company and not discriminate by type of home you want to finance. FHA will finance a wide range of home types including manufactured homes with land. Lenders who "Do FHA" but won't underwrite and fund qualified borrowers for a manufactured home loan don't deserve your business! All the FHA loans offered by them should be HUD approved including manufactured home loans.

Consider 1st Continental Mortgage for your next Alabama FHA mortgage. We offer all of the above and more and you can know with confidence, we specialize in FHA.