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; even so, there are still 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 traditional real estate options that are also available in the state.
An Alabama FHA Loan is insured by the Federal Housing Administration, which is one of the divisions of the Department of Housing and Urban Development (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. Here are some of the criteria:
- 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 ontime, 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 include the following:
The most important part is to find a reputable Alabama mortgage originator who is working for a HUD approved lender. Any Alabama FHA lender must be approved by HUD in order to originate the FHA home loan program.
The FHA Loan program in Alabama is very competitive with more traditional and conventional mortgage programs, offering great benefits to borrowers and regarded as an outstanding mortgage opportunity for any home buyer or homeowner. You need to know that the Federal Housing Authority (FHA) does not originate the FHA home loans which are basically funded under the FHA loan category. They will only insure FHA mortgages that have been underwritten by an approved FHA mortgage lender.
The Federal Housing Administration was actually created by Congress in 1937 to provide more Americans with the opportunity of 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 they were willing to offer. The FHA program revolutionized the mortgage lending industry for the average American.
There are various types of loan costs involved in an Alabama FHA loan. And as an AL FHA borrower, there are also certain fees you cannot be charged. Below is a simple list (not all items may apply to you):
- The Lender's 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, there are certain considerations that you'll need to check into. Our team of mortgage originators strive hard to meet your expectations:
- The mortgage lender should offer you 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 the 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.
Our mortgage originators offer all of the above and more. Plus you can rest assured with confidence that we know the business -- FHA is our specialty!