Alabama FHA Loans

Right now is a great time to apply for an FHA loan in Alabama. With conventional loans as high as they are, the affordability of FHA loans has become incredibly attractive to first time homeowners. The FHA and HUD are part of US Government and are in place to help all Americans realize the dream of homeownership and also keep their homes from going into foreclosure. Here are just a few of the great benefits of using an FHA loan to purchase your home in Alabama.

Low Down Payment

To help young families and first time homeowners, the FHA offers loans with as little as 3.5% down. This is a huge benefit, one that makes it possible for potential homeowners who don’t have very much money saved up still be able to afford a new house. Right now, this low down payment feature is attracting more borrowers than ever, especially since conventional loans in Alabama require upwards of 20% for a down payment.

No Insurance

It is possible to find some conventional low down payment loans, but the lenders usually require the borrower to pay for private mortgage insurance (PMI) to make up for the risk. With an FHA loan, you are already insured by the Federal Government. This means not only do you not have to pay for costly PMI, greatly reducing your overall monthly payments.

Low Interest Rates

What interest rate you receive depends on the current mortgage market rate and what lender you obtain your loan from. That being said, because you are insured by the Federal Government, and are thus a very secure borrower, you will get to take advantage of really competitive interest rates.

How to Obtain an Alabama FHA Loan

In order to receive an FHA loan in Alabama, you will need to find an FHA-approved lender. This can be a bank, mortgage company or savings & loans association as long as they participate in the FHA home loan program. Once you have found your house and lender, you will need to go through all the necessary steps to qualify for the loan which are very similar to obtaining a conventional loan.

Get Started Today!

Getting pre-approved for an Alabama FHA loan has never been easier. Simply take a minute to fill out our secure online form and we’ll have you pre-qualified instantly for free!

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