If you are a first time homebuyer buying a home in Birmingham and Tuscaloosa, there are many options available for you to choose from. Historically, to buy a home required a 20% down payment, thankfully this is not the case anymore. The Federal Housing Administration, FHA, has created the FHA LOAN which has many benefits like lower down payment and credit requirements. Ransom Kelly is a leading provider of first time homebuyer loans in Birmingham and Tuscaloosa. For more information on how to qualify for a first time homebuyer loan, fill out the Quick Quote or call me at 205-605-8027.
A Birmingham or Tuscaloosa FHA loan offers relaxed credit requirements and lower down payment options compared to other home loans. Buyers interested in purchasing a new home could potentially qualify for an FHA loan with a down payment of only 3.5%. If a borrower does not have adequate savings to cover the down payment, family members are able to gift the funds needed to close. FHA loans are very popular among first time home buyers in Birmingham and Tuscaloosa Alabama.
Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options. Conventional loans can have a down payment requirement as low as 3% in some cases. HomeReady and Home Possible are products offered within the conventional loan programs to help with lower down payments and credit scores. These type of loans are very popular among first time home buyers in Birmingham and Tuscaloosa Alabama.
The primary goal of the Unites States Department of Agriculture (USDA) loan is to improve the market for rural areas and help mortgage lenders with the defaults on this specific product. The USDA loan is one of the top loans offered in the United States and can be offered with 100% financing. Assurance Financial has amazing rates for USDA loans in Birmingham and Tuscaloosa. Another term for the USDA loan is the rural development loan. Birmingham and Tuscaloosa USDA loan allows for some lower credit scores and a no down payment option compared to other home loans. Borrowers could potentially qualify for a USDA loan without having any out of pocket expenses when purchasing or refinancing their home. USDA loans are great for first time home buyers in Birmingham and Tuscaloosa Alabama.
Apply for your first time homebuyer loan today!
At Assurance Financial, we are committed to helping our clients with all their Birmingham and Tuscaloosa Alabama mortgage needs. If you are purchasing a home for the first time, we can help. Contact me, Ransom Kelly (205-624-0484), today for any questions you have on any Birmingham or Tuscaloosa home loans.