Home Loans In Birmingham, Alabama

Welcome to Capital Home Mortgage Birmingham. Founded during the post-Civil War Reconstruction period in 1871, the city of Birmingham has since developed into a significant economic and social hub in the state of Alabama. Among the many things that the city is known for, Birmingham is also the founding city of National Veterans Day. 

The real estate market in Birmingham has had its fair share of highs and lows in the wake of the pandemic. However, with its area poised for growth in home sales and prices in 2022, now may be a good time to look at some housing options. 

If you’re looking to own a home in Birmingham, Alabama, we can help you get the right home loan to finance the purchase. At Capital Home Mortgage, we offer an extensive lineup of home loan programs to fit different home buyer needs. 

Types Of Home Loan Programs In Birmingham

There are three main categories of home loans available to Birmingham residents: 

1. Government-Insured & Guaranteed Home Loans 

These are home loan programs that enjoy backing from the federal government. They are offered as part of the government’s commitment to helping Americans access mortgage products to enable them to become homeowners. 

Because the government insures them, these loans are generally easier to access and ideal for home buyers with lower credit scores and limited down payments. 

The most common types include: 

• FHA Home Loans 

The Federal Housing Administration oversees this program. If you’re a first-time home buyer, an FHA loan might be a great option since it requires a 3.5% down payment and a credit score of 580. 

• USDA Home Loans

 The US Department of Agriculture oversees this program. These loans are available to borrowers looking to own homes in qualified rural areas. They offer 100% financing, no money down required.

• VA Home Loans 

The U.S. Department of Veterans Affairs manages this program. VA home loans are available to active or retired veterans and their families only. There’s no down payment required. 

• HUD 184 Home Loans 

These loans are available to Native American Indians. The program is managed by the U.S. Department of Housing and Urban Development.

2. Conventional Home Loans 

These loans are not insured or backed by the government. Conventional home loans can be used to finance primary and secondary homes and investment properties. 

The required down payment is as low as 3%, though anything lower than 20% will usually incur private mortgage insurance payments to the lender. Borrowers need a minimum FICO credit score of 620 to access conventional loans.

3. Jumbo Home Loans 

Jumbo loans are aptly named since they offer much higher loan amounts than conventional and government-backed loans. They are typically used to finance the purchase of high-end properties or homes in expensive areas, such as New York, Los Angeles, and Hawaii. 

Because of the high amounts involved, the eligibility requirements for jumbo home loans are stringent and often require more in-depth documentation. For instance, borrowers must have a minimum FICO credit score of 700 and a max debt to income ratio of 45%. 

Birmingham, Alabama Mortgage Lender

Capital Home Mortgage is a full-service, direct mortgage lender serving Birmingham residents. We understand that buying a home is a huge decision, so our mortgage professionals work tirelessly to provide a stress-free experience from start to finish. 

Because we have direct endorsement authority to underwrite and approve your loan, Capital Home Mortgage can offer on-time true approvals, lower rates, and exceptional customer service. 

Get Started With A Quick No-Obligation Quote

At Capital Home Mortgage Birmingham, we provide dedicated touchpoints throughout the home loan process so you can quickly and easily find the right program that meets your home buying requirements. 

Get in touch with our loan officers today by calling (205) 352-1030. 

Thank you for visiting our web page and the opportunity to earn your mortgage business in Birmingham, Alabama.