Capital Home Mortgage Birmingham

Birmingham home purchase loans

Home Purchase lender Birmingham Alabama

Home Purchase Loans in Birmingham Alabama

Birmingham’s real estate market is competitive as the Birmingham home purchase market has seen steady growth in recent years. Factors like affordable housing, a growing economy, and a relatively low cost of living compared to other metropolitan areas have contributed to increased interest in buying homes in Birmingham. Birmingham offers a diverse range of neighborhoods, each with its own unique characteristics and amenities. Some popular areas include: Downtown Birmingham, Experiencing revitalization with new developments, restaurants, and entertainment options; Homewood, Known for its excellent schools, family-friendly atmosphere, and charming downtown area and Mountain Brook, A more upscale area with luxurious homes, top-rated schools, and a strong sense of community. By Getting Pre-Approved and Working with a local real estate agent who understands the market trends, neighborhoods, and property values can be beneficial when navigating the Birmingham home purchase market.  Being prepared with financing in place can give buyers an advantage and help make informed decisions in a dynamic market. Call (205) 352-1030 to speak with our Birmingham Home Loan Specialists.

Birmingham Home Purchase Loans

Birmingham home buyers have various mortgage programs to choose from that support everyone from first time homebuyers to the seasoned investor. A brief summary is below as well as key points to understand in the home buying process.

  • Down Payment:  The initial payment made towards the purchase of the home, usually calculated as a percentage of the total purchase price. 
  • Interest Rates: The rate at which the lender charges you to borrow the money. Rates can be fixed (unchanging throughout the loan term) or adjustable (fluctuating over time).
  • Loan Term: The duration of the loan, commonly 15 or 30 years, though other terms may be available. 
  • Closing Costs: Fees associated with finalizing the mortgage, including loan origination fees, appraisal fees, title insurance, and more. 
  • Pre-Approval vs. Pre-Qualification: Pre-qualification is an initial assessment of your ability to qualify for a loan based on self-reported information. Pre-approval involves a lender’s detailed review of your financial information and credit score to determine the specific loan amount you’re eligible for.
  • Credit Score: A major factor in determining loan eligibility and interest rates. Higher credit scores often lead to lower interest rates.
  • Private Mortgage Insurance (PMI): Required for conventional loans with less than a 20% down payment, PMI protects the lender in case the borrower defaults on the loan.
  • Home Appraisal: Conducted by a professional to determine the fair market value of the property being purchased.

Birmingham Conventional Home Loans

Birmingham Conventional Home Mortgage is one that the federal government does not insure. The potential for reduced interest rates and smaller down payments are features. Typical eligibility requirements include a minimum credit score of 620, a stable income, and a minimum 5% down payment. Highly qualified first time borrowers may get by with a 3% down payment. A debt-to-income ratio of 43 percent is generally accepted, although specific limits can vary by lender.

Conventional Home Loans also called Conforming loans adhere to Fannie Mae and Freddie Mac requirements, including capped loan limits that are updated annually on January 1st base on the median selling price within a local area. 

Birmingham FHA Home Loans

A Birmingham FHA Home Mortgage is a mortgage insured by the Federal Housing Administration or “FHA” and issued by an FHA-approved lender. FHA loans are designed for low-to-moderate-income applicants and first time homebuyers who need a smaller down payment.   However, FHA home loans can be used by anyone.

FHA home loans feature a low down payment, flexible credit score requirements, and the ability to use gift funds for the down payment. In Birmingham, you’ll need a 3.5% down payment and a minimum credit score of 580 to qualify for an FHA loan. If you have a credit score between 500 and 579, you may still be eligible for an FHA loan, but you must make a 10% down payment.

Other eligibility requirements for a Birmingham FHA home loan exist besides the down payment and credit score requirements. You must have a consistent employment history and documented income. There is also a maximum debt-to-income ratio of 43 percent, with exceptions of up to 56.99 percent with compensating factors.

Birmingham VA Home Loans

Birmingham VA Home Mortgage is a mortgage option for qualified veterans, active-duty service members, and select surviving spouses in Birmingham, Alabama. These loans are made by private lenders but are guaranteed by the United States Department of Veterans Affairs, allowing for favorable terms such as no down payment and no private mortgage insurance (PMI).  VA home loans are widely available, with competitive interest rates and liberal credit standards. 

The key qualifying requirements for a VA Home Mortgage include meeting service criteria, such as having more than 90 active-duty days if you are a current service member or various requirements for veterans based on their service time. A Certificate of Eligibility (COE) is required and can be obtained online, through a lender, or by mail.

VA home loans feature no down payment for most applicants, low interest rates, limited closing costs, and no PMI. In the event of default, the VA guarantees a portion of the loan, typically up to 25 percent. In general, loan limits are attached to county limits, but they can vary based on remaining entitlements. Sometimes, borrowers can obtain multiple VA loans for primary residences, and prepayment is permitted without penalty. 

Birmingham USDA Home Loans

Birmingham USDA Home Mortgage is a mortgage program provided by the US Department of Agriculture (USDA) to assist low-to-moderate-income individuals or households in purchasing homes in suitable rural areas. USDA home loans are classified into two types: USDA-Guaranteed and USDA-Direct. The USDA-Guaranteed Home Loan is made available by a private lender and guaranteed by the USDA, whereas the USDA-Direct home loan is made available directly by the USDA.

No down payment is required for a USDA mortgage, and closing costs can. be rolled into the loan provided the home appraises.  To qualify for a USDA loan in Alabama, your monthly housing costs (principal and interest on your mortgage, property taxes, and homeowner’s insurance) must not exceed a specified percentage of your total monthly income (29% ratio). Your credit history will be considered objectively. To be eligible for USDA financing, the residence must be located in an approved rural area.

The primary distinction between a USDA-Guaranteed and a USDA-Direct home loan is the income limitations. Your income cannot exceed 115% of the median household income in your area for Guaranteed Loans. You must have an adjusted income at or below the applicable low-income limit for the area you are purchasing to qualify for a Direct Loan.

Birmingham Jumbo USDA Home Loans

Birmingham Jumbo Home Mortgage is a mortgage that exceeds the standard conventional loan limit. These loans are widely utilized to finance luxury properties and have grown in popularity.  Jumbo loans frequently include fixed-rate durations such as 30-year and 15-year and adjustable-rate alternatives. Financing of up to $3,000,000 is offered at 90% with no PMI (Private Mortgage Insurance).

Larger down payment options, which used to be generally about 20% but have since been changed to allow 10% and even 5% in some situations, are vital aspects of a jumbo loan in Birmingham. Furthermore, these loans can be used for both regular acquisitions and rate-term refinancing. However, cash-out refinancing is usually limited to a loan-to-value ratio of 80%-90%. Depending on the lender and the borrower’s criteria, loan amounts range from $2-3 million.

A minimum credit score of 620 is usually required to qualify for a jumbo loan in Birmingham. Other restrictions include detailed documentation for income and asset verification, and after closing, applicants must show mortgage payment “reserves,” typically equivalent to three months’ worth of payments. A lower debt-to-income (DTI) ratio is also advantageous for candidates for jumbo loans. Some programs even need a second appraisal to guarantee that the loan amount matches the property’s value.

Birmingham Non QM Home Loans

Birmingham Non-Qualified-Mortgage-Loans, also known as a Non-QM loan, is a form of mortgage loan that does not meet the government-sponsored enterprise (GSE) requirements for a qualified mortgage. Borrowers who fail to meet the tight standards of a qualifying mortgage, such as those with irregular income or a high debt-to-income ratio, are perfect candidates for this sort of loan. 

Non-QM loans have their own set of requirements, such as flexible income and credit standards. Borrowers may be required to make a larger down payment and pay a higher interest rate in return. Non-QM loans have different income documentation requirements, no waiting period after bankruptcy, more significant debt limits, higher down payment requirements, and higher interest rates. It’s worth noting that while non-QM loans are easier to qualify for than traditional mortgages, they’re also more expensive. 

Birmingham Native american Home Loans

Birmingham Native American Mortgage, also known as a HUD 184 Home Loan, is a government mortgage loan specifically for registered Native Americans.  This loan offers easier credit qualifications, tribal grants and can be used to renovate the home along with the purchase.

Birmingham One Time Close construction Home Loans

Birmingham One-Time Close Construction Mortgage is distinct from a traditional construction home loan in combining the construction loan and the permanent mortgage into a single loan. This means you only have to go through the application and closing process once, saving time and money. A traditional construction home loan requires you to apply for a separate mortgage after the construction is completed.  An OTC loan also can. be combined with other standard mortgage products resulting in much smaller down payments. 

Apply for a Birmingham Purchase Home Loans

Capital Home Mortgage Birmingham provides a variety of financing choices customized to different needs for Birmingham, Alabama, home purchasers. We are a direct lender; thus, the approval process is quick and easy. We provide competitive rates and an efficient process, especially appealing to people with lower credit scores because of government-backed programs such as FHA, USDA, VA, and HUD 184. Call (205) 352-1030 to speak with our Birmingham Home Loan Specialists.
Why Birmingham HomeBuyers are Choosing Capital Home Mortgage
Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates & Low Fees

Exceptional Service

7  Day a Week Support Application to Final Mortgage Payment

Birmingham Alabama Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Birmingham Home Purchase Loans

Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.

  • Primary, Secondary, Investment
  • FHA, VA, USDA, Native American
  • Conventional, Jumbo, Non QM
  • Reverse, Renovation, Manufactured

Birmingham fixed rate Mortgage Loans

All Fixed Rate Mortgage Loans are designed to have equal payments for the specified term. These loans offer predictability and are deemed to be less risky for borrowers. Fixed Rate Mortgage Loans are available with all mortgage products and are typically offered in 15 year and 30 year terms. However, Fixed Rate Mortgage Loans are also offer in 10 year, 20 year and 25 year terms although less common due to demand.

Birmingham Adjustable Rate Mortgage Loans

Adjustable Rate Mortgage Loans known as ARM’s are  available with most mortgage products although limited with FHA, VA and USDA. ARM’s are great fit for homebuyers who plan to sell or refinance their home between 1 and 10 years and are looking for the lowest possible payment.  ARM’s offers lower rates during times where fixed rates are higher. An adjustable rate mortgage is fixed for a specific time then adjusts on a predetermined time period and a predetermined amount based on a financial index and a fixed margin.

Birmingham Mortgage Programs

Birmingham Home Purchase loans

Looking to Purchase a Birmingham Home?

Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.
  • Primary, 2nd Home, Investment
  • Low Rates & Fees, No fee Options
  • FHA, VA, USDA, Native American
  • Conventional, Jumbo & Renovation
  • Manufactured, Construction, Reverse

Birmingham Renovation Home Loans

Looking to Rehab a Birmingham Home?

Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not a renovation loan? Purchase the Perfect Home and make it your own.
  • Remodel, Renovate or Repairs
  • FHA 203K Streamline 
  • FHA Full Documentation Rehab
  • Fannie Mae Homestyle Reno
  • Freddie Mac Home Choice Reno

Birmingham FHA Home loans

Great 1st Time Birmingham Homebuyers

FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket.   Call today to get started.
  • Smaller Down Payments
  • Flexible Underwriting Guidelines
  • Higher Debt to Income Allowed
  • Lower Credit Scores – Down to 500
  • Down Payment Gifts Allowed

Birmingham va Home Loans

100% Financing for Birmingham Vets

Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.
  • No Mortgage Loan Limits
  • Simple Qualifying
  • Higher Debt to Income Allowed
  • Lower Credit Scores – Down to 500
  • Manual Underwriting Allowed

Birmingham Conventional Home loans

Flexibility for Birmingham Homebuyers

Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a loan officer.
  • Primary, 2nd Home, Investment Properties
  • Single and Multi-Family Properties
  • Variable Mortgage Insurance Options
  • Low Rates & a Variety of Mortgage Terms
  • Renovation Programs Available

Birmingham Jumbo Home Loans

Birmingham Non-Confirming Home Loans

Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits. Call today.
  • Primary & 2nd Homes
  • Variety of Mortgage Programs
  • Simple Qualifying for Veterans
  • Investor Specific Guidelines
  • Credit Score Minimums

Birmingham USDA Home loans

100% Rural Birmingham Home Loans

USDA Loans are a great option for families wanting to live outside of the city.  Call today to speak with a loan officer to discuss your personal loan options.
  • Primary Residences
  • No Down Payment Required
  • New Manufactured Homes Allowed
  • Closing Costs / Repairs Rolled In
  • Geographic and Income Limits Apply

Birmingham Native american Home Loans

Birmingham Hud 184 Home Loans

HUD 184 Home Loans are solely for Native American and offer a variety of benefits.  Call today to speak with a loan officer to find out more.
  • Primary Residence Only
  • Manual Underwriting for All Loans
  • No Credit Score Requirements
  • Tribal Grants Allowed
  • Purchase, Refinance, and Renovation

Birmingham Manufactured Home loans

Great Alternative Birmingham Housing

Manufactured Home Loans offer options to purchase an existing residence or build your dream home on your own land. Call today to speak to a Loan Officer.
  • Existing Purchase or Refinance
  • New Construction
  • One Time Close Land/Home Combo
  • Lock at Contract
  • FHA, VA, USDA, Native American

Birmingham Reverse Mortgage Loans

Your Birmingham Home at Work

Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.
  • Primary Residence Only
  • Simple Qualifying – Equity Based
  • No Credit Score Requirements
  • Minimum Age 62
  • Purchase, Refinance, and Cash-Out

Birmingham Non QM Home loans

Making Birmingham Mortgages Possible

Looking for Non Traditional Home Mortgage Loan?  Contact a Loan Officer Today to discuss the alternative mortgage options currently available.
  • Purchase, Refinance & Cash-out
  • Primary, Secondary, Investment Properties
  • Full Doc Programs
  • Alt Doc Programs
  • Corporations OK

Birmingham One Time Close Home Loans

Build Your Birmingham Dream Home

Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan.  Call today to see how a OTC loan works.
  • Primary Residences Only
  • One Time Close
  • Lock Rate at Closing
  • Traditional Final Mortgages
  • No Payments During Construction

Birmingham Refinance Mortgage loans

Birmingham Rate & Term Refinance

Refinancing can be a hard decision and the payback can sometimes be confusing.  Call today and let our Loan Officers walk you through the process.
  • Lower Monthly Payment
  • Shorten Mortgage Term
  • Streamline Options Available
  • Appraisal Waivers Allowed
  • VA IRRRL’s

Birmingham Cashout Mortgage Loans

Birmingham Equity Mortgage Loans

Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.
  • Debt Consolidation
  • Investment Opportunities
  • Home Improvement
  • Dream Vacation
  • Higher Education

Birmingham Alabama Mortgage Team

Dale Gremillion

Manager / Sr Loan Officer
NMLS 210325

Conor Hayhurst

Manager / Sr Loan Officer
NMLS 743506

Brad Rund

Director Native American Lending
Director Manufactured Housing

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