Capital Home Mortgage Alabama

Alabama Conventional Home Loans

Conventional Mortgage Lender Alabama

Conventional Home Loans Alabama

Conventional loans are mortgages that a government agency does not guarantee. Instead, private lenders such as banks, credit unions, and online lenders provide this service. Typically, these loans are used to acquire or refinance a residential property. Conforming to the rules established by Fannie Mae and Freddie Mac, government-sponsored firms that purchase mortgages from lenders and sell them to investors are also known as “conforming loans.” This permits lenders to give more funds to qualified purchasers. Conventional loans are less expensive than FHA loans but more challenging to qualify for. Conventional mortgages make for a significant share of home purchases and refinance and are offered by various lenders. They are the most prevalent type of home loan and are issued by private lenders to meet Fannie Mae and Freddie Mac guidelines.

Types of Conventional Loans

  • Conforming Loans

Conforming loans are mortgages that comply with FHFA loan size limits and other Fannie Mae and Freddie Mac guidelines. For the loans to be sold to Fannie Mae and Freddie Mac, they must comply with the regulations, which eventually adds liquidity and stability to the mortgage market. Not all conventional loans are conforming loans, but all conforming loans are conventional loans. A FICO score of 620 is required to qualify for a conventional-conforming loan. The required payment ranges from 3 to 5 percent of the purchase price. If the borrower makes a 20% down payment, the loan must include private mortgage insurance (PMI).
  • Non-conforming Loans

Loans that do not adhere to the requirements set forth by Fannie Mae and Freddie Mac, two government-sponsored enterprises that invest in mortgage loans, are considered non-conforming loans. The Federal Housing Finance Agency (FHFA) is in charge of establishing these criteria. Jumbo loans, which are larger than the conforming loan limit, are considered non-conforming.
  • FHA Home Loans

A loan insured by the Federal Housing Administration is an FHA loan (FHA). The Federal Housing Administration is a government agency within the Department of Housing and Urban Development (HUD). FHA loans are intended to assist low- and moderate-income applicants in qualifying for a mortgage. One of the primary advantages of an FHA loan is that it allows for a down payment of as little as 3.5% for borrowers with credit scores of 580 or above. Moreover, FHA loans often offer lower closing fees than conventional loans. Lenders must meet the agency’s requirements to qualify for an FHA loan. Once the loan is approved, the FHA insures it, protecting the lender if the borrower defaults on the mortgage.
  • VA Home Loans

VA home loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and offered by private lenders such as banks and mortgage companies. If the borrower defaults on the loan, the VA will pay a portion of the loan. VA home loans are intended to assist qualifying Servicemembers, Veterans, and surviving spouses in becoming homeowners. The program offers a home loan guarantee benefit and other housing-related services to assist borrowers in purchasing, building, repairing, retaining, or adapting a home for personal use. In general, the terms of VA home loans are more advantageous than those offered by private lenders. By acquiring a Certificate of Eligibility (COE) and meeting credit and income requirements, eligible borrowers can apply for a VA home loan.
  • USDA-Guaranteed Home Loans

A USDA-guaranteed home loan, also known as a USDA loan or Rural Development loan, is a mortgage product that requires no down payment and is backed by the United States Department of Agriculture (USDA). These federally guaranteed loans can be used to buy, develop, repair, or refinance a property. They are designed for low-to-moderate-income individuals and families living in rural areas of the country.  The property must be located in an eligible rural area, and the borrower’s income must fulfill specific standards to qualify for a USDA loan. USDA loans are only available through USDA-approved lenders.
  • Jumbo Loans

Jumbo home loans, also known as non-conforming loans, exceed the limits Fannie Mae and Freddie Mac set. These government-sponsored enterprises purchase and package most U.S. home loans for investors. Jumbo mortgages are available for primary residences, second or vacation homes, and investment properties and come with various terms, such as fixed- and adjustable-rate loans. Borrowers must have a low ratio of debt to income and a strong credit score. Due to their bigger size, jumbo loans often have a higher interest rate and more stringent underwriting requirements than conventional mortgages, and they typically require a larger down payment.

Apply For An Alabama Conventional Loan

Buying a home is a huge accomplishment, and Capital Home Mortgage can assist in making the process as straightforward and enjoyable as possible. We are a full-service home mortgage company with a diverse range of mortgage products and a commitment to offering unrivaled customer service. Call us at (205) 352-1030 to speak with one of our Home Loan Specialists and get started on your path to homeownership!
Why Alabama HomeBuyers are Choosing Capital Home Mortgage
Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates and Low Fees

Exceptional Service

7  Day a Week Support Application to Final Mortgage Payment

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

Alabama Conventional Purchase Loans

Conventional Purchase Mortgage Lender

Conventional Purchase Loans are one of the most popular types of loans and a great choice for many home buyers. Conventional mortgages can be used to purchase any type of occupancy, while FHA, USDA, VA and Native American Loans are restricted to primary residence only. Conventional mortgages are great for borrowers that have higher credit scores and typically have easier qualifying.  

  • Freddie Mac or Fannie Mae Insured
  • Primary, 2nd or Investment Homes
  • Single and Multi Family
  • Condo’s and Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates & Fleixble Terms
  • Maximum Loan Amount – $715,000
  • High Balance (Varies By County)

Alabama Conventional Refinance Loans

Conventional Refinance Mortgage Lender

Conventional Refinance Loans are used for more refinances than any other type of mortgage loan.   This is due to Conventional loans allowing for all occupancy and property types and typically don’t require any mortgage insurance due to loan to value requirements. Conventional mortgages due require higher credit scores but offer better rates.  

  • Freddie Mac or Fannie Mae Insured
  • Primary, 2nd or Investment Homes
  • Single and Multi Family
  • Condo’s and Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates & Fleixble Terms
  • Maximum Loan Amount – $715,000
  • High Balance (Varies By County)

Alabama Conventional Renovation Loans

Conventional Renovation Mortgage Loans

Want a new home? Don’t want to purchase a home from a builder?  Prefer the charm of an older home, or the elegance of a mature neighborhood… Or just want the perfect location close to town.  Making your dream home come true might just be updating that older home. 

  • 95% LTV Primary  Residence
  • 97% LTV 1st Time Buyer Single Family
  • 85% LTV on 1 Unit Investment
  • 90% LTV on Second Home
  • Minimum Credit Score 620
  • Luxury Renovations are Eligible
  • Maximum Loan Amount – $715,000
  • High Balance (Varies By County)

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

Alabama Mortgage Company Reviews

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