Capital Home Mortgage Montgomery

Montgomery home purchase loans

Home Purchase lender Montgomery

Home Purchase Loans In Montgomery

Montgomery’s housing market remains one of the most affordable in the country, which is advantageous for homeowners. The housing market is slightly competitive and highly stable and steady.

Purchase Loan Programs in Montgomery

Montgomery, Alabama, home buyers have various mortgage loan options. The most common among them are the following:

Montgomery Conventional – Conforming Loans

A conventional mortgage is a home loan not insured by the federal government and offers flexible loan terms and conditions. Most mortgages in the United States are conventional, and their interest rates may be fixed or variable. They typically necessitate a solid credit score of 620, a sizeable down payment of 5%, and competitive interest rates. However, well-qualified borrowers may take advantage of the 3% down payment.

Conventional-conforming loans comply with specific Fannie Mae and Freddie Mac guidelines, including loan limits and borrower requirements. Annually, the Federal Housing Finance Agency (FHFA) modifies these limits. Montgomery County conforming loan limits for 2023 are $726,200 for a single-family home, $929,850 for a duplex, $1,123,900 for a triplex, and $1,396,800 for a quadplex. These loans may require mortgage insurance for down payments of less than 20%. Non-conforming loans, on the other hand, do not adhere to these guidelines and typically cater to specific requirements, such as lower credit scores or properties with a higher value. Due to the increased lender risk, they may have higher rates and down payments.

Essential characteristics and eligibility requirements vary between these loan categories. Typically, conventional-conforming loans require a minimum FICO® Score of 620, a debt-to-income ratio (DTI) of 45% or less, and a down payment of at least 5%. Non-conforming loans, particularly jumbo loans, typically require a larger down payment, an excellent credit score, and sometimes cash reserves. Non-conforming loan terms can vary considerably and are frequently lender-specific. 

Montgomery FHA Home Loans

FHA home loans are mortgages insured by the Federal Housing Administration (FHA) and provided by FHA-approved lenders. These loans are typically less difficult to qualify for than conventional loans and require a smaller down payment. However, you’ll owe mortgage insurance premiums (MIPs) if you have a loan balance.

The primary distinction between FHA and conventional loans is whether or not they are federally insured. The federal government does not guarantee conventional loans, so extending this loan is riskier for the lender. On the other hand, FHA loans are backed by the government, and because they carry less risk, they can typically offer better terms.

To qualify for an FHA loan, borrowers must satisfy certain requirements, including the residence they are considering, which must be appraised by a certified FHA appraiser. You cannot qualify for a new FHA loan if the home you’re considering is an investment property or a second home; it must be your primary residence. You must move in within sixty days of the closing date. Additionally, your down payment will be determined by your credit score. If your credit score meets or exceeds the minimum requirement, you may be eligible for a 3.5% down payment.

Montgomery VA Home Loans

A VA home loan in Montgomery, Alabama, is a mortgage option primarily available to Veterans, Servicemembers, and qualifying spouses. Private lenders make these loans, but they are backed by the Department of Veterans Affairs (VA), which provides various benefits such as no down payment, low-interest rates, and reduced closing expenses. Additionally, the VA offers rate-lowering refinancing, Native American loans, and grants for disabled Veterans.

VA home loans have several distinguishing qualities. For example, there is no down payment necessary, and loan limitations vary by county. The usual loan maximum in 2023 is $726,200, but it can go up to $1,089,300 in some counties. Furthermore, if you default on a loan worth more than $144,000, VA will guarantee 25% of the debt.

Veterans and Servicemembers must have a specific military service history to be eligible, which can be demonstrated by getting a Certificate of Eligibility (COE). Specific conditions apply to different eras, such as the Gulf War or WWII. National Guard and Reserve members are also eligible, with a minimum of six years of service. Partial eligibility may be attainable, and surviving spouses may also be eligible. This program is not available to the children of veterans.

Montgomery USDA Home Loans

A USDA home loan is a mortgage program supported by the United States Department of Agriculture (USDA) that assists low- and moderate-income families in purchasing homes in suitable rural areas. In Montgomery, Alabama, two types of USDA home loans are available: the USDA Guaranteed Loan and the USDA Direct Loan. The USDA Guaranteed Loan, backed by the USDA but issued by a private lender, is offered to low- to middle-income households. The USDA Direct Loan, on the other hand, is less widely available and is intended to assist low-income borrowers in rural areas in obtaining homeownership. In this scenario, the USDA functions as the lender, providing the funding to acquire the property.

The primary distinctions between the two loan types are the lender, income restrictions, term length, and interest rate. The USDA provides direct loans, while private lenders issue guaranteed site loans. Guaranteed loans have higher income limits than direct loans. The fixed term for direct loans is 33 or 38 years, while the term for guaranteed loans is 30 years. The interest rate on direct loans is based on the current market rate, whereas the interest rate on guaranteed loans is negotiated with the lender.

Applicants must satisfy several criteria to qualify for a USDA-guaranteed home loan in Montgomery, Alabama. They must also be a U.S. Citizen, a U.S. non-citizen national, or a Qualified Alien and meet the income eligibility requirements (income cannot exceed 115% of the median household income). In addition, their monthly housing costs (principal and interest on the mortgage, property taxes, and insurance) must not exceed a specified percentage of their total monthly income (29% ratio). Additional factors may be considered when determining an applicant’s eligibility for a USDA-guaranteed home loan.

Montgomery Construction Loans

A construction home loan is a specific financial instrument used to fund the development of a new residential property. Unlike a traditional mortgage, a construction loan is usually only for the duration of the construction, which can range from six months to two years. These loans often include higher interest rates and a 20% down payment. As the construction project continues, the funds are disbursed in phases, and the loan may be converted into a regular mortgage upon project completion. 

Regular construction loans and one-time close construction loans are the two primary types of construction loans. A standard construction loan only covers the construction phase and requires the borrower to apply for a separate mortgage once the construction is completed. This necessitates two loan applications as well as two sets of closing costs. On the other hand, a construction-to-permanent loan combines the construction loan and the long-term mortgage into a single loan with one application and one set of closing charges.

The primary advantages of a construction loan with a single closing are its simplicity and cost-effectiveness. It provides fixed interest rates, necessitates a single qualification procedure, and reduces the risk for borrowers. The loan combines construction and financing costs, necessitating only a single closing and saving time and money. In addition, it reduces total expenses by eradicating the need for multiple transactions and fees. This method streamlines the homebuilding process, making it a popular and consumer-friendly alternative.

Montgomery Jumbo Home Loans

A jumbo home loan in Montgomery, Alabama, is a mortgage that exceeds the Fannie Mae and Freddie Mac conforming loan limits. These loans are designed to finance luxury homes or properties in local real estate markets that are highly competitive. They are called “jumbo” because they exceed conventional loan limits.

There are many advantages to obtaining a jumbo loan. The primary benefit is that they enable consumers to finance pricier homes without taking out multiple loans. This can be especially advantageous in areas with high property values. Some lenders also offer jumbo renovation loans, which provide funds to purchase or refinance a property in addition to any necessary renovations. However, because of the higher risk the lender assumes, interest rates on jumbo loans can be marginally higher.

To be eligible for a jumbo loan in Montgomery, Alabama, borrowers must satisfy specific eligibility criteria. Typical qualifications include a high credit score (typically 720 or higher), a low debt-to-income (DTI) ratio, and adequate cash reserves. The quantity of the loan can range between $726,200 and $2,000,000. Some lenders may also require confirmation of income and assets and an appraisal to establish the property’s value.

Montgomery Non-Qualified Mortgage Loans

A non-qualified mortgage (non-QM) home loan does not meet the Dodd-Frank Act and CFPB’s qualified mortgage (QM) standards. Non-QM loans are intended to assist borrowers who cannot obtain a standard mortgage due to factors such as self-employment, a lack of documentation, or other income sources. Depending on the lender and the loan program, non-QM loans may have varying standards and requirements.

Private money rehabilitation loans, bridge loans, and direct permanent-end financing for fix-and-flippers and investors are examples of non-QM loans. Asset qualifier home loans, bank statement loans, investor cash flow home loans, 1099 income loans, and ITIN mortgage loans are loans for borrowers with alternative sources of income or supporting documentation; no-doc, no-ratio, and profit and loss statement-only loans are for borrowers with little to no income verification; loans longer than thirty years, with negative amortization or interest-only payments for borrowers seeking more flexibility or lower monthly payments; and home loans for borrowers with recent foreclosure, bankruptcy, or early debtor status.

The main characteristics of non-QM loans include more flexible underwriting standards, such as higher DTI ratios or alternative income verification methods. Other advantages of non-QM loans include allowing credit scores as low as 600, not requiring personal income calculations or employment history, allowing multiple properties without being held against the borrower, providing loans to individuals with high debt or poor credit, and requiring less documentation than traditional loan products.

Apply for a Montgomery Home Purchase Loan

Capital Home Mortgage is an Alabama-based direct mortgage lender and servicer that provides a wide range of mortgage solutions to meet the needs of its customers. Whether you were born and raised in Alabama or are a newcomer to the state, our knowledgeable team at Capital Home Mortgage will work hard to find the financing package that best meets your needs and budget. We are here to help you with your housing needs, whether you are looking for a first mortgage, a refinance, or a debt consolidation loan.

Call (205) 352-1030 to speak with a Montgomery Home Loan Specialist.

Why Montgomery 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

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

Montgomery 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

Montgomery 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.

Montgomery 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.

Montgomery Mortgage Programs

Montgomery Home Purchase loans

Looking to Purchase a Montgomery 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

Montgomery Renovation Home Loans

Looking to Rehab a Montgomery 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

Montgomery FHA Home loans

Great 1st Time Montgomery 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

Montgomery va Home Loans

100% Financing for Montgomery 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

Montgomery Conventional Home loans

Flexibility for Montgomery 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

Montgomery Jumbo Home Loans

Montgomery 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

Montgomery USDA Home loans

100% Rural Montgomery 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

Montgomery Native american Home Loans

Montgomery 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

Montgomery Manufactured Home loans

Great Alternative Montgomery 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

Montgomery Reverse Mortgage Loans

Your Montgomery 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

Montgomery Non QM Home loans

Making Montgomery 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

Montgomery One Time Close Home Loans

Build Your Montgomery 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

Montgomery Refinance Mortgage loans

Montgomery 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

Montgomery Cashout Mortgage Loans

Montgomery 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

Montgomery Alabama Mortgage Team

Dale Gremillion

Sr Loan Officer
NMLS #210325

Conor Hayhurst

Branch Manager
NMLS #743506

Sam Klaburner

Sr Loan Officer
NMLS #140132
Rebecca Solomon

Rebecca Solomon

Sr Loan Officer
NMLS #156188

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