At Alabama Home Mortgage Loans, we offer a variety of mortgage loan programs for our customers.
A conventional loan is a home mortgage issued by a traditional lender without support from a government-backed loan program.
Typically, with a conventional loan, the borrower pays 20 percent down on the purchase price of the house.
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.
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Conventional 3% Down Loan
Watch our 60 second video for details, or continue reading below.
These conventional mortgages let you put down as little as 3 percent, with:
- No upfront Mortgage Insurance (or MI for short)
- Reduced, or no, monthly MI
- Usually a lower monthly payment
FHA is the largest insurer of residential mortgages in the world.
FHA loan requirements and guidelines cover things like:
- Mortgage insurance
- Lending limits
- Debt to income ratios
- Credit issues, and
- Closing costs
FHA loans require just a 3.5 percent down payment.
For more information visit FHA.COM.
VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners.
They provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.
VA Home Loans are provided by private lenders, such as banks and mortgage companies.
VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
For more information visit VA.Gov.
The USDA’s single-family housing direct home loan program is designed to help low and very-low income people obtain housing in rural areas, notes USDA.gov.
- Be unable to obtain a loan from other resources
- Agree to occupy the property as their primary residence
- Have the legal capacity to get a loan
- Not be barred from participating in federal programs
- Be citizens or eligible non-citizens
The program does not require that the applicant make a down payment.
The USDA’s direct guaranteed loan program has similar requirements, and the USDA offers an income limit scale on its website. The scale is based on the location of the home and the classifications of very low income, low income or moderate income.
For more information visit USDA.gov.
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