Alabama FHA Home Loans
FHA loans are hotter than ever – and for good reason in a down economy.
These low-cost loans offer a host of financial benefits from recession-weary homebuyers, from low down payments to great interest rates. Thousands of Americans, especially first-time buyers, are flocking to FHA loans.
In fact, the administration guaranteed almost 186,000 mortgages in June, establishing a new monthly record. The FHA has insured more than 34 million properties since its creation in 1934.
Financial flexibility is a major driving force behind the FHA loan’s surging popularity. There are no income restrictions for FHA loans, which require only a 3.5 percent down payment. Some borrowers can actually combine other loans with a standard FHA loan to eliminate the need for a down payment all together.
On top of that, FHA mortgages typically feature lower closing costs than conventional loans. For decades, these low-cost loans have appealed to first-time buyers and those with low and middle incomes. There are no credit score requirements to obtain an FHA loan, meaning prospective borrowers don’t need perfect credit. Even people who have declared bankruptcy or foreclosure can obtain an FHA loan. The administration will examine a borrower’s financial and employment history, along with a few other key indicators.
Many first-time buyers using FHA loans to truly capitalize on the federal government’s $8,000 first-time homebuyer’s tax credit. This unique tax credit can help defray closing costs or down payment expenses.
Borrowers can use an FHA loan to buy a single-family home, up to four-unit buildings (as long as one is owner-occupied) and condominiums. There are also specialized FHA loans for the purchase and rehabilitation of properties through the FHA’s 203k loan program.
Borrowers can prepay on their FHA loans or refinance at any time without financial penalty.
FHA loan recipients work with a price cap. The administration has loan limits that vary by geographic region. The current limit ranges from $271,050 to a maximum of $729,050 in high-cost parts of the country, such as California and New York.
For Baldwin County and the Gulf Shores and Orange Beach area of Alabama, the FHA loan limits are $271050 for a single-family unit; $347,000 for a two-family unit; $419,425 for a three-family unit; and $521,250 for a four-family unit.
Post provided by Brandon Laughridge with MortgageLoanPlace.com
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