Alabama (AL) USDA Loans
We are pleased to announce that we now have Alabama USDA financing. USDA Loans in Alabama are intended to provide lower-income homeowners with 100 percent financing (with no down payment). USDA (United States Department of Agriculture) loans, once known as farm loans, are now available to Alabama residents in almost every AL county outside of major metropolitan areas (rural areas in Alabama including Hale County, Walker County, Pike County and others).
USDA Loan Requirements (Alabama)
The requirements to qualify for Alabama USDA Loans are:
- Monthly Alabama housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio).
- Credit background will be fairly considered. At least a 640 FICO credit score is required to obtain a USDA approval through most lenders in Alabama.
- Alabama borrower must have enough income to pay your housing costs plus all additional monthly debt (41% ratio with some flexibility).
- Income can be up to 115% of the median income for the area.
- Bankruptcy: Have been discharged from a Chapter 7 bankruptcy for three years or more (if applicable).
- Alabama property must be considered rural which is generally defined as open country with fewer than 10,000 people. Learn more here: http://eligibility.sc.egov.usda.gov.
Alabama families must be able to afford the mortgage payments, including taxes and insurance.
Alabama USDA Mortgage Rates
AL USDA Loan rates vary by individual and are determined by a number of factors specific to the individual, Alabama property being financed, etc. In general, AL USDA rates are better than I7average compared to other options for qualifying individuals.
Get an Alabama USDA Loan
Apply now or contact the Alabama USDA Mortgage experts at Home Point Financial to learn more about USDA Loans in Alabama, eligibility and more.
