Zero Down Home Loans in Birmingham, AL still available...for now
As the title suggests, Zero Down Home Loans in Birmingham, AL are still available...for now. It is rumored that the ever popular USDA Mortgage program is in jeopardy of running out of funds in the latter part of April. This program has been very successful and because of its popularity, the funds set aside by the USDA are running low. The USDA (United States Department of Agriculture) program for Rural Development has been a key factor for helping home owners obtain a Zero Down Home Loan in Birmingham AL.
Zero Down Home Loans in Birmingham, AL are slowly becoming a thing of the past due to the sub-prime market melt down. However, the USDA Rural Development program offers 100% financing (no money down) and also requires no mortgage insurance. Seller concessions are not limited and borrowers can be gifted the money for closing costs. The credit requirements are modest as a 620 score can qualify.
There are two programs within the USDA Rural Development agenda. The Direct program and the Guaranteed program both offer the same benefits but the income requirements are different. The Direct program is for low income borrowers and the Guaranteed program is for moderate income borrowers. It is the Guaranteed program that is running low on funds. Currently, the national office is petitioning Congress about re-appropriating funds from the Direct program to the Guaranteed program. There is no word yet if their efforts have been successful. Some lenders have already stopped accepting USDA loan applications.
HomeTown Mortgage is one of the Southeast's largest non-institutional lenders and the USDA loan program is very popular. If you or your client is looking for a Zero Down Home Loans in Birmingham, AL, we are currently still accepting applications for the USDA loan but it is unclear how much longer the funds will last. We are informing our clients that these funds may not be available in the very near future and to best serve them we are qualifying them on backup programs such as the AHFA (Alabama Housing Finance Authority) Step-up program.
Give me a call today and let's see what your options are!
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