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Guide to Alabama Mortgages
Maybe you are buying your first home in Alabama, or perhaps you're relocating to Alabama from another state. Then again, you may be a long-time Alabama resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on Alabama home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in Alabama:
The median price of a home in Alabama is $211,500. Recently, homes in Alabama have been appreciating at rates well above the national average. As a result, income levels in many parts of Alabama are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Alabama are below the national average, Alabama has one of the lowest levels of home affordability in the nation.
In Alabama, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
Alabama's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Alabama law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, Alabama law enacted a set of anti-predatory lending laws in order to help protect Alabama homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of Alabama, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Alabama FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Alabama's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of Alabama also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Alabama's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Alabama Housing Finance Agency.
Last Updated: Wednesday, September 17, 2008
Alabama Real Estate Market View
updated Wednesday, September 17, 2008
| Housing & Social Facts |
Alabama |
United States |
| Total housing units |
2,082,140 |
n/a |
| Owner-occupied housing units |
70.5% |
66.9% |
| Renter-occupied housing units |
29.5% |
33.1% |
| Vacant housing units |
14.1% |
10.8% |
| Average Home Value |
$97,500 |
$167,500 |
| Average Mortgage Payment |
$913.00 |
$1,295.00 |
| Average Rental Payment |
$266 .00 |
$388.00 |
| Total Population |
4,442,558 |
n/a |
| Percentage Male |
48.2% |
49.0% |
| Percentage Female |
51.8% |
51.0% |
| Median Age |
37.4 |
36.4 |
| Under 5 years |
6.6% |
7.0% |
| 18 years and over |
75.6% |
74.6% |
| 65 years and over |
12.9% |
12.1% |
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1 Year Market Value Change for Alabama |
| 1yr | 5yr | 10yr |
 |
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Popular Alabama Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Anniston |
24,276 |
$27,385 |
| Auburn |
42,987 |
$17,206 |
| Bessemer |
29,672 |
$23,066 |
| Birmingham |
242,820 |
$26,735 |
| Decatur |
53,929 |
$37,192 |
| Dothan |
57,737 |
$35,000 |
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| Premier Mortgage |
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When you decide to buy a home or refinance a mortgage, it is a big step. You can trust us to find the loan program that best suits your particular financial situation. Buying a new home is a source of anxiety, frustration and a huge sense of accomplishment. You did not select the house that was best for anyone; you picked the home that is right for you! Trust our professionals to find the mortgage loan that best fits your needs, too. With less paperwork and more personal attention means you enter a stress-free zone from application to decision. Obtaining the right mortgage loan is like receiving the keys to your new house! We can help you get there. Refinancing your current mortgage has never been easier. If you thought refinancing meant processing mounds of paperwork, think again! We make it easy and worry-free to reduce your interest rate and monthly payment. We can even help you pay down your balance quicker for comparable monthly payment. Let our professionals guide you to the very best refinanced loan! Our mortgage professionals give you the personal attention and respect we feel our customers deserve. We understand you are making a commitment in buying a new home, refinancing and mortgage or cashing out your home equity, so we make a commitment to you. We will help you qualify, apply and be approved for the right mortgage loan for you. Not anybody else! Your One Stop Mortgage Shop, Where Service an Rate Matters! Premier Mortgage
9694 Madison Blvd. Suite B-3
Madison, AL 35758
Phone: 256-258-0175
Fax: 256-258-0178
Get a no-obligation Alabama mortgage quote today!
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| American Home Mortgage |
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If you need a home loan, you have come to the right place! American Home Mortgage is one of the nation's leading mortgage lenders. We believe it is the right and destiny of every American to own a home, and we are proud of the role that we play in promoting homeownership in communities across America. American Home Mortgage offers valuable benefits to consumers searching for a new home or those refinancing their current home loan. We are a mortgage lender that lends directly to consumers without any middlemen. We are also organized as a real estate investment trust (REIT). This allows us to offer more competitive pricing and a far greater selection of home loans than traditional mortgage companies. With our leading edge technology, our huge variety of competitive mortgage products and our network of highly skilled loan officers and analysts, we have the resources available to closely match your needs and objectives to your mortgage. That's real value! Founded in 1987 in New York City, American Home Mortgage is one of the top 20 national lenders, with coast-to-coast operations and the ability to originate loans in all 50 states and the District of Columbia. We look forward to the opportunity to meet your specific real estate lending need with a great home loan and outstanding personal service! Mortgage Customer Care
Toll Free: (877) 304-3100
Toll Free Hours of Operation: Monday - Friday
American Home Mortgage
P.O. Box 631730
Irving, TX 75063-1730
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| Cranbrook Loans |
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We will custom tailor a mortgage to fit your needs. Get pre-approved first before you shop for a home and know that you can afford the home that you fall in love with, before you fall in love. Let our Home Loan Experts identify the best option for your situation or custom-tailor a mortgage, specifically for your financial needs. We offer low, low rates and we compete with anybody. If you do not have any money to put down, it is not a problem because we offer zero down programs. With various home purchase options, you can obtain a very low payment with interest only loans, get a lower fixed rate for three or five years, no documentation loan, no proof of income and for first time home buyers, we offer a zero down payment option. Consolidate your debt to reduce your monthly expenses with a locked fixed-rate mortgage with a low rate to lower your monthly payments. Lower your term to a fifteen (15) year loan to save interest; you would be amazed that the payments are affordable. Switch to an interest only loan or a loan with a shorter fixed term and save hundreds per month. Mortgage Options: 10/15/20/30 Year Fixed Rate
Adjustable Rate Mortgage (ARM)
Zero Down
No Documentation
Interest Only
Jumbo
Debt Consolidation
Bad Credit
High Loan to Value
FHA and VA Contact:
Cranbrook Loans
41800 Hayes Road
Clinton Township, MI 48038
Call us at: 877-LOAN-993
Get a no-obligation Alabama mortgage quote today!
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