Birmingham Area USDA Financing Ends

If you’re thinking of buying a home in several areas near Birmingham using 100% loan financing through the U.S. Department of Agriculture, you’ll have to go a different route.

Effective October 1st, homes in Chelsea, Calera, Moody and Pleasant Grove—areas that have been eligible for USDA’s no-down-payment funding—will no longer qualify.

Current loans that are already in USDA’s processing system as of October 1st will be honored.

The removal of these areas comes as a result of a decision that these communities are no longer considered rural.

USDA’s loan program has been very popular…Colleen and I have helped many first time Buyers over the years with purchasing a home using this financing.

This does not necessarily mean that you’re out of options if you’re trying to get a 100% financed loan for a home in these areas.

USDA Financing

USDA’s no-down-payment financing for Calera, Chelsea, Moody and Pleasant Grove is winding down as of Oct 1st.

A new 100% conventional loan program has just been announced that may be a suitable alternative.

Offered by several area Lenders, the new loan program is currently available at a fixed rate of 4.75% to Buyers who qualify, and has reduced mortgage insurance.  And, unlike USDA loans, this new loan is not restricted by area.

Here are a few Lenders in the area you can contact for more information:

KC Haririan
Aliant Bank
205-999-1386

Gloria Jackson
First Federal Mortgage
205-965-2167

Woody Woodfin
Home Mortgage of America, Inc.
205-229-2877

About David Black

Colleen and David Black love what they do, and that's helping people who want to buy or sell homes in the Birmingham and Shelby Co. area achieve their dreams...

Posted on September 8, 2013, in Real Estate and tagged , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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