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.
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:
First Federal Mortgage
Home Mortgage of America, Inc.
Posted on September 8, 2013, in Real Estate and tagged birmingham, calera, chelsea, financing, first time buyer, homes for sale, keller williams realty metro south, loan, moody, mortgage, no down payment, pleasant grove, Real Estate, shelby county, usda. Bookmark the permalink. Leave a comment.