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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