Home Loan Options & Ways to Pay for a Home

Discover the ways you can purchase a home here in Coastal Alabama.

Financing Options

Conventional Loans
 
A conventional mortgage is a loan that is not insured or guarenteed by the federal government. These loans are commonly used by buyers with established credit and can offer competitive rates and terms. Depending on the loan program and the buyer's qualifications, a conventional loan may require as little as a few percent down.
 
 
FHA Loans
 
FHA loans are insured by the Federal Housing Administration and can be an option for buyers who may not qualify for some conventional financing. They are known for allowing a relatively low down payment and may be more accessible to buyers with lower credit scores, although mortgage insurance and other costs apply.
 
VA Loans
 
VA-backed loans can be an excellent option for eligible veterans, active-duty service members, and certain surviving spouses. Qualified buyers may be able to purchase a home with no down payment and without monthly private mortgage insurance, although other loan costs and eligbility requirements apply.
 
 
 
USDA Loans
 
USDA loans can help eligible buyers purchase a home in qualifying rural areas with 100% financing, meaning no down payment may be required. Income limits and property eligibility requirements apply, so buyer should check whether the specific property and their household qualify.
 
Cash Purchase
 
Not every buyer needs a mortgage. A buyer who has savings or other funds may purchase a home with cash and eliminate the need for a mortgage. A cash purchase can simplify some aspects of the transaction, but buyers should still budget for inspections, title work, insurance, taxes, closing expenses, and ongoing homeownership costs.
More Resources
 
 
 

MORTGAGE CALCULATOR

Use our home loan calculator to estimate your total mortgage payment, including taxes and insurance. Simply enter the price of the home, your down payment, and details about the home loan, to calculate your mortgage payment, schedule, and more.
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Your mortgage payments over 30 years will add up to $0.
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MORTGAGE HELP

Down Payment

The typical rule of thumb is to pay 20 percent of the home's price as your down payment, although some mortgage loans require as little as 3.5 percent down. Your down payment reduces the total amount of your mortgage loan, so the more money you put down, the lower your payments will be - or the more expensive a house you can buy.

Loan Term

Your loan program can affect your interest rate and monthly payments. Choose from 30-year fixed, 15-year fixed, and more in the calculator.

Loan Type

There are several types of mortgage loans, but the most commonly used are fixed-rate and adjustable-rate loans. Fixed-rate loans have the same interest rate for the entire duration of the loan. That means your monthly payment will be the same, even for long-term loans, such as 30-year fixed-rate mortgages. Two benefits to this loan type are stability, and being able to calculate your total interest up front. Adjustable-rate mortgages (ARMs) have interest rates that can change over time. Typically they start out at a lower interest rate than a fixed-rate loan, and hold that rate for a set number of years, before changing interest rates from year to year. For example, if you have a 5/1 ARM, you will have the same interest rate for the first 5 years, and then your interest rate will change from year to year. The main benefit of an adjustable-rate loan is starting off with a lower interest rate.

Interest Rate

This field is pre-filled with the current average mortgage rate. Your actual rate will vary based on factors like credit score and down payment.

Property Tax Rate

The mortgage payment calculator includes estimated property taxes based on the home's value. You can edit this in the advanced options.

Home Insurance

Home insurance or homeowners insurance is typically required by lenders, depending on the loan program. You can edit this number in the mortgage calculator advanced options.

HOA Fees

A homeowners association fee (HOA fee) is an amount of money that must be paid monthly by owners of certain types of residential properties, and HOAs collect these fees to assist with maintaining and improving properties in the association.