Home Loans in Dothan, Alabama

Potential homeowners have choices when it comes to choosing a mortgage program in Dothan, Alabama. PRMI Dothan provides our customers a number of options for home loans. Additionally, we offer our expertise in helping you learn more about which programs you may be eligible to apply for. Some of our borrowers even qualify for 100% financing, meaning no down payment is necessary.

VA Loans Click to open answer

VA home loans are government-insured mortgages available to most veterans and their surviving spouses. This home loan program is advantageous because borrowers do not have to put any money down on the home they want to purchase. Interest rates are also competitive.

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FHA Loans Click to open answer

These government-insured mortgages, created for low-to-middle-income borrowers with average to below-average credit scores, help make it easier for people to qualify for a mortgage loan in Dothan, Alabama. While FHA loans require a down payment of 3.5%, if you’re a first-time homebuyer, you may be able to get grants or other help with the down payment, closing costs and other fees.

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USDA Loans Click to open answer

USDA loans also require no down payment, but some of the other requirements are more stringent than they are for FHA loans. For instance, you need a higher credit score and must demonstrate a stable income. USDA loans can only be used to purchase rural properties, as this is program was designed to populate and uplift rural areas. USDA loans are also government-insured mortgages.

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Conventional Loans Click to open answer

The most common type of home loan, conventional mortgages are not government-insured mortgages and therefore come with stricter qualifications, including a higher credit score. Those who qualify for conventional loans often pay a lower interest rate, due to their higher credit scores and income.

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Jumbo Loans Click to open answer

For homes that are priced above the limit of conventional home loans, borrowers can apply for a jumbo loan. To qualify for a jumbo loan, you need a high credit score and enough money for a substantial down payment. Jumbo loans are not government-insured mortgages and are riskier than conventional loans because of the high price tag, and that is why they can be harder to qualify for.

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Interest Rates on Mortgage Loans in Dothan

Generally speaking, the higher your credit score and the more money you have for a down payment, the lower the interest rate on your home loan will be. Other factors come into the determination as well, such as your debt-to-income ratio.

All the mortgage loan programs listed above allow borrowers to get either an adjustable-rate mortgage or a fixed-rate mortgage. Many homeowners prefer the stability of a fixed-rate mortgage because they can be certain their payments will not change along with the going interest rate. However, some homeowners can save money with an adjustable-rate mortgage. Regardless, the type of rate you have can be changed if you refinance your home.

Trusted Dothan Mortgage Lender

You can read more about each of the mortgage programs above on our site, or you can call or visit the mortgage lenders at PRMI Dothan to learn more about which type of home loan you may qualify for. We’re the friendly Dothan mortgage loan lenders you can count on to help you get the house of your dreams!

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