|
 Alabama VA Loans
What are VA Home Loans?
VA Loans provide military veterans and current service members a distinct advantage when it comes time to purchase or refinance a home. Today's VA Loans have the most favorable terms available for most veterans. VA Loans can be used to purchase a new home with no down payment with no mortgage insurance or refinance up to 90% of a homes current equity.
What are the eligibility requirements for a VA Loan in Alabama?
Veterans Affairs loan guidelines use two methods of income qualification in Alabama. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 620 credit score for a VA Loan approval.
How much can I borrow?
The maximum VA Mortgage amount is determined by:
Maximum VA Loan in Alabama: The largest loan allowed for VA mortgages with zero down is $417,000 in AL. Please refer to the Alabama VA Loan Limit chart at the bottom of this page to see your area's limit.
Maximum Finance: For purchase transactions, the Maximum VA Loan will be 100% of the lower of the selling price or the appraised value.
What will the down payment and closing costs be?
Alabama VA loans have zero money down up to $417,000 in most counties.
What property types are allowed for VA Loans in Alabama?
VA Loans may be used to purchase or refinance single family residences and VA approved condo projects if the property is the veteran's primary residence.
Can I do a VA refinance in Alabama?
Three kinds of VA Refinance programs are available for veterans in Alabama.
 VA Rate/Term Refinance
The VA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into a VA Mortgage. This program helps borrowers who wish to have a stable, VA insured fixed rate mortgage.
VA Cash-Out Refinance
A Cash-Out VA Refinance is very beneficial for the veteran who wants to access the equity that they have built up in their home. VA Loans can be used to refinance up to 90% of a homes current value and take cash out for any reason.
Streamline Refinance
The VA Streamline Refinance is designed to lower the interest rate on a current VA mortgage or convert a current VA adjustable rate mortgage into a fixed rate. A VA Streamline Refinance Loan can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.
How much can I refinance in Alabama?
The maximum amount for an AL VA loan is determined by:
Maximum VA Loan in Alabama: The largest loan allowed for a VA Mortgage varies from county to county. The highest maximum VA Mortgage right now is $1,094,625. The lowest maximum VA Mortgage amount available in any county is $417,000. To see what the limit is in the county in which you're interested, visit the following page http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf. This site lists U.S. territories as well as states.
Maximum Finance: In Alabama, The maximum VA refinance loan amount will be 100% of the appraised value of the home for a rate/term refinance or 90% of the appraised value for a VA cash out refinance.
What factors determine if I am eligible for a VA Refinance Loan?
VA refinance loans use two methods for income qualification purposes in Alabama. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 620 credit score for a VA Loan approval.
More information about VA Refinance.
Complete Online Application
Alabama VA Loan Limits
Updated 04/01/2009
| County Name |
|
Maximum Single Family Mortgage
(No Money Down)
|
|
Maximum VA Jumbo
(No Money Down to 417k, 25% Down Above)
|
| AUTAUGA |
|
417,000 |
|
1,094,625 |
| MONTGOMERY, AL (MSA) |
| BALDWIN |
|
417,000 |
|
1,094,625 |
| DAPHNE-FAIRHOPE, AL (MICRO) |
| BARBOUR |
|
417,000 |
|
1,094,625 |
| EUFAULA, AL-GA (MICRO) |
| BIBB |
|
417,000 |
|
1,094,625 |
| BIRMINGHAM-HOOVER, AL (MSA) |
| BLOUNT |
|
417,000 |
|
1,094,625 |
| BIRMINGHAM-HOOVER, AL (MSA) |
| BULLOCK |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| BUTLER |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| CALHOUN |
|
417,000 |
|
1,094,625 |
| ANNISTON-OXFORD, AL (MSA) |
| CHAMBERS |
|
417,000 |
|
1,094,625 |
| VALLEY, AL (MICRO) |
| CHEROKEE |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| CHILTON |
|
417,000 |
|
1,094,625 |
| BIRMINGHAM-HOOVER, AL (MSA) |
| CHOCTAW |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| CLARKE |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| CLAY |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| CLEBURNE |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| COFFEE |
|
417,000 |
|
1,094,625 |
| ENTERPRISE-OZARK, AL (MICRO) |
| COLBERT |
|
417,000 |
|
1,094,625 |
| FLORENCE-MUSCLE SHOALS, AL (MSA) |
| CONECUH |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| COOSA |
|
417,000 |
|
1,094,625 |
| ALEXANDER CITY, AL (MICRO) |
| COVINGTON |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| CRENSHAW |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| CULLMAN |
|
417,000 |
|
1,094,625 |
| CULLMAN, AL (MICRO) |
| DALE |
|
417,000 |
|
1,094,625 |
| ENTERPRISE-OZARK, AL (MICRO) |
| DALLAS |
|
417,000 |
|
1,094,625 |
| SELMA, AL (MICRO) |
| DE KALB |
|
417,000 |
|
1,094,625 |
| FORT PAYNE, AL (MICRO) |
| ELMORE |
|
417,000 |
|
1,094,625 |
| MONTGOMERY, AL (MSA) |
| ESCAMBIA |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| ETOWAH |
|
417,000 |
|
1,094,625 |
| GADSDEN, AL (MSA) |
| FAYETTE |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| FRANKLIN |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| GENEVA |
|
417,000 |
|
1,094,625 |
| DOTHAN, AL (MSA) |
| GREENE |
|
417,000 |
|
1,094,625 |
| TUSCALOOSA, AL (MSA) |
| HALE |
|
417,000 |
|
1,094,625 |
| TUSCALOOSA, AL (MSA) |
| HENRY |
|
417,000 |
|
1,094,625 |
| DOTHAN, AL (MSA) |
| HOUSTON |
|
417,000 |
|
1,094,625 |
| DOTHAN, AL (MSA) |
| JACKSON |
|
417,000 |
|
1,094,625 |
| SCOTTSBORO, AL (MICRO) |
| JEFFERSON |
|
417,000 |
|
1,094,625 |
| BIRMINGHAM-HOOVER, AL (MSA) |
| LAMAR |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| LAUDERDALE |
|
417,000 |
|
1,094,625 |
| FLORENCE-MUSCLE SHOALS, AL (MSA) |
| LAWRENCE |
|
417,000 |
|
1,094,625 |
| DECATUR, AL (MSA) |
| LEE |
|
417,000 |
|
1,094,625 |
| AUBURN-OPELIKA, AL (MSA) |
| LIMESTONE |
|
417,000 |
|
1,094,625 |
| HUNTSVILLE, AL (MSA) |
| LOWNDES |
|
417,000 |
|
1,094,625 |
| MONTGOMERY, AL (MSA) |
| MACON |
|
417,000 |
|
1,094,625 |
| TUSKEGEE, AL (MICRO) |
| MADISON |
|
417,000 |
|
1,094,625 |
| HUNTSVILLE, AL (MSA) |
| MARENGO |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| MARION |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| MARSHALL |
|
417,000 |
|
1,094,625 |
| ALBERTVILLE, AL (MICRO) |
| MOBILE |
|
417,000 |
|
1,094,625 |
| MOBILE, AL (MSA) |
| MONROE |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| MONTGOMERY |
|
417,000 |
|
1,094,625 |
| MONTGOMERY, AL (MSA) |
| MORGAN |
|
417,000 |
|
1,094,625 |
| DECATUR, AL (MSA) |
| PERRY |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| PICKENS |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| PIKE |
|
417,000 |
|
1,094,625 |
| TROY, AL (MICRO) |
| RANDOLPH |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| RUSSELL |
|
417,000 |
|
1,094,625 |
| COLUMBUS, GA-AL (MSA) |
| SHELBY |
|
417,000 |
|
1,094,625 |
| BIRMINGHAM-HOOVER, AL (MSA) |
| ST. CLAIR |
|
417,000 |
|
1,094,625 |
| BIRMINGHAM-HOOVER, AL (MSA) |
| SUMTER |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| TALLADEGA |
|
417,000 |
|
1,094,625 |
| TALLADEGA-SYLACAUGA, AL (MICRO) |
| TALLAPOOSA |
|
417,000 |
|
1,094,625 |
| ALEXANDER CITY, AL (MICRO) |
| TUSCALOOSA |
|
417,000 |
|
1,094,625 |
| TUSCALOOSA, AL (MSA) |
| WALKER |
|
417,000 |
|
1,094,625 |
| BIRMINGHAM-HOOVER, AL (MSA) |
| WASHINGTON |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| WILCOX |
|
417,000 |
|
1,094,625 |
| NON-METRO |
| WINSTON |
|
417,000 |
|
1,094,625 |
| NON-METRO |
Learn about VA Loans in Alabama's top cities:
More Information on VA Mortgages and VA Refinance .
Complete Online Application
|
|
|
 Why choose a VA Home Loan?
VA Refinance Questions & Answers
What are VA Refinance Requirements?
VA Loans can be used to refinance up to 90% of a homes current appraised value for cash out or interest rate reduction.
What are some of the advantages of a VA Home Loan?
VA refinance loans offer the most favorable terms available to veteran's when compared to other loan types in most cases. VA Loans can be used to purchase or refinance with no pre-payment penalty and no mortgage insurance at a great, low interest rate and fully amortized payment.
How much equity is required in my home to obtain a VA Refinance Loan?
At the present time, VA Refinance can be used to get cash out of 90% of a home's current equity. A refinance to lower the interest rate can also be done up to 90% of the home's appraised value, as determined by the VA.
I have already obtained one VA loan. Can I get another one?
Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.
Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?
Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.
Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, please contact us.
|
|
|
