3 Best Jumbo Loans in Alabama

Located in the heart of the South, Alabama offers Southern charm, a diverse landscape, and modern metropolises to over 5 million citizens. Alabama brings with it a good deal of history, too, and was at the heart of the Civil Rights movement during the 1960s.

Whether you live in a small town or a big city, home prices in Alabama are on the rise. According to the Alabama Association of Realtors, the median sales price of a home in Alabama is $318,000. While that number is well below the jumbo loan limit in Alabama, the state still has plenty of jumbo mortgage activity.

For the most recent year, the HDMA data places Alabama 28th in the country in terms of home loans, with a total of $2.344 billion in jumbo mortgages originated. If you’re looking for a jumbo mortgage in Alabama, you’ll be among good company.

What is the jumbo loan limit in Alabama?

The jumbo loan limit in Alabama is $726,200 for all counties in the state. Any loan that exceeds $726,200 is a jumbo loan in the state of Alabama. Any loan that is less than $726,200 is a conforming loan in the state of Alabama.

3 Top Alabama jumbo loan lenders

If you’re in the market for a home in Alabama, consider these jumbo mortgage loans that are available to state residents.

1. Flagstar Bank

Flagstar Bank has a jumbo product in all 50 states, making it a popular choice among many people looking for higher mortgage amounts. If you’re considering a jumbo mortgage, you’ll want to compare Flagstar’s rates as part of your analysis.

We reached out to a loan officer at Flagstar Bank to get details on their jumbo mortgage. Here are the highlights:

• Loan amounts up to $3 million on primary residences
• Loan amounts up to $2.5 million on second homes
• Purchase and rate/term refinance options available on primary residences and second homes
• No prepayment penalties
• First-time homebuyers permitted
• No mortgage insurance options available
• Cash-out options available on primary residence

When you’re ready to connect with a loan officer experienced in jumbo mortgages, use our form to quickly match with jumbo loan programs based on your specific circumstances.

2. SoFI

SoFi is a financial institution based in California that specializes in student loan refinance options, PLUS loans and flexible repayment terms. You might not know that they also offer jumbo loan mortgages. 

We spoke to a loan officer at SoFi to discuss their jumbo loan mortgage and this is what we learned:

• Loan amounts up to $3 million
• Down payments start at 10% and increase as the loan amount increases.
• No PMI, regardless of your down payment amount.
• 15-year or 30-year fixed rate products available

When you’re ready to connect with a loan officer experienced in jumbo mortgages, use our form to quickly match with jumbo loan programs based on your specific circumstances.

3. Chase Bank

JPMorgan Chase Bank is one of the oldest banks in the United States, tracing its roots back to the 18th-century and JP Morgan himself. As one of the Big Four banks, it’s not a surprise that they have a competitive jumbo mortgage program in addition to a variety of other financing options.

We contacted Chase Bank to get additional details about their jumbo mortgage. Here are some key terms and highlights:

• Up to $3 million for a jumbo loan.
• Banking customers might get discounted pricing up to 0.5% off standard rates.
• $5,000 Closing Guarantee (either an on-time closing or you get $5,000).
• Interest Only loan available for high-value, single-family primary or secondary home purchases.

When you’re ready to connect with a loan officer experienced in jumbo mortgages, use our form to quickly match with jumbo loan programs based on your specific circumstances.

Benefits of getting a jumbo loan in Alabama

Jumbo loans offer a wide range of benefits to those who want to purchase a home in Alabama. The main advantage is clear— you can just buy more home. The conforming loan limits for conventional loans are set by Freddie Mac and Fannie Mae each year and even though they are higher than they were last year, they still limit your options in an increasingly competitive housing market. The higher limit of a jumbo home loan gives you more options, allowing you to consider a much wider array of properties in your part of Alabama, even giving you reach into the cities like Birmingham, Montgomery or Tuscaloosa. 

Another advantage is that you can often qualify for an Alabama jumbo loan with less than 20 percent down. Finally, you can consolidate all of your financing under a single loan. Conventional financing on a home in Alabama that cost more than conventional mortgage limits would require that you combine together multiple conventional mortgages or else have enough cash on hand to offset the limits on conforming loans. 

Does an Alabama jumbo loan make sense for you?

If you are considering a jumbo loan in Alabama, how can you be sure that it is the right choice for you? First, take a look at the housing market in your region. Are most of the homes pushing the limits of conforming, conventional mortgages? Then, you might want to consider a jumbo loan. 

Do you have limits on what you can put down on a home? Remember, many Alabama jumbo loans do not require 20 percent down. For more expensive properties, you may also need to have a good deal of cash on hand in order to offset conforming limits. A jumbo loan offers you a great alternative, albeit one that can come with a higher interest rate. If you don’t mind a higher rate of interest, look into a jumbo loan in Alabama. 

Need a jumbo loan in a different state?

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