Also known as the Yellowhammer state or the 'Heart of Dixie', Alabama is considered to be one of the most successful states today because of the presence of a number of fast-growing industries like automobile manufacturing. The presence of a number of highly profitable industries in the state makes Alabama one of the best places to build a home.

If you desire to purchase a house, build a new home or improve your house, there are a number of housing loan assistance options available. There are government home loans that are by far a better option than conventional loans when it comes to monthly home mortgage interest rates. There are also companies which offer mortgage refinancing in reasonable home mortgage rates.

If you want to own a new house, yet you do not have the sufficient amount of cash on hand to make a down payment, USDA 100% Financing Rural Development Home loans can be applied for. Unlike other conventional loans, you do not need 20% of the principal amount of the loan on hand as a down payment. For USDA Rural Housing Loans, mortgage insurance is not required and this kind of loan is usually granted in rural areas to residents who are capable of repaying their mortgage loans.

There are also a 30-year fixed rate mortgages available where the home buyers will only have to put down 5% of the principal amount as a down payment. Depending in your capacity to repay, you can get a minimum loan of $25,000 and a maximum amount of $2 million. Throughout the 30-year term of the loan, the home buyer will pay the same monthly home mortgage rate.

As a veteran, you are qualified to get a VA loan where you will pay a fixed monthly rate for a period of five years. After the lock-in period, your rate will vary in accordance with the interest rate that prevails in the market. However, the good thing is that, you don't need to pay for the down payment. With VA loan, you can even refinance your home for up to 100% of its value.

You can also check out the FHA loan which offers from 15 to 30-year terms. However, you will have to pay for the 3.5% down payment. Nevertheless, FHA loan is far better than other conventional loans, which give high mortgage interest rates.