Alabama mortgage lenders | finder.com
SunsetAtOrangeBeachAlabama_GettyImages_250x250

Mortgage lenders in Alabama

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Secure financing for your new home in the Yellowhammer State.

To find the best mortgage loan option in Alabama, thoroughly compare rates, terms and closing costs. But first see if you qualify for any government-backed programs.

Government-backed financing in Alabama

Keep an eye on interest rates, closing costs and the availability of government-backed products through FHA or USDA programs. These agencies may help you get stronger terms if you’re a first-time homebuyer or applying for an eligible rural or suburban home.

If you’re a first-time homebuyer, check out the Alabama Finance Housing Authority. The AFHA can help you with your down payment if your annual income is less than $97,300. It may also lend support with your closing costs or a credit certificate to reduce your federal taxes on the mortgage interest you pay every year.

Name Product Min. credit score State availability Loans offered
620
Available in all states
Purchase, Refinance, Home Equity, HELOC, Jumbo, Reverse, Fixed, Adjustable, FHA, VA, USDA
Connect with vetted home loan lenders quickly through this online marketplace.
620
Not available in: HI, MA, NV, NY, ND, UT
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Explore financing options and home shopping services all on the same website.
620
Not available in: HI, NY
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA, Reverse
A hassle-free lender specialized in home loans.
620
Available in all states
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Flexible options, fast approvals and support online backed by a trusted brand.
620
Available in all states
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA
A subsidiary of CIT Group, CIT Bank is a direct lender that offers a variety of mortgage loan options.
620
Available in all states
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Streamline your mortgage from quote to final payment — all from your computer or phone.

Compare up to 4 providers

Mortgage lenders for veterans in Alabama

If you’re a veteran, an active service member or an eligible spouse, look into the Veterans Affairs home loan program. The VA program lets you borrow directly from the US Department of Veterans Affairs, which typically offers stronger loan terms compared with private lenders. Note that select private lenders may offer VA-backed home loans with the same or better terms.

Name Product Min. credit score State availability
620
Not available in: HI, MA, NV, NY, ND, UT
Explore financing options and home shopping services all on the same website.
620
Not available in: HI, NY
A hassle-free lender specialized in home loans.
620
Available in all states
Flexible options, fast approvals and support online backed by a trusted brand.

Compare up to 4 providers

How to find the best lenders and rates in Alabama

Local credit unions in Alabama may offer stronger loan terms than your local bank if you’re already a member. Beyond the rate, factors that can affect how much you pay monthly and over the life of your loan include:

  • Rates. You aren’t guaranteed the advertised rates. Preapproval is a way to get a more accurate idea of what you’re eligible for.
  • Fees. Depending on the lender, you could end up paying more in application, maintenance, insurance, prepayment and other fees, not to mention PMI.
  • Terms. A traditional 30-year mortgage offers lower payments over the long term, while a 15-year loan mortgage costs more up front but saves you significant interest over the life of your loan.
  • Type. Fixed rates offer reliability that can keep a budget on track, while adjustable rates can be a way to keep interest at a minimum in the first few years of your loan.
  • Discounts. Loan programs through the VA, USDA and Alabama Finance Housing Authority can help eligible homeowners save even more.

Closing costs in Alabama

Expect to pay closing costs of $2,653 after taxes on average for a home sale price of $100,000 to $200,000. This puts Alabama below the national average. For comparison, average closing costs in neighboring Florida are $5,585 for houses valued at $200,000 to $300,000.

Closing costs in Alabama

Bottom line

To find the best mortgage lender in Alabama for your needs, start by comparing interest rates, down payment options, closing costs and whether a lender offers government or VA-backed home loans.

Look to a range mortgage lenders — including banks, credit unions and newer digital options — to narrow down the best fit for your long-term financial goals.

Frequently asked questions

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site