Buying your first home in Alabama is more achievable than most people think — if you know the options and go in with a plan.
Loan types
| Loan | Down payment | Notes |
|---|---|---|
| FHA | 3.5% | Flexible on credit and debt-to-income; mortgage insurance applies |
| Conventional | From 3% | Best with stronger credit; PMI can be removed later |
| VA | None required for eligible borrowers | Veterans, service members, eligible spouses |
| USDA | None required for eligible borrowers | Eligible rural and suburban areas; income limits apply |
Down payment assistance
The Alabama Housing Finance Authority (AHFA) offers down payment assistance for eligible buyers through participating lenders. Income and purchase-price limits apply and terms change, so ask a participating lender what's available and whether you qualify.
The negotiation that matters most
For many first-time buyers, the bigger win is getting the seller or builder to pay closing costs — or to buy the rate down. That's not a program; it's negotiation, and it's what I do.
What lenders look for
- Steady, documented income
- Credit — the higher the score, the better the pricing
- Debt-to-income within the loan's limits
- Some savings for closing and reserves
See your range on the affordability calculator and read the first-time buyer page.