Best Alabama Mortgage Lenders & Current Mortgage Rates

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Thinking about settling down in the Heart of Dixie? Those who say yes should have many options. Alabama has just below 2.3 million housing units and a homeownership rate of 68%, according to the U.S. Census Bureau’s 2018 American Community Survey.

Alabama’s median housing value is $147,900, which is roughly 36% below the national median value of $229,700. Depending on where you look in Alabama, both higher and lower housing prices can be found.

U.S. News conducted an in-depth review of leading direct mortgage lenders. Research was based on program availability and customer satisfaction ratings. Because each consumer has different needs, the top finishers in several key areas were chosen.

What Are the Mortgage Rates in Alabama?

The average interest rate for a 30-year fixed-rate conforming mortgage in Alabama is 3.52%.

Home interest rates range from 2.88% to 4.13% in Alabama.

What Are Today’s Mortgage Rates?

Locking in a low mortgage rate today can save you thousands over the life of your loan. Compare your mortgage rate offers with national average trends.

Loan Types	This Week’s Rate	Last Week’s Rate
30-Year Fixed Rate	3.40%	3.45%
15-Year Fixed Rate	2.83%	2.82%
30-Year Fixed Jumbo Rate	3.46%	3.53%
5/1 ARM Rate	3.17%	3.18%
5/1 ARM Jumbo Rate	2.99%	3.00%

*Rates as of June 10, 2020.

U.S. News’ Best Alabama Mortgage Lenders

Methodology: U.S. News conducted an in-depth review of leading direct mortgage lenders in Alabama. Research was based on program availability, customer satisfaction ratings and qualification requirements. Because each consumer has different needs, the top finishers in several key areas were chosen.

Best lender for up to 100% of the appraised value of the home.

A major financial institution serving homeowners nationwide, Bank of America has good customer satisfaction ratings. The bank has an A+ Better Business Bureau rating and a J.D. Power rating of four, which is better than most.

Highlights:

Mortgage types offered: Conventional, VA, FHA, refinance, home equity
Minimum FICO score: 620
Maximum loan-to-value ratio: 100%
Maximum debt-to-income ratio: 55%
Loan amounts: Up to $5,000,000
Total closing costs: Varies
J.D. Power overall satisfaction rating: Four out of five

Best Features

Bank of America has a wide variety of mortgage products.
The lender offers annual percentage rate or closing cost discounts for qualifying Bank of America and Merrill Lynch clients.
Home equity lines of credit have no annual, balance transfer or cash advance fees or closing costs.

See full profile

Best lender for a first-time homebuyer program.

After several years in business as two separate entities – Caliber Funding and Vericrest Financial – Caliber Home Loans premiered in 2013. As of 2018, Caliber Home Loans serving portfolio is at $150 billion.

Highlights
• Mortgage types offered: Conventional, FHA, VA, USDA, ARM, Refinancing (conventional), Refinancing (FHA), Refinancing (VA), First-time homebuyer program
• Minimum FICO score: 580
• Max DTI: 50%
• Origination fee: Not disclosed
• J.D. Power satisfaction rating: Three out of five

Best Features

A first-time homebuyer program called HomeOne. It only requires a 3% down payment and borrowers may qualify with a minimum 620 credit score.
Government-insured loans including Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture programs are available.

See full profile

Best lender for loans for up to $3 million.

Guild Mortgage serves homebuyers nationwide with multiple mortgage options. Mortgage shoppers can choose from conventional or agency loans with this lender, which has an A+ BBB rating and a four out of five J.D. Power satisfaction rating.

Highlights:

Mortgage types offered: Conventional, FHA, VA, USDA, ARM, Home equity loans, Refinancing (conventional), Refinancing (FHA), Refinancing (VA), Refinancing (USDA), First-time homebuyer program, Jumbo, renovation, expanded (non-qm)
Minimum FICO credit score: 620
Maximum debt-to-income ratio: 50%
J.D. Power satisfaction rating: Four out of five

Best Features

Good customer service ratings.
A broad range of mortgage products.
Special mortgage programs including ones for first-time homebuyers and buyers of manufactured homes.

See full profile

Best lender for waived lender fees on future refinancing.

LoanDepot was established in 2010 and since then has financed more than $70 billion in mortgages. It offers FHA, conventional and other mortgage options. Borrowers may qualify for a loan with a FICO credit score as low as 580.

Highlights:

Mortgage types offered: Conventional, FHA, VA, ARM, Refinancing (conventional), Refinancing (FHA), Refinancing (VA), Home equity loans
Minimum FICO credit score: 500 with conditions
Maximum debt-to-income ratio: 43% for FHA
Maximum combined loan-to-value ratio: 90%
J.D. Power satisfaction rating: Four out of five

Best Features

LoanDepot mortgages have a lifetime guarantee, which means if you ever decide to refinance an existing loanDepot loan, the company will waive the lender fees and reimburse appraisal fees.

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Best lender with a closing cost assistance program.

PrimeLending is a Dallas-based mortgage lender with several mortgage loan options, including conventional loans, jumbo loans, government-backed loans and refinance loans. The lender is a subsidiary of PlainsCapital Bank.

Highlights:

Loan types: conventional, FHA, VA, USDA, ARM, refinancing
Minimum FICO Score: 600
Maximum loan-to-value ratio: not disclosed
Maximum debt-to-income ratio: 43%
Total closing costs: 2% to 6% of loan amount
Equity required: not disclosed
J.D. Power Satisfaction rating: not rated

Best Features

Offers a wide variety of mortgage loans.
Provides mortgage loans nationwide.
Helps with closing costs.

See full profile

Best lender for good customer satisfaction ratings.

Quicken Loans is a nationwide mortgage lender with several mortgage options. Known for customer service, the lender has an A+ Better Business Bureau rating and received a rating of five (among the best) in the 2018 U.S. Primary Mortgage Origination Satisfaction Study.

Highlights:

Mortgage types offered: ARM, FHA, VA, Refinancing (FHA), USDA, Conventional, Refin
ancing (conventional)
Minimum FICO credit score: 580 (FHA), other loans vary
Maximum debt-to-income ratio: 60%
J.D. Power satisfaction rating: Five out of five

Best Features

Complete loan process available online.
Wide variety of mortgage products.
Good customer service ratings.

See full profile

Best lender for focused service for veterans and service members.

Veterans United Home Loans is a full-service mortgage lender. Veterans United Home Loans specializes in VA loans and is the largest VA home purchase lender.

Highlights:

Mortgage types offered: Conventional, ARM, VA, FHA, USDA, refinance
Minimum FICO credit score: 620
Maximum debt-to-income ratio: Varies
J.D. Power satisfaction rating: Not rated

Best Features

Military membership not required.

See full profile

Mortgage Calculator

Is your dream home within reach? U.S. News’ mortgage calculator will show you how much house you can afford.

What Are Some Alabama Homebuyer Programs?

Alabama Housing Finance Authority has three homebuyer assistance programs Alabama homebuyers can use to help purchase a home. They include down payment assistance loans, closing cost grants and federal income tax credits.

Available to: Eligible Alabama homebuyers using HFA Advantage conventional or Federal Housing Administration loans.
Income limits: Vary by loan type and potentially by county (see income limits).
First-time homebuyers only? No.
Benefits: Up to 3% down payment assistance in the form of a second mortgage with a 10-year term.

Available to: Eligible Alabama homebuyers using HFA Advantage conventional loans.
Income limits: Vary by county (see income limits).
First-time homebuyers only? No.
Benefits: A grant of up to 1% to help with closing costs.

Available to: Eligible Alabama homebuyers.
Income limits: Vary by area (see income limits).
First-time homebuyers only? No.
Benefits: A federal income tax credit that varies from 20% to 50% of the annual interest paid based on the loan amount.

Additional Homebuying Resources

Advertising Disclosure: Some of the loan offers on this site are from companies
who are advertising clients of U.S. News. Advertising considerations may impact
where offers appear on the site but do not affect any editorial decisions,
such as which loan products we write about and how we evaluate them. This site
does not include all loan companies or all loan offers available in the marketplace.

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