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VA loans in Alabama

Quick answer

VA loans in Alabama let eligible veterans and service members buy with 0% down and no monthly mortgage insurance. With full entitlement there's no VA loan limit; a one-time funding fee applies unless exempt.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

VA loan snapshot for Alabama

ItemEstimate
Minimum down payment0%
Minimum credit scoreNo VA minimum (lenders often 580–620)
Typical AL home value$195,100
3.5% down on typical home$6,829
20% down on typical home$39,020
Avg. effective property tax0.38%/yr (~$61/mo)
Income for typical home (31% rule)$58,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Alabama programs pair with VA loans?

  • Step Up: Combines a 30-year fixed first mortgage with a down payment assistance second loan for moderate-income buyers (first-time status not required).
  • Affordable Income Subsidy Grant: A grant toward closing costs for eligible lower-income buyers using an AHFA first mortgage.

Details and current limits: Alabama Housing Finance Authority (AHFA).

Who is eligible for a VA loan?

  • Veterans who meet minimum service requirements (commonly 90 consecutive days in wartime or 181 days in peacetime).
  • Active-duty service members after 90 continuous days.
  • National Guard and Reserve members with 6 years of service, or 90 days of active-duty service under Title 10/32.
  • Surviving spouses of service members who died in service or from a service-connected disability (in many cases).

What is the VA funding fee?

The fee can be financed into the loan. Veterans receiving VA disability compensation, and some others, are exempt. Fees shown are for purchase loans and may change.

Down paymentFirst useSubsequent use
Less than 5%2.15%3.3%
5% to under 10%1.5%1.5%
10% or more1.25%1.25%

VA loans in Alabama cities

VA in HuntsvilleVA in BirminghamVA in MontgomeryVA in MobileVA in TuscaloosaVA in HooverVA in AuburnVA in DothanVA in MadisonVA in DecaturVA in FlorenceVA in PrattvilleVA in Vestavia HillsVA in Phenix CityVA in AlabasterVA in GadsdenVA in OpelikaVA in NorthportVA in EnterpriseVA in DaphneVA in HomewoodVA in AthensVA in TrussvilleVA in BessemerVA in PelhamVA in FairhopeVA in AlbertvilleVA in FoleyVA in Mountain BrookVA in OxfordVA in HelenaVA in AnnistonVA in PrichardVA in CullmanVA in TroyVA in Tillmans CornerVA in SelmaVA in CaleraVA in MillbrookVA in Muscle ShoalsVA in HueytownVA in SaralandVA in Center PointVA in GardendaleVA in Gulf ShoresVA in ChelseaVA in ScottsboroVA in HartselleVA in TalladegaVA in Fort PayneVA in Alexander CityVA in JasperVA in OzarkVA in JacksonvilleVA in McCallaVA in IrondaleVA in MoodyVA in Pell CityVA in EufaulaVA in Sylacauga

Frequently asked questions

Yes. VA loans are available statewide in Alabama through approved lenders, subject to county loan limits where they apply.

Often yes. Alabama Housing Finance Authority (AHFA) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve Alabama.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.