Alabama Home Buying Guide
South Region · Non-Judicial Foreclosure State
Key Facts at a Glance
What Makes Alabama Unique
One of the lowest property tax rates in the US (0.42%)
Attorney required at closing
AHFA Step Up offers 3% down payment assistance
First-Time Buyer Programs in Alabama
AHFA Step Up Program
Contact your state housing finance agency for current eligibility and rates
AHFA Mortgage Credit Certificate
Contact your state housing finance agency for current eligibility and rates
USDA Rural Development Loans
Contact your state housing finance agency for current eligibility and rates
Program availability, income limits, and interest rates change frequently. Verify current terms with your lender or state housing finance agency.
Closing Costs in Alabama
Attorney at Closing
Attorney Required at Closing
Alabama requires a licensed real estate attorney to oversee the closing process. Budget $500–$1,500 for attorney fees.
Local Tips for Alabama Buyers
Alabama's low property taxes make it attractive for long-term ownership.
The Step Up program requires a 640+ credit score.
Rural areas may qualify for USDA zero-down loans.
Estimated Annual Ownership Cost in Alabama
Based on the median home price of $205,000 with a 10% down payment and 7% mortgage rate.
Ready to Calculate Your Numbers?
Use our free calculators to estimate your monthly payment, affordability, and closing costs in Alabama.