Best Mortgage Lenders in Alabama

Best Mortgage Lenders in Alabama

ValuePenguin is a consumer finance website dedicated to providing consumers with clear, objective advice for the financial decisions they make every day. We've spent dozens of hours comparing mortgage lenders across Alabama, from Mobile to Huntsville, to find the best lenders for you.

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Recommended forLenderMinimum credit scoreHighlights
First-time home buyersRegions Bank620
  • Most popular mortgage lender in Alabama
  • Largest branch network in the state
RefinancingQuicken Loans620
  • Fastest-growing refinancing company in Alabama
  • Received J.D. Power's highest customer service rating for eight years in a row
Online loansGuaranteed Rate620
  • Easy online rate comparisons
  • Speedy approval process
VA loansUSAA620
  • Most popular VA lender in Alabama
  • Received J.D. Power's highest customer service rating among military lenders
Poor creditFairway Independent Mortgage Company580
  • Fastest-growing mortgage company among Alabama's top FHA lenders
  • Alabama Housing Finance Authority approved lender
Recommended forLenderMinimum credit score
First-time home buyersRegions Bank620
RefinancingQuicken Loans620
Online loansGuaranteed Rate620
VA loansUSAA620
Poor creditFairway Independent Mortgage Company580

The best mortgage lenders in Alabama offer the right mix of low rates, fast processing and attentive loan officers. Click on one of our lender reviews to find out more about our top picks in the Heart of Dixie.

Best Mortgage Lender for First-Time Home Buyers: Regions Bank

We chose Regions Bank as the best lender for first-time home buyers in Alabama. It has the largest branch network in the state, almost double the number of locations of its closest rival, Wells Fargo. Regions dominates the Alabama Mortgage market, originating more mortgages than any other company in the state over the past five years.

Consider this if You're looking for an accessible lender who offers down-payment assistance for first-time buyers.
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Good for:Bad for:
  • First-time home buyers of moderate income
  • Borrowers looking for in-person guidance
  • People who want to compare rates online
  • People who want more variety in their loans selection

While most first-time home buyers might be apprehensive about the prospect of making one of the largest purchases of their lives, you can expect Regions’ highly trained loan staff to guide you through the process from beginning to end. Not only does Regions handle the origination process, but it also services its loans in house, ensuring that its customers deal with in-house staff familiar with the loan terms. This practice has largely paid off, with Regions ranking among J.D. Power's top 5 rated lenders for Mortgage Servicing Customer Satisfaction year after year.

One of the key factors of that success is its participation in the Alabama Housing Finance Authority's Step-Up and Mortgage Credit Certificate Programs; programs specifically designed for moderate-income home buyers who can afford a mortgage but need an extra hand when it comes to the down payment. Through Regions Bank, eligible home buyers can obtain a 10-year second home loan to cover the cost of their down payment, for up to 3% of the total cost of their home. The best part is that these payments are combined with your primary mortgage, so there's no need for borrowers to write multiple checks.

Regions might not be the right bank for everyone, especially since it doesn't offer visible rate quotes directly on its website. If you want to find a few lenders who do, check out some of our other top picks for first-time home buyers.

Best Mortgage Lender for Refinancing: Quicken Loans

Quicken Loans is our No. 1 choice when it comes to refinancing your home. It offers rock-bottom rates and a speedy application process. Best of all, it's an online lender, which means you'll encounter the same highly trained customer service representatives, regardless of whether you live in Montgomery or Tuscaloosa.

Consider this if You want to refinance your home quickly and economically.
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Good for:Bad for:
  • Swift and convenient refinancing process
  • Unparalleled flexibility in loan terms
  • Home equity loans and HELOCs
  • People looking for low rates on purchase mortgages

Read the full review.

If you're like most homeowners, you've probably pushed off refinancing your home because of the mountains of paperwork you'll need to fill out. Miss one little detail and it can take weeks before the lender will even look at your application again. Quicken Loans understands your frustration and has optimized its industry-leading Rocket Mortgage process to cut through the red tape and can close your home loan upto a week faster than most traditional lenders.

For those apprehensive about refinancing through an online lender, Quicken Loans received J.D. Power's highest ratings in customer satisfaction for nine years in a row, even becoming America's most popular mortgage early last year. With 16,460 refinances closed in Alabama over the past five years, no other lender comes close when it comes to the convenience and speed of its refinancing program.

Best Online Mortgage Lender: Guaranteed Rate

We picked Guaranteed Rate as our best online mortgage lender, thanks to its intuitive web interface and competitive loan terms. You can compare rates across multiple loan types on its site and see how those stack up against the competition.

Consider this if You have excellent credit and want to shop for the best rates around.
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Good for:Bad for:
  • Well-qualified applicants with strong credit and high income
  • Rate shopping across multiple loan types
  • Doesn't offer USDA mortgage loans for rural home buyers
  • No home equity loans or HELOCs

Read the full review.

If you have some time to shop around for a mortgage, it's absolutely worth checking with Guaranteed Rate for a quick rate quote. The lender lets you input your personal credit and preferred loan information, and can suggest multiple loan products based on your needs, with accompanying rate quotes for each. Just like its rival Quicken Loans, eligible borrowers can pre-qualify for a mortgage within minutes using its revolutionary digital mortgage application process.

While Guaranteed Rate charges less in the way of fees than its competitors, the attractiveness of its rate quotes is tempered by its high credit and income standards. Borrowers who have historically had trouble getting approved for a loan may prefer to apply elsewhere, as they will likely have difficulty qualifying for Guaranteed's most lucrative offers. However, if you have the credit and income to justify it, make sure you check with Guaranteed Rate for some of the lowest rates in Alabama.

Best Mortgage Lender for VA Loans: USAA

USAA is our No. 1 recommendation for veterans, military service members and their families. It's the predominant VA lender in Alabama in terms of number of loans originated over the past five years and also managed to secure J.D. Power's highest customer satisfaction rating among military lenders.

Consider this if You're looking for an expert on the VA loan program.
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Good for:Bad for:
  • Veterans who want the lowest closing costs
  • Service members who want to avoid PMI
  • Borrowers unaffiliated with the military
  • Mortgage rates higher than competitors

Read the full review

The VA loan program provided by the U.S. Department of Veterans Affairs is one of the most cost-effective ways for veterans to buy a home with no money down, no PMI and the bare minimum in terms of fees. This program is only available to military personnel, veterans and their families. Among lenders specializing in these types of mortgages, USAA is the leader in the state, with over 3,280 VA loans originated over the past five years.

If you're already a member of USAA, pre-qualifying for a VA loan can take minutes instead of days, as is common for other conventional lenders. If not, it's easy to sign up, and membership in USAA also grants you access to its non-bank products, including home and auto insurance. The lender even provides a private network of real estate agents who specialize in finding homes for veterans, which can qualify you for up to $24,000 in cash back off your loan fees. Whether you're a veteran or active-duty service-member stationed at Fort Rucker, USAA is one of your best options when looking for a home loan.

Best Mortgage Lender for Poor Credit: Fairway Independent Mortgage Company

Fairway Independent Mortgage Company is our top pick if you need an extra hand meeting down payment requirements, thanks to its diverse selection of special financing programs and government-backed mortgages. Fairway Independent is the fastest-growing FHA lender in Alabama, based on the number of loans originated since 2013.

Consider this if You need down payment assistance or have issues with credit.
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Good for:Bad for:
  • Offers Alabama Housing Finance Authority home buyer assistance
  • Rural development and home renovation loans
  • Comparing rates online
  • Home equity loans and HELOCs

If you need an extra hand making a down payment or qualifying for a loan, Fairway Independent Mortgage Corporation is an excellent choice for you. Fairway Independent offers a variety of government-backed mortgages like FHA and USDA home loans, which require down payments of as low as 3.5% and flexible credit requirements. The lender also saw its FHA loan volume increase by 38% over the past five years, the fastest growth rate of Alabama's top mortgage companies.

For those looking to flip their next fixer-upper into a dream home, Fairway Independent offers an excellent selection of home renovation loans, including the FHA 203k rehabilitation mortgage and Fannie Mae HomeStyle renovation loan. These products provide mortgage loans with a cash-out of upto $35,000, which can be used for repairs around the house.

Finally, as a participating lender with the Alabama Housing Finance Authority, Fairway Independent is authorized to offer tax credits or finance up to 3% of your down payment if you're a low-to-moderate income home buyer. This ideal combination of home buyer assistance and renovation loans makes Fairway Independent a versatile option.

Most Popular Home Loan Companies in Alabama

When comparing mortgage loans in Alabama, make sure you get rate quotes from at least three lenders to ensure you're getting the best terms for your loan. If you need a place to start, take a look at the table below, which includes the five most popular mortgage lenders in Alabama, based on the number of home loans completed over the past five years.

Top 5 biggest Alabama residential mortgage lenders, 2013–2018

RankCompanyMortgage originationsAverage mortgage amount
1Regions Bank26,212$91,728
2Quicken Loans21,423$153,515
3Wells Fargo18,650$176,784
4Regions Mortgage Inc.17,348$191,249
5Bankcorp South11,581$200,964

In addition to mortgage rates, remember to compare each company's record for customer satisfaction as well as accessibility and convenience. While mortgage rate quotes may come close, experience is a qualitative factor that can differ widely from lender to lender.

How We Chose the Best Mortgage Lenders in Alabama

We reviewed each company's terms and conditions when picking the best mortgage lender. We chose to evaluate the following categories for each mortgage company.

  • Total cost: interest rates and fees
  • Product: terms, loan types and specialty
  • Servicing: transparency, complaint rates and branch network

We highlighted any terms a lender offered that weren't common to the industry. For example, while almost every mortgage company offers conventional mortgage loans, some companies were more competitive when it came to adjustable rates or government-backed loan programs like FHA or VA loans. We identified and compared these terms where applicable.

The total number of complaints logged through the Consumer Financial Protection Bureau was also compared against the total number of home loans originated for each lender. This measure predicted the likelihood of any customer service issues arising during the origination or servicing process. Lenders with higher complaint rates received lower scores vs. lenders who had fewer complaints per loan. We also looked at the accessibility and online interface of each lender to gauge its capabilities and user interface.

Mortgage Brokers Near Me in Alabama

Mortgage brokers compare loans on your behalf and are useful for first-time home buyers and anyone who has trouble qualifying for a traditional mortgage. A mortgage broker can relieve you of the burden of mortgage shopping. Check out the table below to find a licensed mortgage broker near you.

NameAddressPhone number
MortgageRight1 Perimeter Park S #130, Birmingham, AL 35243(205) 776-8401
Mortgage Max100 Yeager Farm Road, Pelham, AL 35124(205) 515-0141
Advance Mortgage & Investment Company, LLC30500 AL-181 #460, Spanish Fort, AL 36527(251) 621-3557
Mortgage Team 1, Inc.6336 Piccadilly Square Dr, Mobile, AL 36609(251) 650-0805
North Alabama Mortgage7501 Memorial Pkwy SW Ste 113, Huntsville, AL 35802(256) 651-3393
Home Place Mortgage Loans Inc1990 Cherokee Rd, Alexander City, AL 35010(888) 500-4488
Anchor Mortgage Services4260 Carmichael Ct N, Montgomery, AL 36106(334) 277-0900
Alabama Home Mortgage Loans242 Peace Church Rd, #A, Wetumpka, AL 36093(334) 567-4223
Rock Mortgage312 Merchants Walk, Tuscaloosa, AL 35406(205) 345-4464
The Hutson Company1144 Main St, Gardendale, AL 35071(205) 631-6562

Madison is a former Research Analyst at ValuePenguin who focused on student loans and personal loans. She graduated from the University of Rochester with a B.A. in Financial Economics with a double minor in Business and Psychology.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply