State Buyer Guide
Down payment assistance, Alabama housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.
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The Alabama Housing Finance Authority (AHFA) is your primary source for below-market mortgage rates and down payment assistance in Alabama. Programs are available through approved lenders — not directly through the HFA.
30-year fixed-rate mortgage paired with down payment assistance.
Additional grant funds for lower-income Step Up borrowers.
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Compare Mortgage Rates →On a $215,000 home: approximately $4,730
Alabama has no state real estate transfer tax, which helps keep closing costs lower for buyers.
Alabama is an attorney-closing state. A licensed Alabama real estate attorney must conduct the closing. Budget $500–$1,000 for attorney fees.
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Find an Inspector →As an attorney-closing state, Alabama requires a licensed real estate attorney to conduct your closing. You'll also want one to review your purchase agreement.
Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.
Browse Legal Guides →Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.
Get Legal Help →Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.
Browse Real Estate Forms →Alabama first-time buyers can access programs through the Alabama Housing Finance Authority (AHFA) (https://www.ahfa.com/), including the Step Up Program (Down payment assistance up to $10,000 as a second mortgage) and the Affordable Income Subsidy Grant (Grant up to $1,500 — no repayment required). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.
Closing costs in Alabama typically run 2.2% of the purchase price. Transfer tax: None. Alabama has no state real estate transfer tax, which helps keep closing costs lower for buyers.
Alabama is an attorney-closing state. A licensed Alabama real estate attorney must conduct the closing. Budget $500–$1,000 for attorney fees.
The median home price in Alabama is approximately $215,000. Property taxes average 0.41% of assessed value annually.
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