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Down Payment Assistance for Home Buyers in Alabama


If you’re a Alabama first-time home buyer you may qualify to utilize the $30,806 WISH Grant. 

Not every first-time buyers has saved enough for 20% down. The good news is that you don’t need that much. 

Top Cities in Alabama

1. Huntsville, Alabama

Population: 215,006
Living in Huntsville offers a unique blend of technological innovation and Southern charm. As a hub for aerospace and defense industries, residents benefit from a robust job market and a community of professionals at the forefront of cutting-edge research and development, epitomized by the presence of NASA’s Marshall Space Flight Center and the U.S. Army’s Redstone Arsenal.

2. Birmingham, Alabama

Population: 200,733
As the largest city in the state, Birmingham is a cultural hub, boasting world-class museums, theaters, and a burgeoning culinary scene. The city’s industrial past is visible in its historic districts, such as the revitalized Railroad Park. At the same time, a strong sense of community is fostered through events like the annual Magic City Classic football game, highlighting the city’s passion for sports and traditions.

3. Montgomery, Alabama

Population: 200,603
Along the banks of the Alabama River, Montgomery, the capital city of Alabama, invites residents to embrace its rich historical legacy. As a pivotal location in the Civil Rights Movement, Montgomery holds iconic landmarks such as the Rosa Parks Museum. Beyond its historical significance, Montgomery offers a charming blend of Southern hospitality with tree-lined streets, historic neighborhoods, and a blossoming arts scene.

4. Mobile, Alabama

Population: 187,041

Mobile captivates residents with its coastal charm, vibrant cultural scene, and historic allure. Known for its rich maritime history and the annual Mardi Gras celebration, Mobile seamlessly blends tradition with modernity. Residents can explore the beautifully preserved architecture of the Historic District, stroll along the scenic waterfront at Cooper Riverside Park, and savor the fresh seafood at local restaurants.

5. Tuscaloosa, Alabama

Population: 99,600
Home to the University of Alabama, the city pulses with the spirit of Crimson Tide football, bringing together a passionate community of students and sports enthusiasts. Beyond the campus, Tuscaloosa offers a scenic backdrop with the Tuscaloosa Riverwalk and the serene Lake Tuscaloosa, providing outdoor spaces for recreation and relaxation.

*Sources- Top Alabama Cities 2024 The population data was retrieved from the United States Census Bureau for 2021


Many major cities have at least one down payment assistance program. They’re all likely to have similar eligibility requirements, including that you’ve completed a homeowner education course; use an approved lender; and meet local income limits. Check with your Refined Lending loan officer for other loan terms and conditions.

Zero Down Loan Program

Refined Lending is excited to offer a zero down loan program to qualified buyers. Check out the program highlights below and contact us for full program details!

  • 0% Down payment
  • No city or county geographical restrictions
  • $150,000 income limit
  • 600 min credit score
  • Up to 55% debt to income ratio
  • Available in Every state
  • $0 buyer funds required
  • Up to 5% seller paid closing costs
  • Standard 30 year fixed rates apply


  • Conventional 97: From Freddie Mac or Fannie Mae. 3% down payment and 620 minimum credit score. You can usually stop paying mortgage insurance after a few years, once you’ve built at least 20% equity in your home
  • FHA loan: Backed by the Federal Housing Administration. 3.5% down and a 580 minimum credit score. But you’re typically on the hook for mortgage insurance premiums (MIP) until you refinance to a different type of mortgage, move, or pay off your loan- Find out more here
  • VA loan: Only for eligible veterans and service members, reservists, and National Guard. Zero down payment is required. Minimum credit score varies by lender but often 620. No ongoing mortgage insurance after closing. These are arguably the best mortgages available, so apply if you’re eligible- Check Here
  • USDA loan: For those on low-to-moderate incomes buying in designated rural development areas. Zero down payment required. Credit score requirements vary by lender but often 640. Low mortgage insurance rates

Note that government loan programs (including FHA, VA, and USDA home loans) require you to buy a primary residence. That means you can’t use these loans for a vacation home or investment property.

In addition, most programs let you use gifted money or down payment assistance (DPA) to cover your down payment and closing costs. Depending on your mortgage loan, you could potentially get into a new house with minimal cash out of pocket.

All programs subject to change at anytime without notice. Not a commitment to lend. Client must qualify for program with Refined Lending and the assistance or grant program selected.  * Sources | |

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