Zero Down Mortgages in Alabama: Buy Now with No Money Down

Comprehensive Mortgage Lending Services Across Alabama

As Alabama's trusted local lender since 1987, First Equity Mortgage delivers comprehensive mortgage lending services across Alabama, specializing in zero down mortgages that make homeownership a reality without the upfront cash barrier. Whether you're a veteran eyeing a Huntsville starter home, a first-time buyer in Birmingham's suburbs, or a rural family near Mobile, our NAMB-certified team streamlines VA, USDA, and national DPA options for fast, hassle-free approvals. With over 500 zero-down closings in recent history and 21-30 day timelines, we're here to guide you through Alabama's booming market—where median home prices hit $338K in Rocket City and statewide growth averages 2.8% YoY.

Ready to skip the down payment? Get your free zero down mortgage quote today—no obligation, no credit pull. Get Prequalified Now

Why Choose Zero Down Mortgages in Alabama?

Zero down mortgages—also known as no-money-down or 100% financing loans—empower Alabama buyers to enter the market without draining savings. In a state with 73% homeownership rates and strong affordability (thanks to national DPA programs), these options shine for:

• First-time buyers: Stack national DPA funding with FHA for effective 0% down.
• Military families: VA loans dominate with no PMI and flexible credit.
• Rural relocators: USDA covers 97% of Alabama's landmass.

Pros include immediate equity building in appreciating areas like Huntsville (42% value surge since 2020) and seller concessions for closing costs. Cons? Slightly higher monthly payments and program-specific rules. At First Equity, we navigate it all—our Gadsden roots and Weiss Building legacy mean personalized service statewide

National DPA Funding: Simple Sign-Up for Up to 5% Assistance

At First Equity, we offer access to national DPA funding through flexible programs like the National Homebuyers Fund (NHF), providing down payment assistance up to 5% of your mortgage loan amount—available in most states, including Alabama, with straightforward eligibility and no first-time buyer requirement. This funding comes as a zero-interest second mortgage (forgiven after 30 years or upon sale), making it easy to achieve effective zero down when paired with FHA or conventional loans.

• Eligibility: Moderate-income households (flexible guidelines; often up to 115% of area median, around $103K in Huntsville); credit score 620+; primary residence purchase.
• Key Perks: Up to 5% assistance (e.g., $15K+ on a $300K loan); no ongoing payments; nationwide access with over 2,500 programs tracked.
• Alabama Spotlight: Perfect for urban and suburban buys like Montgomery condos or Tuscaloosa townhomes—our simple sign-up process gets you approved in days.

Why It's Simple: Just a quick application during pre-qual—no complex paperwork, no state restrictions. We handle the integration with your loan.  Free national DPA  Apply Now: 

USDA Zero Down Loans: Perfect for Alabama's Rural & Suburban Gems

U.S. Department of Agriculture (USDA) loans offer true 100% financing for low-to-moderate income buyers in eligible areas—covering vast swaths of Alabama from Decatur farms to Madison County suburbs.

• Eligibility: Income ≤115% of area median ($103K in Huntsville); property in USDA-designated zones (check the USDA Eligibility Map). Credit 640+; DTI under 41%.
• Key Features: Fixed rates; payment assistance for very low-income (shaves $100+/month). No PMI equivalent.
• Alabama Tie-In: With 97% of the state eligible, it's a game-changer for buyers outside major cities—think $250K starters near Redstone Arsenal.

At First Equity, we fund dozens of USDA loans yearly, leveraging our local networks for seamless appraisals. See if your dream home qualifies:

USDA Property Eligibility Center .

VA Zero Down Mortgages: First Equity's Top Pick for Alabama Vets

Hands down, VA zero down mortgages are our favorite (outside of big jumbos)—they're the gold standard for Alabama's 350,000+ veterans and active-duty families. Backed by the Department of Veterans Affairs, these loans deliver 100% financing with unbeatable flexibility, especially in military hubs like Huntsville (Redstone Arsenal) and Montgomery (Maxwell AFB). Purchase and refinance VA loans are our specialty.

• Eligibility: Active-duty, veterans, or eligible spouses with a Certificate of Eligibility (COE—apply via VA Form 26-1880). No income caps; credit as low as 580; funding fee (1.25-3.3%, waivable for disabled vets).
• Key Perks: No PMI; reusable for life. Alabama leads nationally with $3.2B in VA originations— we've closed 500+ since 1992 as NAMB-certified specialists.
• Why We Love It: Streamlined for relocation clients (e.g., NASA contractors); our "Vet Relocation Bundle" includes title/insurance partners for zero-out-of-pocket surprises. 

     "My wife and I bought in Madison with zero down VA loan. First Equity had us approved same day we submitted doc's to our dashboard. So convenient, and we closed in 19 days from Pre-Approved status. 11/10"  VA Buyer in Madison

Exclusive Offer: Vets get priority processing. Secure your  VA COE  & quote: 

Zero Down Mortgage Comparison: Find Your Best Fit!

Compare Alabama zero down options side-by-side (personalize below):

VA saves ~$200/month vs. conventional on $300K loan amount 

Use different combinations below: