Alabama VA Loans
Homeownership in Alabama is a dream for many people, but not everyone has access to a loan program as great as the VA home loan. So whether you are looking to settle down in the bustling city or on the ocean shoreline, you’ll be thrilled with your new home.
With the average listing price of a home in Alabama landing at $330,477, the VA loan’s signature $0-money-down benefit is a considerable advantage for Alabama homebuyers.
See also: VA Loan Options for Other States
How to get a VA Loan in Alabama
VA loans are made by private lenders and guaranteed by the Department of Veterans Affairs. Because private lenders make the loans and not the VA, you need to find a lender licensed in the state you plan to purchase or refinance.
For example, if you're purchasing a home in Gulf Shores, AL, you'll need to find a lender licensed in Alabama to do the loan.
Other Considerations for Getting a VA Loan in Alabama
VA borrowers in Alabama should also consider the cost and impact of VA loan limits and property taxes when making their home purchase.
Alabama VA Loan Limits
As of January 1, 2020, VA borrowers in Alabama with their full VA loan entitlement are not restricted by VA loan limits. This means you can borrow as much as a lender is willing to lend without needing a down payment.
However, Veterans without their full VA loan entitlement are still bound to Alabama’s VA loan limits.
As of January 1, 2022, VA loan limits for all counties in Alabama are $647,200.
Property Taxes in Alabama
Another consideration for VA buyers in Alabama are property taxes. For certain VA buyers, there are exemptions.
You may be eligible for a property tax exemption in Alabama if you are 100 percent disabled as a result of service.
If you are required to pay property tax in Alabama, the American Community Survey by the U.S. Census Bureau estimates you may pay the following in each county:
| County | Property Tax Rate |
|---|---|
| Autauga | 0.32% |
| Baldwin | 0.31% |
| Barbour | 0.31% |
| Bibb | 0.28% |
| Blount | 0.32% |
| Bullock | 0.51% |
| Butler | 0.36% |
| Calhoun | 0.42% |
| Chambers | 0.39% |
| Cherokee | 0.39% |
| Chilton | 0.37% |
| Choctaw | 0.27% |
| Clarke | 0.31% |
| Clay | 0.26% |
| Cleburne | 0.35% |
| Coffee | 0.37% |
| Colbert | 0.40% |
| Conecuh | 0.40% |
| Coosa | 0.32% |
| Covington | 0.30% |
| Crenshaw | 0.35% |
| Cullman | 0.29% |
| Dale | 0.36% |
| Dallas | 0.39% |
| DeKalb | 0.35% |
| Elmore | 0.30% |
| Escambia | 0.38% |
| Etowah | 0.43% |
| Fayette | 0.29% |
| Franklin | 0.37% |
| Geneva | 0.36% |
| Greene | 0.34% |
| Hale | 0.34% |
| Henry | 0.34% |
| Houston | 0.35% |
| Jackson | 0.33% |
| Jefferson | 0.66% |
| Lamar | 0.30% |
| Lauderdale | 0.42% |
| Lawrence | 0.36% |
| Lee | 0.52% |
| Limestone | 0.37% |
| Lowndes | 0.50% |
| Macon | 0.47% |
| Madison | 0.46% |
| Marengo | 0.35% |
| Marion | 0.30% |
| Marshall | 0.42% |
| Mobile | 0.55% |
| Monroe | 0.28% |
| Montgomery | 0.39% |
| Morgan | 0.39% |
| Perry | 0.47% |
| Pickens | 0.34% |
| Pike | 0.33% |
| Randolph | 0.37% |
| Russell | 0.46% |
| St. Clair | 0.31% |
| Shelby | 0.51% |
| Sumter | 0.37% |
| Talladega | 0.38% |
| Tallapoosa | 0.33% |
| Tuscaloosa | 0.37% |
| Walker | 0.29% |
| Washington | 0.29% |
| Wilcox | 0.32% |
| Winston | 0.31% |
How VA Loans Work in Alabama
View the graphic below to learn more about how VA loans work in Alabama.
