Home Loans in Birmingham, AL

When looking at home loan options in Birmingham, AL (or any other Alabama community), there’s a lot to consider which is why Gagliano Mortgage does the heavy lifting for you. Since we’re your broker, we will do the shopping, rate comparisons, and applications for you! It’s still important to be aware of your options and what they mean, so we’ve included a list of the main mortgage loans. Click on each one to see a more detailed breakdown. 

3% Down Payment Program Options

These programs are a great option for those who are able to financially afford a mortgage payment, but don’t have much set aside for a down payment. There are income restrictions for some of these programs, while others simply require you to be a first time home buyer. A Freddie Mac loan is one of the available programs.

Conforming Loans

These are essentially conventional loans that meet bank-funding criteria set by Fannie Mae (FNMA) and Freddie Mac (FHLMC)

Conventional Loans

These are mortgage loans offered by non-government sponsored lenders. It includes reverse mortgages which can be helpful for the elderly.

FHA Loan

An FHA Loan is a great mortgage program for first time homebuyers, especially in Alabama’s metropolitan areas- Tuscaloosa, Gadsden, Anniston, Montgomery, Mobile, and Huntsville. These loans offer low down payments, great interest rates, and flexible financing terms. 

Jumbo Loans

These are typically used to buy more expensive homes and high-end custom construction homes. They exceed the maximum loan amounts for conventional loan limits and usually require a higher down payment.

State and Local Housing Programs

State, county, and local governments can help provide financing programs for qualifying low-to-moderate income families. These programs come with lower upfront costs, lower interest rates, and loan assistance. 

VA Loan

This loan is only available to American military veterans. It can be used more than once and offers 100% financing and no PMI. VA loans do include a VA funding fee which can be wrapped into the mortgage.


Here in Alabama, we have a lot of rural communities, and this loan option is designed for rural properties. There are two main requirements about property location and income, but if the buyer meets them, it’s a great loan option. They are guaranteed by the US Department of Agriculture. 

Fixed or Adjustable?

The answer will depend on your needs, your income, your plans for the future, current interest rates, and projected economic climate. For example, if we are currently at record low interest rates, it seems like a good time for an ARM, but if it looks like interest rates will only steadily increase for the foreseeable future, then you’ll need to factor that into your deliberations. Fixed Rate Mortgages give you security knowing that your rate won’t fluctuate and that you won’t have to worry about rate increases. However, if rates take a downward trend, you won’t benefit from it.

Fixed Rate Mortgage

Adjustable Rate Mortgage (ARM)

Combined/Hybrid ARMs

It’s important to work with a knowledgeable, helpful mortgage company in order to compare home loans in Birmingham, AL. Not only will Gagliano Mortgage find the right programs that you qualify for, but we also find the right rates and downpayment options. Apply now to get started on your home buying process by finding out how much house you can afford, then we’ll find the right home loan for your situation. You’ll be in your new home in no time!