USDA Loan Lenders in Alabama 2026: Top 7 Ranked
David Robinson
Alabama Rural Housing Specialist | USDA Expert | 14+ Years
January 22, 2026
Looking for USDA loan lenders in Alabama? Alabama has 1,100+ USDA-approved lenders, but only 7 consistently deliver the best rates, fastest approvals, and rural AL expertise.
5.95%
Average USDA Rate
0%
Down Payment
96%
AL Eligible Areas
$0
Closing Costs*
🏆 Top 7 USDA Lenders in Alabama 2026
Guaranteed Rate - Best USDA Lender Alabama
2,200+ AL USDA loans
Why #1:
- 💰 Lowest USDA rates: 5.85%-6.05% APR
- ⚡ Close in 35 days average
- 🏆 #1 USDA lender in AL (2025)
- 📍 Knows all 67 AL counties
- 🎯 $0 closing costs option
Best For:
AL rural buyers who want fastest approval + lowest rates
📍 USDA Eligible Areas in Alabama 2026
🎉 96% of Alabama is USDA-eligible!
Alabama has one of the HIGHEST USDA eligibility rates in America. Almost every area outside Birmingham and Montgomery qualifies.
✅ USDA-Eligible Areas (96%)
- • Birmingham suburbs: Hoover, Vestavia Hills, Homewood, Trussville
- • Montgomery suburbs: Prattville, Millbrook, Pike Road
- • Mobile suburbs: Daphne, Fairhope, Spanish Fort
- • Huntsville suburbs: Madison, Athens, Decatur
- • All rural counties: 63 of 67 AL counties
❌ NOT USDA-Eligible (4%)
- • Birmingham: Downtown + inner city only
- • Montgomery: Downtown core only
Note: Even 10-15 minutes outside these downtowns = USDA-eligible!
✅ Alabama USDA Loan Requirements 2026
Income Requirements
1-4 Person Household:
Max $103,500/year (most AL counties)
5-8 Person Household:
Max $136,600/year (most AL counties)
Other Requirements
Credit Score:
640+ recommended (no USDA minimum)
Down Payment:
0% required (100% financing)
DTI Ratio:
41% max (29% front-end)
❓ FAQ: USDA Loans Alabama 2026
Can I get a USDA loan near Birmingham or Montgomery?
YES! Most Birmingham and Montgomery suburbs are USDA-eligible.
Birmingham USDA-Eligible Suburbs:
- Hoover, Vestavia Hills, Homewood (10-15 min from downtown)
- Trussville, Gardendale, Pelham (15-25 min from downtown)
Montgomery USDA-Eligible Suburbs:
- Prattville, Millbrook, Pike Road (10-20 min from downtown)
What is the income limit for USDA loans in Alabama?
Most AL Counties:
- 1-4 person household: $103,500/year
- 5-8 person household: $136,600/year
Note: Income includes ALL household members over 18, not just borrowers.