Maybe youre buying your first home in Alabama, or perhaps youre relocating to Alabama from another state. Either way, its important that you educate yourself on Alabama home loans before shopping for a home and mortgage. This article explains what youll need to know before buying a home in Alabama:

The average price of a home in Alabama in October of 2005 was $147,678, and homes in Alabama appreciate at one-half of the rate of the average national home appreciation. The rate of job growth in Alabama is equal to the national average. However, income levels in many parts of Alabama are too low to purchase a median-priced home with a conventional loan.

Alabama is a non-community property state. This means that married persons do not have to include their spouses income and liabilities on their mortgage if they choose not too. Home buyers can simply leave their spouses name off of their application. Additionally, Alabama has a Fair Housing Act that prohibits housing providers from declining housing to anyone based on their race, color, religion, gender, or national origin.

If youre buying a home in the state of Alabama, you qualify for both federal and state FHA and VA loans. First-time home buyers qualify for Alabama FHA loans with below-market interest rates, and, depending on their income, may also qualify for down payment assistance. Additionally, Alabamas Step-Up program offers down-payment assistance to home buyers with moderate incomes.

Access Alabama is a state program that makes mortgages more affordable for both disabled residents and residents with a disabled person in their care. Through this program, Alabama residents with disabilities can get technical assistance with the home-buying process and assistance with down payment and closing costs.

Alabama also offers Mortgage Credit Certificates to first time home buyers. Mortgage Credit Certificates help first time home buyers manage the costs of purchasing their first home by reducing the amount of federal income tax that theyre required to pay.