Data-driven picks for Alabama buyers
From fast-growing cities like Huntsville to quiet rural towns, Alabama’s mix of historic homes, new builds, and low prices makes choosing the right lender key.
To help buyers make smarter choices, we crunched the numbers. We analyzed closed-loan data from hundreds of thousands of loans across 77 different lenders operating in Alabama. Check out the full TrueRate analysis.
We also categorized lenders to help you find the right fit—whether you’re a first-time buyer, looking for a digital-first experience, or need something more specialized.
Tomo Mortgage
Why it stands out
Ok, we’re a little biased, but the numbers speak for themselves—low rates, no lender fees, better reviews. Tomo Mortgage was founded in 2025 by former Zillow execs who wanted to fix what was broken in the mortgage industry. They did away with bait-and-switch prices, inflated rates, and confusing fees. It was ranked Best Online Lender 2025 by Bankrate, based on its strong customer reviews and backing from major financial services firms. Tomo historically has some of the lowest rates among lenders operating in Alabama.
Lower rates drive more transparency: you can get personalized rates online without applying or speaking to sales. The rate tool includes a slider that shows how your monthly payment changes with and without points—clarity and control from the start.
Read full review: Tomo Mortgage
What borrowers say
“I almost went with a different lender at first but ended up going to tomo and I’m glad I did… 10/10”
“Loan advisory team was remarkably responsive… stayed engaged until the very end.”
“Because of Tomo’s low APRs… it gets a perfect 5 out of 5 stars for affordability.”
Bank Independent
Why it stands out
Bank Independent has small-town roots and a long memory. It launched as The Bank of Leighton in 1947—started by local farmers and business leaders after the town’s only bank shut its doors. By the 1960s it became First Colbert Bank, and in 1982 merged with The Bank of Florence to form Bank Independent—right as regulations loosened for wider county expansion. Leadership has stayed close to home through the Mauldin family, and the bank serves Alabama homebuyers exclusively.
The bank doesn’t publish mortgage rates online, so you’ll need to apply or speak with a loan officer for pricing. Our TrueRate analysis of thousands of loans shows their interest rates trend below market norm (not quite as low as Tomo Mortgage, but often better than many big banks).
Read full review: Bank Independent
What borrowers say
Public, mortgage-specific reviews are limited and mixed, making it hard to draw firm conclusions from customer commentary alone.
Ameris Bank
Why it stands out
Ameris lets you stack a true zero-down loan with its own down payment assistance—no outside programs needed. First-time buyers can pair the Dream Loan (100% financing, no PMI) with up to a $12,500 grant for upfront costs. As Business Insider notes, “Ameris has options for borrowers with no credit score, those with unique situations, and more…”. Because everything’s in-house, qualifying and closing can be simpler.
Rates aren’t published online; you’ll need to apply or speak to a loan officer. Our TrueRate analysis shows their 30-year fixed conventional rates frequently beat market averages.
Read full review: Ameris Bank
What borrowers say
Strong application/processing reviews (e.g., Zillow); however, post-close servicing complaints cite escrow refunds, delays, and communication gaps.
“Ameris Bank Mortgages is an extremely affordable and flexible mortgage lender, and a particularly good choice for first-time homebuyers.”
“Ameris Bank mortgage…has given impeccable customer service, I would refer individuals to Ameris Bank for mortgage financing”
“worst customer service I have ever experienced. I have been chasing an escrow problem for over a year. I have called a dozen times”
Cadence Bank
Why it stands out
Cadence offers a rare combo: true 100% financing and no mortgage insurance—funded directly by the bank. The Right@Home programs target eligible buyers in specific neighborhoods (including parts of Birmingham), potentially avoiding both down payment and PMI. Cadence also provides a 0% down Physician Loan (MDs, dentists, residents) without PMI—an appealing track for medical professionals.
The bank doesn’t publish mortgage rates online, so you’ll need to connect with a loan officer. Reviews for mortgage servicing are limited; BBB complaints point to post-close communication and payoff-timing issues—so scrutinize Loan Estimates and servicing details closely.
Read full review: Cadence Bank
What borrowers say
Mortgage-specific public reviews are sparse but tend to lean poor. BBB complaints cite post-close communication and payoff timeline clarity. Proceed with careful review.
“Ended up walking away from a mortgage lender with Cadence Bank losing $700 due to horrible communication.”
“I’m closing on my new home tomorrow and I can’t say enough wonderful things ”
Other Big Mortgage Lenders in Alabama
Rocket Mortgage and Regions Bank originated billions in Alabama loans last year, but they did not appear in our closed-loan dataset. We reviewed HMDA volume and spot-checked public rate sources for context. These aren’t directly comparable to our ranked lenders, but they’re useful reference points when shopping broadly.
Rocket Mortgage
Originated $1B+ in Alabama home loans in 2024 across 5,000+ loans (avg. loan size ~$214k). Mix: ~59% refi, ~40% purchase.
Regions Bank
Originated $614M+ across 3,000+ Alabama loans in 2024 (avg. ~$200k). Mix: ~70% purchase, ~21% refi, ~8% improvement. As of Aug 1, 2025, no public aggregator rates.
Quick Comparison Summary
| Lender | Pick | HQ | Interest Rates (historical) | Lender Fees | Notable Programs / Notes | Website | Full Review |
|---|---|---|---|---|---|---|---|
| Tomo Mortgage | Best Overall (Low Rates) | New York, NY | ~0.30% below median (historical) | $0 | Named Best Online Lender by Bankrate; online personalized rates; no lending fees; no refi currently | tomo.com | Read full review |
| Bank Independent | Best Local Lender | Sheffield, AL | ~0.18% below median (historical) | ~$1,345 | Alabama-only focus; no public rate sheet | bibank.com | Read full review |
| Ameris Bank | Best for First-Time Buyers | Atlanta, GA | ~0.21% below median (historical) | ~$1,425 | Dream Loan (0% down, no PMI) + up to $12,500 DPA | amerisbank.com | Read full review |
| Cadence Bank | Best for Specialized Loans | Houston, TX | ~0.22% below median (historical) | ~$1,370 | Right@Home (0% down, no MI); Physician Loan (0% down, no MI) | cadencebank.com | Read full review |