Alabama · 2025 HMDA data

Mortgage lenders in Alabama: denial rates, approval odds and real rates (2025)

990 lenders acted on 207,840 mortgage applications in Alabama in 2025. 19.9% were denied, against 18.0% nationally. The median interest rate on loans that closed was 6.50%, the median loan $165,000.

208kApplications
19.9%Denial rateUS 18.0%
6.50%Median rateUS 6.63%
$165,000Median loanUS $225,000
$28BOriginated volume

Largest mortgage lenders in Alabama

By applications received in 2025. Grade is the lender's national grade.

#LenderGradeApplicationsOriginatedDenial rateMedian rate
1 Regions Bank C 11,8715,523 37.2%4.99%
2 Rocket Mortgage C 9,9416,770 20.5%6.63%
3 Vanderbilt Mortgage and Finance F 8,4611,426 41.4%9.50%
4 United Shore Financial Services B 7,6895,482 12.0%6.13%
5 21st Mortgage F 6,5071,274 46.0%9.98%
6 Mortgage Research Center C 5,1072,471 18.4%6.25%
7 REDSTONE Federal Credit Union C 4,5482,768 18.9%8.13%
8 Dhi Mortgage Company B 3,9092,376 17.5%4.99%
9 Freedom Mortgage B 3,7251,669 8.7%6.25%
10 Pennymac Loan Services C 3,6111,791 11.6%6.25%
11 Trustmark National Bank C 3,4432,645 10.3%6.50%
12 Navy Federal Credit Union D 3,2831,525 20.6%6.88%
13 FirstBank C 3,1901,712 27.0%6.63%
14 PNC Bank D 2,8951,357 33.2%7.76%
15 Guild Mortgage A 2,7421,892 3.8%6.50%
16 Newrez D 2,730938 19.0%6.49%
17 Loandepot.Com D 2,6961,346 29.9%6.75%
18 Broker Solutions D 2,590933 10.3%6.75%
19 Renasant Bank B 2,5081,966 7.3%6.63%
20 Cadence Bank B 2,5001,759 16.0%6.88%
21 Fairway Independent Mortgage B 2,4941,902 4.1%6.63%
22 Triad Financial Services D 2,469587 39.7%8.54%
23 AmeriSave Mortgage D 2,365522 66.3%7.50%
24 Movement Mortgage A 2,2841,644 4.9%6.63%
25 America'S First B 2,1661,508 15.7%5.75%

Best approval odds in Alabama

Lowest decision denial rate among lenders that decided at least 300 Alabama applications in 2025.

#LenderDecidedDecision denial rateMedian rate
1Heritage Mortgage4380.2%5.99%
2Unnamed lender 2549005Z23HAAZ6QDM983730.8%6.63%
3Canopy Mortgage1,2050.8%6.25%
4Hamilton Mortgage3180.9%6.25%
5GMFS4922.2%6.38%
6Ark-La-Tex Financial Services, LLC.3242.5%6.50%
7Listerhill Credit Union5312.8%6.00%
8Mortgage Investors Group3413.2%6.50%
9Coastal Community Bank1,1923.3%10.49%
10Fbc Mortgage3313.3%6.13%

Lowest median rates in Alabama

Among lenders reporting rates on at least 100 originated loans. Product mix matters: a VA specialist will show a lower median than a jumbo lender.

#LenderPriced loansMedian rateDenial rate
1MAX Credit Union7034.50%22.1%
2Lennar Mortgage9204.75%13.1%
3Avadian1,0054.99%18.1%
4Dhi Mortgage Company2,3104.99%17.5%
5Regions Bank5,5234.99%37.2%
6Alabama Credit Union1155.75%16.6%
7Lendlo Mortgage1575.75%2.6%
8Village Capital & Investment2515.75%23.2%
9America'S First1,5085.75%15.7%
10Hancock Whitney Bank2035.88%18.9%

What Alabama borrowers applied for

By loan purpose

Home purchase 104,453 50% · 15.4% denied
Refinance 30,981 15% · 14.9% denied
Cash-out refinance 34,309 17% · 25.2% denied
Home improvement 16,251 8% · 31.6% denied
Other / HELOC 21,846 11% · 31.1% denied

By loan type

Conventional 141,949 68% · 22.0% denied
FHA 36,903 18% · 17.3% denied
VA 26,246 13% · 12.6% denied
USDA / RHS 2,742 1% · 12.0% denied

Denial rate by applicant income

Under $50k 47.5%
$50k – $100k 25.1%
$100k – $150k 18.2%
$150k – $250k 14.4%
Over $250k 12.9%

Why Alabama applications were denied

Credit history 15,018 37%
Debt-to-income ratio 9,456 23%
Collateral 5,282 13%
Incomplete application 4,467 11%
Other 2,959 7%
Unverifiable information 2,124 5%
Insufficient cash 939 2%
Employment history 380 1%
Mortgage insurance denied 9 0%

Alabama mortgage market by year

YearApplicationsOriginatedDenial rateMedian rateMedian loanLenders
2023176,50595,90321.6%6.88%$155,000990
2024189,175104,58421.1%6.75%$155,000957
2025207,840115,11819.9%6.50%$165,000990

Alabama counties

Counties with at least 200 applications in 2025, most active first.

Frequently asked questions

19.9% of mortgage applications in Alabama were denied in 2025 (25.0% of applications that reached a decision). Nationally the rate was 18.0%.

Regions Bank handled the most applications in Alabama in 2025: 11,871, with a denial rate of 37.2%.

Among lenders that decided at least 300 applications in Alabama, Heritage Mortgage had the lowest decision denial rate at 0.2%.

The median interest rate on loans originated in Alabama in 2025 was 6.50%. That is the rate borrowers actually received, reported by lenders under HMDA, not an advertised rate.