Owner Financing Homes in Birmingham, AL
Yes, you can buy owner financing homes in Birmingham, AL without a bank loan. You pick the home, and your deed is recorded with the Jefferson County Judge of Probate.
- Hoover, Trussville and the suburbs
- Low property taxes once you own
- No minimum credit score
See if you qualify
Takes about a minute. Freddy replies within 24 hours.
- Deed in your name at closing
- No balloon payment
- No minimum credit score
- ITIN holders welcome
Who this works for in Birmingham
Birmingham is one of the most affordable metros we cover, so a $250,000 budget buys a newer home in a good suburb here. These are the buyers we hear from most.
Hospital and university staff
The medical center and university are Birmingham's largest employers. Residents, contract nurses and shift workers have real income and short job histories.
Steel, auto and manufacturing workers
The plants around Birmingham pay steady wages. A recent move between plants shouldn't block a home.
Veterans and military families
Service members leaving the Army or the Guard often have steady pay and savings, and a credit file shaken by a divorce or years of moving. Freddy's Birmingham buyer below is one of them.
Buyers with medical debt
Medical bills are behind a lot of low scores we see in Alabama. We look at today's income instead.
A buyer Freddy helped
Freddy helped Dale H., a veteran finishing a 20-year Army career, buy a three-bedroom home in the Birmingham area after a divorce wrecked his credit and shut him out of a VA loan. He put $40,000 down on a $239,000 home, moved his family in from Hawaii, and is now refinancing into a VA loan.
What a Birmingham home costs right now
Source: Redfin housing market data, three months ending September 2026.
Birmingham's city median sale price was about $177,000 in September 2026, below the program's $250,000 starting point. That's the city itself, though. In the suburbs where most families buy, newer homes and larger houses sit well inside the program. At 20 percent down, a $260,000 suburban home needs $52,000.
Homes sold for about 95.5 percent of list price, one of the biggest discounts in any city we cover. That's negotiating room.
Where in Birmingham we help buyers
Most of our Birmingham buyers pick suburbs: Hoover, Homewood, Trussville, Gardendale, Helena, Alabaster, Pelham and Chelsea. Inside the city, Crestline Park and parts of the Southside have homes in range. Deeds for Jefferson County homes are recorded with the Jefferson County Judge of Probate. Homes in Shelby County, like Helena, Alabaster and Pelham, record with the Shelby County Judge of Probate.
For closing costs and tax breaks that apply across the state, see owner financing in Alabama.
Three steps to your Birmingham home.
What buying in Birmingham looks like from first call to keys.
Get your letter
Freddy goes over your income and savings. Your letter is good for 12 months.
Pick three homes from $250,000 up
Hoover, Trussville, Helena or the Southside. With homes closing well under list, we negotiate hard on price.
Close and record with Probate
A title company or attorney closes, your deed records with the county Judge of Probate, and you move in.
Tips for buying in Birmingham
Budget for an older house. Much of Birmingham's affordable inventory was built decades ago. A thorough inspection of the roof, foundation, sewer line and electrical can save you thousands later.
Claim your Class III rate right away. Once your deed records, visit the Jefferson County or Shelby County tax assessor to make sure your home is assessed at the 10 percent owner-occupied rate with your homestead exemption.
Owner financing vs rent to own in Birmingham
Birmingham has plenty of rent to own offers on older homes. The tenant pays rent, often makes repairs, and still doesn't own the house. The landlord keeps the deed and the lower owner-occupied tax rate.
With owner financing you own at closing. Your home is assessed at Alabama's 10 percent Class III rate instead of 20 percent, and you can claim homestead.
See every difference side by side on owner financing vs rent to own.
Cash to close on a Birmingham home
Starts at $250,000, where the program begins. Birmingham's median is lower, so slide up to the homes you're looking at.
The program starts at $250,000 and has no upper limit. Down payments are normally 20 percent, with exceptions reviewed one by one. There's no application or origination fee.
- Down payment (20%)
- Closing costs (2% to 3%)
- Amount financed
Estimate only. Closing costs vary by state and are listed on your closing statement before you sign.
Your Birmingham contact
- In real estate since 2010
- Finance degree, FIU
- 20+ families into homes since 2024
- Based in Fort Lauderdale, FL
- Speaks Spanish fluently
Freddy works Alabama deals in Birmingham and across the state, where lower prices make the program's 20 percent down go further.
In Birmingham, where homes close well under list, Freddy spends most of his effort on price, because every dollar saved lowers your down payment.
"If you can afford the house, there should be a path to it."
Freddy E.Founder, Sold With Financing
See if you qualify for a Birmingham home.
Tell us where around Birmingham you want to live and what you can put down. Freddy will reach out within 24 hours.
- Deed recorded with the Jefferson County Judge of Probate.
- Homes from $250,000 in Jefferson County and nearby towns.
- Your home qualifies for Alabama's 10 percent Class III assessment instead of 20 percent.
- No minimum credit score.
See if you qualify
Takes about a minute. Freddy replies within 24 hours.
Birmingham owner financing questions
Can I buy a Birmingham home with owner financing?
Yes. Pick a home from $250,000 up in Birmingham or the suburbs, and your deed is recorded with the county Judge of Probate at closing.
How much down payment do I need in Birmingham?
Normally 20 percent, with exceptions reviewed one by one. On a $260,000 home in Hoover or Trussville, 20 percent is $52,000.
Do you finance homes under $250,000?
No. The program starts at $250,000. Birmingham's city median is lower, so most buyers here look in the suburbs, where plenty of homes are in range.
Will my property taxes go down if I own?
An owner-occupied Alabama home is assessed at 10 percent of value, half the rental rate, and you can add a homestead exemption.
Do you cover Hoover and Trussville?
Yes, plus Homewood, Gardendale, Helena, Alabaster, Pelham and Chelsea.
What credit score do I need?
There is no minimum. We qualify buyers on income and down payment.
Ready to own in Birmingham?
Find out in about a minute whether the program fits you.