2024 FHA Loan Limits in Alabama
In Alabama, you can take advantage of a Federal Housing Administration (FHA) loan to finance a home with a low down payment. FHA loan limits affect how much of a mortgage you can take on, but loan maximums can vary by state and county.
The 2024 FHA maximum for all single-family homes in Alabama is $498,257, and the maximum for a four-family home is $958,350.
Alabama FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| AUTAUGA | $498,257 | $637,950 | $771,125 | $958,350 | $191,000 |
| BALDWIN | $498,257 | $637,950 | $771,125 | $958,350 | $295,000 |
| BARBOUR | $498,257 | $637,950 | $771,125 | $958,350 | $128,000 |
| BIBB | $498,257 | $637,950 | $771,125 | $958,350 | $299,000 |
| BLOUNT | $498,257 | $637,950 | $771,125 | $958,350 | $299,000 |
| BULLOCK | $498,257 | $637,950 | $771,125 | $958,350 | $104,000 |
| BUTLER | $498,257 | $637,950 | $771,125 | $958,350 | $134,000 |
| CALHOUN | $498,257 | $637,950 | $771,125 | $958,350 | $120,000 |
| CHAMBERS | $498,257 | $637,950 | $771,125 | $958,350 | $182,000 |
| CHEROKEE | $498,257 | $637,950 | $771,125 | $958,350 | $130,000 |
| CHILTON | $498,257 | $637,950 | $771,125 | $958,350 | $299,000 |
| CHOCTAW | $498,257 | $637,950 | $771,125 | $958,350 | $114,000 |
| CLARKE | $498,257 | $637,950 | $771,125 | $958,350 | $163,000 |
| CLAY | $498,257 | $637,950 | $771,125 | $958,350 | $99,000 |
| CLEBURNE | $498,257 | $637,950 | $771,125 | $958,350 | $167,000 |
| COFFEE | $498,257 | $637,950 | $771,125 | $958,350 | $170,000 |
| COLBERT | $498,257 | $637,950 | $771,125 | $958,350 | $160,000 |
| CONECUH | $498,257 | $637,950 | $771,125 | $958,350 | $119,000 |
| COOSA | $498,257 | $637,950 | $771,125 | $958,350 | $160,000 |
| COVINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $100,000 |
| CRENSHAW | $498,257 | $637,950 | $771,125 | $958,350 | $123,000 |
| CULLMAN | $498,257 | $637,950 | $771,125 | $958,350 | $160,000 |
| DALE | $498,257 | $637,950 | $771,125 | $958,350 | $118,000 |
| DALLAS | $498,257 | $637,950 | $771,125 | $958,350 | $55,000 |
| DEKALB | $498,257 | $637,950 | $771,125 | $958,350 | $86,000 |
| ELMORE | $498,257 | $637,950 | $771,125 | $958,350 | $191,000 |
| ESCAMBIA | $498,257 | $637,950 | $771,125 | $958,350 | $138,000 |
| ETOWAH | $498,257 | $637,950 | $771,125 | $958,350 | $196,000 |
| FAYETTE | $498,257 | $637,950 | $771,125 | $958,350 | $68,000 |
| FRANKLIN | $498,257 | $637,950 | $771,125 | $958,350 | $97,000 |
| GENEVA | $498,257 | $637,950 | $771,125 | $958,350 | $177,000 |
| GREENE | $498,257 | $637,950 | $771,125 | $958,350 | $205,000 |
| HALE | $498,257 | $637,950 | $771,125 | $958,350 | $205,000 |
| HENRY | $498,257 | $637,950 | $771,125 | $958,350 | $177,000 |
| HOUSTON | $498,257 | $637,950 | $771,125 | $958,350 | $177,000 |
| JACKSON | $498,257 | $637,950 | $771,125 | $958,350 | $163,000 |
| JEFFERSON | $498,257 | $637,950 | $771,125 | $958,350 | $299,000 |
| LAMAR | $498,257 | $637,950 | $771,125 | $958,350 | $146,000 |
| LAUDERDALE | $498,257 | $637,950 | $771,125 | $958,350 | $160,000 |
| LAWRENCE | $498,257 | $637,950 | $771,125 | $958,350 | $202,000 |
| LEE | $498,257 | $637,950 | $771,125 | $958,350 | $303,000 |
| LIMESTONE | $498,257 | $637,950 | $771,125 | $958,350 | $285,000 |
| LOWNDES | $498,257 | $637,950 | $771,125 | $958,350 | $191,000 |
| MACON | $498,257 | $637,950 | $771,125 | $958,350 | $121,000 |
| MADISON | $498,257 | $637,950 | $771,125 | $958,350 | $285,000 |
| MARENGO | $498,257 | $637,950 | $771,125 | $958,350 | $128,000 |
| MARION | $498,257 | $637,950 | $771,125 | $958,350 | $103,000 |
| MARSHALL | $498,257 | $637,950 | $771,125 | $958,350 | $155,000 |
| MOBILE | $498,257 | $637,950 | $771,125 | $958,350 | $157,000 |
| MONROE | $498,257 | $637,950 | $771,125 | $958,350 | $84,000 |
| MONTGOMERY | $498,257 | $637,950 | $771,125 | $958,350 | $191,000 |
| MORGAN | $498,257 | $637,950 | $771,125 | $958,350 | $202,000 |
| PERRY | $498,257 | $637,950 | $771,125 | $958,350 | $123,000 |
| PICKENS | $498,257 | $637,950 | $771,125 | $958,350 | $205,000 |
| PIKE | $498,257 | $637,950 | $771,125 | $958,350 | $131,000 |
| RANDOLPH | $498,257 | $637,950 | $771,125 | $958,350 | $275,000 |
| RUSSELL | $498,257 | $637,950 | $771,125 | $958,350 | $277,000 |
| SHELBY | $498,257 | $637,950 | $771,125 | $958,350 | $299,000 |
| ST. CLAIR | $498,257 | $637,950 | $771,125 | $958,350 | $299,000 |
| SUMTER | $498,257 | $637,950 | $771,125 | $958,350 | $115,000 |
| TALLADEGA | $498,257 | $637,950 | $771,125 | $958,350 | $108,000 |
| TALLAPOOSA | $498,257 | $637,950 | $771,125 | $958,350 | $160,000 |
| TUSCALOOSA | $498,257 | $637,950 | $771,125 | $958,350 | $205,000 |
| WALKER | $498,257 | $637,950 | $771,125 | $958,350 | $69,000 |
| WASHINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $157,000 |
| WILCOX | $498,257 | $637,950 | $771,125 | $958,350 | $120,000 |
| WINSTON | $498,257 | $637,950 | $771,125 | $958,350 | $100,000 |
How are FHA loan limits determined?
Mortgage limits are established annually by the Federal Housing Finance Agency (FHFA) for conventional mortgages (those that are owned or guaranteed by Fannie Mae or Freddie Mac. The FHA loan limits are informed by the FHFA limits for conventional mortgages and metro area home price data.
The FHA imposes both loan “floors” and “ceilings” for the FHA mortgage program. A floor is the maximum allowable financing amount in lower-cost areas, while the ceiling is the maximum allowable amount in higher-cost areas. Nationally, the FHA limit floor for a single-family home is $498,257. But in high-cost areas, the ceiling for a single-family unit is $1,149,825.
How to qualify for an FHA loan in Alabama
An FHA loan can help those with less-than-perfect credit finance a home with a relatively low down payment. In Alabama, borrowers need to meet the following FHA loan requirements:
→ Appraisal and inspection: Because FHA mortgages are government-backed loans, the property you intend to purchase must meet the minimum property standards set by the U.S. Department of Housing and Urban Development (HUD). To ensure the property meets HUD requirements, it must go through a home appraisal and pass a thorough inspection.
→ Credit: With most mortgage programs, you need good to excellent credit. But with an FHA loan, the requirements aren’t as strict; you can qualify for a loan with a credit score as low as 500.
→ Debt-to-income (DTI) ratio: Your DTI ratio — or how much of your before-tax income goes toward your total monthly debt payments — generally must be 43% or better for FHA loans.
→ Down payment: Although some people believe you need a down payment of 20% of the home purchase price, you don’t. FHA loans are much more attainable. If your credit score is 580 or higher, you can qualify for a loan with a down payment as low as 3.5%. If your score is between 500 and 579, you’ll need a down payment of at least 10%. Based on a home value of $217,750, that means you’d need between $7,621.25 and $21,775 as a down payment for an FHA loan.
→ Intended use: FHA loans are only available to buyers intending to use their home as a primary residence. If you want to buy a rental property or second home, you’ll have to explore other financing options.
→ Mortgage insurance: All FHA mortgage borrowers have to purchase mortgage insurance. There is an upfront cost for insurance coverage and a monthly fee. The upfront premium is 1.75% of the base mortgage amount, and you pay it with your other closing costs. For your monthly insurance premium, the cost ranges from 0.15% to 0.75% of the mortgage amount, and you’ll pay it along with your monthly mortgage payment.
Buying a multifamily property with an FHA loan
In Alabama, if you’re thinking of buying a multifamily home and renting out a unit to offset your housing cost, the median rent for all bedrooms and property types was $1,375 — about 30% less than the national median. You can use an FHA loan to finance the purchase as long as you live in one of the units. You can finance a multifamily home with an FHA loan and a down payment of just 3.5% of the home price.
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $637,950 |
| Three | $771,125 |
| Four | $958,350 |
To qualify for an FHA loan to buy a multifamily home in Alabama, you must meet the other mortgage requirements for FHA loans:
- A credit score of 500 or better
- A down payment of at least 3.5% of the home price (10% if your credit score is between 500 and 579)
- A DTI of 43% or better
FHA lenders in Alabama
Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 | 580 | ||
 | Not disclosed | ||
 | 580 | ||
 | 580 | ||
 | 580 |
