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2025 FHA Loan Limits in Alabama

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If you’re looking to purchase a home in Alabama, you may qualify for a loan backed by the Federal Housing Administration (FHA). These loans come with less stringent qualification requirements than conventional loans.

In some states, FHA loan limits vary, with higher limits in more expensive metro areas. In Alabama, however, the FHA loan limit is $524,225 across the whole state. Here’s what you need to know about qualifying for an FHA loan in Alabama.

Alabama FHA loan limits by county

Alabama single-family FHA loan limits

County name	One unit	Two units	Three units	Four units	Median sales price
AUTAUGA	$524,225	$671,200	$811,275	$1,008,300	$199,000
BALDWIN	$524,225	$671,200	$811,275	$1,008,300	$300,000
BARBOUR	$524,225	$671,200	$811,275	$1,008,300	$143,000
BIBB	$524,225	$671,200	$811,275	$1,008,300	$295,000
BLOUNT	$524,225	$671,200	$811,275	$1,008,300	$295,000
BULLOCK	$524,225	$671,200	$811,275	$1,008,300	$143,000
BUTLER	$524,225	$671,200	$811,275	$1,008,300	$132,000
CALHOUN	$524,225	$671,200	$811,275	$1,008,300	$126,000
CHAMBERS	$524,225	$671,200	$811,275	$1,008,300	$207,000
CHEROKEE	$524,225	$671,200	$811,275	$1,008,300	$131,000
CHILTON	$524,225	$671,200	$811,275	$1,008,300	$295,000
CHOCTAW	$524,225	$671,200	$811,275	$1,008,300	$141,000
CLARKE	$524,225	$671,200	$811,275	$1,008,300	$175,000
CLAY	$524,225	$671,200	$811,275	$1,008,300	$50,000
CLEBURNE	$524,225	$671,200	$811,275	$1,008,300	$150,000
COFFEE	$524,225	$671,200	$811,275	$1,008,300	$168,000
COLBERT	$524,225	$671,200	$811,275	$1,008,300	$165,000
CONECUH	$524,225	$671,200	$811,275	$1,008,300	$137,000
COOSA	$524,225	$671,200	$811,275	$1,008,300	$268,000
COVINGTON	$524,225	$671,200	$811,275	$1,008,300	$100,000
CRENSHAW	$524,225	$671,200	$811,275	$1,008,300	$140,000
CULLMAN	$524,225	$671,200	$811,275	$1,008,300	$170,000
DALE	$524,225	$671,200	$811,275	$1,008,300	$112,000
DALLAS	$524,225	$671,200	$811,275	$1,008,300	$54,000
DEKALB	$524,225	$671,200	$811,275	$1,008,300	$91,000
ELMORE	$524,225	$671,200	$811,275	$1,008,300	$199,000
ESCAMBIA	$524,225	$671,200	$811,275	$1,008,300	$170,000
ETOWAH	$524,225	$671,200	$811,275	$1,008,300	$199,000
FAYETTE	$524,225	$671,200	$811,275	$1,008,300	$85,000
FRANKLIN	$524,225	$671,200	$811,275	$1,008,300	$91,000
GENEVA	$524,225	$671,200	$811,275	$1,008,300	$183,000
GREENE	$524,225	$671,200	$811,275	$1,008,300	$218,000
HALE	$524,225	$671,200	$811,275	$1,008,300	$218,000
HENRY	$524,225	$671,200	$811,275	$1,008,300	$183,000
HOUSTON	$524,225	$671,200	$811,275	$1,008,300	$183,000
JACKSON	$524,225	$671,200	$811,275	$1,008,300	$221,000
JEFFERSON	$524,225	$671,200	$811,275	$1,008,300	$295,000
LAMAR	$524,225	$671,200	$811,275	$1,008,300	$150,000
LAUDERDALE	$524,225	$671,200	$811,275	$1,008,300	$165,000
LAWRENCE	$524,225	$671,200	$811,275	$1,008,300	$204,000
LEE	$524,225	$671,200	$811,275	$1,008,300	$314,000
LIMESTONE	$524,225	$671,200	$811,275	$1,008,300	$293,000
LOWNDES	$524,225	$671,200	$811,275	$1,008,300	$199,000
MACON	$524,225	$671,200	$811,275	$1,008,300	$242,000
MADISON	$524,225	$671,200	$811,275	$1,008,300	$293,000
MARENGO	$524,225	$671,200	$811,275	$1,008,300	$137,000
MARION	$524,225	$671,200	$811,275	$1,008,300	$198,000
MARSHALL	$524,225	$671,200	$811,275	$1,008,300	$160,000
MOBILE	$524,225	$671,200	$811,275	$1,008,300	$189,000
MONROE	$524,225	$671,200	$811,275	$1,008,300	$78,000
MONTGOMERY	$524,225	$671,200	$811,275	$1,008,300	$199,000
MORGAN	$524,225	$671,200	$811,275	$1,008,300	$204,000
PERRY	$524,225	$671,200	$811,275	$1,008,300	$114,000
PICKENS	$524,225	$671,200	$811,275	$1,008,300	$218,000
PIKE	$524,225	$671,200	$811,275	$1,008,300	$150,000
RANDOLPH	$524,225	$671,200	$811,275	$1,008,300	$215,000
RUSSELL	$524,225	$671,200	$811,275	$1,008,300	$282,000
SHELBY	$524,225	$671,200	$811,275	$1,008,300	$295,000
ST. CLAIR	$524,225	$671,200	$811,275	$1,008,300	$295,000
SUMTER	$524,225	$671,200	$811,275	$1,008,300	$267,000
TALLADEGA	$524,225	$671,200	$811,275	$1,008,300	$110,000
TALLAPOOSA	$524,225	$671,200	$811,275	$1,008,300	$268,000
TUSCALOOSA	$524,225	$671,200	$811,275	$1,008,300	$218,000
WALKER	$524,225	$671,200	$811,275	$1,008,300	$75,000
WASHINGTON	$524,225	$671,200	$811,275	$1,008,300	$189,000
WILCOX	$524,225	$671,200	$811,275	$1,008,300	$116,000
WINSTON	$524,225	$671,200	$811,275	$1,008,300	$109,000

How are FHA loan limits determined?

FHA loan limits fluctuate from year to year based on the conforming loan limits for mortgages, which are set by the Federal Housing Finance Agency (FHFA). For 2025, the conforming loan limit is $806,500 in most areas.

FHA loan limits are set at a percentage of these conforming loan limits. The “floor” (or the lowest loan limit) is 65% of the conforming loan limit, which in 2025 is $524,225 for a single-unit property. The ceiling, or highest loan limit in high-cost areas, is $1,209,750, or 150% of the conforming loan limit.

How to qualify for an FHA loan in Alabama

In general, FHA loans are easier to qualify for than traditional loans. If you don’t have a large down payment or your credit score isn’t in the good or excellent range, you may still be eligible. There are, however, a number of boxes you must be able to check in order to get an FHA loan for a single-unit property:

Down payment: The down payment amount required for an FHA loan is dependent on your credit score. You can make a down payment as low as 3.5% if your credit score is at least 580. You’ll need to put 10% down if your credit score is between 500 and 579.
Credit score: The lowest credit score that will qualify you for an FHA loan is 500. You’ll need a larger down payment if it’s below 580.
Debt-to-income (DTI) ratio: In general, you need a maximum 43% DTI ratio. That’s calculated by dividing your total debt by your pre-tax income. However, if you have a solid credit score and additional cash reserves, you may qualify with a DTI beyond 50%.
Mortgage insurance: In order to take out an FHA loan, you’re required to pay two types of mortgage insurance: an upfront mortgage insurance premium (1.75% of the loan amount) and an annual mortgage insurance premium (between 0.15% and 0.75% of the loan amount, depending on the loan term and other factors).
Appraisal and inspection: An FHA appraisal is required for FHA loans. The cost typically ranges from $400 to $700.
Occupancy: The property you’re purchasing the loan with must be your principal residence for at least a year. HUD defines that as “a property that will be occupied by the borrower for the majority of the calendar year.”

Buying a multifamily property with an FHA loan

If you’re interested in purchasing a multifamily home with two to four units, perhaps to pursue house hacking, you may also qualify for an FHA loan. However, the loan limits and borrower requirements are a bit different than those for single-unit FHA loans. Requirements for multifamily properties include:

Occupancy: The owner must live in one of the units.
Down payment: A 3.5% minimum down payment is required.
Credit score: A minimum credit score of 580 is required with a 3.5% down payment, but it can be as low as 500 with a 10% down payment.
Cash reserves: If you’re buying a property with three or four units, you must have cash reserves that equal three months’ worth of principal, interest, taxes and insurance (PITI) payments.