FHA Loan Limits in Alabama: Mortgage Guidelines 2022

FHA loan limits in Alabama2022 FHA loan limits in Alabama are set at $420,680, and there is no high-cost areas for counties in Alabama.
for a 2-units, the fha loan limits are set at $538,650. The FHA limits for 3 units in Alabama in 2022 sit at $651,050. You can borrow up to $917,800 when purchasing a 4-unit building with FHA loan in 2022 (house hacking – living in 1 unit and renting 3 others) in Alabama.

County Single Family 2 Family 3 Family 4 Family Median Sales Price
Autauga county $420,680 $538,650 $651,050 $809,150 $185,000
Baldwin county $420,680 $538,650 $651,050 $809,150 $240,000
Barbour county $420,680 $538,650 $651,050 $809,150 $109,000
Bibb county $420,680 $538,650 $651,050 $809,150 $255,000
Blount county $420,680 $538,650 $651,050 $809,150 $255,000
Bullock county $420,680 $538,650 $651,050 $809,150 $84,000
Butler County $420,680 $538,650 $651,050 $809,150 $81,000
Calhoun County $420,680 $538,650 $651,050 $809,150 $157,000
Chambers County $420,680 $538,650 $651,050 $809,150 $155,000
Cherokee County $420,680 $538,650 $651,050 $809,150 $130,000
Chilton County $420,680 $538,650 $651,050 $809,150 $255,000
Choctaw County $420,680 $538,650 $651,050 $809,150 $89,000
Clarke County $420,680 $538,650 $651,050 $809,150 $135,000
Clay County $420,680 $538,650 $651,050 $809,150 $61,000
Cleburne County $420,680 $538,650 $651,050 $809,150 $140,000
Coffee County $420,680 $538,650 $651,050 $809,150 $153,000
Colbert County $420,680 $538,650 $651,050 $809,150 $171,000
Conecuh County $420,680 $538,650 $651,050 $809,150 $97,000
Coosa County $420,680 $538,650 $651,050 $809,150 $131,000
Covington County $420,680 $538,650 $651,050 $809,150 $98,000
Crenshaw County $420,680 $538,650 $651,050 $809,150 $97,000
Cullman County $420,680 $538,650 $651,050 $809,150 $139,000
Dale County $420,680 $538,650 $651,050 $809,150 $93,000
Dallas County $420,680 $538,650 $651,050 $809,150 $55,000
Dekalb County $420,680 $538,650 $651,050 $809,150 $70,000
Elmore County $420,680 $538,650 $651,050 $809,150 $185,000
Escambia County $420,680 $538,650 $651,050 $809,150 $153,000
Etowah County $420,680 $538,650 $651,050 $809,150 $165,000
Fayette County $420,680 $538,650 $651,050 $809,150 $65,000
Franklin County $420,680 $538,650 $651,050 $809,150 $85,000
Geneva County $420,680 $538,650 $651,050 $809,150 $155,000
Greene County $420,680 $538,650 $651,050 $809,150 $200,000
Hale County $420,680 $538,650 $651,050 $809,150 $200,000
Henry County $420,680 $538,650 $651,050 $809,150 $155,000
Houston County $420,680 $538,650 $651,050 $809,150 $155,000
Jackson County $420,680 $538,650 $651,050 $809,150 $107,000
Jefferson County $420,680 $538,650 $651,050 $809,150 $255,000
Lamar County $420,680 $538,650 $651,050 $809,150 $97,000
Lauderdale County $420,680 $538,650 $651,050 $809,150 $171,000
Lawrence County $420,680 $538,650 $651,050 $809,150 $159,000
Lee County $420,680 $538,650 $651,050 $809,150 $245,000
Limestone County $420,680 $538,650 $651,050 $809,150 $227,000
Lowndes County $420,680 $538,650 $651,050 $809,150 $185,000
Macon County $420,680 $538,650 $651,050 $809,150 $97,000
Madison County $420,680 $538,650 $651,050 $809,150 $227,000
Marengo County $420,680 $538,650 $651,050 $809,150 $101,000
Marion County $420,680 $538,650 $651,050 $809,150 $79,000
Marshall County $420,680 $538,650 $651,050 $809,150 $142,000
Mobile County $420,680 $538,650 $651,050 $809,150 $135,000
Monroe County $420,680 $538,650 $651,050 $809,150 $65,000
Montgomery County $420,680 $538,650 $651,050 $809,150 $185,000
Morgan County $420,680 $538,650 $651,050 $809,150 $159,000
Perry County $420,680 $538,650 $651,050 $809,150 $84,000
Pickens County $420,680 $538,650 $651,050 $809,150 $200,000
Pike County $420,680 $538,650 $651,050 $809,150 $129,000
Randolph County $420,680 $538,650 $651,050 $809,150 $115,000
Russell County $420,680 $538,650 $651,050 $809,150 $261,000
Shelby County $420,680 $538,650 $651,050 $809,150 $255,000
St. Clair County $420,680 $538,650 $651,050 $809,150 $255,000
Sumter County $420,680 $538,650 $651,050 $809,150 $89,000
Talladega County $420,680 $538,650 $651,050 $809,150 $105,000
Tallapoosa County $420,680 $538,650 $651,050 $809,150 $131,000
Tuscaloosa County $420,680 $538,650 $651,050 $809,150 $200,000
Walker County $420,680 $538,650 $651,050 $809,150 $77,000
Washington County $420,680 $538,650 $651,050 $809,150 $135,000
Wilcox County $420,680 $538,650 $651,050 $809,150 $95,000
Winston County $420,680 $538,650 $651,050 $809,150 $114,000

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FHA Multifamily Loan Limits in Alabama

Based on FHA loan limits in Alabama, if you’re looking to buy a multifamily property you can borrow up to

  • $420,680 for a single home family
  • for duplex (2-units) $538,650
  • for triplex (3-units) $651,050
  • Fourplex (4-unit) $809,150

in all counties in Alabama, there are the same FHA limits, if your loan is higher than certain limits in your area you can come up with a difference at the closing as a downpayment. For example, if you’re buying a 4-unit and you need a loan for $900,000 you can come up with an extra $90,850 at the closing table and get a loan financed by lowering your risk so your mortgage rate will be lower as well.

Steps to Qualify For an FHA Loan in Alabama in 2022

FHA Loan RequirementsEmployment History – to qualify for the FHA loan in Alabama you need to have a stable income. A Loan Officer will require 2 years of proof of employment W2 or 1099. You need consistent employment/income. The house you will be purchasing or refinancing with FHA in Alabama needs to be your primary residence. The government that provides the loan will not lend money on investment properties, 2nd home,s or vacation homes.

  • Financial Statements – You need to provide your 2 most recent bank statements, 60days of pay stubs, and tax returns for the last 2 years.
  • Credit Score – You must have at least a 500 FICO score to qualify for the FHA loan in Alabama. If your score is at 580 you need only 3,5% down instead of 10%. HUD requires a 3,5% down payment for the FHA Loan depending on your credit score. On a $200,000 house, you will need $7,500. If your credit score is between 500–579, and you’re buying a house worth $200.000 you need to come up with a $20,000.
  • Debt-to-Income (DTI)43% DTI or lower. However, if you have “compensating factors” you might be able to get a loan.
  • MIP – All FHA loans, regardless of the lender, require two types of mortgage insurance. Upfront Mortgage Insurance Premium and the regular Mortgage Insurance Premium are two insurances required by FHA when you buing a house in Alabama. Use our loan calculator to estimate your monthly payment and mortgage insurance costs.
  • FHA Loan Limits in Alabama – FHA loans have maximum lending limits, which are set at the county level. You can view the 2022 FHA loan limits for all counties in Alabama above.

Alabama Down Payment Assistance Program

The Alabama Housing Finance Authority’s Step Up program allows you to borrow your down payment in a 10-year second mortgage. There are certain restrictions:

  • Your household income may not exceed $130,600.
  • You’ll need a credit score of 640 or higher (680 or higher if you make more than 80% of your region’s median income)
  • The Step Up program accepts only certain forms of first (initial) mortgages: FHA, VA, or USDA loans from the Housing Finance Authority Advantage conventional loan category.

Get more information from the Step Up website. Take a look at HUD’s list of alternative options in Alabama.