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Alabama FHA Home Loans

Learn More About FHA Mortgage Loan Programs
FHA Loan Requirements · 2020 Alabama FHA Loan Limits

Alabama FHA Loan | Requirements | 2020 FHA Loan Limits

FHA loans provide a great opportunity to buy a home in Alabama.  The FHA (Federal Housing Administration) was created to help the average American have a chance at owning their own home.  One of the reasons that FHA loans are so popular is because of the low down payment option.  FHA loans allow you to purchase a home with only a 3.5% down payment.  There are also less strict requirements to get an FHA loan (compared to conventional loans), such as being able to qualify with a credit score as low as 500.

Alabama FHA Loan Requirements

  • Credit Score – To qualify for the 3.5% down payment, you must have a 580 credit score or higher. If your credit score is between a 500-579, you still may qualify for an FHA loan, but will be required to put 10% down.
  • Job History – Proof of employment for 2 years is required. It is ok if you have changed jobs, but you need to show consistent employment/income.
  • Financial Statements – You should expect to be required to provide your 2 most recent bank statements, pay stubs, and tax returns.
  • Debt-to-Income – You can not have a debt-to-income ratio higher than 43%.  However, if you have “compensating factors” you might be able to get approved with higher debt levels (a compensating factor could be more money in savings, longer job history, or great credit).
  • Primary Residence – You must occupy the home that you intend to purchase and have it be your primary residence. FHA loans are not available to purchase an investment property, second home, or vacation home.
  • Mortgage Insurance – All FHA loans, regardless of the lender, require two types of mortgage insurance.  This includes the UPMIP (Upfront Mortgage Insurance Premium) and the regular MIP (Mortgage Insurance Premium).  FHA MIP acts similarly to how PMI (Private Mortgage Insurance) on a conventional loan acts.  You can use this FHA loan calculator to estimate your monthly payment and mortgage insurance costs.
  • FHA Loan Limits – FHA loans have maximum lending limits, which are set at the county level. You can view the 2020 FHA loan limits for all counties in Alabama below.

Would you like to see if you qualify for an FHA loan?  We can help match you with a mortgage lender that offers FHA loans in Alabama.  To have an FHA lender contact you, request a free consultation.

2020 Alabama FHA Loan Limits

Below are the 2020 FHA loan limits for every county in Alabama:

COUNTY SINGLE FAMILY 2 FAMILY 3 FAMILY 4 FAMILY
AUTAUGA $331,760 $424,800 $513,450 $638,100
BALDWIN $331,760 $424,800 $513,450 $638,100
BARBOUR $331,760 $424,800 $513,450 $638,100
BIBB $331,760 $424,800 $513,450 $638,100
BLOUNT $331,760 $424,800 $513,450 $638,100
BULLOCK $331,760 $424,800 $513,450 $638,100
BUTLER $331,760 $424,800 $513,450 $638,100
CALHOUN $331,760 $424,800 $513,450 $638,100
CHAMBERS $331,760 $424,800 $513,450 $638,100
CHEROKEE $331,760 $424,800 $513,450 $638,100
CHILTON $331,760 $424,800 $513,450 $638,100
CHOCTAW $331,760 $424,800 $513,450 $638,100
CLARKE $331,760 $424,800 $513,450 $638,100
CLAY $331,760 $424,800 $513,450 $638,100
CLEBURNE $331,760 $424,800 $513,450 $638,100
COFFEE $331,760 $424,800 $513,450 $638,100
COLBERT $331,760 $424,800 $513,450 $638,100
CONECUH $331,760 $424,800 $513,450 $638,100
COOSA $331,760 $424,800 $513,450 $638,100
COVINGTON $331,760 $424,800 $513,450 $638,100
CRENSHAW $331,760 $424,800 $513,450 $638,100
CULLMAN $331,760 $424,800 $513,450 $638,100
DALE $331,760 $424,800 $513,450 $638,100
DALLAS $331,760 $424,800 $513,450 $638,100
DEKALB $331,760 $424,800 $513,450 $638,100
ELMORE $331,760 $424,800 $513,450 $638,100
ESCAMBIA $331,760 $424,800 $513,450 $638,100
ETOWAH $331,760 $424,800 $513,450 $638,100
FAYETTE $331,760 $424,800 $513,450 $638,100
FRANKLIN $331,760 $424,800 $513,450 $638,100
GENEVA $331,760 $424,800 $513,450 $638,100
GREENE $331,760 $424,800 $513,450 $638,100
HALE $331,760 $424,800 $513,450 $638,100
HENRY $331,760 $424,800 $513,450 $638,100
HOUSTON $331,760 $424,800 $513,450 $638,100
JACKSON $331,760 $424,800 $513,450 $638,100
JEFFERSON $331,760 $424,800 $513,450 $638,100
LAMAR $331,760 $424,800 $513,450 $638,100
LAUDERDALE $331,760 $424,800 $513,450 $638,100
LAWRENCE $331,760 $424,800 $513,450 $638,100
LEE $331,760 $424,800 $513,450 $638,100
LIMESTONE $331,760 $424,800 $513,450 $638,100
LOWNDES $331,760 $424,800 $513,450 $638,100
MACON $331,760 $424,800 $513,450 $638,100
MADISON $331,760 $424,800 $513,450 $638,100
MARENGO $331,760 $424,800 $513,450 $638,100
MARION $331,760 $424,800 $513,450 $638,100
MARSHALL $331,760 $424,800 $513,450 $638,100
MOBILE $331,760 $424,800 $513,450 $638,100
MONROE $331,760 $424,800 $513,450 $638,100
MONTGOMERY $331,760 $424,800 $513,450 $638,100
MORGAN $331,760 $424,800 $513,450 $638,100
PERRY $331,760 $424,800 $513,450 $638,100
PICKENS $331,760 $424,800 $513,450 $638,100
PIKE $331,760 $424,800 $513,450 $638,100
RANDOLPH $331,760 $424,800 $513,450 $638,100
RUSSELL $331,760 $424,800 $513,450 $638,100
SHELBY $331,760 $424,800 $513,450 $638,100
ST. CLAIR $331,760 $424,800 $513,450 $638,100
SUMTER $331,760 $424,800 $513,450 $638,100
TALLADEGA $331,760 $424,800 $513,450 $638,100
TALLAPOOSA $331,760 $424,800 $513,450 $638,100
TUSCALOOSA $331,760 $424,800 $513,450 $638,100
WALKER $331,760 $424,800 $513,450 $638,100
WASHINGTON $331,760 $424,800 $513,450 $638,100
WILCOX $331,760 $424,800 $513,450 $638,100
WINSTON $331,760 $424,800 $513,450 $638,100

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