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2026 FHA Loan Limits in Alabama
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 $541,287 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
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| AUTAUGA COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $220,000 |
| BALDWIN COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $320,000 |
| BARBOUR COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $147,000 |
| BIBB COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $317,000 |
| BLOUNT COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $317,000 |
| BULLOCK COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $107,000 |
| BUTLER COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $134,000 |
| CALHOUN COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $134,000 |
| CHAMBERS COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $215,000 |
| CHEROKEE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $150,000 |
| CHILTON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $317,000 |
| CHOCTAW COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $150,000 |
| CLARKE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $169,000 |
| CLAY COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $100,000 |
| CLEBURNE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $193,000 |
| COFFEE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $190,000 |
| COLBERT COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $190,000 |
| CONECUH COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $136,000 |
| COOSA COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $131,000 |
| COVINGTON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $120,000 |
| CRENSHAW COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $145,000 |
| CULLMAN COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $178,000 |
| DALE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $130,000 |
| DALLAS COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $65,000 |
| DEKALB COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $103,000 |
| ELMORE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $220,000 |
| ESCAMBIA COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $164,000 |
| ETOWAH COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $258,000 |
| FAYETTE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $119,000 |
| FRANKLIN COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $98,000 |
| GENEVA COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $192,000 |
| GREENE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $231,000 |
| HALE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $231,000 |
| HENRY COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $192,000 |
| HOUSTON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $192,000 |
| JACKSON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $224,000 |
| JEFFERSON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $317,000 |
| LAMAR COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $151,000 |
| LAUDERDALE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $190,000 |
| LAWRENCE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $208,000 |
| LEE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $371,000 |
| LIMESTONE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $295,000 |
| LOWNDES COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $220,000 |
| MACON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $371,000 |
| MADISON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $295,000 |
| MARENGO COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $139,000 |
| MARION COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $140,000 |
| MARSHALL COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $190,000 |
| MOBILE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $145,000 |
| MONROE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $91,000 |
| MONTGOMERY COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $220,000 |
| MORGAN COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $208,000 |
| PERRY COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $118,000 |
| PICKENS COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $231,000 |
| PIKE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $144,000 |
| RANDOLPH COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $246,000 |
| RUSSELL COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $325,000 |
| SHELBY COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $317,000 |
| ST. CLAIR COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $317,000 |
| SUMTER COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $271,000 |
| TALLADEGA COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $131,000 |
| TALLAPOOSA COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $274,000 |
| TUSCALOOSA COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $231,000 |
| WALKER COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $317,000 |
| WASHINGTON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $205,000 |
| WILCOX COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $113,000 |
| WINSTON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $135,000 |
How much is your home purchase price?
$400,000
How are FHA loan limits determined?
FHA loan limits fluctuate from year to year based on the conforming loan limits for traditional mortgages, which are set by the Federal Housing Finance Agency (FHFA). For 2026, the conforming loan limit is $832,750 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. In 2026, the floor is $541,287 for a single-unit property. The ceiling, or the highest loan limit for high-cost areas, is calculated at 150% of the conforming loan limit. In 2026, the ceiling is $1,249,125.
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 is on the lower end, you may still be eligible. There are, however, still a number of boxes you must be able to check in order to receive 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 have a down payment as low as 3.5% if your credit score is at least 580. You’ll need 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. If your credit score is below 580, you’ll need a larger down payment: 10% down versus 3.5% down.
- Debt-to-income ratio: In general, you need a debt-to-income ratio of no more than 43%. That’s calculated by dividing your total debt by your pre-tax income. However, if you have a strong credit score and extra cash reserves, you may qualify with a debt-to-income ratio of up to 50%.
- Mortgage insurance: In order to take out an FHA loan, you’re required to have 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, amount and other factors).
- Appraisal: An FHA appraisal is required for FHA loans. The cost typically ranges from $400 to $700.
- Occupancy: The property you’re using the loan funds for must be your principal residence for at least a year. The U.S. Department of Housing and Urban Development (HUD) defines a principal residence 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
You may also qualify for an FHA loan to purchase a multifamily home with two to four units, which would allow you to rent out the additional units and pursue house hacking. However, the loan limits and borrower requirements are a bit different than those for single-unit FHA loans. Requirements for multifamily properties include:
- Down payment: A 3.5% minimum down payment is required.
- Credit score: A minimum 580 credit score 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 to four units, you must have cash reserves equal to three months’ worth of principal, interest, taxes and insurance payments (known as PITI).
- Occupancy: You must live in one of the units.
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $693,050 |
| Three | $837,700 |
| Four | $1,041,125 |
FHA lenders in Alabama
| Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 |
Expert review from LendingTree.
| 580 | |
 |
Expert review from LendingTree.
| 580 | |
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Expert review from LendingTree.
| 580 | |
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Expert review from LendingTree.
| 580 | |
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Expert review from LendingTree.
| 580 |
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