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2019 FHA Loan Limits in Alabama

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As of 2019, FHA loan limits allow for a buyer of a single-family home in Alabama to borrow as much as $314,827 with the help of one of these federally backed loans.

Unlike other states — in which FHA loan limits may vary from county to county — Alabama buyers have the flexibility of being able to apply that same loan limit anywhere in the state they find their dream home.

Calculations from the Alabama Center for Real Estate show houses in this southern state are more affordable than the national average, with the median sales price sitting at $159,915. Across the U.S., the price of a typical home is $235,000, as estimated by the National Association of Realtors.

Perhaps best of all, the Federal Housing Administration (FHA) offers its backing for qualified buyers to help them acquire loans to buy a home. In 2016 (the most recent year for which data is available), the U.S. Department of Housing and Urban Development estimated lending with FHA backing grew by 6 percent in Alabama, making up 27 percent of FHA purchase originations in the state overall. The 2018 report notes that 1.6 percent of total FHA mortgages in the U.S. came from Alabama.

Alabama FHA loan limits by county

Alabama FHA Loan Limits by County
County Name Single-Family Home FHA Limit Two-Family Home Limit Three-Family Home Limit Four-Family Home Limit Median Sale Price
Autauga $331,760 $424,800 $513,450 $638,100 $157,000
Baldwin $331,760 $424,800 $513,450 $638,100 $195,000
Barbour $331,760 $424,800 $513,450 $638,100 $100,000
Bibb $331,760 $424,800 $513,450 $638,100 $208,000
Blount $331,760 $424,800 $513,450 $638,100 $208,000
Bullock $331,760 $424,800 $513,450 $638,100 $75,000
Butler $331,760 $424,800 $513,450 $638,100 $99,000
Calhoun $331,760 $424,800 $513,450 $638,100 $137,000
Chambers $331,760 $424,800 $513,450 $638,100 $130,000
Cherokee $331,760 $424,800 $513,450 $638,100 $130,000
Chilton $331,760 $424,800 $513,450 $638,100 $208,000
Choctaw $331,760 $424,800 $513,450 $638,100 $77,000
Clarke $331,760 $424,800 $513,450 $638,100 $105,000
Clay $331,760 $424,800 $513,450 $638,100 $68,000
Cleburne $331,760 $424,800 $513,450 $638,100 $84,000
Coffee $331,760 $424,800 $513,450 $638,100 $123,000
Colbert $331,760 $424,800 $513,450 $638,100 $176,000
Conecuh $331,760 $424,800 $513,450 $638,100 $85,000
Coosa $331,760 $424,800 $513,450 $638,100 $120,000
Covington $331,760 $424,800 $513,450 $638,100 $73,000
Crenshaw $331,760 $424,800 $513,450 $638,100 $86,000
Cullman $331,760 $424,800 $513,450 $638,100 $104,000
Dale $331,760 $424,800 $513,450 $638,100 $78,000
Dallas $331,760 $424,800 $513,450 $638,100 $90,000
Dekalb $331,760 $424,800 $513,450 $638,100 $146,000
Elmore $331,760 $424,800 $513,450 $638,100 $157,000
Escambia $331,760 $424,800 $513,450 $638,100 $106,000
Etowah $331,760 $424,800 $513,450 $638,100 $150,000
Fayette $331,760 $424,800 $513,450 $638,100 $42,000
Franklin $331,760 $424,800 $513,450 $638,100 $67,000
Geneva $331,760 $424,800 $513,450 $638,100 $127,000
Greene $331,760 $424,800 $513,450 $638,100 $170,000
Hale $331,760 $424,800 $513,450 $638,100 $170,000
Henry $331,760 $424,800 $513,450 $638,100 $127,000
Houston $331,760 $424,800 $513,450 $638,100 $127,000
Jackson $331,760 $424,800 $513,450 $638,100 $117,000
Jefferson $331,760 $424,800 $513,450 $638,100 $208,000
Lamar $331,760 $424,800 $513,450 $638,100 $80,000
Lauderdale $331,760 $424,800 $513,450 $638,100 $176,000
Lawrence $331,760 $424,800 $513,450 $638,100 $122,000
Lee $331,760 $424,800 $513,450 $638,100 $192,000
Limestone $331,760 $424,800 $513,450 $638,100 $175,000
Lowndes $331,760 $424,800 $513,450 $638,100 $157,000
Macon $331,760 $424,800 $513,450 $638,100 $74,000
Madison $331,760 $424,800 $513,450 $638,100 $175,000
Marengo $331,760 $424,800 $513,450 $638,100 $106,000
Marion $331,760 $424,800 $513,450 $638,100 $98,000
Marshall $331,760 $424,800 $513,450 $638,100 $96,000
Mobile $331,760 $424,800 $513,450 $638,100 $113,000
Monroe $331,760 $424,800 $513,450 $638,100 $51,000
Montgomery $331,760 $424,800 $513,450 $638,100 $157,000
Morgan $331,760 $424,800 $513,450 $638,100 $122,000
Perry $331,760 $424,800 $513,450 $638,100 $77,000
Pickens $331,760 $424,800 $513,450 $638,100 $170,000
Pike $331,760 $424,800 $513,450 $638,100 $122,000
Randolph $331,760 $424,800 $513,450 $638,100 $95,000
Russell $331,760 $424,800 $513,450 $638,100 $228,000
St. Clair $331,760 $424,800 $513,450 $638,100 $208,000
Shelby $331,760 $424,800 $513,450 $638,100 $208,000
Sumter $331,760 $424,800 $513,450 $638,100 $78,000
Talladega $331,760 $424,800 $513,450 $638,100 $81,000
Tallapoosa $331,760 $424,800 $513,450 $638,100 $120,000
Tuscaloosa $331,760 $424,800 $513,450 $638,100 $170,000
Walker $331,760 $424,800 $513,450 $638,100 $58,000
Washington $331,760 $424,800 $513,450 $638,100 $113,000
Wilcox $331,760 $424,800 $513,450 $638,100 $91,000
Winston $331,760 $424,800 $513,450 $638,100 $80,000

How are FHA loan limits determined?

Limits are set every calendar year by the federal government, based on median house prices.

The government sets one FHA loan limit for what it deems low-cost areas and a second for areas deemed high-cost, which makes for variations in how much a buyer might be able to borrow, depending on location.

The entire state of Alabama falls within the FHA’s low-cost limit, which is 65% of the national conforming limit for a one-unit property. In 2019, that equates to $314,827. Qualified buyers in high-cost areas, meanwhile, are eligible for as much as 150% of the national conforming limit, which works out to be $726,525 for a single-family home in 2019. Buyers in some areas known for even higher real estate costs, such as Hawaii and the U.S. Virgin Islands, may be able to borrow even more.

Here are the 2019 standard FHA limits for all property types:

  • One-unit: $314,827
  • Two-unit: $403,125
  • Three-unit: $487,250
  • Four-unit: $605,525

Here are the 2019 standard FHA limits for high-cost areas:

  • One-unit: $726,525
  • Two-unit: $930,300
  • Three-unit: $1,124,475
  • Four-unit: $1,397,400

Do you qualify for an FHA loan in Alabama?

Knowing just how much you can borrow if you qualify for an FHA loan is a big step. But how do you qualify?

Known for low down payments and cheaper closing costs, FHA loans have plenty of advantages for buyers in Alabama. Although they’re brokered by private lenders, the federal government backing makes them an option for some buyers who have bad credit or first-time buyers with low-to-moderate income and no mortgage history. Find out if your income and credit score might qualify you for an FHA loan.

 

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