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Alabama FHA Home Loans

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FHA Loan Requirements · 2022 Alabama FHA Loan Limits

Alabama FHA Loan | Requirements | 2022 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 2022 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.

2022 Alabama FHA Loan Limits

Below are the 2022 FHA loan limits for every county in Alabama:

COUNTY SINGLE FAMILY 2 FAMILY 3 FAMILY 4 FAMILY
AUTAUGA $420,680 $538,650 $651,050 $809,150
BALDWIN $420,680 $538,650 $651,050 $809,150
BARBOUR $420,680 $538,650 $651,050 $809,150
BIBB $420,680 $538,650 $651,050 $809,150
BLOUNT $420,680 $538,650 $651,050 $809,150
BULLOCK $420,680 $538,650 $651,050 $809,150
BUTLER $420,680 $538,650 $651,050 $809,150
CALHOUN $420,680 $538,650 $651,050 $809,150
CHAMBERS $420,680 $538,650 $651,050 $809,150
CHEROKEE $420,680 $538,650 $651,050 $809,150
CHILTON $420,680 $538,650 $651,050 $809,150
CHOCTAW $420,680 $538,650 $651,050 $809,150
CLARKE $420,680 $538,650 $651,050 $809,150
CLAY $420,680 $538,650 $651,050 $809,150
CLEBURNE $420,680 $538,650 $651,050 $809,150
COFFEE $420,680 $538,650 $651,050 $809,150
COLBERT $420,680 $538,650 $651,050 $809,150
CONECUH $420,680 $538,650 $651,050 $809,150
COOSA $420,680 $538,650 $651,050 $809,150
COVINGTON $420,680 $538,650 $651,050 $809,150
CRENSHAW $420,680 $538,650 $651,050 $809,150
CULLMAN $420,680 $538,650 $651,050 $809,150
DALE $420,680 $538,650 $651,050 $809,150
DALLAS $420,680 $538,650 $651,050 $809,150
DEKALB $420,680 $538,650 $651,050 $809,150
ELMORE $420,680 $538,650 $651,050 $809,150
ESCAMBIA $420,680 $538,650 $651,050 $809,150
ETOWAH $420,680 $538,650 $651,050 $809,150
FAYETTE $420,680 $538,650 $651,050 $809,150
FRANKLIN $420,680 $538,650 $651,050 $809,150
GENEVA $420,680 $538,650 $651,050 $809,150
GREENE $420,680 $538,650 $651,050 $809,150
HALE $420,680 $538,650 $651,050 $809,150
HENRY $420,680 $538,650 $651,050 $809,150
HOUSTON $420,680 $538,650 $651,050 $809,150
JACKSON $420,680 $538,650 $651,050 $809,150
JEFFERSON $420,680 $538,650 $651,050 $809,150
LAMAR $420,680 $538,650 $651,050 $809,150
LAUDERDALE $420,680 $538,650 $651,050 $809,150
LAWRENCE $420,680 $538,650 $651,050 $809,150
LEE $420,680 $538,650 $651,050 $809,150
LIMESTONE $420,680 $538,650 $651,050 $809,150
LOWNDES $420,680 $538,650 $651,050 $809,150
MACON $420,680 $538,650 $651,050 $809,150
MADISON $420,680 $538,650 $651,050 $809,150
MARENGO $420,680 $538,650 $651,050 $809,150
MARION $420,680 $538,650 $651,050 $809,150
MARSHALL $420,680 $538,650 $651,050 $809,150
MOBILE $420,680 $538,650 $651,050 $809,150
MONROE $420,680 $538,650 $651,050 $809,150
MONTGOMERY $420,680 $538,650 $651,050 $809,150
MORGAN $420,680 $538,650 $651,050 $809,150
PERRY $420,680 $538,650 $651,050 $809,150
PICKENS $420,680 $538,650 $651,050 $809,150
PIKE $420,680 $538,650 $651,050 $809,150
RANDOLPH $420,680 $538,650 $651,050 $809,150
RUSSELL $420,680 $538,650 $651,050 $809,150
ST. CLAIR $420,680 $538,650 $651,050 $809,150
SHELBY $420,680 $538,650 $651,050 $809,150
SUMTER $420,680 $538,650 $651,050 $809,150
TALLADEGA $420,680 $538,650 $651,050 $809,150
TALLAPOOSA $420,680 $538,650 $651,050 $809,150
TUSCALOOSA $420,680 $538,650 $651,050 $809,150
WALKER $420,680 $538,650 $651,050 $809,150
WASHINGTON $420,680 $538,650 $651,050 $809,150
WILCOX $420,680 $538,650 $651,050 $809,150
WINSTON $420,680 $538,650 $651,050 $809,150

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