2019 FHA Loan Limits in Alabama

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Updated on Wednesday, April 3, 2019

Federal Housing Administration (FHA) loans are sought after by many homebuyers — and for good reason. Not only do FHA loans come with low down payments and closing costs, but you may be able to be approved for an FHA loan even if you don’t have stellar credit.

However, the FHA sets limits on how much you can borrow under the program, and that amount varies depending on where you live. Those limits change every year based on current home prices. The National Housing Act requires that the FHA look to median house prices in a given region when coming up with the limits for FHA loans.

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In the state of Alabama, the mortgage limits for a single-family house in 2019 range from $314,827 to $331,200. Most of the state is considered a low-cost area, so the limit is $314,827. However, three counties — Hale, Pickens and Tuscaloosa — have the higher $331,200 limit, indicating that in those areas, median house prices are slightly higher.

In fiscal year 2016, the most recent time period for which this data is available, 19,050 FHA loans were issued in Alabama for single-family houses. Those loans were worth approximately $2.7 billion. Of the loans that originated in Alabama in 2015, more than a quarter — 26.7% — were FHA loans. Alabama accounted for 1.6% of nationwide FHA loans in 2018.

Alabama FHA Loan Limits by County

County NameOne-FamilyTwo-FamilyThree-FamilyFour-FamilyMedian Sale Price
AUTAUGA$314,827 $403,125 $487,250 $605,525 $152,000
BALDWIN$314,827 $403,125 $487,250 $605,525 $184,000
BARBOUR$314,827 $403,125 $487,250 $605,525 $96,000
BIBB$314,827 $403,125 $487,250 $605,525 $200,000
BLOUNT$314,827 $403,125 $487,250 $605,525 $200,000
BULLOCK$314,827 $403,125 $487,250 $605,525 $73,000
BUTLER$314,827 $403,125 $487,250 $605,525 $89,000
CALHOUN$314,827 $403,125 $487,250 $605,525 $111,000
CHAMBERS$314,827 $403,125 $487,250 $605,525 $46,000
CHEROKEE$314,827 $403,125 $487,250 $605,525 $120,000
CHILTON$314,827 $403,125 $487,250 $605,525 $200,000
CHOCTAW$314,827 $403,125 $487,250 $605,525 $69,000
CLARKE$314,827 $403,125 $487,250 $605,525 $92,000
CLAY$314,827 $403,125 $487,250 $605,525 $62,000
CLEBURNE$314,827 $403,125 $487,250 $605,525 $115,000
COFFEE$314,827 $403,125 $487,250 $605,525 $110,000
COLBERT$314,827 $403,125 $487,250 $605,525 $131,000
CONECUH$314,827 $403,125 $487,250 $605,525 $77,000
COOSA$314,827 $403,125 $487,250 $605,525 $86,000
COVINGTON$314,827 $403,125 $487,250 $605,525 $69,000
CRENSHAW$314,827 $403,125 $487,250 $605,525 $83,000
CULLMAN$314,827 $403,125 $487,250 $605,525 $100,000
DALE$314,827 $403,125 $487,250 $605,525 $73,000
DALLAS$314,827 $403,125 $487,250 $605,525 $86,000
DEKALB$314,827 $403,125 $487,250 $605,525 $106,000
ELMORE$314,827 $403,125 $487,250 $605,525 $152,000
ESCAMBIA$314,827 $403,125 $487,250 $605,525 $100,000
ETOWAH$314,827 $403,125 $487,250 $605,525 $105,000
FAYETTE$314,827 $403,125 $487,250 $605,525 $82,000
FRANKLIN$314,827 $403,125 $487,250 $605,525 $65,000
GENEVA$314,827 $403,125 $487,250 $605,525 $125,000
GREENE$314,827 $403,125 $487,250 $605,525 $73,000
HALE$331,200 $424,000 $512,500 $636,900 $162,000
HENRY$314,827 $403,125 $487,250 $605,525 $125,000
HOUSTON$314,827 $403,125 $487,250 $605,525 $125,000
JACKSON$314,827 $403,125 $487,250 $605,525 $111,000
JEFFERSON$314,827 $403,125 $487,250 $605,525 $200,000
LAMAR$314,827 $403,125 $487,250 $605,525 $76,000
LAUDERDALE$314,827 $403,125 $487,250 $605,525 $131,000
LAWRENCE$314,827 $403,125 $487,250 $605,525 $112,000
LEE$314,827 $403,125 $487,250 $605,525 $172,000
LIMESTONE$314,827 $403,125 $487,250 $605,525 $167,000
LOWNDES$314,827 $403,125 $487,250 $605,525 $152,000
MACON$314,827 $403,125 $487,250 $605,525 $82,000
MADISON$314,827 $403,125 $487,250 $605,525 $167,000
MARENGO$314,827 $403,125 $487,250 $605,525 $94,000
MARION$314,827 $403,125 $487,250 $605,525 $91,000
MARSHALL$314,827 $403,125 $487,250 $605,525 $92,000
MOBILE$314,827 $403,125 $487,250 $605,525 $73,000
MONROE$314,827 $403,125 $487,250 $605,525 $56,000
MONTGOMERY$314,827 $403,125 $487,250 $605,525 $152,000
MORGAN$314,827 $403,125 $487,250 $605,525 $112,000
PERRY$314,827 $403,125 $487,250 $605,525 $79,000
PICKENS$331,200 $424,000 $512,500 $636,900 $162,000
PIKE$314,827 $403,125 $487,250 $605,525 $109,000
RANDOLPH$314,827 $403,125 $487,250 $605,525 $91,000
RUSSELL$314,827 $403,125 $487,250 $605,525 $213,000
SHELBY$314,827 $403,125 $487,250 $605,525 $200,000
ST. CLAIR$314,827 $403,125 $487,250 $605,525 $200,000
SUMTER$314,827 $403,125 $487,250 $605,525 $78,000
TALLADEGA$314,827 $403,125 $487,250 $605,525 $86,000
TALLAPOOSA$314,827 $403,125 $487,250 $605,525 $112,000
TUSCALOOSA$331,200 $424,000 $512,500 $636,900 $162,000
WALKER$314,827 $403,125 $487,250 $605,525 $200,000
WASHINGTON$314,827 $403,125 $487,250 $605,525 $87,000
WILCOX$314,827 $403,125 $487,250 $605,525 $87,000
WINSTON$314,827 $403,125 $487,250 $605,525 $68,000

How are FHA loan limits calculated?

FHA loans are not conforming loans — loans that meet the standards to be bought by Fannie Mae and Freddie Mac. But the FHA sets its loan limits each year based on the conforming loan limit — the largest mortgage Fannie and Freddie will purchase in a given year. In 2019, the conforming loan limit is $484,350.

The FHA “floor” refers to the largest mortgage the agency will insure in most of the country and is set at 65% of the conforming loan limit, or $314,827 for 2019.

The FHA “ceiling” is used to calculate loan limits for high-cost areas. It is set at 150% of the conforming loan limit, or $726,525, in 2019. This is generally the highest mortgage the FHA will insure for a single-family home, though there are some exceptions. In some parts of the country, loan limits fall somewhere between the FHA floor and ceiling. For example, in Alabama, three counties have loan limits of $331,200.

Are you eligible for an FHA loan in Alabama?

If the properties you’re interested in fall within the FHA loan limits and you think an FHA loan would be a good option for you, it’s time to find out whether you meet the other criteria.