FHA Loan Calculator — Alabama
On the typical Alabama home ($242,000), 3.5% down leaves a $233,530 base loan. The 1.75% upfront premium ($4,087) is financed, for a $237,617 loan, and annual MIP of 0.55% adds $108 a month for the life of the loan. Alabama FHA limits run $541,287–$832,750 by county.
Alabama has the 2nd-lowest effective property tax rate of the 50 states at 0.37% — $1,307 less a year than the 0.91% state average on a $242,000 home. Homeowners insurance averages $3,633 a year, the 12th-highest premium nationally and $913 more than the typical state.
Loan Parameters
Total Monthly Payment
$2,071
Principal & Interest + Taxes + Insurance
APR 7.761%
Total Interest
$333,222
Total Cost
$732,762
Advanced Parameters
FHA Mortgage Insurance Premium (MIP)
Annual MIP of 0.55% is billed monthly on the average balance of each loan year. With less than 10% down it lasts for the life of the loan; with 10% or more down it ends after 11 years. A 1.75% upfront premium is also added to the loan.
Loan Summary
Payoff Date
Sep 2056
Interest / Principal
1.40x
Mortgage Insurance Ends
Full term
50% Equity
Jul 2048
Amortization Schedule
| Period | Payment | Principal | Interest | MIP | Balance | Equity |
|---|---|---|---|---|---|---|
| Year 1 | $19,028 | $2,400 | $16,628 | $1,301 | $235,217 | $6,783 |
| Year 2 | $19,028 | $2,574 | $16,454 | $1,287 | $232,643 | $9,357 |
| Year 3 | $19,028 | $2,761 | $16,267 | $1,273 | $229,882 | $12,118 |
| Year 4 | $19,028 | $2,961 | $16,066 | $1,257 | $226,921 | $15,079 |
| Year 5 | $19,028 | $3,176 | $15,851 | $1,240 | $223,744 | $18,256 |
| Year 6 | $19,028 | $3,407 | $15,621 | $1,222 | $220,337 | $21,663 |
| Year 7 | $19,028 | $3,655 | $15,373 | $1,203 | $216,682 | $25,318 |
| Year 8 | $19,028 | $3,920 | $15,108 | $1,182 | $212,763 | $29,237 |
| Year 9 | $19,028 | $4,204 | $14,823 | $1,160 | $208,558 | $33,442 |
| Year 10 | $19,028 | $4,510 | $14,518 | $1,136 | $204,048 | $37,952 |
| Year 11 | $19,028 | $4,837 | $14,191 | $1,110 | $199,211 | $42,789 |
| Year 12 | $19,028 | $5,188 | $13,840 | $1,083 | $194,023 | $47,977 |
| Year 13 | $19,028 | $5,565 | $13,463 | $1,053 | $188,458 | $53,542 |
| Year 14 | $19,028 | $5,969 | $13,059 | $1,022 | $182,488 | $59,512 |
| Year 15 | $19,028 | $6,403 | $12,625 | $988 | $176,086 | $65,914 |
| Year 16 | $19,028 | $6,868 | $12,160 | $951 | $169,218 | $72,782 |
| Year 17 | $19,028 | $7,366 | $11,662 | $912 | $161,852 | $80,148 |
| Year 18 | $19,028 | $7,901 | $11,127 | $870 | $153,951 | $88,049 |
| Year 19 | $19,028 | $8,475 | $10,553 | $826 | $145,476 | $96,524 |
| Year 20 | $19,028 | $9,090 | $9,938 | $777 | $136,386 | $105,614 |
| Year 21 | $19,028 | $9,750 | $9,278 | $726 | $126,636 | $115,364 |
| Year 22 | $19,028 | $10,458 | $8,570 | $670 | $116,178 | $125,822 |
| Year 23 | $19,028 | $11,217 | $7,810 | $611 | $104,960 | $137,040 |
| Year 24 | $19,028 | $12,032 | $6,996 | $547 | $92,928 | $149,072 |
| Year 25 | $19,028 | $12,906 | $6,122 | $479 | $80,023 | $161,978 |
| Year 26 | $19,028 | $13,843 | $5,185 | $406 | $66,180 | $175,820 |
| Year 27 | $19,028 | $14,848 | $4,180 | $327 | $51,332 | $190,668 |
| Year 28 | $19,028 | $15,926 | $3,102 | $243 | $35,406 | $206,594 |
| Year 29 | $19,028 | $17,082 | $1,946 | $152 | $18,324 | $223,676 |
| Year 30 | $19,029 | $18,324 | $705 | $55 | $0 | $242,000 |
FHA Loan numbers for Alabama
- Typical Alabama home value
- $242,000
- 3.5% down ($8,470) · Zillow, August 31, 2026
- Loan amount
- $237,617
- Includes $4,087 financed UFMIP
- Estimated monthly payment
- $2,071
- APR 7.761%
- Alabama property tax
- 0.37%
- $75/mo
- Homeowners insurance
- $3,633/yr
- $303/mo
- Upfront MIP (1.75%)
- $4,087
- Financed into the loan
- Annual MIP
- 0.55%
- $108/mo in year 1 · life of loan
- Alabama FHA loan limit
- $541,287 – $832,750
- One-unit, by county
How much house can you afford in Alabama with an fha loan?
Highest price where principal, interest, Alabama property tax, insurance and FHA mortgage insurance (1.75% upfront premium financed, 0.55% annual MIP) stay within 28% of gross income —3.5% down, 30-year fixed at 7.03%. Other debts lower these numbers.
| Household income | Housing budget / mo | Max home price | Down payment | vs typical home |
|---|---|---|---|---|
| $40,000 | $933 | $86,000 | $3,010 | 36% |
| $50,000 | $1,167 | $118,000 | $4,130 | 49% |
| $60,000 | $1,400 | $150,000 | $5,250 | 62% |
| $75,000 | $1,750 | $197,000 | $6,895 | 82% |
| $100,000 | $2,333 | $277,000 | $9,695 | 115% |
| $125,000 | $2,917 | $357,000 | $12,495 | 148% |
| $150,000 | $3,500 | $437,000 | $15,295 | 181% |
FHA vs other loan types in Alabama
$242,000 home, each program's typical minimum or default down payment, current average 30-year rate.
| Loan type | Down | Loan amount | Upfront fee | Monthly MI | Total / month | APR |
|---|---|---|---|---|---|---|
| Conventional | 10% · $24,200 | $217,800 | — | $131 PMI | $1,961 | 7.488% |
| FHA | 3.5% · $8,470 | $237,617 | UFMIP $4,087 | $108 MIP | $2,071 | 7.761% |
| VA | 0% · $0 | $247,203 | Funding fee $5,203 | $0 | $2,027 | 7.242% |
| JumboLoan is conforming (≤ $832,750) | 20% · $48,400 | $193,600 | — | $0 | $1,669 | 7.030% |
Frequently asked questions
What is the monthly payment on a $242,000 home with an fha loan in Alabama?
Estimated $2,071 per month ($1,586 principal & interest, $75 property tax, $303 insurance, $108 FHA mortgage insurance) at 7.03% for 30 years, with 3.5% down. APR 7.761%.
What is the FHA loan limit in Alabama for 2026?
Between $541,287 and $832,750 depending on the county for a one-unit home. $541,287 is the national FHA floor; counties with higher home prices get higher limits. Check your exact county on HUD's FHA mortgage limits lookup.
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Data sources & assumptions
- Freddie Mac Primary Mortgage Market Survey (PMMS) — Weekly average as of September 24, 2026
- Zillow Home Value Index (ZHVI), typical home value, all homes — Default home prices; typical value as of August 31, 2026
- FHFA 2026 Conforming Loan Limit Values (one-unit) — 2026 one-unit limits, 56 states & territories
- HUD FHA Mortgage Limits lookup — FHA floor $541,287; high-cost counties follow the conforming limit — confirm on HUD
- Effective statewide property tax rate (Tax Foundation, 2026 projections) — Statewide effective rate; county rates vary
- Average annual homeowners premium, $300K dwelling / $1K deductible (industry survey averages) — Statewide average premium
- HUD Mortgagee Letter 2023-05 (annual MIP schedule)
- HUD — FHA single family housing policy handbook 4000.1
Estimates exclude lender origination fees, points and closing costs. See our methodology for formulas and limitations.