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FHA loans in Clay, AL

Quick answer

The 2026 FHA loan limit in Clay, AL (Jefferson County) is $541,287 for a single-family home, enough for a purchase price up to about $560,000 with 3.5% down. On the $198,400 median home value, that down payment is about $6,944 and the estimated payment is $1,629/month at 7.18%, which needs roughly $70,000 a year in income.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsData last updated

Median household income: $86,163; value-to-income ratio 2.30. Clay ranks 38 by home value and 67 by population among 70 places in our AL dataset.

What does an FHA loan cost on a typical Clay home?

ItemClay
Median home value (Census ACS)$198,400
Alabama median home value$195,100
Down payment (3.5%)$6,944
Loan incl. 1.75% upfront MIP$194,806
Estimated monthly payment (PITI + MI)$1,629
Income needed (28% / 36%)$70,000 / $55,000
Jefferson County 2026 FHA limit (1 unit)$541,287
Max purchase price at the limit$560,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Payment includes Alabama's 0.38% effective property tax rate (Census ACS), $1,906/yr homeowners insurance (NAIC state average) and 0.55% annual FHA MIP.

What is the 2026 FHA loan limit in Clay?

Clay is in Jefferson County where HUD's 2026 one-unit FHA limit is $541,287. With the minimum 3.5% down, that caps the purchase price at about $560,000; above that you'd need a bigger down payment or a conventional loan (conforming limit $832,750).

The Clay median home value of $198,400 is 2% above the Alabama median, and within what the county limit supports.

Which down payment assistance programs can Clay buyers use?

FHA loans in nearby cities

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FHA loan FAQs for Clay

Clay is in Jefferson County, where HUD's 2026 FHA limit for a one-unit home is $541,287. With 3.5% down, that supports a purchase price up to about $560,000.

3.5% of $198,400 is about $6,944 with a 580+ credit score (10%, or $19,840, with a 500–579 score), plus closing costs.

At the $198,400 median value (close to the Alabama median of $195,100), the estimated payment of $1,629/month at 7.18% needs about $70,000 a year under the 28% housing guideline, or $55,000 if your total debts stay under 36%.

0 city-level, 0 county-level and 1 statewide programs are verified for this city (1 total). Check each official administrator's eligibility rules and available funds.

Sources

Data last updated October 23, 2026.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.