What are the USDA requirements?
| Requirement | USDA |
|---|---|
| Minimum credit score | No USDA minimum; 640+ for GUS automated approval |
| Minimum down payment | $0 |
| Debt-to-income | 29% housing / 41% total guideline |
| Mortgage insurance | 1% upfront guarantee fee + 0.35% annual fee |
| Income limit | Household income ≤ 115% of area median income |
| Property location | Must be in a USDA-eligible area |
What are the 2026 loan limits in Alabama's largest counties?
| County | Conforming (1 unit) | FHA (1 unit) | Jumbo above (20% down) |
|---|---|---|---|
| Jefferson County | $832,750 | $541,287 | $1,040,000 |
| Mobile County | $832,750 | $541,287 | $1,040,000 |
| Madison County | $832,750 | $541,287 | $1,040,000 |
| Baldwin County | $832,750 | $541,287 | $1,040,000 |
| Tuscaloosa County | $832,750 | $541,287 | $1,040,000 |
| Montgomery County | $832,750 | $541,287 | $1,040,000 |
| Shelby County | $832,750 | $541,287 | $1,040,000 |
| Lee County | $832,750 | $541,287 | $1,040,000 |
| Morgan County | $832,750 | $541,287 | $1,040,000 |
| Calhoun County | $832,750 | $541,287 | $1,040,000 |
| Houston County | $832,750 | $541,287 | $1,040,000 |
| Limestone County | $832,750 | $541,287 | $1,040,000 |
| Etowah County | $832,750 | $541,287 | $1,040,000 |
| Marshall County | $832,750 | $541,287 | $1,040,000 |
| Lauderdale County | $832,750 | $541,287 | $1,040,000 |
Can I use Alabama down payment assistance with a USDA loan?
- Step Up — 4% of the sales price up to $10,000 (Repayable second mortgage, 640+ credit)
How does USDA mortgage insurance work?
USDA charges an upfront guarantee fee of 1% of the loan (can be financed) and an annual fee of 0.35% of the outstanding balance, paid monthly for the life of the loan.
Frequently asked questions
$832,750 for one unit in 2026.
No — credit, down payment and DTI rules are national. What varies by location is the county loan limit and USDA income limits/eligible areas, plus state down payment assistance.
Yes — we've verified 1 Alabama program listed below; most pair with FHA, VA, USDA or conventional first mortgages from the state agency.
Sources
- USDA Rural Development — Single Family Housing Guaranteed Loan Program
- FHFA — 2026 Conforming Loan Limit Values
- HUD — 2026 FHA Forward Mortgage Limits (county file)
Data last updated October 23, 2026.
See if you qualify for a USDA loan in Alabama
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Get My MatchesFigures 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.