What are the VA requirements?
| Requirement | VA |
|---|---|
| Minimum credit score | None set by VA; lenders commonly require 580–620 |
| Minimum down payment | $0 when the price doesn't exceed appraised value |
| Debt-to-income | 41% guideline plus VA residual-income test |
| Mortgage insurance | None; one-time funding fee (2.15% first use with <5% down) unless exempt |
| Occupancy | Primary residence |
| Loan limit | No limit with full entitlement; county limit applies to remaining entitlement |
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 VA loan?
- Step Up — 4% of the sales price up to $10,000 (Repayable second mortgage, 640+ credit)
How does VA mortgage insurance work?
VA loans have no monthly mortgage insurance. Instead there's a one-time funding fee — for first use with less than 5% down it is 2.15% of the loan, falling to 1.5% with 5% down and 1.25% with 10% down. Veterans receiving VA disability compensation are exempt.
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, 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
- VA — VA-backed purchase loans
- VA — Funding fee and closing costs
- 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 VA 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.