Avg Home Value
$230,000
Lending Limit
$1,209,750
Alabama Housing Market Analysis
In Alabama, where the average home value is $230,000, the standard FHA HECM program is typically the perfect fit. Because property values are moderate, you can usually access the maximum allowable percentage of your equity without hitting federal lending caps.
Loan Limits in Alabama
For 2026, the federal lending limit is $1,209,750.
Since the median home value in Alabama is below this cap, your loan amount will be determined strictly by your age and current interest rates, not by the lending cap.
Specific Laws for Alabama
Alabama generally follows standard federal HUD guidelines for reverse mortgages. This includes the requirement for independent counseling and the right to a 3-day rescission period after closing.
Tax Note: Alabama has the second-lowest property tax rate in the U.S., helping fixed incomes stretch further.
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