FHA · Mobile

FHA Loans (Investor Angle) in Mobile, AL

Loan-size math and qualifying analysis for FHA financing on Mobile's $197k median home value. Strong fit.

Recommendation

Strong fit for Mobile.

Mobile medians ($197k) sit below FHA loan limits in most counties, and rental fit (78/100) makes house-hacking 2-4 unit FHA acquisition viable here.

Loan math · Mobile

Payment on Mobile's $197k median.

Median home value (Mobile)$197,044
Assumed LTV97%
Loan amount$190,148
Cash to close (down payment)$6,896
Assumed rate6.75%
Term30-year amortizing
Monthly P&I$1,233/mo
What it is

FHA financing — the mechanics.

A residential mortgage insured by the Federal Housing Administration. Low down-payment + flexible credit. Critically for investors: FHA loans are assumable — a new buyer can take over the original loan with the same rate and terms (subject to lender approval).

Original FHA: 580+ FICO, 3.5% down, owner-occupancy required at origination. Assumption: new buyer needs ~$500-1,500 fee + creditworthiness check + occupancy intent.

State context · Alabama

How Alabama law affects this loan.

Alabama is landlord-friendly on landlord-tenant law. See full FHA in Alabama breakdown.

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FAQ

Frequently asked.

What's the typical FHA loan size for a property in Mobile?

On Mobile's $197k median home value, a FHA loan at the standard 97% LTV would be approximately $190k, requiring $7k down.

What's the monthly payment on a typical FHA loan in Mobile?

Fully-amortizing 30-year payment on a $190k FHA loan at the typical rate of 6.75% would be approximately $1k/month, excluding taxes and insurance.

Is Mobile a good market for FHA financing?

Mobile medians ($197k) sit below FHA loan limits in most counties, and rental fit (78/100) makes house-hacking 2-4 unit FHA acquisition viable here.

What credit and reserves do FHA lenders require for Mobile properties?

Original FHA: 580+ FICO, 3.5% down, owner-occupancy required at origination. Assumption: new buyer needs ~$500-1,500 fee + creditworthiness check + occupancy intent.

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