--- title: "FHA Loans Decatur AL | TVA & GE Aerospace Buyer Guide" description: "Buying an FHA home in Decatur, Alabama? See real PITI numbers for TVA, GE Aerospace, and Nucor Steel buyers, plus 203(k) options. Call (231) 737-9911 today." author: "PierPoint Mortgage" date: "2026-07-30" tags: ["fha loans decatur", "FHA Loans"] canonical: "https://pierpointmortgage.com/fha-loans/fha-loans-alabama/fha-loans-decatur-al/" last_updated: "2026-10-21" --- # FHA Loans Decatur AL | TVA & GE Aerospace Buyer Guide **By PierPoint Mortgage** | July 30, 2026 Buying an FHA home in Decatur, Alabama? See real PITI numbers for TVA, GE Aerospace, and Nucor Steel buyers, plus 203(k) options. Call (231) 737-9911 today. --- > **Quick answer:** **FHA loans in Decatur, Alabama work best for the heavy-industry payroll base at TVA Browns Ferry, GE Aerospace, United Launch Alliance, and Nucor Steel, where two years of verifiable overtime and shift differential routinely clears FHA's 43 percent back-end ratio.** This is the underwriting map for Morgan County's industrial workforce and the 203(k) math for Old Decatur's historic stock. FHA LOANS · DECATUR, ALABAMA · TENNESSEE VALLEY INDUSTRIAL CORRIDOR ★★★★★ 4.9/5 from 152 Reviews● FHA plus state and local down payment assistance programs Broker● $0 Cost to Borrower [See Your TVA / GE Aerospace Paycheck FHA Number →](https://pierpointmortgage.com/get-your-free-mortgage-consultation/)[Call (231) 737-9911](tel:2317379911) $524KMorgan Co. FHA Cap 3.5%FHA Min Down 26-DayAvg Close 100+Wholesale Lenders Written by Shannon Swartz · NMLS #112844 · 20+ Years in Mortgage Lending · PierPoint Mortgage LLC · Licensed in 15+ States · Last updated July 29, 2026 RELATED QUESTIONS DECATUR BUYERS ASK ## What Do Decatur Buyers Ask Next About FHA and TVA Income? ### Does TVA Browns Ferry outage overtime count as FHA income? Outage-season overtime counts once two years of W-2 history shows a repeating pattern, per HUD's overtime-averaging guidance. A single refueling outage on its own is not enough. ### How much does Old Decatur historic stock cost versus Southwest Decatur new construction? Old Decatur and Albany bungalows run $140K to $220K and often need 203(k) rehab money. Southwest Decatur tract homes near Beltline Road run $235K to $310K and appraise clean. ### Can I FHA-finance a home near Point Mallard Park? Yes. Most homes in the Point Mallard and Southeast Decatur submarket were built after 1985 and clear a standard FHA appraisal without any repair conditions. ### Is it cheaper to buy in Decatur than commute from Huntsville? A three-bedroom in Southwest Decatur typically runs $50,000 to $90,000 below a comparable Madison County home, but weigh that against the 30-minute I-565 commute. ### Not sure if your TVA or GE Aerospace overtime counts toward FHA income? Text your gross monthly pay, overtime history, and employer to Shannon. She runs the two-year averaging check in under an hour, no credit pull required. [CALL (231) 737-9911](tel:2317379911)[GRAB A 15-MIN SLOT →](https://pierpointmortgage.com/get-your-free-mortgage-consultation/) DECATUR NEIGHBORHOOD MAP ## Which Decatur Submarkets Actually Fit the TVA and GE Aerospace Paycheck? **Morgan County's FHA loan limit sits at $524,225 for a single-family home, and Decatur's heavy-industry payroll from TVA Browns Ferry, GE Aerospace, and United Launch Alliance means most industrial buyers qualify well under that ceiling.** Southwest and Northwest Decatur carry the bulk of newer construction that appraises cleanly, while Old Decatur and Albany hold the pre-1950s bungalow stock that routinely needs 203(k) rehab money folded into the loan. The Sommerville Road corridor and the Beltline Road tract-home belt draw GE Aerospace engine-facility technicians and Nucor Steel shift workers who want a short commute to the plants along the Tennessee River industrial park. United Launch Alliance's Decatur rocket plant, near the Point Mallard side of town, pulls in a smaller but higher-earning engineering payroll, and those buyers increasingly compete with Huntsville-priced-out buyers moving into Priceville and Trinity, 30 minutes west down I-565. On the rural edge toward the Limestone County line, some Priceville and Trinity parcels sit outside city limits and qualify for zero-down USDA Rural Development financing, which we compare against FHA on acreage-heavy files. | Submarket Tier | Sample Zones | Typical 3BR Price (2026) | FHA / 203(k) Fit | | --- | --- | --- | --- | | **Old Decatur / Albany Historic** | Old Decatur, Albany | $140K to $220K | 203(k) territory, appraisal risk on wiring and roof | | **Southwest Decatur** | Beltline Road corridor, Sommerville Road | $235K to $310K | Clean FHA appraisal on newer stock | | **Northwest Decatur** | Danville Road, Modaus Road | $205K to $275K | Clean FHA appraisal | | **Point Mallard / Southeast** | Near Point Mallard Park, Delano Park | $220K to $295K | Clean FHA, recreation-driven premium | | **Huntsville Overflow** | Priceville, Trinity | $260K to $340K | Clean FHA, commuter premium, USDA fits rural edge | Source: HUD FHA county loan limit lookup, Morgan County, Alabama, 2026 single-family limit $524,225. ### See how your own numbers stack up. Call or grab a 15-minute slot and Shannon will run YOUR Southwest Decatur, Old Decatur, or Priceville target price against the current FHA limit and a 203(k) rehab budget. [CALL (231) 737-9911](tel:2317379911)[GRAB A 15-MIN SLOT →](https://pierpointmortgage.com/get-your-free-mortgage-consultation/) REAL MORGAN COUNTY PITI ## What Are Real Morgan County FHA Monthly Payments in Decatur? **On a $265,000 Southwest Decatur three-bedroom with FHA 3.5% down, monthly PITI runs about $1,965.** A $185,000 Old Decatur historic bungalow financed with a 203(k) rehab escrow, closing at a $220,000 post-rehab basis, runs closer to $1,660. A $295,000 Priceville home in the Huntsville-commuter tier prices out near $2,185 a month. Two Tennessee Valley weather patterns belong in that monthly number. Summer humidity pushes June through September AC bills to $190 to $270 in older Old Decatur homes with single-pane windows, tighter on newer Southwest Decatur construction with modern HVAC. Winter ice events, including the January 2014 storm that closed I-65 for two days, stress the aging galvanized plumbing common in pre-1950s Old Decatur and Albany bungalows, and FHA appraisers flag visible corrosion or undersized supply lines on those files. | Line Item | $265K Southwest Decatur (Standard FHA) | $185K Old Decatur (203(k), $220K basis) | $295K Priceville (Huntsville-commuter tier) | | --- | --- | --- | --- | | Sale price | $265,000 | $185,000 | $295,000 | | FHA 3.5% down | $9,275 | $7,700 (on $220K basis) | $10,325 | | 203(k) rehab escrow | — | $35,000 | — | | Net borrower down payment | $9,275 | $7,700 | $10,325 | | Principal & interest @ 6.5% | $1,645 | $1,390 | $1,831 | | Property tax | $88 | $73 | $98 | | Homeowners insurance | $115 | $95 | $125 | | FHA MIP (0.55% annual) | $119 | $99 | $133 | | **Total monthly PITI** | **$1,965** | **$1,660** | **$2,185** | | Estimated cash to close | ~$14,000 | ~$12,500 | ~$16,000 | Estimates. Actual numbers depend on [credit score](https://pierpointmortgage.com/credit-info/), escrow, and 203(k) contractor bid. Rate reference: [freddiemac.com/pmms](https://www.freddiemac.com/pmms) (July 2026). HISTORIC DISTRICT APPRAISALS ## Why Do Old Decatur and Albany FHA Appraisals Trigger a 203(k) Review? **FHA appraisals on Old Decatur and Albany bungalows built before 1955 routinely flag knob-and-tube wiring, undersized electrical panels, and chipping lead paint that HUD's Minimum Property Standards require be corrected before closing.** On a typical $175,000 Albany cottage, we see repair conditions totaling $12,000 to $28,000, which is exactly the gap a Limited 203(k) is built to close. Flood risk adds a second layer downtown. A handful of parcels along the Tennessee River riverfront near Old State Bank and the downtown Decatur waterfront sit inside the mapped Special Flood Hazard Area, since Wheeler Dam controls seasonal water levels on the Wheeler Reservoir that Decatur sits on. Those files need NFIP flood insurance escrowed into the payment. Southwest Decatur, Northwest Decatur, and the Point Mallard corridor sit well outside the mapped zone and rarely trigger the requirement. Request an FHA Reconsideration of Value with three fresh owner-occupant comps within a half mile when a repair condition or a low appraisal shows up. [HUD Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1) requires the appraiser to address it in writing, and on Old Decatur files we have moved values $8,000 to $15,000 with a well-documented ROV. Source: HUD Handbook 4000.1, Section II.A, Minimum Property Standards for electrical systems and lead-based paint hazards in FHA-insured properties built before 1978. HUNTSVILLE OVERFLOW EFFECT ## How Does the Huntsville Overflow Effect Change Decatur FHA Pricing by Submarket? **Madison County's median home price has pushed 15 to 20 percent above Morgan County's since 2022, and that gap is pulling Redstone Arsenal and Toyota-Mazda Manufacturing commuters 30 minutes west down I-565 into Priceville, Trinity, and North Decatur.** Those submarkets now carry a Huntsville-overflow premium that Southwest and Northwest Decatur, farther from the interstate, still do not show. GE Aerospace's Decatur engine facility and United Launch Alliance's Decatur rocket plant are magnets independent of the Huntsville spillover, drawing engineers who could commute to Huntsville aerospace jobs but choose Decatur housing costs instead. Nucor Steel's rotating shift schedule and TVA Browns Ferry's outage-driven overtime round out the industrial payroll base that keeps Old Decatur, Southwest Decatur, and the Sommerville Road corridor affordable relative to the Huntsville-overflow tier. ### Four Real Decatur Scenarios We Ran This Quarter TVA Browns Ferry maintenance technician, $71K, targeting Southwest Decatur Three-bed brick ranch under $255K in the Beltline Road corridor. Standard FHA works once two years of outage-season overtime is documented. **Text 71K, outage-season overtime history, and 640 credit to [(231) 737-9911](tel:2317379911) and Shannon runs the two-year averaging check today.** GE Aerospace machinist, $64K, Sommerville Road new-build at $245K Standard FHA with assistance programs that can pair with an FHA loan layered on for closing costs. **Grab a 15-minute slot to see if down payment assistance available in this area closes your gap on a $245K Sommerville Road target.** United Launch Alliance quality engineer, $92K, priced out of Huntsville Targeting a Priceville four-bed at $310K in the Huntsville-commuter tier. **Priced out of Madison County is not the end of the road. Call for a five-minute Priceville PITI number.** Nucor Steel rotating-shift worker, $58K, Old Decatur historic bungalow at $165K Rotating shift differential complicates income averaging but does not disqualify the file. **Call for your Limited 203(k) budget on a $165K Old Decatur target.** OUTAGE-CONTRACT INCOME ## Why Do TVA Browns Ferry Outage Contracts Complicate Your FHA Income Documentation? **TVA Browns Ferry's spring and fall refueling and maintenance outages generate six to twelve weeks of mandatory overtime for contract electricians and pipefitters, but HUD's overtime-averaging rule requires two full years of W-2 history before that income counts toward your FHA debt-to-income ratio.** A first-year outage contractor with a single strong overtime season usually needs a file built on base pay alone until the second year of history exists. 1099 contractor status makes this harder still, since HUD generally wants two years of tax returns rather than pay stubs for self-employed or 1099 outage labor. GE Aerospace and United Launch Alliance salaried engineers do not face this issue, since their W-2 base pay is steady year round. Nucor Steel's rotating shift differential falls somewhere in between, counted once a two-year pattern is established. The good news for base-pay-only files is that Morgan County's price point runs well under the $524,225 FHA limit, so most outage contractors still qualify on base salary alone while their overtime history builds. SS ABOUT THE AUTHOR Shannon Swartz, Owner & President, PierPoint Mortgage LLC Licensed [mortgage broker](https://pierpointmortgage.com/mortgage-broker/) with 20+ years of hands-on mortgage lending experience. NMLS #112844. Founder and Owner of PierPoint Mortgage LLC. Licensed to originate home loans in 15 states including Alabama, where [PierPoint](https://pierpointmortgage.com/mortgage-broker/) has closed FHA and 203(k) files across Morgan, Madison, Limestone, and Jefferson counties. Direct wholesale-lender relationships with 100+ mortgage lenders including UWM, Rocket Pro TPO, PennyMac TPO, and Loan Depot Wholesale. Personally reviews and manages every loan file from application to closing. 4.9/5 star rating from 152 verified reviews. Last updated: July 29, 2026 · Reviewed by PierPoint Mortgage LLC, 3088 Sheffield St. STE B, Muskegon, MI 49441 · Call [(231) 737-9911](tel:2317379911) ### Rates moved twice already this month. On a $265K Southwest Decatur FHA loan, a 25 bps swing is roughly $41 a month, or about $14,700 over 30 years. See where FHA sits today. [CALL (231) 737-9911](tel:2317379911)[GRAB A 15-MIN SLOT →](https://pierpointmortgage.com/get-your-free-mortgage-consultation/) DECATUR FAQ ## Which Decatur FHA Questions Get Asked Most Often at PierPoint? My TVA Browns Ferry overtime is not guaranteed every year. Can it still count for FHA? Yes, if two years of W-2 history shows a consistent pattern, even if the dollar amount varies by outage schedule. HUD averages the two years rather than requiring identical numbers each year. A first-year outage contractor without that history usually qualifies on base pay alone, which still works in Decatur since Morgan County prices run well under the $524,225 FHA limit. Bring your last two W-2s and we will run the averaging calculation before you make an offer. Can I FHA-finance an Old Decatur bungalow with knob-and-tube wiring? Yes, through a Limited or Standard 203(k) loan that rolls the rewiring cost into your mortgage instead of requiring cash up front. HUD requires the wiring corrected before closing on a standard FHA loan, but 203(k) financing lets you close first and complete the electrical work afterward through a licensed contractor. Most Old Decatur rewiring jobs run $8,000 to $15,000, which the Limited 203(k) covers without a HUD consultant requirement. Does the Tennessee River flood zone near downtown Decatur kill my FHA approval? Not automatically. Homes in a mapped Special Flood Hazard Area still qualify for FHA financing, but you will need an NFIP flood insurance policy escrowed into your monthly payment, and a few downtown parcels near the riverfront require an elevation certificate. Most of Decatur, including Southwest, Northwest, and the Point Mallard area, sits well outside the mapped flood zone. My credit score is 598. Can I still get an FHA loan in Decatur? FHA technically allows scores down to 500 with 10 percent down, but most of our wholesale lenders set a practical floor near 580 for the 3.5 percent minimum down payment. At 598 you likely qualify, though your rate will carry a pricing hit versus a 640-plus borrower. Call with your credit report summary and we will confirm which of our 100-plus lenders will take the file. Is it cheaper to buy in Decatur than commute from Huntsville? Usually yes on the purchase price. A three-bedroom in Southwest or Northwest Decatur typically runs $50,000 to $90,000 below a comparable home in Madison County, but factor in gas, wear on your vehicle, and roughly 30 minutes each way on I-565 before you decide. For Redstone Arsenal and Toyota-Mazda commuters, the math usually still favors Decatur. MORGAN COUNTY + ALABAMA FHA RESOURCES ## Which Morgan County Submarkets Does PierPoint Serve for FHA? [PierPoint](https://pierpointmortgage.com/mortgage-broker/) originates FHA and 203(k) files across every Decatur submarket, from the Old Decatur historic district to the Priceville commuter corridor. The resources below cover the broader [Alabama FHA](https://pierpointmortgage.com/fha-loans/fha-loans-alabama/) program, sibling North Alabama city pages, and the related loan products we shop alongside FHA on every file. Alabama + Decatur FHA Resources [Alabama FHA Overview](https://pierpointmortgage.com/fha-loans/fha-loans-alabama/)[National FHA Hub](https://pierpointmortgage.com/fha-loans/)[FHA Loans Huntsville AL](https://pierpointmortgage.com/fha-loans/fha-loans-alabama/fha-loans-huntsville-al/)[FHA Loans Madison AL](https://pierpointmortgage.com/fha-loans/fha-loans-alabama/fha-loans-madison-al/)[Mortgage Broker Alabama](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-alabama/)[Mortgage Broker Decatur](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-alabama/mortgage-broker-decatur-al/)[USDA Rural Development Loans](https://pierpointmortgage.com/usda-loans/)[Free Consultation](https://pierpointmortgage.com/get-your-free-mortgage-consultation/) YOUR NEXT STEP ## Ready to Map Your Decatur FHA Number? Ten-minute call. Give us your employer, target price, and income. We will tell you whether standard FHA, a 203(k) rehab, or assistance programs that can pair with an FHA loan fit your file and what cash you will bring to closing. Text works too, or apply online if you are ready to move. [Get Your Decatur FHA Number in 5 Minutes →](https://pierpointmortgage.com/get-your-free-mortgage-consultation/)[Call (231) 737-9911](tel:2317379911) NMLS #112844 · Equal Housing Opportunity · No credit pull required to start --- **Shopping a mortgage in one of our 15 states?** PierPoint Mortgage is an independent brokerage, NMLS #112844, licensed since 2003. We compare wholesale rate sheets from 100+ lenders instead of selling one bank's products, and give you a written quote before you commit to anything. - Free rate comparison: (231) 737-9911 - Apply: https://pierpointmortgage.com/apply/ - Full page: https://pierpointmortgage.com/fha-loans/fha-loans-alabama/fha-loans-decatur-al/