MULTIFAMILY (5+ UNITS) · Alabama (AL) Underwriting Matrix · Stephen R. Mannenbach, J.D., MBA

Alabama Multifamily Loans (5–8, 5–9, 5–10, 5–25 & 5+ Unit Apartment Financing) — 2026 Rates, LTV Caps & State Rules

Alabama Multifamily (5+ Units) provide business-purpose real estate investors with Up to 75%–80% LTV Purchase / 70%–75% Cash-Out across loan amounts from $100,000 – $15,000,000+ at 6.50% – 8.50% (Perm) / 8.99%+ (Value-Add Bridge) (30-Yr Fixed, 5/1 & 7/1 ARM, 10-Yr IO, 24-Mo Bridge, 660+ FICO min FICO, 21 – 30 Business Days close). In Alabama (AL), lenders underwrite to a Non-Judicial (Power of Sale) statutory framework (45–65 days-day average timeline), a 0.41% average property tax rate (~$84/mo at the $245,000 state median), and $620/$100K hazard insurance (~$127/mo).

Max Leverage / LTC
Up to 75%–80% LTV Purchase / 70%–75% Cash-Out
Min FICO: 660+ FICO
2026 Rate Band
6.50% – 8.50% (Perm) / 8.99%+ (Value-Add Bridge)
30-Yr Fixed, 5/1 & 7/1 ARM, 10-Yr IO, 24-Mo Bridge
AL Security Instrument
Non-Judicial (Power of Sale)
45–65 days days avg timeline
AL Avg Tax & Ins
0.41% Tax
$620/$100K Hazard Ins

Alabama County-Level Property Tax & Insurance Hubs (2)

Jefferson County (Birmingham), AL
Jefferson County (Birmingham), AL · 0.52% Tax · $640/$100K Ins
Madison County (Huntsville), AL
Madison County (Huntsville), AL · 0.48% Tax · $590/$100K Ins

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Alabama Multifamily (5+ Units) (2026) — Up to 75%–80% LTV Purchase / 70%–75% Cash-Out, 6.50% – 8.50% (Perm) / 8.99%+ (Value-Add Bridge) | Stephen R. Mannenbach | Stephen Mannenbach