FHA Loans in Texas

FHA loans are one of the most popular mortgage options for first-time buyers, growing families, and anyone who wants flexible credit requirements and a low down payment. Backed by the Federal Housing Administration, FHA loans make homeownership more accessible for borrowers across Texas.

If you’re looking for an affordable path into your next home — whether you’re a first-time buyer or a repeat homeowner — an FHA loan may be the perfect fit.

Why Choose an FHA Loan?

Low 3.5% down payment with a 580+ credit score
Flexible credit requirements — FHA is more forgiving of past credit issues
Competitive, fixed interest rates
Allows higher debt-to-income (DTI) ratios than most conventional programs
Gift funds allowed for down payment and closing costs
Great option for buyers rebuilding credit

Because FHA loans are government-backed, lenders can be more flexible — meaning buyers who don’t fit conventional guidelines can often qualify with FHA.

FHA Loan Requirements in Texas

Here’s what you need to qualify for an FHA loan:

Minimum Credit Score

580+ credit score → minimum 3.5% down payment
500–579 credit score → 10% down payment required

Down Payment & Funds

Minimum 3.5% down
Down payment can come from gift funds, family, or approved programs
Sellers may contribute up to 6% of closing costs

Debt-to-Income Ratio (DTI)

FHA is one of the most flexible loan programs:

DTI typically up to 50% with automated approval
Manual underwriting available in certain cases

Employment & Income

Two-year employment history preferred
Stable, predictable income required
Self-employed borrowers welcome with proper documentation

FHA Loan Limits in Texas (2026)

FHA sets maximum loan amounts by county each year. In Texas, loan limits vary depending on home prices in your area.

Common FHA loan limits for 2026 include:

Standard FHA limit: around $498,257 (varies by county)
High-cost areas: higher limits may apply in select counties

I can help you look up your exact FHA loan limit for your county.

FHA Mortgage Insurance (MIP)

FHA loans include two types of mortgage insurance:

Upfront Mortgage Insurance Premium (UFMIP): 1.75% (can be financed into the loan)
Annual MIP: paid monthly, varies based on down payment and loan term

Even with MIP, FHA loans are often more affordable for buyers with lower credit scores or higher DTIs.

What Types of Homes Qualify for FHA?

Single-family homes
Approved condos
Townhomes
1–4 unit primary residences
New construction (with proper approvals)

FHA loans are for primary residences only, meaning you must live in the home as your main residence.

FHA vs. Conventional — Which Is Better?

FHA is typically better for:

Lower credit scores
Higher debt-to-income ratios
Smaller down payments
Buyers needing more flexible guidelines

Conventional may be better if you have:

Good-to-excellent credit
5%+ down payment
No desire to pay FHA mortgage insurance

If you’re unsure which is best, I can run a detailed scenario comparison.

Looking for More FHA Details?

I’m preparing a full guide similar to my USDA deep-dive. Once published, I’ll link it below:

Coming soon: FHA Loan Requirements in Texas (2026 Guide)

Start Your FHA Loan Pre-Approval

FHA loans open the door for thousands of Texas homebuyers each year. Whether you’re rebuilding credit, buying your first home, or looking for a low-down-payment option, I’m here to guide you through every step of the process.

Apply Online:
https://wayne-wallace.com/apply

Schedule a Call:
Schedule a 30-Minute Consultation

Buying a home is closer than you think — let’s make it happen.