What is the minimum credit score for an FHA loan in Texas?

The minimum credit score is 580 for a 3.5% down payment. Borrowers with scores between 500-579 may qualify with a 10% down payment.

How much is the FHA mortgage insurance in Texas?

FHA loans require both an upfront MIP (1.75% of loan amount) and annual MIP (0.45%-1.05% depending on loan terms).

Can I use an FHA loan for investment property in Texas?

No, FHA loans are only for primary residences. You must occupy the property within 60 days of closing.

What are the 2025 FHA loan limits in Texas?

For 2025, FHA loan limits in most Texas counties are $524,225 for single-family homes. High-cost areas have higher limits up to $571,750.

FHA Home Loans in Texas

Discover Texas FHA loan requirements, competitive FHA mortgage rates, and streamlined home financing options tailored for you.

What is a Texas FHA Loan?

A Texas FHA loan is a mortgage insured by the Federal Housing Administration (FHA), under the jurisdiction of the U.S. Department of Housing and Urban Development (HUD), that helps make homeownership more attainable.

FHA loans are a popular home financing solution that allows Texans to easily enter the housing market. With a focus on low down payments, flexible credit requirements, and supportive first-time homebuyer programs, an FHA home loan in Texas makes homeownership more accessible. Whether you’re new to the market or looking to refinance, a robust FHA mortgage in Texas is designed to meet your needs.

Texas FHA Loan Requirements

Understanding the specifics of Texas FHA loan requirements is crucial to a smooth application process. You’ll need to meet key eligibility criteria, including having an acceptable credit score, stable income, and proper documentation.

Credit Score: A score of 580 is required to qualify for the 3.5% downpayment. Borrowers can qualify with scores as low as 500, some restrictions may apply.
Down Payment: A downpayment of 3.5% for borrowers with scores over 580. However, borrowers with scores between 500 – 579 may qualify with a 10% down payment.
Employment and Income: There is no minimum nor maximum income requirement for FHA loans in Texas. Nevertheless, borrowers must show a 2-year stable work history.
Debt-to-Income Ratio: Your DTI ratio reflects how much of your income is used to pay off monthly debts. A back-end DTI ratio of 43% or less is the general rule, although a higher DTI ratio is acceptable with compensating factors.
Property Standards: The subject property must meet FHA’s minimum property standards for safety, soundness, and security.

FHA Application Process

The FHA loan application is designed for clarity and ease. Here’s your step-by-step guide from application to approval:

Gather the Necessary Documents: Prepare all the required documents and financial records (paycheck stubs, W2s, 1099s, Tax Returns, Bank Statements, etc.).
Submit an Application: Complete the FHA loan application and provide full financial information.
Receive a Pre-approval: After your lender reviews your credit and documentation, they will issue a preapproval letter outlining the amount you qualify for. This sets the stage for a smooth home buying experience.
Start Your Home Shopping: Work with a local realtor who is familiar with the area you are looking to buy.
Final Approval and Closing: The underwriter will review the appraisal report and all pertinent documentation for final approval. After they finalize the loan approval, you sign all closing documents on your new home at the title company.

Financial Clarity for Your FHA Loan Journey

Understanding your complete financial picture is essential for smart home financing decisions. Our guide helps you navigate critical FHA loan components, including:

Down Payment Requirements: Learn exactly how much you’ll need for your down payment. The specific amount depends on your credit score, the price of the home, and the acceptable gift funds from family, employers, or charitable institutions.
Closing Costs: When buying a home using an FHA loan, your downpayment isn’t the only cost to consider. Typical closing costs include lender fees, third-party fees, and prepaid items. Good news, FHA allows the seller to contribute up to 6% of the purchase price towards these closing costs.
Monthly Payment Impact: FHA’s competitive interest rates directly shape your monthly payments along with the loan term, and mortgage insurance.

Is an FHA Loan Right For You?

FHA loans in Texas make homeownership more accessible with:

Lower interest rates than conventional loans;
Flexible credit score requirements (as low as 500);
Lown 3.5% down payment for qualified buyers;
Government-back security, and peace of mind for both borrowers and lenders.

Ideal for first-time home buyers or those rebuilding credit, Texas FHA loans combine affordability with smarter qualifying standards.

Texas FHA Loan Limits

Texas FHA loan limits determine the maximum mortgage amount the Federal Housing Administration will insure, with amounts varying based on both property type and location. These limits are adjusted annually to reflect local housing market conditions, with higher limits in more expensive areas like major metropolitan counties and lower caps in rural regions. They serve two important purposes: maintain housing affordability while accounting for regional cost differences across the State’s diverse markets.

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"We believe FHA Loans Texas are the key to making homeownership achievable, affordable, and accessible for everyone."

Texas FHA Loan Home Buying Process

Here’s a step-by-step guide to the FHA loan process when buying a home:

1. Check Your Eligibility: Confirm that you meet the basic credit score and income requirements.
2. Get Pre-Approved: Let the lender review your credit, income and asset documents .
3. Find a Home: Work with a real estate agent to search for homes that meet the FHA guidelines.
4. Make and Offer: Submit an offer to the seller along with your pre-approval letter.
5. Home Appraisal & Inspection: Lender order an appraisal to confirm value and FHA requirements.
6. Underwriting: Underwriter reviews your full file and issues a final approval.
7. Closing: Once approved, you will get a Clear-to-Close and schedule to sign the closing documents.

Ready To Apply?

With FHA Loan Texas programs, homeownership is within reach. Let’s get started on finding the perfect loan for you!

Types of FHA Loans Available in Texas

203(b): The most commonFHA loan, ideal for purchaseing or refinancing a primary residence.
203(k): Combines the cost of purchasing and renovating a home into a single mortgage.
HUD 184: Native American Guaranteed Loan program for native american tribes purchase, construct or refinance.
Title I & II Loans: Loan program used to finance the purchase, refinance, or improvements of a manufactured home.
HECM: Also known as a "Reverse Mortgage" for seniors 62 years and older.

Hear from Our Satisfied Clients

— Rosie Tamez

“First time buyer. Nobody want it to help until I met Jason. He was GREAT. AMAZING. he help me with my loan for my new house. He’s the BEST. Thanks Jason.”

– Margo Gilbert

“I am very pleased with the service I received from Jason and Sue. Their experience and communication made it nice. Thank you! “

— Melissa Ochoa

“Great lender, very savvy and professional. I’m very happy with my rate and monthly payment. You did what you said you would do and for that is the reason of my good review.”

— Kelli Youngblood.

“These guys were recommended from realtors. They went above and beyond and even answered questions for us outside of normal business hours. Very smooth process. If the need ever arises for a mortgage broker again we will definitely be using Jason and his team. I would also recommend them to anyone who needs a broker.”

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Count on us to guide you smoothly through the process, ensuring your loan closes on time, every time. *Conditions must be met.

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Apply for a Texas FHA Loan

Your path to homeownership in Texas starts now. With a clear understanding of FHA loan processes, requirements, and financial options, you are ready to take the next step. Contact our team today at (877) 280-4833 to discuss your options, apply for prequalification, or schedule a consultation.