Buying a home in Lubbock is a unique experience. This part of West Texas keeps its small-town warmth while growing quickly, with new neighborhoods, schools, and opportunities. If you’re looking to buy a home here, you’ve likely heard about FHA loans. They’re popular for good reason, but many people don’t realize the FHA offers more than just a standard home purchase loan. Whether you’re buying your first home, planning a renovation, or looking to age in place, there’s likely an FHA program for your situation.
FHA offers several ways to reach the same goal: a home that fits your life. You can buy a primary residence with a smaller down payment, buy and renovate with one mortgage, build with a single close, finance a qualifying manufactured home, lower your current FHA payment with a Streamline Refinance, or use your equity in retirement with a HECM reverse mortgage. Here is how each program works and why it might be right for you in the Hub City.
This is the standard FHA loan most people think of when they hear “FHA home loan.” It’s designed for people buying a primary residence, so you’ll need to live in the home as your primary residence.
The down payment is just 3.5% if your credit score is 580 or higher. Scores between 500 and 579 may qualify with 10 percent down, keeping the door open if you are rebuilding. If you’ve had financial bumps, a past bankruptcy, or credit issues, FHA guidelines offer a realistic path forward.
Lubbock’s housing market, with its mix of established neighborhoods and new developments, offers many FHA-eligible properties. With FHA’s lower down payment and flexible terms, buyers can move from renting to owning faster than expected. Whether it’s a newer home in Frenship ISD or a classic ranch near Tech Terrace, the 203(b) loan keeps things simple.
Homes with character often need a little work, and that’s where the FHA 203(k) Renovation Loan shines. It combines your mortgage and renovation costs into one loan, which means you don’t have to juggle separate financing to repair or upgrade your home.
There are two types:
This is especially valuable in Lubbock because it opens up inventory that other buyers might overlook. It’s a practical way to turn your “almost perfect” home into your dream one.
If you prefer a brand new home designed around your life, the One Time Close combines construction financing and your permanent mortgage into a single approval and a single closing. It’s a single loan that covers both the construction phase and the permanent mortgage, so you only close once, saving you time, fees, and paperwork.
The process does require more documentation and oversight than a standard purchase, but for buyers who want exactly what they want, exactly where they want it, this program makes custom homebuilding achievable. Expect approved plans and specs, a licensed builder, and a sensible contingency in the budget.
Manufactured homes offer an affordable entry point into homeownership, and the FHA has a specific loan program for them. In Texas, where land is more available and manufactured home communities are established options, this program serves an important purpose.
The FHA manufactured home loan can be used to purchase the home itself, the land it sits on, or both. You’ll need to meet certain standards regarding the home’s construction (it must have been built after June 1976 and meet HUD code), and it must be classified as real property, not personal property.
If you already have an FHA loan, the Streamline refinance is designed to lower your rate and monthly payment with minimal requirements. There is usually no appraisal, documentation is light, and timelines tend to be shorter.
You need to be current on payments, meet FHA seasoning rules, generally six on-time payments and at least 210 days since the first due date, and show a clear net tangible benefit, such as a meaningful payment drop or moving from an adjustable rate to a fixed rate. If you meet that requirement, the streamline process is straightforward and quick.
For homeowners aged 62 and older, the Home Equity Conversion Mortgage (HECM), commonly called a reverse mortgage, lets you convert a portion of your home equity into cash while continuing to live in your home.
The funds can be received as monthly payments, a line of credit, or a lump sum, depending on your preference. Many Lubbock retirees use a HECM to supplement income, cover healthcare costs, or update their home to improve accessibility so they can remain close to friends, doctors, and the routines that make life here feel right.
The FHA requires HECM borrowers to complete counseling with an approved counselor. It ensures you understand exactly how the program works and whether it’s the right choice for your situation.
Q: Can I use an FHA loan to buy a fixer-upper in Lubbock?
A: Absolutely. The FHA 203(k) renovation loan is specifically designed for this. You can purchase a property that needs work and finance the repairs in your mortgage.
Q: What credit score do I need for an FHA loan in Lubbock?
A: Most FHA lenders can approve loans with credit scores as low as 580 for a 3.5% down payment. Some may offer options down to 500 with a larger down payment.
Q: Can I pair down payment assistance with an FHA loan?
A: Often, yes, as long as the assistance program allows and meet the requirements of an FHA loan.
Q: Are FHA loans only for first-time homebuyers?
No, that’s a common misconception. Anyone who meets the credit, income, and down payment requirements can use an FHA loan, whether it’s your first home or not. You must use the property as a primary residence.
Ready to take the next step toward homeownership with VA Loans Texas? Get prequalified in just a few minutes and find out how much you can invest in your future.
Discover your qualification amount in 10 minutes or less with our easy, online pre-qualification process.
Get an instant estimate of how much you can qualify for, streamlining your home-buying journey.
Partner with our experienced, local loan experts who are dedicated to providing personalized and knowledgeable support.
Count on us to guide you smoothly through the process, ensuring your loan closes on time, every time. *Conditions must be met.
Ready to explore which FHA loan program fits your homebuying goals? Our team specializes in helping Lubbock residents navigate FHA financing, from first-time buyers to those looking to build or renovate. Call us today at (877) 280-4833 to discuss your options and get started on your path to homeownership.
