FHA Loan Limits Just Rose in Texas: What the 2026 Numbers Mean
The FHA loan limit for most Texas counties is $541,287 in 2026, up from $524,225 last year. HUD announced the increase in Mortgagee Letter 2025-23, and it applies to FHA case numbers assigned on or after January 1, 2026. A handful of higher-priced Texas counties, including Travis and Williamson in the Austin area and several in the Dallas-Fort Worth metro, go up to $563,500 for a single-family home. Those are the real numbers. I bring them up because almost every week a buyer tells me something about FHA limits that turns out to be wrong, usually something they read on a listing site. So let’s put the 2026 numbers on the table and knock down the myths that cost Texas buyers real options.
Key points:
- The 2026 FHA loan limit is $541,287 for a one-unit home in most Texas counties, per HUD Mortgagee Letter 2025-23.
- Higher-cost counties, including the Austin metro, allow up to $563,500 for one unit.
- The limit caps the loan, never the purchase price. You can buy above the limit by bringing a larger down payment.
- Multi-unit limits run much higher: $693,050 for a duplex and $1,041,125 for a fourplex in standard counties.
- With the statewide median home at $335,000 (Texas A&M Real Estate Research Center, April 2026 data), the FHA limit covers the typical Texas purchase with room to spare.
- The minimum down payment stays 3.5 percent with a 580 credit score. The higher limit does not change that.
What are the FHA loan limits in Texas for 2026?
For a single-family home, the 2026 FHA loan limit is $541,287 in most of Texas. Higher-priced counties in the Austin and Dallas-Fort Worth metros allow up to $563,500. Limits rise with property size: in standard counties a two-unit property allows $693,050, a three-unit $837,700, and a four-unit $1,041,125. These figures come from HUD Mortgagee Letter 2025-23 and apply to case numbers assigned on or after January 1, 2026.
Here is the full picture for standard Texas counties:
| Property type | 2026 FHA limit (most Texas counties) |
|---|---|
| 1 unit | $541,287 |
| 2 units | $693,050 |
| 3 units | $837,700 |
| 4 units | $1,041,125 |
If you are shopping in a high-cost county, the one-unit figure moves to $563,500. HUD publishes a county-by-county lookup, and I am happy to confirm the exact number for the county you are shopping in. San Antonio, El Paso, Lubbock, Corpus Christi, and most of Houston’s metro sit at the standard figure.
Myth: the FHA limit caps what your house can cost
The limit caps the loan amount, and only the loan amount. If you find a $600,000 home in San Antonio, FHA will still finance it. The loan tops out at $541,287, so you cover the difference with your down payment, roughly $58,700 plus the standard minimum on the rest. Buyers hear “limit” and cross whole neighborhoods off their list, and they never needed to.
In practice, most Texas buyers never brush against the ceiling anyway. The statewide median price was $335,000 as of April 2026 data from the Texas A&M Real Estate Research Center, which leaves more than $200,000 of headroom under the standard limit. You can see where prices sit metro by metro on my Texas housing market page, which I update as new data comes out.
Myth: FHA limits are the same everywhere in Texas
Texas has two tiers in 2026. Most counties sit at the $541,287 floor. Counties where median prices run high enough get more: Travis and Williamson (Austin metro) and Collin, Dallas, and Denton (DFW metro) are at $563,500 for one unit. That $22,000 of extra room matters in exactly the markets where buyers need it.
Two practical notes. First, the county that counts is where the property sits, so a Dallas buyer looking across the county line into Rockwall or Kaufman should expect the standard limit there. Second, if a lender or a listing site quotes you a different Austin figure (I have seen $571,550 floating around on aggregator sites), ask them to pull the county from HUD’s own lookup tool. HUD’s number is the one your case file will use.
Myth: FHA is only for small starter homes
Look at that four-unit figure again: $1,041,125 in a standard Texas county. FHA finances owner-occupied duplexes, triplexes, and fourplexes at 3.5 percent down, and the limits scale up accordingly. A buyer in Houston I worked with this spring used exactly this structure: a duplex, one side to live in, one side rented, with the tenant’s rent helping the qualifying math. I wrote a full breakdown of that approach in my post on house hacking a Texas duplex with FHA.
FHA also serves plenty of repeat buyers and move-up buyers. There is no first-time-buyer requirement anywhere in the program. If the numbers work better than a conventional option for your credit profile, FHA is on the table no matter how many homes you have owned. My complete Texas FHA guide covers eligibility in detail.
Does the higher 2026 limit change your down payment?
No. The minimum down payment on an FHA loan stays 3.5 percent with a credit score of 580 or higher, whatever the loan size. On a $350,000 purchase near the statewide median, that is $12,250. The 2026 limit increase changes how much house the program can finance, and it leaves the entry cost alone. Scores between 500 and 579 require 10 percent down, subject to lender overlays.
One thing the bigger limit does affect: buyers who were previously squeezed between FHA’s old ceiling and jumbo territory now have more room to stay in a government-backed loan. And remember the conventional conforming limit rose too, to $832,750 for 2026 per the Federal Housing Finance Agency. At Mortgage Austin we price FHA and conventional side by side on nearly every file, because the right answer depends on your credit score, your down payment, and how mortgage insurance shakes out on each. The limit tells you what is possible. The side-by-side tells you what is smart.
If you are trying to figure out which loan fits the home you actually want, reach out and let’s talk through your options. I will pull the exact limit for your county and run both programs on your numbers, no pressure and no obligation.
Frequently Asked Questions
What is the FHA loan limit in Texas for 2026?
For a single-family home, the limit is $541,287 in most Texas counties. Higher-cost counties, including Travis, Williamson, Collin, Dallas, and Denton, allow up to $563,500. The figures come from HUD Mortgagee Letter 2025-23 and apply to FHA case numbers assigned on or after January 1, 2026.
Can I buy a house that costs more than the FHA limit?
Yes. The limit caps the loan, never the purchase price. If the home costs more than the limit in your county, you make up the gap with a larger down payment. On a $600,000 home in a standard Texas county, the FHA loan tops out at $541,287 and your down payment covers the rest.
How much down payment does an FHA loan need in Texas?
The minimum is 3.5 percent of the purchase price with a credit score of 580 or higher. That is $12,250 on a $350,000 home. Buyers with scores between 500 and 579 need 10 percent down, and individual lenders may set stricter requirements. Approval is subject to credit, income, and property qualifications.
Are FHA loan limits higher for a duplex or fourplex?
Yes, and by a lot. In standard Texas counties the 2026 limits are $693,050 for two units, $837,700 for three, and $1,041,125 for four. You must live in one of the units. That structure lets a buyer finance a small rental property with 3.5 percent down.
Did FHA loan limits go up or down for 2026?
Up. The standard one-unit limit rose from $524,225 in 2025 to $541,287 in 2026, an increase of about 3.3 percent. HUD recalculates the limits every year based on national and local home prices, so the ceiling generally follows the market.
Is FHA or conventional better if my price is under the limit?
It depends on your credit score and down payment. Conventional loans (conforming limit $832,750 for 2026) often win for strong-credit borrowers because mortgage insurance can be cheaper and removable. FHA often wins for lower scores or thinner down payments. Pricing both side by side is the only reliable way to know.
Anthony Ferrando | Mortgage Loan Originator | NMLS# 1919613 | Ferrando Financial LLC NMLS# 2403080 | Licensed in Texas. This is not a commitment to lend. Loan approval is subject to credit, income, and property qualifications. Loan limits are set by HUD and FHFA and may vary by county; figures cited are from HUD Mortgagee Letter 2025-23 and FHFA 2026 conforming loan limit announcements and are illustrative, not a quote or offer of credit. Sources: HUD Mortgagee Letter 2025-23 (December 2025), Texas A&M Real Estate Research Center Texas Housing Insight (April 2026 data). Equal Housing Lender.
