TEXAS MORTGAGE BROKER · SINCE 2012

FHA Loans in Texas

Buying your first home in Texas? FHA loans make homeownership accessible with lower down payments and more flexible credit requirements.

What is an FHA Loan?

An FHA loan is a mortgage backed by the Federal Housing Administration that allows a down payment as low as 3.5% and more flexible credit standards than a conventional loan. It is designed for buyers who may not qualify for conventional financing, and it is one of the most common paths to a first home across Texas.

Key facts:

  • Minimum down payment: 3.5% with a credit score of 580 or higher
  • 10% down payment required when the credit score is below 580
  • Upfront mortgage insurance premium (UFMIP): 1.75% of the loan amount
  • Monthly mortgage insurance (MIP) applies, for the life of the loan in most cases
  • 2026 FHA loan limit in most Texas counties: $524,225 for a single-family home (HUD)
  • Primary residences only

Texas FHA loan limits vary by county and are updated annually. In most Texas counties, the standard FHA limit allows you to purchase a home without needing the higher down payments that conventional loans may require.

Programs like the Texas State Affordable Housing Corporation (TSAHC) can be combined with FHA financing to provide down payment assistance for qualifying buyers. Here and at Mortgage Austin, my Austin-area brand, I help buyers check whether they are eligible for these additional Texas-specific benefits.

FHA note rates often run a little below conventional, though the monthly mortgage insurance narrows that gap. You can see the current range on my Texas mortgage rates page, and compare the two programs on my conventional loans in Texas page.

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Low Down Payment

FHA loans require as little as 3.5% down, making homeownership more achievable for buyers who have not saved a large down payment.

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Flexible Credit Standards

FHA guidelines allow for lower credit scores than conventional loans. If your credit is not perfect, FHA may be the right path forward.

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Competitive Rates

Because FHA loans are government-backed, they typically come with competitive interest rates that keep your monthly payment manageable.

What Are the FHA Loan Requirements in Texas?

To qualify for an FHA loan in Texas, you generally need at least 3.5% down with a credit score of 580 or higher, or 10% down if your score is below 580. The home must be your primary residence and meet FHA minimum property standards, and you pay a 1.75% upfront mortgage insurance premium plus a monthly premium.

Credit scoreMinimum FHA down payment
580 or higher3.5%
Below 58010%

✓ Upfront mortgage insurance premium (UFMIP) of 1.75% of loan amount

✓ Monthly mortgage insurance premiums (MIP) for the life of the loan in most cases

✓ Property must meet FHA minimum property standards

✓ Must be a primary residence

Is an FHA Loan Right for You?

I will walk you through the numbers and help you decide if FHA is the best option for your Texas home purchase.

Schedule Your Discovery Call →

Anthony Ferrando | Ferrando Financial LLC | NMLS# 2403080