FHA Home Loans in Texas
FHA loans are insured by the Federal Housing Administration and are specifically designed to make homeownership accessible to buyers who may not yet meet the stricter requirements of conventional financing. In Texas, FHA is consistently one of the most popular programs for first-time buyers and for those who have had credit challenges in the past.
The lower down payment requirement and more flexible credit guidelines give buyers an earlier on-ramp into the Texas housing market, without waiting years to build a perfect credit file or a large cash reserve.
Is a FHA loan right for you?
- First-time homebuyers in Texas who have limited savings for a down payment.
- Buyers with a credit score in the 580 to 620 range who may not yet qualify for conventional financing.
- Buyers who have had a past bankruptcy or foreclosure and have been rebuilding their credit.
- Buyers purchasing in higher-cost Texas metros who want government backing with a smaller cash requirement.
How FHA loans work in Texas
Texas is one of the top FHA markets in the country. The combination of a large first-time buyer population, strong job growth attracting new residents, and home prices that have climbed above the threshold where large cash reserves are easy to accumulate makes FHA a natural fit for a significant portion of buyers across the state.
In the Houston, San Antonio, and DFW metros, FHA loan limits are set above the national floor to reflect higher local median prices. The 2024 FHA loan limit for a single-unit property in most Texas counties is $498,257, with higher limits in certain high-cost counties. If your target price is above the FHA limit, we will walk through whether a conventional or jumbo loan is the better path.
FHA loans require both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP) paid monthly. The MIP structure differs from PMI on conventional loans in important ways, including the duration of payments, so we always run a side-by-side comparison if you are considering both programs. For some buyers, putting a slightly larger down payment toward a conventional loan with PMI produces a lower overall cost of ownership.
Texas gift funds are permitted on FHA loans, which is useful for buyers receiving family assistance with their down payment. Down payment assistance programs offered through the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA) are also FHA-compatible. We can help you understand whether any of these programs layer onto your specific situation.
What the FHA program includes
- 3.5% down payment with credit score 580+
- 10% down available for scores between 500 and 579
- Gift funds permitted for down payment
- Higher debt-to-income flexibility vs. conventional
- Fixed and adjustable rate options
- Purchase and refinance (FHA Streamline available)
- Compatible with many Texas DPA programs
- Single-family, 2-4 unit, and approved condos
General parameters
These figures are illustrative starting points. Your actual loan terms depend on your credit profile, income, assets, property, and current market conditions.
- Minimum down payment
- 3.5% (credit score 580+) or 10% (score 500-579)
- Loan limit (most TX counties)
- $498,257 for a single-unit property (2024)
- Upfront MIP
- 1.75% of the loan amount, typically financed into the loan
- Annual MIP
- Varies by loan term and LTV; ask us to run your specific scenario
- Terms available
- 15 and 30 years fixed; ARM options
Apex Capital Mortgage, LLC (NMLS #2583932) supports Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, income and asset verification, and property appraisal. Rates, terms, and programs are subject to change without notice and may vary by borrower and property. Not all applicants will qualify. Information on this site is for general educational purposes and does not constitute financial or legal advice.
FHA loan questions
- What is the minimum credit score for an FHA loan in Texas?
- FHA allows scores as low as 500 with a 10% down payment. For the standard 3.5% down option, a score of at least 580 is required. Lenders often apply their own overlays, so the practical floor may vary. If your score is below 580, we will review your full credit picture and discuss a plan to close the gap.
- How does FHA mortgage insurance work?
- FHA loans carry two forms of mortgage insurance: an upfront premium (1.75% of the loan, typically rolled into the loan balance) and an annual premium paid monthly. Unlike PMI on conventional loans, FHA MIP is not automatically cancelable at 20% equity under current rules for most loans. We walk through the full cost comparison before you commit.
- Can I use down payment assistance with an FHA loan in Texas?
- Yes. Several Texas state and local programs, including those through TSAHC and TDHCA, are structured to layer on top of FHA loans. Eligibility depends on income, purchase price, and county. We work with buyers using these programs regularly and can help you understand whether you qualify.
- Is FHA only for first-time buyers?
- No. While FHA is popular with first-time buyers, it is not restricted to them. Any qualified borrower can use an FHA loan to purchase a primary residence, including repeat buyers. The program simply requires the property be owner-occupied.
Ready to move forward?
Tell us about your situation and we will walk you through the numbers. No obligation, no jargon.
Ready to see your rate?
Get a real pre-approval from a Texas loan officer who picks up the phone, with no credit-pulling games and no surprises at closing.