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FHA Home Loans in Texas

The FHA loan, backed by the Federal Housing Administration, helps buyers qualify for homeownership with low down payments and flexible credit requirements. It’s one of the most accessible mortgage programs in Texas — perfect for first-time buyers or anyone with limited savings.

Key Highlights

  • Down payment as low as 3.5%.

  • Minimum credit score typically 580.

  • More lenient DTI limits compared to conventional loans.

  • Available for 1-4 unit primary residences.

  • Fixed or adjustable-rate terms available

Qualification Overview

FHA loans require verified income, steady employment, and an acceptable debt-to-income ratio. The loan must meet FHA appraisal and property standards. Mortgage insurance (MIP) applies, which can be removed by refinancing into a conventional loan later.

Ideal Borrower

  • First-time buyers needing low down payment options.

  • Borrowers with past credit challenges but stable income.

  • Buyers purchasing primary residences in Texas communities.

Let's Get You Pre-Qualified!

Example Scenario

A Dallas couple purchased a $475,000 home with 3.5% down using an FHA loan. Their total monthly payment, including mortgage insurance, was lower than a comparable conventional loan—and once their equity reached 20%, they refinanced and removed the MI.

See how FHA financing stacks up against VA, USDA and Conventional loan programs.

VA

  • 0% down for eligible veterans and service members

  • No monthly mortgage insurance

  • Competitive interest rates

  • Refinance options available

  • Backed by the U.S. Department of Veterans Affairs

USDA

  • 100% financing — no down payment

  • Designed for rural and small-town buyers

  • Low fixed interest rates

  • Income-based eligibility

  • Closing cost assistance available

Conventional

  • Low down payments starting at 3%

  • Cancel PMI once you reach 20% equity

  • Great for first-time or repeat buyers

  • Fixed or adjustable-rate options

  • Ideal for buyers with stable income

FAQ: FHA Loans

What is an FHA loan?

An FHA loan is a government-insured mortgage designed to make homeownership more accessible. It allows for lower credit scores and smaller down payments (as low as 3.5%) than most conventional loans.

Who qualifies for an FHA loan in Texas?

Most Texas homebuyers qualify if they have:

A credit score of at least 580 (or 500 with 10% down)

A steady two-year employment history

A debt-to-income ratio generally under 56.9%

A property that meets FHA safety and habitability standards

How much do I need for a down payment?

You can buy a home with as little as 3.5% down if your credit score is 580 or higher. Gift funds from family members are allowed and can cover part or all of the down payment.

Do FHA loans require mortgage insurance?

Yes. FHA loans include both:

Upfront Mortgage Insurance Premium (UFMIP): 1.75% of the loan amount, usually financed into the loan.

Annual Mortgage Insurance Premium (MIP): paid monthly.
This insurance protects the lender and allows for easier qualification.

Can I use an FHA loan to buy a condo in Texas?

Yes, but the condo must be on the FHA-approved list or qualify for a single-unit approval. Not every Texas condo community is eligible, so I can help verify approval status before you make an offer.

Can I use gift funds or assistance programs for my down payment?

Absolutely. FHA loans allow gift funds from relatives or employers, and many Texas assistance programs (like TSAHC or TDHCA) can be layered with FHA financing for down-payment and closing-cost help.

Can I refinance with an FHA loan?

Yes. The FHA Streamline Refinance program lets you refinance to a lower rate with minimal paperwork, no appraisal or income verification required in most cases.

What kinds of properties qualify for FHA financing?

You can use an FHA loan to buy or refinance:

A primary residence (not second home or investment)

Single-family homes, townhomes, approved condos, or 2–4 unit properties (if you live in one unit)

How long does it take to close an FHA loan in Texas?

Typically 25–35 days, depending on appraisal and documentation. Working with an experienced local lender, like myself, familiar with FHA guidelines helps avoid delays.

Let's Get You Pre-Qualified!

Not Sure Which Loan Is Right for You?

Let’s talk through your goals and find the best program for your situation — no pressure, no commitment.

Related Programs: VA Loans | USDA Loans | Conventional Loans

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