Texas FHA Loan Limits, Requirements, and How to Apply for a FHA Loan in Texas

FHA Loan in Texas


The FHA loan program is one of the most common mortgage loans in the country and is ideally suited for borrowers with either (1) a lower down payment, (2) credit scores under 699 or (3) previous recent foreclosures or bankruptcies.

In this article we will focus specifically on FHA Loans in Texas, particularly FHA Loan Limits in Texas, requirements for an FHA Loan, a top FHA Lender in Texas and how to apply for an FHA Loan Online.


FHA Mortgage Resources:

Other Helpful Resources:



FHA Loan Basics in Texas

While buying a home in Texas does have some different nuances. Two of the most common are:

  1. Survey – property surveys are required on every transaction in Texas
  2. Property Taxes - property taxes are exceptionally high in Texas, therefore making your monthly mortgage payment higher. On a purchase, this also increases your cash due at closing due to the higher escrow deposit.

The benefits of using an FHA loan when buying a home in Texas are:

  • Lower rates – the FHA Mortgage generally has lower interest rates than Conventional loans.
  • Not as credit sensitiveConventional loans are very credit driven, meaning borrowers with higher scores get significantly better interest rates and lower mortgage insurance. Read more about PMI if you’re not familiar with mortgage insurance. FHA on the other hand doesn’t penalize borrowers with lower scores as much, making the FHA Mortgage an ideal option for borrowers with fair to average credit.
  • Low down payment – the minimum down payment for an FHA loan in Texas is 3.5% of the purchase price.
  • Mortgage Insurance Premium (MIP) – this is to FHA as PMI (private mortgage insurance) is to Conventional loans. MIP is added to your mortgage payment and is based on the loan amount (.85% of the loan amount per year, or .80% if you put 10% down). Whereas on a Conventional mortgage, how much you pay in PMI is based on your credit score and down payment, which means premiums can be significantly higher for borrowers with lower credit scores or putting less down. Since FHA’s MIP is a flat percentage, borrowers with lower credit scores don’t get penalized and instead pay the same premium as somebody with great credit.
  • More flexible guidelines – the debt-to-income ratio on FHA loans can go to a maximum of 57% whereas Conventional only allows up to 50%. There are also shorter waiting period requirements on significant derogatory credit events such as foreclosures, short sales and bankruptcies.
  • Multi-family homes – assuming it’s your primary residence, Conventional loans require a larger down payment if you’re interested in a 2-4 unit property. FHA however keeps their minimum down payment requirement the same at 3.5%. This makes FHA an attractive option if you’re considering buying a multi-unit house, living in one unit and renting out the rest.

To get an idea of what a mortgage payment will run with FHA mortgage insurance, be sure to use our Texas mortgage calculator. We also provide the property tax rate for every county in Texas, so you can accurately estimate what your future mortgage payment will run.


Down Payment

FHA Mortgages require a down payment of at least 3.5% of the purchase price of the home.  In some instances, with lower credit scores, borrowers may be required to put more down in order to qualify.

It can come from existing assets that the customer already has in the bank or it can be a gift from family or employer. 

The down payment can also come from community grants or down payment assistance programs available in Texas.


FHA Loan Limits in Texas

90% of the counties in Texas have the following FHA loan limits as outlined by the chart below. The Texas counties with higher FHA loan limits are listed further below.


FHA Loan Limits for Majority of Counties in Texas
Single Family  Duplex 3-Unit 4-Unit
$314,827 $403,125 $487,250 $605,525


FHA Loan Limits for Martin and Midland County
Single Family  Duplex 3-Unit 4-Unit
$318,550 $407,800 $492,950 $612,600


FHA Loan Limits for Gillespie County
Single Family  Duplex 3-Unit 4-Unit
$324,300 $415,150 $501,800 $623,650


FHA Loan Limits for Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties
Single Family  Duplex 3-Unit 4-Unit
$331,200 $424,000 $512,500 $636,900


FHA Loan Limits for Atascosa, Bandera, Bexar, Comal, Guadalupe, Kendall, Medina, and Wilson Counties
Single Family  Duplex 3-Unit 4-Unit
$359,950 $460,800 $557,000 $692,200


FHA Loan Limits for Bastrop, Caldwell, Hays, Travis, and Williamson Counties
Single Family  Duplex 3-Unit 4-Unit
$389,850 $499,050 $603,250 $749,700


FHA Loan Limits for Collin, Dallas, Denton, Ellis, Hood, Hunt, Johnson, Kaufman, Parker, Rockwall, Somervell, Tarrant and Wise Counties
Single Family  Duplex 3-Unit 4-Unit
$395,600 $506,450 $612,150 $760,750


Texas FHA Loan Requirements

The basic requirements for FHA loans are:

  • Primary Residence –FHA requires that the home you’re purchasing or refinancing be your primary residence. If you’re looking to buy or refinance an investment property or 2nd home, your only option is a Conventional loan.
  • Credit Score and History – most lenders throughout the country will require a minimum mortgage credit score of 580 on an FHA loan. Here at United Fidelity Funding, we offer FHA loans to borrowers with lower credit but a larger down payment will likely be required. In addition to credit score, credit history also comes into play. Too many recent late payments or significant past credit issues such as multiple non-medical collections, foreclosure or bankruptcy may hinder your ability to get approved.
  • Income and job history – the FHA loan requires lenders verify the borrower can repay the loan. The FHA has a 57% debt-to-income (DTI) ratio requirement and a 47% housing ratio requirement.
  • Assets –Lenders require 2 months of bank statements and any large non-payroll deposits will be sourced and verified where the money came from. The FHA loan down payment and closing costs can come from your checking account or savings account. In order to get the funds to cover these requirements, many borrowers will either save up over time, take a loan or withdrawal from a 401(k) or IRA, or get a gift from an eligible gift source (such as a family member, employer or qualified government agency).
  • Property Requirements – the FHA loan does have minimum property requirements and you can read more in our FHA approved homes article. What that means is ultimately they don’t want to lend on a home that has safety concerns or imminent costly repairs the buyer would have to incur after purchasing the home.

If you’re in the beginning stages of preparing to buy a home, check out our articles on getting pre-approved for a mortgage and determining if you’re ready to buy.


How to Apply for an FHA Loan in Texas

Applying for an FHA loan is very simply and takes a matter of 10-15 minutes to complete.

  1. United Fidelity Funding is an FHA-approved lender in Texas. For more about our company and why you should apply with us, please read here. You can either apply online or give our team a call at 833-827-4550. It is ABSOLUTELY FREE TO APPLY.
  2. Once complete, one of our licensed loan advisors will follow up with you either via email or phone to clarify any questions they have.
  3. Once the pre-approval is complete, your loan advisor will follow up with you to review your estimated payments based on your projected budget along with down payment requirements, closing costs and overall estimated cash due at closing.
  4. Once you’ve been pre-approved, it’s time to start searching for a home. Finding a top real estate agent is tough, but if you don’t have a qualify referral please let your loan advisor know and we can help you get paired up with one.


Best FHA Lender in Texas

There are several reasons to trust UFF with your home purchase or refinance, but the most important are:

We’re Experienced with FHA Loans in Texas

Our loan officers average 7 years in the business and 500 closed loans.

We’ve been licensed in Texas for years, know the FHA loan inside-and-out and are better qualified to guide you through the process.


Better FHA Rates and Lower Fees in Texas

We don’t spend money on national marketing or sponsoring NASCAR cars or NBA Sports arenas (Cleveland).

Instead, our focus is keeping our costs and overhead low, thereby helping our clients keep thousands of dollars in their pockets by passing that savings along to you.

We realize you’ve never heard of us before, and that’s actually a good thing because that means you’re saving money.


We Make it Easy to Apply for an FHA Loan in Texas

Applying online or over the phone is safe, easy and quick. It takes about 10-15 minutes to enter the information needed and once complete, our team will be instantly notified. We’ll briefly touch base to confirm your budget and answer any initial questions.

Then we’ll get to work to see if you qualify for an FHA loan and will likely have an update for you in a matter of hours.

We also offer a secure portal to upload documents needed to apply for an FHA loan online and eventually get your loan approved!


We’re Highly Rated and Reviewed

Read our reviews on our homepage or find our profile on Zillow or LendingTree. You’ll see we have 5-star ratings everywhere. Ultimately, this speaks to our level of service, how we educate our clients and always operate with you in mind.


How to apply for a FHA loan in Texas