Texas FHA Loans 2026
FHA loans offer Texas homebuyers a path to homeownership with just 3.5% down payment and flexible credit requirements. Perfect for first-time buyers in Houston, Katy, Sugar Land, and throughout the Lone Star State.
Can you buy a home in Texas with no down payment using an FHA loan?
Yes, for eligible borrowers. FHA loans normally require 3.5% down, but our down payment assistance grant covers it entirely, either 2% or 3.5% of the purchase price, with no repayment and no second lien on your home. It is a true grant, not a loan you pay back later, so for many Texas buyers it means bringing no money to the table for the down payment. As a Texas mortgage broker who shops FHA across my lender network, I match the grant to the loan that fits your budget.
The grant is available to a wide range of Texas buyers. You may qualify if your income is at or below 140% of your area's median, or if you are a first-time buyer, first responder, educator, medical professional, civil servant, or military member, or if the home is in an underserved area. A 620 credit score and a short homebuyer education course are required, and the grant works on standard FHA purchases as well as FHA renovation loans. If your credit file is thin or your score sits just under the cutoff, ask about manual underwriting, where we document your ability to repay by hand.
Note that the grant requires a 620 credit score — higher than the 580 minimum for a standard FHA loan — and it cannot be combined with FHA High Balance financing. In high-cost Texas counties such as Austin and Dallas, where FHA limits run to roughly $563K–$571K, the grant applies only to loans at or below the standard FHA county limit.
Texas families achieving homeownership with FHA financing
Texas FHA Loan Limits by County (2026)
Most Texas counties have the standard FHA limit of $541,287. Here are limits for major metro areas:
| County | 2026 FHA Limit | Area Type |
|---|---|---|
| Harris (Houston) | $541,287 | Standard |
| Fort Bend (Katy, Sugar Land) | $541,287 | Standard |
| Dallas | $563,500 | High-Cost |
| Tarrant (Fort Worth) | $563,500 | High-Cost |
| Travis (Austin) | $571,550 | High-Cost |
| Bexar (San Antonio) | $557,750 | High-Cost |
| Collin (Plano) | $563,500 | High-Cost |
| Montgomery (The Woodlands) | $541,287 | Standard |
| Brazoria | $541,287 | Standard |
| Galveston | $541,287 | Standard |
Verified as of July 2026 (FHFA/HUD)
Explore FHA Loans by Texas Region
Choose your region for local FHA loan guidance and county FHA limits:
Houston Metro
Harris, Fort Bend & Montgomery county communities.
Learn MoreDallas–Fort Worth
The DFW metroplex and its growing suburbs.
Learn MoreSan Antonio
Bexar County and the surrounding Hill Country.
Learn MoreAustin Metro
Travis, Williamson & Hays county markets.
Learn MoreCentral Texas
Waco, Killeen, Temple and the Belton corridor.
Learn MoreRio Grande Valley
McAllen, Edinburg, Mission and the greater RGV.
Learn MoreWhy Texas Homebuyers Choose FHA Loans
Low Down Payment
Just 3.5% down with credit score 580+. On a $300K home, that's only $10,500.
Flexible Credit
FHA accepts credit scores as low as 580 (or 500 with 10% down). Perfect for rebuilding credit.
Down Payment Grant
Our FHA down payment assistance grant can cover your entire 3.5% down — 2% or 3.5% of the price — with no repayment and no second lien on your home.
Gift Funds Allowed
100% of your down payment can come from family gift funds with proper documentation.
Higher DTI Allowed
FHA allows debt-to-income ratios up to 50% in some cases, helping more Texans qualify.
Assumable Loans
Future buyers can assume your low FHA rate, potentially increasing your home's resale value.
Estimate Your FHA Payment
See your complete FHA payment—including both parts of mortgage insurance—and how your down payment changes the math over time.
Understanding your FHA payment
An FHA payment has a piece conventional and VA loans don't: mortgage insurance, and it comes in two parts. The upfront premium is a one-time charge of a percentage of your loan amount, almost always rolled into the loan rather than paid at closing, which is why the total loan above can exceed your purchase price. The annual premium is charged monthly and appears as its own line in the breakdown.
The 11-year rule, and why your down payment matters more than you'd think
Here's the part that changes the math over time. If you put less than 10% down, FHA mortgage insurance stays on the loan for as long as you have it. It doesn't fall off at 20% equity the way conventional PMI does. If you put 10% or more down, it drops off after 11 years.
That's a meaningful long-term difference, and it's worth modeling both ways above if you have the savings to reach 10%. It also means FHA isn't automatically the cheaper option just because the down payment is lower. For a buyer with solid credit and some savings, a conventional loan with removable PMI often costs less over the years you actually hold the loan, even though it asks for more up front. I run that comparison for every borrower who could qualify either way, because the right answer genuinely differs by situation. And if the home you're buying sits in a rural area or small town, it's worth checking whether a USDA loan for eligible Texas properties beats both—it asks for no down payment at all when the address qualifies.
FHA loan limits are set by county
FHA limits vary county by county, and they're lower than conforming limits in most places. If your loan amount exceeds your county's FHA limit, FHA isn't available for that purchase and you'd be looking at conventional or Texas jumbo financing. The calculator flags this automatically when it happens.
What this calculator doesn't include
It covers principal, interest, mortgage insurance, property taxes, homeowners insurance, and HOA dues. It doesn't include title, escrow, appraisal, recording, or prepaid costs, which vary by state and transaction, and it uses the rate you enter rather than one you've been quoted. Use it for the monthly number, then let me run your actual scenario.
Texas FHA Loan FAQs
Does FHA mortgage insurance ever go away?
It depends entirely on your down payment. Under 10% down, it stays for the life of the loan. At 10% or more down, it drops off after 11 years. Unlike conventional PMI, it does not automatically cancel when you reach 20% equity, which is one of the most misunderstood parts of FHA financing.
Is FHA cheaper than conventional?
Not always. FHA gets you in with less money down and more flexible credit, but its mortgage insurance is more expensive long-term and often permanent. For a buyer with good credit and 5% or more saved, conventional frequently wins on total cost. It's worth running both before you decide, and I'll do that for you.
What is the FHA loan limit in Texas for 2026?
Texas FHA loan limits for 2026 are $541,287 for single-family homes in most counties. Harris County (Houston), Fort Bend (Katy, Sugar Land), and other metro areas have the standard limit, which covers most Texas home purchases.
What credit score do I need for an FHA loan in Texas?
For a Texas FHA loan, you need a minimum credit score of 580 for 3.5% down payment, or 500-579 for 10% down. Many Texas lenders work with scores as low as 580 for first-time buyers in Houston, Katy, and Sugar Land.
Can I combine an FHA loan with your down payment assistance grant in Texas?
Yes. Our down payment assistance grant is built to work with FHA loans, covering the entire 3.5% down payment as a true grant of 2% or 3.5% of the purchase price with no repayment and no second lien. It requires a 620 credit score and a short homebuyer education course, and it applies to standard FHA loans at or below the standard county loan limit — it cannot be combined with FHA High Balance financing in high-cost counties.
How much is FHA mortgage insurance in Texas?
FHA mortgage insurance in Texas includes an upfront premium of 1.75% of the loan amount (can be financed) plus annual MIP of 0.55% for most loans. For a $300,000 loan, this equals approximately $138/month in mortgage insurance.
Do you have to repay FHA down payment assistance in Texas?
No. Our FHA down payment assistance is a true grant of 2% or 3.5% of the purchase price. There is no repayment and no second lien placed on your home, which makes it different from most down payment assistance programs that are repayable or forgivable loans.
Not sure whether FHA or conventional is the better fit for your Texas home? Read our ultimate 2026 guide to conventional vs. FHA loans for a clear, side-by-side breakdown of costs, credit requirements, and mortgage insurance. New to the market? Our 2026 Texas real estate homebuyer guide walks you through the whole process step by step.
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From the blog & learning center
FHA Loan Guides & Articles
FHA MIP Refund: Can You Get Your Upfront MIP Back?
Refinance your FHA loan into a new FHA loan within three years and you get part of your upfront MIP back, credited toward the new loan. Here is how it works.
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Buying a House After Bankruptcy: Real Waiting Periods by Loan Type
FHA and VA require 2 years after Chapter 7, USDA 3, conventional 4. Chapter 13 can qualify after 12 months of payments, and one program works during bankruptcy.
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Buying After Foreclosure or Short Sale: The Real Timelines
After foreclosure, VA requires 2 years, FHA and USDA 3, conventional 7. Short sales are shorter, and some paths skip the waiting period entirely.
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Assumable Mortgages: How to Take Over a VA or FHA Loan
An assumable mortgage lets a buyer take over a seller's VA, FHA, or USDA loan and its low rate. Learn the costs, the equity gap, and how to finance it.
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Gift Funds: The Rules for Down Payment Gifts
A family member can give you money for your down payment, and on most loan types the entire down payment can be a gift. The key rules: it has to be a true gift with no repayment expected, it must come from an acceptable source, and it has to be documented with a gift letter and a clear paper trail.
Read moreSeller Concessions: How Much Can the Seller Pay?
A seller concession is when the seller agrees to pay part of your closing costs as a term of the sale. It's a legitimate, common way to reduce your cash to close, and depending on the loan type and your down payment, a seller can contribute anywhere from 2% to 9% of the purchase price toward your costs.
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