Texas FHA Loan 2026: Requirements, County Limits & How to Apply

Quick answer: FHA's 2026 rules let Texas buyers with a 580+ credit score put 3.5% down. Scores of 500-579 need 10% down. The home must be your primary residence. The 2026 FHA limit for a 1-unit home is $541,287 in most Texas counties. It's higher in some metros, up to $571,550 around Austin, and Glasscock County is $813,050. Individual lenders may require higher scores.

See if you qualify for an FHA loan: book a free 30-minute call with Kenny, or call 651-417-1085.

2026 FHA figures, verified Nov 4, 2026, against HUD sources.

2026 Texas FHA requirements at a glance

Short answer: To get a Texas FHA loan in 2026, you generally need a 580+ credit score for 3.5% down (or 500-579 with 10% down). You also need debt-to-income ratios your lender can approve, a primary-residence home you move into within 60 days, FHA mortgage insurance, and a loan amount within your county's limit.

FHA rules are national, so they apply the same way in Houston, Dallas, Austin, San Antonio or a rural county. What changes by county is the loan limit.

Credit score & down payment

Short answer: FHA's minimum is a 580 credit score for the lowest down payment, 3.5% of the home's adjusted value. Borrowers with scores from 500 to 579 can still qualify, but they're limited to a 90% loan-to-value ratio, which means 10% down.

Here's an example (illustrative only): on a $300,000 purchase, 3.5% down is $10,500, and 10% down is $30,000. FHA's minimum is the floor, not a promise. Lenders review your full credit history, and many set their own minimums above 580 (more on that in the overlays section below).

Your down payment can come from savings or from acceptable sources such as gift funds from family. Approved down payment assistance can also help, as long as the funds come from a source FHA allows. Your lender documents where every dollar comes from.

Debt-to-income (31/43 manual benchmarks; AUS can approve higher)

Short answer: FHA's benchmark for manually underwritten loans is 31% of income for housing and 43% for total monthly debts. With documented compensating factors such as cash reserves, manual approvals can reach 40/50. FHA's automated underwriting system may approve higher ratios based on your full file.

If your score is below 580, or you have no credit score, HUD's manual underwriting rules cap you at 31/43. DTI is calculated on your gross monthly income. That's why paying down a car loan or credit card balance before you apply can help.

Occupancy (primary residence, move in within 60 days)

Short answer: FHA loans are for homes you'll live in. At least one borrower must move in within 60 days of closing (signing the security instrument) and intend to live there at least one year. You can't use a standard FHA purchase loan for a vacation home or a pure investment property.

Mortgage insurance (upfront + annual MIP)

Every FHA loan has mortgage insurance. Under HUD's current schedule (Mortgagee Letter 2023-05, carried into Handbook 4000.1):

• Upfront MIP: 1.75% of the base loan amount, usually financed into the loan.
• Annual MIP, 30-year loans with a base amount of $726,200 or less: 0.55% if you put less than 5% down, and 0.50% if you put 5% or more down.
• How long it lasts: with 10% or more down (90% LTV or less), annual MIP ends after 11 years. With less than 10% down, it lasts for the life of the loan.

Larger loans and 15-year terms carry different rates. Your Loan Estimate will show your exact MIP.

Property standards & FHA appraisal

An FHA-approved appraiser must appraise the home, and the home must meet HUD's minimum property requirements. In practice, that means it has to be safe, sound and secure. Issues like peeling paint, roof problems or missing handrails may need repair before closing. FHA allows 1-4 unit homes, including condos in eligible projects, as long as you live in one of the units.

2026 FHA loan limits by Texas county

Short answer: For 2026, the FHA limit for a 1-unit home is $541,287 in 229 of Texas's 254 counties. Twenty-five counties are higher: the Austin metro ($571,550), the Dallas-Fort Worth metro ($563,500), the San Antonio metro ($557,750) and Glasscock County ($813,050). These limits apply to FHA case numbers assigned on or after January 1, 2026.

HUD sets FHA limits each year from local median home prices. The nationwide floor is 65% of the national conforming loan limit ($832,750 in 2026), and the ceiling is 150% ($1,249,125).

Most counties: $541,287 (1-unit)

Harris County (Houston), Fort Bend, Montgomery, El Paso, Nueces (Corpus Christi), Lubbock, McLennan (Waco) and most rural counties are at the floor. In those counties, the 2026 limits are $541,287 for 1 unit, $693,050 for 2 units, $837,700 for 3 units and $1,041,125 for 4 units.

Austin metro $571,550 · DFW $563,500 · San Antonio $557,750 · Glasscock $813,050

Table: Texas counties above the 2026 FHA floor. Source: HUD FHA Mortgage Limits, CY2026, FHA Forward, retrieved Nov 4, 2026.

2-4 unit limits (from HUD lookup)

FHA limits rise with the number of units. In most Texas counties, a 2-unit home can be financed up to $693,050, a 3-unit up to $837,700 and a 4-unit up to $1,041,125 in 2026. In Austin-metro counties, those figures are $731,700, $884,450 and $1,099,150. See the table above for DFW, San Antonio and Glasscock.

Look up your county

To confirm any county, use HUD's official FHA Mortgage Limits search. Choose Texas, limit type "FHA Forward" and year "CY2026": https://entp.hud.gov/idapp/html/hicostlook.cfm

The limit caps the loan amount, not the price. You can buy a home priced above the limit if you bring the difference as a larger down payment.

Your county's limit fits? See if you qualify, or call 651-417-1085.

Why lender overlays matter

FHA sets the minimums, but each lender can add stricter rules of its own, called overlays. FHA allows a 580 score with 3.5% down, but an individual lender may require a higher score, lower DTI, or more reserves before it will approve the same file. Overlays vary from lender to lender and can change over time.

Texas's own state housing programs show how common higher minimums are. TDHCA's My First Texas Home and TSAHC's Home Sweet Texas program both list a 620 minimum credit score for FHA loans, which is above FHA's 580 floor.

This is where working with a mortgage broker can help. A bank or retail lender can offer only its own guidelines. A broker can compare multiple wholesale lenders and look for one whose rules fit your credit, income and property. Nobody can promise approval at 580, and we won't. But if one lender's overlay is the only thing standing between you and a "yes," it's worth checking whether another lender's rules fit your file.

Ask whether your file fits FHA: book a 30-minute call, or call 651-417-1085.

FHA + down payment assistance in Texas

Short answer: Yes. FHA allows down payment assistance from acceptable sources, and Texas has state programs that pair with FHA loans. TDHCA's My First Texas Home and My Choice Texas Home, and TSAHC's Home Sweet Texas, offer assistance of up to 5% of the loan amount. Each has its own credit, income and price limits.

For general education, here's what the state programs publish:

• My First Texas Home (TDHCA): For first-time homebuyers (no primary residence owned and occupied in the last 3 years), with exceptions for qualified veterans and targeted areas. Assistance is up to 5% of the mortgage loan, as a 30-year deferred repayable second lien or a 3-year deferred forgivable second lien. It works with FHA, VA and USDA loans, and TDHCA lists a 620 minimum credit score and required homebuyer education.
• My Choice Texas Home (TDHCA): Similar assistance of up to 5% of the mortgage loan, with no first-time homebuyer requirement. County income limits apply.
• Home Sweet Texas (TSAHC): For low- and moderate-income first-time and repeat buyers. Assistance is up to 5% of the loan amount, either as a grant or as a second lien forgiven after 3 years if you don't sell, refinance or move out. There's a 620 minimum credit score on government loans.

Income and purchase-price limits for all three vary by county, and funding availability changes.

We offer down payment assistance programs. Ask about our down payment assistance options, or call 651-417-1085.

FHA vs conventional in Texas: when FHA isn't the right choice

FHA is built for flexibility on credit and down payment, but it isn't always the lowest-cost option. FHA may not be the best fit if:

• You have strong credit and a bigger down payment. With less than 10% down, FHA's annual MIP lasts the life of the loan. Private mortgage insurance on a conventional loan can generally be removed once you build enough equity. Over time, that difference can add up.
• You need more than your county's FHA limit. The 2026 baseline conforming limit for conventional loans is $832,750, well above Texas's FHA floor of $541,287.
• You're buying a second home or investment property. FHA requires that you live in the home.
• The home needs significant work. A property that won't meet FHA's minimum property standards may not qualify without repairs (or a renovation loan).

The right answer depends on your credit, savings and plans. Compare both on official Loan Estimates before you decide.

How to apply for a Texas FHA loan

1. Check your credit and budget. Pull your credit reports and figure out a comfortable monthly payment, including taxes, insurance and MIP.
2. Gather documents. You'll typically need pay stubs, W-2s or tax returns, bank statements and an ID.
3. Get pre-approved. A licensed loan officer reviews your file, runs it through underwriting, and confirms your price range and county limit.
4. Ask about down payment assistance. If you need help with the down payment or closing costs, raise it before you shop, since programs have income and price limits.
5. Shop and make an offer. Your realtor writes the offer. Your lender orders the FHA appraisal once you're under contract.
6. Underwriting and closing. Respond quickly to document requests, review your Closing Disclosure, then sign and move in within 60 days.

Start your FHA pre-approval: book a 30-minute call, or call 651-417-1085. Realtors with FHA buyers, send them here too.

FAQ: Texas FHA loans

What are the FHA loan requirements in Texas in 2026?

FHA generally requires a 580 credit score for 3.5% down, or 500-579 with 10% down. You'll also need acceptable debt-to-income ratios (a 31/43 benchmark on manual underwriting), a primary residence you move into within 60 days, FHA mortgage insurance, an FHA appraisal, and a loan within your county's 2026 limit.

What is the FHA loan limit in my Texas county for 2026?

In 229 Texas counties, the 2026 limit for a 1-unit home is $541,287. Austin-metro counties are $571,550, DFW counties $563,500, San Antonio-metro counties $557,750 and Glasscock County $813,050. Check yours on HUD's FHA Mortgage Limits search.

What credit score do I need for an FHA loan in Texas?

FHA's minimum is 580 for 3.5% down, and 500-579 is allowed with 10% down. Individual lenders may require a higher score, and Texas's state down payment programs list a 620 minimum. Approval depends on your whole file, not just your score.

How much down payment does an FHA loan need?

At least 3.5% of the home's adjusted value with a 580+ credit score, or 10% with a score of 500-579. On a $300,000 home (illustrative only), that's $10,500 or $30,000. Gift funds and approved down payment assistance may cover some or all of it.

Can I use Texas down payment assistance with an FHA loan?

Yes. FHA allows assistance from acceptable sources. TDHCA's My First Texas Home and My Choice Texas Home, and TSAHC's Home Sweet Texas, pair with FHA loans and offer up to 5% of the loan amount, subject to credit, income and price limits. We offer down payment assistance programs.

What DTI is allowed on an FHA loan?

On manually underwritten FHA loans, the benchmark is 31% for housing and 43% for total debt, and it can go up to 40/50 with documented compensating factors. FHA's automated underwriting may approve higher ratios. With a score below 580, manual loans are capped at 31/43.

Can I buy a 2-4 unit home with FHA in Texas?

Yes, as long as you live in one of the units. In most Texas counties, the 2026 limits are $693,050 for 2 units, $837,700 for 3 units and $1,041,125 for 4 units. For 3-4 unit homes, the property's projected net rental income must cover the mortgage payment (HUD's self-sufficiency test).

How long do I have to live in an FHA home?

At least one borrower must move in within 60 days of closing and intend to live there for at least one year. That's HUD's owner-occupancy rule in Handbook 4000.1. FHA purchase loans aren't for vacation homes or investment properties, so plan for the home to be your main residence.

Can I get an FHA loan after bankruptcy or foreclosure in Texas?

Often, yes, after a waiting period. HUD's standard is at least 2 years after a Chapter 7 discharge. For Chapter 13, it's at least 12 months of on-time plan payments plus court permission. After a foreclosure or deed-in-lieu, it's generally 3 years. Shorter periods may apply for documented extenuating circumstances.

Is FHA only for first-time buyers?

No. FHA loans are open to first-time and repeat buyers, as long as the home will be your primary residence and you meet FHA's credit, income and property requirements. Some down payment assistance programs, like My First Texas Home, do require first-time buyer status.

Talk to a real Texas loan officer

Kenny Merdan is a licensed mortgage loan officer (NMLS 1504326) with NEXA Lending, serving buyers across Texas, from DFW, Houston, Austin and San Antonio to rural counties. We don't promise rates or approvals. We give you clear answers on what you may qualify for.

Book a 30-minute call, or call 651-417-1085.

Want to hear FHA questions answered live first? Join Kenny on Mortgage Talk LIVE on TikTok.