Current FHA guidelines, updated from one source.
Read these as program parameters, not an offer: the minimum investment, the credit score for maximum financing, the mortgage insurance premiums, and the ratios, all from one guideline source that this page refreshes from.
Up to 96.5% loan-to-value on a purchase
A 3.5% minimum investment opens a purchase at up to 96.5% loan-to-value; the investment can be the buyer’s own funds, a gift from a family member or other acceptable donor, or approved secondary financing.
Decision score for maximum financing
580 is the decision score for maximum financing, and the floor of the wholesale programs behind these pages; the decision score is the lowest of the borrowers’ middle scores, and a thin or non-traditional credit file can still qualify under manual underwriting.
Plus 0.50%–0.55% a year on most thirty-year loans
FHA mortgage insurance has two parts: 1.75% upfront, which is added to the loan, and an annual premium of 0.50%–0.55% on most thirty-year loans, charged monthly; the ladder below shows the schedule by loan size, leverage, and duration.
Housing and total debt, manual reference
31/43 is the starting point: the housing payment and the total debt as shares of effective income. Cash reserves, a minimal payment increase, or residual income stretch the ratios tier by tier, up to 40/50 with two factors.
| Decision score | Housing / total | Compensating factors |
|---|---|---|
| 500–579 or no credit score | 31% / 43% | not applicable — ratios may not exceed 31/43 (energy efficient homes 33/45) |
| 580 and above | 31% / 43% | no compensating factors required (energy efficient homes 33/45) |
| 580 and above | 37% / 47% | one of: verified and documented cash reserves; minimal increase in housing payment; residual income |
| 580 and above | 40% / 40% | no discretionary debt |
| 580 and above | 40% / 50% | two of: verified cash reserves; minimal increase in housing payment; significant additional income not reflected in effective income; residual income |
| Base loan | Leverage | Annual premium | Duration |
|---|---|---|---|
| Standard base loan amounts | at or below 90% LTV | 0.50% | 11 years |
| Standard base loan amounts | above 90% to 95% LTV | 0.50% | mortgage term |
| Standard base loan amounts | above 95% LTV | 0.55% | mortgage term |
| Larger base loan amounts | at or below 90% LTV | 0.70% | 11 years |
| Larger base loan amounts | above 90% to 95% LTV | 0.70% | mortgage term |
| Larger base loan amounts | above 95% LTV | 0.75% | mortgage term |
Refinances: rate-and-term to 97.75% loan-to-value on a home occupied for the past year; cash-out to 80% after twelve months of ownership and occupancy; streamline refinances of an existing FHA loan without an appraisal. Sellers and other interested parties may contribute up to 6% of the price toward closing costs; the entire minimum investment may be a gift.
Current FHA snapshot · updated October 1, 2026 · owner-occupied principal residences, one to four units · county loan limits apply — ask a Lendmire loan officer for the limit where you are buying · FHA loans are assumable · Lendmire is not affiliated with FHA or HUD.
This page describes program parameters, not an offer. The investment, the premiums, the score tiers, and the ratios are FHA guidelines and lender overlays, subject to change without notice and to full underwriting; the appraisal, the credit report, the property, and the county limit decide every file. No rate, payment, or cost is stated here; a licensed Lendmire loan officer provides them in writing. Lendmire is a mortgage broker, never the lender, licensed for consumer mortgage lending in sixteen states, and not affiliated with FHA, HUD, or the federal government. Lendmire, LLC, NMLS #2371349. Equal Housing Opportunity.
What an FHA loan is — and how the file is qualified.
What makes FHA different from a conventional loan is the insurance: because HUD stands behind the lender, the program can accept a smaller investment, a lower score, and higher ratios than the agencies do. The cards below walk a Texas buyer through the parts.
For the program overview, see Lendmire’s FHA loan program; for help with the minimum investment, the down payment assistance program.
The minimum required investment
The investment is calculated on the lesser of the purchase price and the appraised value, so a Texas home that appraises below the contract price raises the cash the buyer brings. Gifts, the buyer’s own funds, and approved secondary financing all count toward it.
The decision score sets the leverage
The score threshold opens maximum financing, but the file is read as a whole: payment history, seasoning after any bankruptcy or foreclosure, and the reasons behind a derogatory event. A Texas buyer with a recovered profile is the program’s intended borrower.
Two premiums: upfront and annual
Two numbers to know: the upfront premium added to the loan at closing, and the annual premium paid monthly. The schedule in the snapshot shows how the annual premium steps with leverage and loan size, and the calculator applies it to a Texas price.
Qualifying ratios and compensating factors
Effective income is the income the lender can document as stable and likely to continue, and the ratios are measured against it. A Texas buyer with a modest score is held to the base ratios; above the maximum-financing score the compensating factors open the higher tiers.
This is the same arithmetic the lender runs on a Texas file. The moving parts are the price, which the appraisal may lower, the down payment, which can be a gift, and the rate, which the lender sets at lock; the premium schedule does not move.
Where Texas’ first-time and moderate-income buyers shop — and how FHA fits.
The statewide figures below frame every Texas FHA file: how many households own, what their homes are worth on the latest estimate, and what they earn. They are context for sizing, not inputs to a credit decision.
Statewide figures provide general market context, not an appraisal or an income calculation. Values and incomes explain why two buyers at the same decision score can see very different files: one buys at the median and qualifies on the base ratios, the other stretches to a higher price and needs a compensating factor.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Texas’ FHA buyers shop — market by market.
The Texas markets below hold the largest pools of owner households in the state’s footprint. Each has a city guide of its own; the program, the premiums, and the ratio ladder are the same everywhere in the state, and the county limit changes.
Houston
Roughly 391,519 Houston households own their homes (42% of the total), which makes it a metropolitan market where FHA purchases close across a wide range of prices and property types. Census context: median value near $277,800, median household income near $64,813, population near 2.33M.
San Antonio
In San Antonio, owner households number near 289,380, about 52% of households, and the metropolitan market there produces a steady flow of FHA purchases and refinances. Census context: median value near $235,700, median household income near $65,056, population near 1.48M.
Dallas
Roughly 226,615 Dallas households own their homes (42% of the total), which makes it a metropolitan market where FHA purchases close across a wide range of prices and property types. Census context: median value near $320,700, median household income near $70,518, population near 1.31M.
Austin
Roughly 198,180 Austin households own their homes (43% of the total), which makes it a metropolitan market where FHA purchases close across a wide range of prices and property types. Census context: median value near $555,300, median household income near $93,658, population near 980K.
Fort Worth
Roughly 195,072 Fort Worth households own their homes (57% of the total), which makes it a metropolitan market where FHA purchases close across a wide range of prices and property types. Census context: median value near $303,000, median household income near $79,507, population near 963K.
El Paso
El Paso holds one of the largest pools of owner households among Lendmire’s Texas markets — roughly 149,169, about 61% of households — a metropolitan market where FHA financing is the everyday route into a first home. Census context: median value near $184,500, median household income near $59,745, population near 680K.
The Texas rules that matter most on an FHA file are the ones that do not vary by city: the investment, the premiums and their duration, the decision score, the ratios, and the seasoning after a credit event. The county loan limit moves every year, and it is confirmed by a loan officer rather than quoted here.
Four ways Texas buyers put an FHA loan to work.
Texas borrowers use FHA for a handful of reasons that repeat: the first purchase with a small investment, the purchase on a recovering credit profile, the refinance of an existing FHA loan, and the cash-out refinance on a home with equity.
Buy a condominium in an approved project
Condominiums are a common first purchase in Texas, and FHA finances them in approved projects or through single-unit approval. The approval question is handled on the lender’s side; the buyer’s file is the same as for a house.
Take cash out of a home with equity
Cash-out on FHA is a full refinance of the first mortgage at the program’s cash-out leverage after a year of ownership and occupancy. A Texas owner weighs it against a home equity line, which keeps the existing first mortgage in place.
Buy on a recovering credit profile
A Texas buyer whose credit has recovered from a bankruptcy, a foreclosure, or a stretch of late payments can qualify once the event is seasoned under HUD’s rules and the recent history is clean; the decision score sets the leverage and the ratios follow the manual ladder.
Buy a first home with the minimum investment
For a first purchase in Texas, FHA pairs a small investment with a forgiving score and a ratio ladder that stretches with compensating factors; the file closes on the appraisal, the income, and the decision score.
Estimate the FHA payment on a Texas price before requesting a quote.
Estimate the payment before you ask for a quote: the Texas price, the down payment, the term, the rate, and the escrows are the inputs, and the minimum investment and the premium schedule come from the same guideline source as the snapshot. The result is an estimate, and the rate shown is a published market benchmark, not an FHA offer.
Texas FHA payment estimate
Seeded from Texas’ median value at the program minimum; every field is editable and the result updates as you type.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $285,000 price near Texas’ median owner-occupied home value (kept where an FHA loan is realistic in most counties), the FHA minimum investment as the down payment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Texas (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; county loan limits are not checked here. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of FHA, HUD, or the federal government.
Same buyer, three very different closings.
A Texas buyer choosing between FHA, conventional, and VA is choosing an insurance structure as much as a down payment. Here is how each one works and where it fits.
FHA, conventional with mortgage insurance, or VA.
The program’s strengths are the investment, the score, and the ratios; its cost is the insurance structure. A Texas buyer with a modest score and a small down payment usually pays less each month on FHA than on conventional with private insurance.
Where FHA charges by schedule, conventional charges by score. A Texas buyer with strong credit and a small down payment may find the private premium smaller and the payment lower; a buyer with a modest score will not. See Lendmire’s conventional loan program.
A Texas buyer with VA eligibility rarely needs FHA: the VA loan carries no down payment and no monthly insurance, and the funding fee is the only program cost. FHA is the fallback where entitlement is used up or the property does not fit. See Lendmire’s VA loan program.
Where each one fits: FHA for the small investment and the forgiving score; conventional for the strong score that wants cancellable insurance; VA for the eligible borrower who can skip both the down payment and the insurance.
What to prepare for a Texas scenario review.
An FHA file is documented more fully than a streamline refinance; the items below are what a Texas scenario review typically draws on.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the credit profile, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
A few local and structural details change the size of a Texas FHA loan, or whether the file is eligible at all. The ones that come up most often are below.
Use these checks to keep the Texas file clean and fundable.
Three checks before the review keep a Texas FHA file on track: confirm the decision score, understand the mortgage insurance you will carry, and settle the property questions early.
- Confirm the score: the lender’s report sets the decision score, the lowest middle score among the borrowers.
- Know the premium: the exit from the premium is a refinance, not an equity threshold.
- Plan the units: up to four units at the same minimum investment when the buyer occupies one.
The decision score decides the leverage
The score the program uses is the lender’s, not an app’s. A Texas file lands on maximum financing at the threshold shown in the snapshot, and the threshold is also where the compensating-factor ladder opens; below it the ratios are held to the base table.
How long the annual premium runs
The duration of the annual premium is set by the leverage at origination, not by the equity that follows. A Texas buyer who puts down ten percent or more sees the premium end after eleven years; at the minimum investment it stays for the term on a thirty-year loan.
Two- to four-unit homes and rental income
The multi-unit Texas purchase is an FHA specialty, with two things to plan: the buyer must occupy one unit, and the rental income from the others is documented and counted the way HUD allows, which is less than the full rent.
Ratios, compensating factors, and effective income
Compensating factors are specific and documented: verified cash reserves, a minimal increase in the housing payment, residual income, or significant income not counted as effective. The ladder in the snapshot shows which factors open which tier for a Texas file.
The county loan limit
FHA caps the loan by county, and the cap changes each year. A Texas purchase above the county limit cannot close as an FHA loan at the program’s leverage; a larger investment brings the loan under the cap, or a conventional loan takes the file.
From a Texas pre-approval to keys in hand.
Four steps, each with an FHA rule inside it: the pre-approval, the appraisal, the underwriting, and the closing. Here is the Texas path.
Pre-approval
A Texas pre-approval is a sizing exercise: the score, the income, the investment, and the county limit. The loan officer confirms eligibility against the program rules and puts the pre-approval in writing for the offer.
Contract and appraisal
With the contract signed, the lender orders an appraisal from an FHA Roster appraiser, who values the Texas home and checks it against HUD’s property standards. Seller contributions are checked against the program’s limit, and any condominium project approval is confirmed.
Underwriting
The file is scored by HUD’s automated system or underwritten manually, with income, assets, credit, and any compensating factors documented. Seasoning after a credit event is confirmed from the discharge or transfer papers, and the ratios are measured on effective income.
Closing
At closing the upfront premium is added to the loan, the escrows for taxes and insurance are set up, and the annual premium begins with the first payment. A Texas buyer signs the note and the security instrument, occupies the home within HUD’s window, and the loan is insured.
A brokerage that matches the program to the buyer.
Lendmire is never the lender. It is the broker that reads the Texas file against FHA, conventional, and VA, matches the program to the profile, and keeps the premium structure in plain view before the buyer commits.
Three programs, one set of numbers
FHA, conventional, and VA are run on the same Texas price, score, and income before a recommendation is made. The buyer sees the payment, the insurance, and the cash to close on each, and the choice is made on the figures rather than on habit.
The premium explained before the offer
The FHA annual premium’s duration is decided at origination, and a buyer should know it before signing a contract. Lendmire states it plainly for the Texas leverage chosen and explains the refinance path that usually ends it.
Licensed, consumer-purpose, in writing
The parameters on this page are HUD’s and the wholesale overlays’; the terms for a specific Texas loan come from a licensed loan officer, in writing, after the review. Lendmire is a broker, never the lender, and not affiliated with the federal government.
Trusted by first-time buyers & families alike.
Texas FHA loan FAQs
Plain answers to the questions Texas buyers ask most about FHA loans, in the order they usually ask them.
What is an FHA loan, and who is it for?
An FHA loan is a mortgage insured by the Federal Housing Administration, part of HUD: the lender makes the loan, HUD insures it against loss, and in exchange the program sets a small minimum investment, a forgiving credit threshold, ratios that stretch with compensating factors, and mortgage insurance premiums that fund the insurance. It is for owner-occupied homes of one to four units.
How much do I need to put down on an FHA loan in Texas?
The minimum required investment shown in the snapshot, measured on the lesser of the purchase price and the appraised value. It can be the buyer’s own funds, an acceptable gift, or approved secondary financing, and closing costs are separate; a seller may contribute toward those up to the program’s limit.
What credit score do I need for an FHA loan?
The threshold in the snapshot, read as the lowest middle score among the borrowers. Below it HUD allows a reduced-leverage loan, but the programs Lendmire places FHA loans with begin at the threshold. A thin or non-traditional credit file can qualify under manual underwriting.
How does FHA mortgage insurance work, and how long do I pay it?
FHA insurance is priced by schedule, not by credit score, which is why a modest score pays the same premium as a strong one. The exit from the annual premium on a full-leverage loan is a refinance once equity and credit allow; the calculator shows the premium’s rate and duration for your Texas leverage.
What is the FHA loan limit in Texas?
County limits apply, differ by unit count, and move annually; the current figure for the county is confirmed by a Lendmire loan officer at pre-approval. These pages state the program’s structure rather than a number that changes every year.
Can the down payment be a gift?
It can, and often is. HUD accepts gifts from family members and other acceptable donors for the full minimum investment; the lender documents the donor, the letter, and the transfer of funds.
Is an FHA loan assumable?
It is. A future buyer who qualifies can take over the loan with the lender’s approval, which can make a Texas home more attractive to sell when rates have moved up.
What debt-to-income ratio does FHA allow?
Two ratios, housing and total, measured on effective income. The base pair needs no compensating factors; cash reserves, a minimal payment increase, residual income, or significant uncounted income open the higher tiers shown in the snapshot ladder. Below the maximum-financing score the base pair is the ceiling.
Can I get an FHA loan after a bankruptcy or foreclosure?
Yes, once the event is seasoned under HUD’s rules: a bankruptcy counts from discharge, a foreclosure or deed-in-lieu from the transfer of title, a short sale from its closing, each with its own waiting period and exceptions for documented extenuating circumstances. Clean recent housing history matters as much as the seasoning.
What does an FHA appraisal check?
Value against the contract price, and condition against HUD’s minimum property requirements. Repairs the appraiser requires are completed before closing or escrowed where the program permits.
A Texas FHA loan sized to the price, the score, and the ratios.
A Texas FHA purchase begins with a conversation about the score, the investment, and the price. Lendmire compares the programs and puts the one that fits in writing.
This guide covers Texas — for the program overview, see Lendmire’s FHA loan program.
All Texas city guides (6): Austin · Dallas · El Paso · Fort Worth · Houston · San Antonio
Related programs: Down Payment Assistance · FHA 203(k) Rehab Loans · Conventional Loans