FHA Loans in Texas

FHA guidelines require a 580 minimum credit score to qualify for 3.5% down, or 500–579 with 10% down. STX Lending works with Texas borrowers across this entire range with flexible manual underwriting available.

Just 3.5% down with a 580+ credit score. On a $300,000 home, that is only $10,500 down — and 100% of your down payment can come from verified gift funds or Texas down payment assistance programs.

For 2026, the baseline FHA single-family limit is $541,287 across most Texas counties, $557,750 in the San Antonio metro area, and up to $813,050 in higher-cost areas like Glasscock County. FHA also finances 2- to 4-unit multi-family properties at higher limits provided you occupy one unit.

Private lenders issue FHA loans and the federal government (FHA/HUD) insures them. Borrowers pay an upfront mortgage insurance premium (UFMIP of 1.75%, which is typically rolled into the loan balance) and an annual MIP (typically 0.55% paid monthly). Unlike conventional PMI, FHA mortgage insurance cannot be canceled on request after reaching 20% equity; it remains for the loan term unless you refinance into a conventional loan.

The main trade-offs are the non-cancelable mortgage insurance (MIP) for the life of the loan when putting 3.5% down, property condition requirements that can flag minor home defects during appraisal, and county loan limits that cap purchase power below Jumbo territory.

Common disqualifiers include a credit score below 500, a Debt-to-Income (DTI) ratio exceeding limits without compensating factors, purchasing an investment property (FHA requires owner occupancy within 60 days), active delinquent federal debt, or failing to meet mandatory waiting periods after bankruptcy (typically 2 years) or foreclosure (3 years).

FHA is typically best if your credit score is below 680 or your debt-to-income ratio is on the higher side (above 45%), because FHA rates and approvals are more forgiving. If your score is 720+ and you have 5% to 20% down, conventional loans usually cost less over time because private mortgage insurance (PMI) automatically drops off at 78–80% loan-to-value.

No. FHA loans are strictly for primary, owner-occupied residences. You must move in within 60 days of closing and live there for at least one full year. However, you can buy a multi-unit property (up to 4 units) with an FHA loan and rent out the remaining units while living in one.