Texas FHA Loan
FHA loans provide great incentives for future Houston homeowners. Learn about the Texas FHA loan and how you can qualify in 2026.
If you are looking for a home in Texas, you may be able to qualify for a Texas FHA loan. Since 1934, the FHA has made it possible for low and mid-level income families to become homeowners.
Houston FHA loan mortgages are insured by the Federal Housing Administration and are a popular choice for first-time homebuyers with less than ideal credit and savings.
FHA-approved lenders are authorized to issue Texas FHA loans for the purpose of buying, refinancing, or remodeling a home.
Here’s what you need to know about applying and qualifying for a Houston FHA loan.
What is the Federal Housing Administration (FHA)?
The FHA was established in 1934 to reduce foreclosures and make homeownership attainable – helping more Americans become homeowners.
The Federal Housing Administration was created by the National Housing Act, prompted by the housing market collapse of the Great Depression.
Today, FHA insures mortgages made by FHA-approved private lenders.
Your Guide to Texas
FHA Loans
If you need a Texas mortgage in 2026, but don’t have the savings and credit needed to qualify for a traditional home loan, you may be able to get an FHA loan.
FHA loans are made by FHA-approved lenders and insured by the Federal Housing Administration (FHA), which can help buyers with lower credit scores and limited savings secure financing to buy a house.
Buyers looking to take on a Texas mortgage in 2026 can use this loan option to purchase a primary residence. A Texas FHA loan offers a few defining features vs other types of loans:
- Down payment: FHA loans require a minimum 3.5% down payment with a credit score of 580 or higher. Borrowers with scores from 500 to 579 may need 10% down.
- Credit score: FHA guidelines allow credit scores as low as 580 with 3.5% down, which is lower than the 620 minimum commonly used for conventional loans. Lender requirements vary.
- Mortgage insurance premium (MIP): FHA loans have an upfront MIP of 1.75% of the loan amount plus an annual MIP that is paid monthly. Annual MIP applies to all FHA loans regardless of down payment, and how long it lasts depends on your down payment (loan-to-value).
FHA Loan Updates For 2026
We've done hundreds of FHA Loans, so if you want to see if you can qualify, drop us a message today.
Here are some additional updates for qualifying for an FHA loan in 2026:
- The maximum FHA loan limits for 2026 are $1,249,125 for high-cost areas and $541,287 for low-cost areas.
- The minimum down payment is 3.5%, and in recent years the maximum loan amount for high-cost areas has gone up.
- The FHA also offers specialized programs, such as the FHA 203(k) loan for buying and renovating a home in a single loan.
Lenient Down Payment
Rules
Down payment regulations for FHA loans are more flexible than traditional loan regulations, making it easier for homebuyers to meet or exceed the minimum down payment requirement.
Gift funds from eligible donors can be used toward the down payment on both FHA and conventional loans within each program's rules. FHA allows documented gift money to cover your entire down payment should you choose to do so.
Versatility
FHA 203(K) loans are a subcategory of FHA loans. FHA 203(K) loans are a single loan which can be used for the purchase of the home and certain structural and cosmetic renovations to the home.
If you need to update your home at the time of purchase this is a loan option for you to consider.
Plenty of Lenders to Choose From
The FHA works with mortgage lenders, credit unions, and other loan institutions to provide accessible home loans to buyers. You can apply for an FHA loan through any FHA-approved lender, so you have some flexibility when choosing your lender.
If you aren’t approved by one institution, you can apply at a different one. Keep applying until you get approved, and don’t be afraid to shop around for low rates. The FHA marketplace is competitive, so you can negotiate lower fees on your loan.
What You Need to Know About FHA Loans
Before you apply for an FHA loan, there are a few things you need to know about Texas FHA loan limits and FHA loan requirements for 2026.
It’s important to understand these limits and requirements before you apply so you have the best chance of being approved for the mortgage.
Texas FHA Loan Limits
FHA loan limits vary by county and are updated every year, so the maximum FHA loan amount depends on where the home is located. See current county figures on our Texas FHA loan limits page.
An FHA appraisal is also required to confirm the property's value and that it meets FHA property standards.
These are the FHA Loan Limits in Texas for 2026:
- Up to $541,287 for regular one-unit loans (increased from $524,225)
- Up to $1,249,125 for one-unit high-cost county loans (increased from $1,209,750)
- Higher limits apply in Alaska, Hawaii, Guam and the U.S. Virgin Islands, which FHA adjusts for higher costs of construction
FHA Loan Requirements
To qualify for an FHA loan, you’ll need to meet the following requirements.
- Stable employment and income
- The home will be your primary residence
- No foreclosures in the last three years
- 50% or lower debt-to-income ratio
- 3.5-10% down payment depending on your credit score
FHA loans require mortgage insurance premiums (MIP), including an upfront premium and an annual premium, regardless of your down payment.
While the minimum requirements for FHA loans are easier to meet than those of traditional loans, you will need to gather the necessary documentation prior to meeting with your lender.
In most cases, preparedness on your end equals cooperation from your lender.
Texas FHA Loan FAQs
What is the minimum down payment for an FHA loan in Texas?
FHA guidelines allow a minimum down payment of 3.5% for borrowers with a credit score of 580 or higher. Borrowers with scores from 500 to 579 may need to put down at least 10%, and individual lenders can set stricter requirements.
What credit score do I need for an FHA loan?
FHA guidelines allow credit scores as low as 580 with 3.5% down, or 500 to 579 with 10% down. Many lenders set their own higher minimums, so credit requirements vary by lender.
Do FHA loans require mortgage insurance?
Yes. FHA loans have an upfront mortgage insurance premium (MIP), which can usually be financed into the loan, plus an annual MIP paid as part of the monthly payment. FHA mortgage insurance applies no matter how much you put down, and how long it lasts depends on your down payment and loan terms.
Can I use an FHA loan for an investment property or second home?
No. FHA loans are for primary residences, so at least one borrower must plan to live in the home as their main residence.
What are the FHA loan limits in Texas?
FHA loan limits are set by county and updated every year, so the maximum FHA loan amount depends on where the home is located. See the current figures on our Texas FHA loan limits page.
Can I combine an FHA loan with down payment assistance in Texas?
Often, yes. Texas buyers may pair an FHA loan with down payment assistance from programs such as TDHCA, TSAHC or some local city and county programs, each with its own income, credit, price and eligibility rules. Learn more in our guide to down payment assistance in Texas.
Can a family member gift my FHA down payment?
FHA allows gift funds from eligible donors, such as family members, to cover some or all of the down payment. The gift must be documented, typically with a signed gift letter and proof of the transfer.
Have a question about your situation? Get a custom quote or call 888-505-1718.