FHA loans for Texas homebuyers

Learn about requirements, loan limits, and more

FHA loans help make buying and refinancing homes in Texas more affordable. FHA loans are backed by the Federal Housing Administration (FHA) and offered by private lenders like Freedom Mortgage. This means you can shop for FHA loans just like you shop for other types of mortgages.

Many of the benefits of FHA loans are the same for Texas homebuyers as they are for homebuyers in other states. The benefits include lower minimum credit scores compared to other mortgages and low down payment requirements. You may be able to buy a home with an FHA loan with a down payment as low as 3.5% of the purchase price of the house.

Requirements for an FHA loan are also the same for homebuyers in Texas as they are in other states. These include meeting financial standards to get your loan approved and paying mortgage insurance premiums. Learn more about FHA loan requirements.

FHA loan limits in Texas

Your FHA loan limit is one requirement that is affected by where you live in Texas. Loan limits vary by county and are based on median home prices in that county.

For example, the 2024 FHA loan limit for a single-family home in Dallas County is $563,500 while the loan limit for a single-family home in Harris County is $498,257. These limits are different because the FHA calculates the median home price in Dallas County as higher than the median home price in Harris County.

The lowest FHA limit for counties in Texas is $498,257. So regardless of where the house is in Texas, you may be able to borrow at least $498,257 with an FHA loan. Other counties in Texas have loan limits in the upper $500,000s. Learn more about FHA loan limits.

Homebuyer assistance programs in Texas

State and regional programs in Texas can also help you buy a house. The Texas Department of Housing and Community Affairs can offer help with down payments and closing costs. The Texas State Affordable Housing Commission also has down payment and mortgage assistance programs for homebuyers. Many Texas cities have homebuyer assistance programs too. Visit the HUD website for information on homeownership assistance programs in Texas.

Refinancing FHA loans in Texas

Texas homeowners with an FHA loan may be eligible to refinance their homes using the FHA streamline refinance program. The streamline program lets you lower your rate with less paperwork and a faster closing. You need to replace your current FHA loan with a new FHA loan to be eligible, and you will need to meet credit and financial requirements to get your new loan approved.

*Freedom Mortgage is a top FHA lender in the United States according to Inside Mortgage Finance, 2023.

Last reviewed and updated February 2024 by Freedom Mortgage.