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    FHA Loans in Texas: Rates, Requirements, and Limits for 2026

    Updated: May 22 2026 • 7 min read
    Written by Bennett Leckrone
    Bennett Leckrone

    Written by
    Bennett Leckrone
    Writer / Reviewer / Expert

    Bennett Leckrone is the editorial manager and an analyst for Lower. He specializes in making complicated mortgage topics accessible for consumers. That includes both in-depth product guides and in-depth analysis on what economic moves mean for homebuyers and refinancers. He was previously a business reporter with a focus on higher education and fintech at BestColleges. In that role, he reported on the development of fintech and AI curriculum, as well as the rapidly changing nature of finance education. He also wrote guides to help business students navigate AI and online education. He also reported on state politics at Maryland Matters, with a focus on how policy affected people and businesses. He holds a bachelor of science in journalism degree from Ohio University.
    Reviewed by Neel Patel
    Neel Patel

    Reviewed by
    Neel Patel
    Reviewer

    Neel Patel is a mortgage industry professional with more than a decade of hands-on experience across loan origination, customer experience, sales operations, and strategy. He has worked at every stage of the mortgage lifecycle, from advising individual borrowers to leading teams of loan officers. As an expert reviewer, Neel evaluates mortgage and personal finance content for accuracy, clarity, and real-world applicability. He specializes in ensuring information reflects how lending actually works in practice so consumers can make confident, informed decisions.
    Our Editorial Standards

    Key Takeaways

    • FHA loans in Texas allow qualified borrowers to purchase a primary residence with as little as 3.5% down and more flexible credit requirements than many conventional loans.
    • Borrowers with a credit score of 580 or higher can qualify for a 3.5% down payment, while scores between 500 and 579 may qualify with 10% down.
    • 2026 FHA loan limits in Texas range from $541,287 in lower-cost counties to higher amounts in counties with more expensive housing markets like Dallas County, based on HUD data.
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    In a Texas housing market defined by wide county-level price variation and steady demand, FHA financing continues to be widely used by first-time and moderate-income buyers in Texas.

    An FHA home loan features minimum 3.5% down payment for qualified borrowers, as well as flexible credit score requirements and debt-to-income ratio requirements.

    FHA Home Loan Rates in Texas for 2026

    The rates on this page are a starting point, but your mortgage interest rate in Texas will reflect both market conditions and your personal situation.

    It's also worth noting that the interest rate and APR aren't the same. The interest rate affects your monthly principal and interest payment, while the APR includes certain fees.

    Here are our current FHA loan rates in Texas. If you want to check out Texas mortgage rates for other types of loans, you can check out our state rates page.

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    Texas FHA Loan Calculator

    FHA loans require a mortgage insurance premium, known as MIP, which allows borrowers to qualify with lower down payments by protecting lenders against losses. That includes an upfront MIP of 1.75% of the base loan amount, which is typically financed into the loan, and an annual premium that is broken down into your monthly payments.

    If your down payment is less than 10%, MIP lasts for the life of the loan. With a down payment of 10% or more, MIP can be removed after 11 years.

    You can estimate a potential monthly FHA mortgage payment with MIP using our calculator. This tool is educational only and not a loan offer. To determine your actual payment, you’ll need to connect with a loan expert.

    FHA Loan
    Calculator

    Model principal and interest, FHA mortgage insurance, property taxes, and upfront MIP.

    Est. Monthly FHA Payment

    $0

    What’s driving this estimateLive from your current assumptions
    Use the sliders for quick comparisons or tap the blue value pills to type exact numbers.
    Upfront MIP

    Illustrative FHA estimate only. Uses a 1.75% upfront MIP and 0.55% annual MIP assumption. Actual FHA MIP rules depend on loan amount, term, LTV, and case-specific factors. Not a loan offer.

    How this calculator works

    Move the sliders to test scenarios, or tap any blue value pill to type an exact number. The headline result and supporting detail pills update live as you change inputs so you can compare options without resetting your work.

    Methodology: Base loan = home price × (1 − down payment %). Upfront MIP = 1.75% of the base loan, optionally rolled into the loan. Principal & interest are amortized over 30 years using the standard fixed-rate formula M = P · r(1+r)n / ((1+r)n−1), where r is the monthly rate and n is months. Annual MIP of 0.55% is divided by 12 and added monthly. Property taxes are estimated as home price × tax rate ÷ 12.

    Worked example: Home price $400,000, 3.5% down, 6.5% rate, 1.1% taxes, UFMIP financed: base loan $386,000; UFMIP $6,755; financed loan $392,755; monthly P&I ≈ $2,482; monthly MIP ≈ $177; monthly taxes ≈ $367; total ≈ $3,026/mo.

    Use these estimates to compare options and prepare questions for a lender. Final pricing, eligibility, and approval depend on a full application and lender review.

     

    FHA Loan Requirements for Texas Borrowers

    FHA mortgage eligibility guidelines are federally defined and apply consistently across all states, including Texas. Lenders evaluate several core factors during underwriting.

    Credit Score and Down Payment Guidelines

    Borrowers with a credit score of 580 or higher can qualify for the minimum 3.5% down payment. Borrowers with credit scores between 500 and 579 may qualify with a 10% down payment, subject to lender approval.

    Down payment gifts from eligible donors are allowed when properly documented, which can help buyers using family assistance.

    Debt-to-Income Ratio and Income Verification

    Debt-to-income ratio measures how much of your gross monthly income goes toward debt payments. FHA generally prefers a DTI at or below 43%, though higher ratios may be approved in limited cases with strong compensating factors.

    Property Eligibility and Occupancy Rules

    Eligible properties include single-family homes, FHA-approved condominiums, and two- to four-unit properties if you live in one unit. Some buyers use FHA loans to buy multifamily homes and rent out the units they don't live in to help cover housing costs, a practice known as "house hacking" since it can be an affordable way to get a multifamily home.

    You must occupy the home as your primary residence within 60 days of closing.

    FHA Loan Limits in Texas for 2026

    FHA loan limits cap how much you can borrow using FHA financing and are updated annually to reflect changes in home prices.

    For 2026, the national single-family FHA loan floor is $541,287, which applies in lower-cost Texas counties. The high-cost ceiling is $1,249,125 for designated high-cost areas.

    You can use our lookup tool to see the 2026 limit for your Texas county. This tool uses data from the U.S. Department of Housing and Urban Development. You should double-check anything in this database with HUD's official lookup tool to make sure you're within limits. 

    Find your FHA loan limit

    Select your state and county to see FHA forward loan limits for 1–4 unit properties.

    2026 Texas FHA Loan Limit Examples

    County

    2026 1-Unit FHA Loan Limit

    Dallas County

    $563,500

    Harris County

    $541,287

    Travis County

    $571,550

    Always verify current limits using HUD’s official FHA loan limits lookup tool before making an offer.

    Single-Family and Multi-Unit FHA Loan Limits for 2026

    FHA loan limits increase with the number of units, supporting buyers who plan to live in one unit and rent the others.

    Units

    2026 FHA Floor

    2026 FHA Ceiling

    1

    $541,287

    $1,249,125

    2

    $693,050

    $1,599,375

    3

    $837,700

    $1,933,200

    4

    $1,041,125

    $2,402,625

    Two- to four-unit properties are eligible if you occupy one unit as your primary residence.

    Frequently Asked Questions

    What Is the Typical Down Payment for an FHA Loan in Texas?

    Most borrowers with a credit score of 580 or higher need a 3.5% down payment.

    How Do FHA Loan Limits Vary Across Texas Counties?

    Limits are county-specific and range from $541,287 in lower-cost areas up to $1,249,125 in high-cost counties for single-family homes.

    What Credit Score Do I Need to Qualify for an FHA Loan?

    A score of 580 or higher qualifies for 3.5% down. Borrowers with scores between 500 and 579 may qualify with 10% down.

    How Does Mortgage Insurance Affect FHA Loan Payments?

    FHA loans include both upfront and annual mortgage insurance, which increases monthly payments but allows easier qualification and lower down payments.

    Can FHA Financing Be Used for Multi-Unit Properties in Texas?

    Yes. FHA allows financing for two- to four-unit properties in Texas if you occupy one unit as your primary residence. Loan limits increase based on the number of units, with higher maximum amounts available for multi-unit properties.

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