Texas adds approximately 500,000 new residents each year — a sustained flow of first-time buyers, relocating families, and working households who need flexible, accessible financing. FHA Loans serve this population across Houston, San Antonio, Dallas-Fort Worth, Austin, El Paso, and every major and mid-size Texas metro: credit scores as low as 580, down payments at 3.5%, and loan limits that cover the majority of Texas homes at current prices.
580 for 3.5% down; 500–579 for 10% down
3.5% with a 580+ credit score
Up to 57% in some cases; 43–50% typical
Upfront (1.75% of loan amount) and annual (paid monthly)
Must meet FHA minimum property standards
$541,287 in most TX counties; elevated in select metro areas
$541,287 (national floor — most counties): The vast majority of Texas’s 254 counties follow the national FHA floor. This includes Bexar (San Antonio), Tarrant (Fort Worth), El Paso, Nueces (Corpus Christi), Bell (Killeen/Fort Hood area), McLennan (Waco), Lubbock, and most rural Texas counties.
Elevated limits — Austin MSA: Travis County (Austin), Williamson County (Round Rock, Georgetown, Cedar Park), and Hays County (Kyle, Buda, San Marcos) carry higher FHA limits reflecting the Austin metro’s extraordinary appreciation.
Elevated limits — Dallas-Fort Worth MSA: Collin County (Plano, McKinney, Frisco), Denton County (Denton, Flower Mound, Lewisville), and Dallas County carry elevated FHA limits in the DFW metro.
Elevated limits — Houston MSA: Harris County and certain surrounding counties carry elevated FHA limits.
Elevated limits — Midland: Midland County in the Permian Basin carries elevated FHA limits reflecting the oil economy’s impact on local home prices.
Your Bookspan Baker loan officer can confirm the exact 2026 FHA limit for your specific Texas county.
Texas property taxes — typically 1.5–2.8% of assessed value annually — are included in FHA’s PITI qualification calculation. In Texas’s high-tax suburban markets (Frisco, Allen, Leander, Pflugerville), monthly taxes on a $350,000 home can exceed $600–$750/month,
meaningfully affecting FHA qualifying. We’ll model this precisely for your specific county and purchase price.
TDHCA My First Texas Home: Up to 5% DPA as a 30-year deferred second lien; FHA-compatible; first-time buyers and veterans.
TSAHC Homes for Texas Heroes: Up to 5% DPA as a non-repayable grant for teachers, first responders, and veterans; FHA-compatible; no first-time buyer requirement.
TSAHC Home Sweet Texas: Same DPA structure for all other buyers; FHA-compatible.
See our Down Payment Assistance in Texas page.
580 or higher for 3.5% down. TDHCA and TSAHC DPA programs require 620 minimum.
Travis County carries an elevated FHA limit above the $541,287 national floor. Your Bookspan Baker loan officer can confirm the current 2026 figure.
Property taxes are included in FHA’s PITI calculation and count toward your debt-to-income ratio. Texas’s high property tax rates —
particularly in fast-growing suburban districts — can meaningfully reduce the loan amount you qualify for at a given income level.
Yes. TDHCA’s My First Texas Home and TSAHC’s Homes for Texas Heroes and Home Sweet Texas are all FHA-compatible.
