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San Antonio FHA Loan Limits For 2021

March 23, 2021 | By Reef Merhi
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What is an FHA Loan?

Home of the Alamo, San Antonio offers colonial beauty and ample family-friendly attractions. If you want to buy a home in this large Texas city, you may be able to qualify for an San Antonio FHA Loan.

Federal Housing Agency loans have different, less strict requirements than conventional loans.

Here’s a quick guide to qualifying for an FHA loan, finding a lender, and shopping for a home with your loan.

A Quick Guide to FHA Loan Requirements

The most notable thing about FHA mortgages is that the requirements are far less intense than those of conventional mortgages.

To qualify for an FHA loan, you are only required to have a credit score of 500. If your credit score is under 580, you will have to put down ten percent on your home. If you aren’t able to make that much of a down payment, you will need to boost your credit score to 580 or above before applying for the loan.

You can put as little as 3.5% down when you have a credit score higher than 580. This makes FHA loans ideal for buyers who can’t get their score up to par with conventional mortgage requirements.

FHA loans do require that you have a debt-to-income ratio of less than 50%. Work on paying down as much debt as possible before applying for a Federal Housing Agency mortgage.

Paying down debt will boost your credit score, so you may not have to worry about paying off debt and saving up for a ten percent down payment simultaneously if your score rises to 580.

Before you apply for a federal housing agency mortgage, be sure to pay any federal debts, taxes, and your balance if you have an existing FHA loan.

Know Your Limits: FHA Mortgage Limits in San Antonio

FHA mortgages have limits on how much you can borrow. San Antonio is a high-cost area, so the FHA loan limits are higher in some counties. Each county in San Antonio has its own loan limits and median home sale price.

You will notice that some counties have a lower median sale price than others. It’s important that you stay within your budget when you are shopping for a home. Just because you are approved for the full FHA loan limit amount doesn’t mean you should take out a loan that large.

Smaller loans equal less interest paid over time. Making a larger down payment will also reduce the amount of interest you pay on your FHA loan home loan.

San Antonio FHA Loan Limits in Each County

Bexar County
Minimum: $403,650
Median Sale Price: $351,000
Maximum: $822,375.00

Medina County
Minimum: $403,650
Median Sale Price: $351,000
Maximum: $822,375.00

Comal County
Minimum: $403,650
Median Sale Price: $351,000
Maximum: $822,375.00

Find a San Antonio FHA Lender That’s Right for You

When you look for an FHA lender in San Antonio, you don’t want to settle for the first one you meet with. Different lenders will have different requirements and varying fees. The key is to find a lender that offers affordable fees and has requirements you are able to meet.

Some borrowers get discouraged when they find out their 500-credit score isn’t acceptable for some lenders. They may feel pressured into working with a lender with higher fees. If possible, it’s best to wait, get yourself up to par with your ideal lender’s requirements, and then negotiate lower fees so you pay less. Annual percentage rate should also be a factor you consider when you are searching for an FHA lender.

Buying an FHA Home with Your Federal Housing Agency Loan

When you apply for an FHA loan, it isn’t just the borrower who must meet the FHA’s standards and requirements. The property you want to purchase must also meet the Federal Housing Agency’s standards and be used for specific purposes.

The property you wish to purchase with your FHA mortgage loan must pass an appraisal to ensure it meets the agency’s standards. You must also intend to use the home as a primary residence. There are certain things you can not do with an FHA loan. You can’t use it to buy an investment property or to flip a house.

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