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Texas FHA Loan

FHA loans provide great incentives for future Houston homeowners Learn about the Texas FHA loan and how you can qualify in 2023.

If you are looking for a home in Texas, you may be able to qualify for a Texas FH 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 FH 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

Prompted by the housing market collapse in the Great Depression, the Federal Housing Administration’s creation was included in the National Housing Act.

The twenty percent down payment rule was established, and it allowed low-income individuals to purchase homes.

FHA loans are backed by the federal government.

Your Guide to Texas
FHA Loans

If you need a Texas mortgage in 2023, 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 and save BIG.

While traditional loans are issued directly to borrowers, these loans are insured and protected by the Federal Housing Administration (FHA), allowing buyers with low credit scores and little savings to secure financing to buy a house.

Low-income individuals looking to take on a Texas mortgage in 2023 can use this loan option to purchase a home. A Texas FHA loan offers a few defining features vs other types of loans:

  • Down payment: You only need a 3.5% down payment for an FHA loan, which is much lower than the 20% down payment typically required for a conventional loan.
  • Credit score: The minimum credit score required for an FHA loan is 580, which is lower than the 620 credit score typically required for a conventional loan.
  • Mortgage insurance premium (MIP): FHA loans require mortgage insurance, which is paid monthly. The MIP rate is 1.75% of the loan amount for the first year, and then it drops to 0.55% for the life of the loan.

FHA Loan Updates For 2024

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 2024:

  • The maximum FHA loan limits for 2023 are $1,149,8250 for high-cost areas and $498,257 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 a number of loan programs for borrowers with special needs, such as the FHA 203(k) loan for home improvement and the FHA Flex loan for borrowers with credit scores below 580.

Lenient Down Payment

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.

While you aren’t permitted to use gift money towards your down payment on a traditional loan, the Federal Housing Agency allows you to use gift money to cover your entire down payment should you choose to do so.


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 2021.

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 amounts are based on the home prices in your area. The value of the property you want to buy with an FHA loan must be less than 115% of the median home price in the county where it is located.

To qualify for any loan amount in this range, the home will have to be appraised by the FHA to ensure the property is worth the amount you are borrowing.

These are the FHA Loan Limits in Texas for 2023:

  • Up to $472,030 for regular one-unit loans (increased from $420,680)
  • Up to $1,089,300 for one-unit high-cost county loans (increased from $970,800)
  • Up to $1,633,950 for one-unit in Alaska and Hawaii (increased from $1,456,200)

Nonconforming Conventional Loans

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

You will be required to pay Mortgage Premium Insurance (PMI)on an FHA loan if you put less than 20% down

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.