FHA Loans in Texas | Flexible Home Financing Options
FHA loans in Texas offer eligible borrowers a path to homeownership with flexible credit requirements and down payments starting at 3.5%. Liberty Home Mortgage helps Texas borrowers review available FHA purchase and refinance options through multiple wholesale lenders. Call 972-466-2551 to discuss your scenario with Aslam Mansoor, NMLS 184238.
How FHA Loans Work for Texas Homebuyers
- Wholesale lender network with access to competitive FHA loan options
- Same-day pre-approval review subject to complete documentation
- FHA expertise for first-time buyers and credit-challenged borrowers
- Portfolio and Non-QM backup options if FHA does not fit
- Direct phone support: 972-466-2551 with local Lewisville service
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help borrowers with lower credit scores or smaller down payments purchase or refinance a primary residence. The FHA does not lend money directly. Instead, it insures loans made by approved lenders, which may allow for more flexible qualification guidelines than conventional loans. Borrowers pay an upfront mortgage insurance premium and an annual mortgage insurance premium as part of the program. FHA loans are available for single-family homes, multi-family properties with up to four units, and certain condominiums.
FHA Loan Requirements in Texas
To be eligible for an FHA loan, borrowers generally need a minimum credit score of 580 to qualify for the 3.5% down payment option. Borrowers with scores between 500 and 579 may still be considered with a down payment of at least 10%. The property must meet FHA minimum property standards, and the borrower must demonstrate stable income and employment. Debt-to-income ratios are subject to FHA and lender guidelines. Texas borrowers should also be aware that FHA loan limits vary by county. Not all borrowers will qualify, and program availability depends on property type, occupancy, and underwriting approval.
"In 2024, I helped a first-time buyer in Dallas with a 620 credit score purchase a $300,000 home using an FHA loan with 3.5% down. The borrower had been told by another lender that they needed to wait another year. We reviewed their complete file, identified an FHA-approved condo, and closed in 28 days. FHA guidelines can open doors that conventional programs close, but the property and borrower must both meet the requirements." — Aslam Mansoor, NMLS 184238
FHA Loan Limits and Down Payment Options
FHA loan limits in Texas are set by HUD and vary by county based on local median home prices. In higher-cost areas like Dallas, Collin, Denton, and Tarrant counties, the limit for a single-family home may be significantly higher than in rural areas. Borrowers can check the current limit for their target county to confirm whether their desired loan amount falls within FHA guidelines. Down payment funds may come from the borrower's own savings, a gift from a family member, or an approved down payment assistance program. Liberty Home Mortgage reviews each borrower's situation to identify available FHA and alternative options.
Texas FHA Purchase Loans
Buy a primary residence in Texas with as little as 3.5% down for eligible borrowers. Available for single-family homes, condos, and multi-family properties up to 4 units.
FHA Streamline Refinance
Existing FHA borrowers may review streamline refinance options with reduced documentation requirements. Subject to current FHA guidelines and net tangible benefit rules.
FHA Cash-Out Refinance
Eligible FHA borrowers may access equity through a cash-out refinance up to FHA loan limits. Subject to LTV restrictions, credit requirements, and underwriting approval.
FHA Loan Limit Insight: According to HUD, FHA loan limits for the Dallas-Fort Worth metroplex in 2026 allow single-family loans up to $498,257 in most counties, with higher limits in designated high-cost areas. Limits are updated annually based on local housing prices.
Dallas First-Time Buyer — FHA Purchase
A first-time buyer with a 620 credit score purchased a $295,000 condo in Dallas using an FHA loan with 3.5% down. The borrower used gift funds for the down payment and closed in 28 days. Subject to borrower qualification.
Fort Worth Multi-Family Purchase
An investor-occupant in Fort Worth purchased a duplex for $385,000 using an FHA loan with 3.5% down. They planned to live in one unit and rent the other. The property met FHA minimum standards. Closed in 32 days. Not all borrowers will qualify.
Plano FHA Rate Reduction
A homeowner in Plano with an existing FHA loan reduced their rate from 6.875% to 5.625% through an FHA rate-and-term refinance. The borrower removed their ex-spouse from the title as part of the transaction. Anonymized borrower. Program dependent.
Common Questions About FHA Loans
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help borrowers with lower credit scores or smaller down payments purchase or refinance a home. The FHA does not lend money directly; it insures loans made by approved lenders, which may allow for more flexible qualification guidelines.
Who qualifies for an FHA loan in Texas?
Eligible borrowers may include first-time homebuyers, repeat buyers, and homeowners looking to refinance. FHA loans generally require a minimum credit score of 580 for the 3.5% down payment option, though lower scores may be considered with a larger down payment. Borrowers must meet FHA and lender guidelines for income, employment, and property eligibility.
What credit score do I need for an FHA loan?
FHA loans may be available to borrowers with credit scores starting at 580 for the standard 3.5% down payment program. Borrowers with scores between 500 and 579 may still be eligible with a down payment of at least 10%. Individual lender overlays may apply, and not all borrowers will qualify.
What is the minimum down payment for an FHA loan?
The minimum down payment for an FHA loan is generally 3.5% of the purchase price for borrowers with credit scores of 580 or higher. Borrowers with lower scores may need to put down at least 10%. Down payment funds may come from the borrower's savings, a gift from a family member, or an approved down payment assistance program.
Are FHA loan limits the same in every Texas county?
No. FHA loan limits vary by county and are based on local median home prices. Higher-cost areas such as the Dallas-Fort Worth metroplex may have higher loan limits than rural counties. Limits are updated annually by HUD and differ for single-family homes, duplexes, triplexes, and fourplexes.
Can I use an FHA loan for an investment property?
FHA loans are generally limited to primary residences. Borrowers may use an FHA loan for a multi-family property with up to four units if they occupy one of the units as their primary residence. FHA loans are not available for pure investment properties or vacation homes.
Does Liberty Home Mortgage offer FHA loans in Texas?
Yes. Liberty Home Mortgage helps Texas borrowers review available FHA purchase and refinance options through our wholesale lender network. As an independent mortgage broker in Lewisville, we compare FHA programs subject to agency guidelines and borrower qualification. Call 972-466-2551.
Is Liberty Home Mortgage affiliated with HUD or FHA?
No. Liberty Home Mortgage is not a government agency and is not affiliated with HUD, FHA, VA, USDA, or any government agency. We are an independent mortgage broker.
Helpful Resources
About the Author
Written by Aslam Mansoor, NMLS 184238, independent mortgage broker and founder of Liberty Home Mortgage, NMLS 321164. He helps Texas borrowers review FHA, VA, conventional, and portfolio loan programs from multiple wholesale lenders.
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Direct: 972-466-2551 | Secondary: 713-955-4685 | info@libertyhomemortgage.com
Liberty Home Mortgage is an Equal Housing Lender, NMLS 321164. All loans are subject to credit approval, property eligibility, and underwriting. Terms of Use