FHA Loan Rates in Texas
FHA loan rates in Texas track the national market, which put the average 30-year fixed at 7.03% in Freddie Mac's survey for the week ending September 24, 2026, and 7.17% in Mortgage News Daily's September 25 reading. FHA loans often price slightly below conventional rates, but mortgage insurance changes the true cost. Here is the full picture for Texas buyers.
By Aslam Mansoor, Mortgage Loan Originator, NMLS #184238. Aslam has helped Texas FHA buyers for over 20 years. Meet Aslam.
Last updated: September 29, 2026. Reviewed for compliance: September 29, 2026, against FHA/HUD Handbook 4000.1.
What are current FHA loan rates in Texas?
FHA rates follow the conventional market with a small discount baked in most weeks. The benchmarks as of this update: Freddie Mac's Primary Mortgage Market Survey averaged 7.03% on the 30-year fixed for the week ending September 24, 2026, and Mortgage News Daily's daily survey read 7.17% on September 25, 2026. FHA quotes for well-qualified buyers typically land at or slightly below those figures. Your rate is only real once it is locked in writing.
Quick answer: an FHA loan rate is the interest rate on a mortgage insured by the Federal Housing Administration, which allows down payments as low as 3.5% with more flexible credit standards than conventional loans.
Why the advertised rate is not the whole story
FHA loans carry two mortgage insurance costs: an upfront premium of 1.75% of the loan amount and an annual premium of 0.55% on most 30-year loans, paid monthly. Two lenders can quote identical note rates with different fees and APRs, which is why we always compare the full cost, not the headline number.
7.03% — average 30-year fixed rate, week ending September 24, 2026 (Freddie Mac PMMS); 7.17% per Mortgage News Daily, September 25.
3.5% — minimum down payment with a credit score of 580 or higher.
1.75% / 0.55% — upfront and annual FHA mortgage insurance rates on a typical 30-year purchase.
FHA payment calculator
Estimate your full FHA payment including mortgage insurance. Estimates only, not a loan offer.
Estimates only, not a loan offer or commitment to lend. Assumes the current 1.75% upfront MIP financed into the loan and 0.55% annual MIP. Rates and figures are subject to change; verify with a licensed loan officer at 972-466-2551. Taxes, homeowner's insurance, and HOA dues are not included.
Worked example: $300,000 home, 3.5% down
Illustrative example, not a quote. Assumptions: 30-year fixed at the 7.03% survey average for the week ending September 24, 2026, 1.75% upfront MIP financed, 0.55% annual MIP, principal, interest, and MIP only. Taxes and insurance not included.
- Down payment: $10,500; base loan: $289,500
- Upfront MIP financed ($5,066): total loan $294,566
- Principal and interest: about $1,966/month
- Monthly MIP: about $135; estimated total: $2,101/month
With less than 10% down, the 0.55% annual MIP lasts for the life of the loan under current HUD rules, so factor it into any comparison with conventional pricing.
What do I need to qualify for an FHA loan rate?
Must have
- A credit score of 580 or higher for the 3.5% down payment option
- Documented income and a debt-to-income ratio within HUD and lender limits
- Intent to occupy the home as your primary residence
- A satisfactory FHA appraisal; the property must meet HUD minimum standards
May be required
- A score between 500 and 579 can qualify with 10% down
- Gift funds or down payment assistance documented to FHA standards; Texas programs like TSAHC and TDHCA can pair with FHA
- Compensating factors if your debt-to-income ratio runs high
How do I get an FHA rate locked in Texas?
- Check your credit and budget. Know your score and how the full FHA payment, MIP included, fits your monthly numbers.
- Get pre-approved. We verify income, credit, and the property type you are shopping.
- Compare full quotes. As a broker, we price your FHA loan across multiple lenders and compare note rate, APR, and fees together.
- Lock your rate. Once you are under contract, lock in writing for a window that covers your closing date.
- Appraise and close. The FHA appraisal checks both value and condition; Texas closings typically run about 30 to 45 days on FHA files.
Why buyers work with Liberty Home Mortgage
FHA pricing varies widely between lenders, and the lender with the best conventional rate is rarely the best FHA rate. As a Dallas–Fort Worth broker, we compare multiple wholesale lenders on every file, and we will show you the FHA-versus-conventional math with MIP included so you choose on total cost, not advertising. Call 972-466-2551.
Where we lend
Frequently asked questions
What are current FHA loan rates in Texas?
The benchmarks as of this update: Freddie Mac's survey averaged 7.03% on the 30-year fixed for the week ending September 24, 2026, and Mortgage News Daily read 7.17% on September 25, 2026. FHA quotes for well-qualified buyers typically land at or slightly below those figures. Your actual rate depends on credit, down payment, loan size, and the lender, and it is guaranteed only when locked in writing.
Are FHA rates lower than conventional rates?
Often slightly, because the FHA insurance reduces the lender's risk. The honest comparison, though, is total monthly cost: FHA adds monthly MIP of 0.55% on most 30-year loans, which conventional loans with 20% down do not carry. On a $294,566 FHA loan, MIP runs about $135 a month. We compare both paths with every cost included before recommending one.
What is FHA mortgage insurance and what does it cost?
Two parts: an upfront premium of 1.75% of the loan amount, usually financed into the loan, and an annual premium of 0.55% on most 30-year purchases, paid monthly. With less than 10% down, the annual MIP lasts for the life of the loan under current HUD rules; putting 10% or more down shortens it to 11 years. Refinancing into conventional later, once you have equity, is a common exit.
How much down payment do I need for an FHA loan in Texas?
3.5% of the purchase price with a credit score of 580 or higher, and 10% with a score between 500 and 579, under HUD Handbook 4000.1. Individual lenders can add their own overlays on top of those floors. On a $300,000 home, 3.5% down is $10,500, and Texas assistance programs through TSAHC or TDHCA can cover part of it if you qualify.
Can I do an FHA cash-out refinance in Texas?
Not on your primary residence. A cash-out refinance on a Texas homestead is a Section 50(a)(6) home equity loan, and those loans cannot carry FHA insurance, so FHA cash-out is not available on a Texas homestead. What remains available is the FHA Streamline refinance, a reduced-documentation rate-and-term option for existing FHA loans, and standard rate-and-term refinances.
What credit score do I need for an FHA loan?
HUD's floor is 580 for the 3.5% down option and 500 with 10% down. Lenders add their own overlays, so a 620 score can be declined at one lender and approved at another, which is exactly why borrowers use a broker. If your score is below 580, we can map the fastest realistic path, which sometimes means a few months of credit work before applying.
Related resources
- FHA loans — the complete program guide
- FHA mortgage insurance in Texas — MIP rules, durations, and cancellation paths
- FHA MIP calculator — upfront and monthly MIP on any loan amount
- FHA loan limits 2026 — the Texas floor and ceiling by county
- Mortgage rates today in Texas — today's full market picture
Want today's exact FHA rate for your scenario?
Call 972-466-2551 or contact us online. We will price your FHA loan across multiple lenders with MIP included, and show you the honest FHA-versus-conventional comparison.
Liberty Home Mortgage is a Texas mortgage broker licensed by the Texas Department of Savings and Mortgage Lending, NMLS #321164. Equal Housing Lender. Liberty Home Mortgage, 4400 State Hwy 121 STE 300, Lewisville, TX 75056. Phone 972-466-2551.
All loans are subject to credit and property approval. Rates are subject to change without notice and are not a commitment to lend. FHA loans are insured by the Federal Housing Administration; HUD and lenders set the rules, and this page is general information, not a quote. Figures shown are survey averages or illustrative examples; your APR and payment will depend on your credit, loan amount, and program.