Texas FHA Loan Requirements 2026
FHA loan limits for every Texas metro area, credit score requirements, MIP costs, and how FHA financing compares to other options across the Texas housing market.
Texas FHA Loan Limits by Metro Area (2026)
FHA loan limits are set by HUD annually. Texas has five tiers — a standard floor covering most of the state, elevated limits for the Dallas-Fort Worth, Austin and San Antonio metros, and a higher limit in Glasscock County. Limits below are sourced from HUD’s official CY2026 FHA mortgage limits data.
| Area | Counties Included | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|---|
| Most Texas counties | All others not listed below | $541,287 | $693,050 | $837,700 | $1,041,125 |
| San Antonio-New Braunfels MSA | Bexar, Atascosa, Bandera, Comal, Guadalupe, Kendall, Medina, Wilson | $557,750 | $714,000 | $863,100 | $1,072,600 |
| Dallas-Fort Worth-Arlington MSA | Collin, Dallas, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant, Wise | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Austin-Round Rock-San Marcos MSA | Bastrop, Caldwell, Hays, Travis, Williamson | $571,550 | $731,700 | $884,450 | $1,099,150 |
| Glasscock County | Glasscock | $813,050 | $1,040,850 | $1,258,150 | $1,563,600 |
Houston and El Paso are at the standard floor. Their FHA limit is $541,287 — the national standard. San Antonio has a modest elevation to $557,750; Dallas-Fort Worth ($563,500) and Austin ($571,550) are higher, and Glasscock County has the highest Texas limit at $813,050. Verify your specific county using HUD’s official FHA Mortgage Limits lookup tool.
FHA Requirements in Texas
| Requirement | FHA Standard | Texas Notes |
|---|---|---|
| Minimum credit score (3.5% down) | 580 | Lenders may set a higher minimum; TDHCA requires 620 |
| Minimum credit score (10% down) | 500 | Scores of 500–579 require 10% down |
| Minimum down payment | 3.5% | Can be gifted; TDHCA DPA available |
| Property type | Primary residence | Must be owner-occupied |
Source: HUD on minimum decision credit scores.
FHA Mortgage Insurance (MIP)
| MIP Type | Rate | On a $400,000 Loan |
|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of loan amount | $7,000 (financed into loan or paid at closing) |
| Annual MIP (monthly) | 0.55%/yr (term over 15 years, LTV above 95%, base loan up to $726,200); 0.50% at 95% LTV or less | ~$183/mo at 0.55% |
How long MIP lasts: On a term over 15 years, annual MIP is paid for the life of the loan when the loan-to-value ratio is above 90%, and for 11 years at 90% or below. Source: HUD Mortgagee Letter 2023-05.
FHA vs. Conventional for Texas Buyers
| Factor | FHA | Conventional |
|---|---|---|
| Min credit score | 580 | 620 |
| Min down payment | 3.5% | 3–5% |
| Mortgage insurance | Life of loan (if <10% down) | Cancels at 20% equity |
| Loan limit (most TX counties) | $541,287 | $832,750 |
| Best for Texas buyers | 580–679 credit, limited savings | 680+ credit, stable income |
The conforming limit gap matters in Texas. FHA tops out at $541,287 in most Texas counties while conventional reaches $832,750 statewide. A buyer with strong credit may find conventional financing offers a better path — lower MI costs that cancel at 20% equity, and access to a larger loan amount.
FHA Loans in the Texas Market
FHA loans are widely used across Texas, particularly in Houston, San Antonio, El Paso, and smaller metro areas where home prices stay well within the standard $541,287 limit. Texas’s large military population means VA loans are also extremely common — veterans should always compare FHA vs. VA before deciding.
Texas-Specific Considerations
- Property taxes are high — budget accordingly. Texas’s estimated effective property tax rate of 1.49% (Census ACS) means a $350,000 home carries roughly $435/month in property taxes. This is included in your PITI and directly affects your qualifying DTI.
- Homestead exemption saves money. File for the $140,000 school district homestead exemption (Texas Comptroller) with your county appraisal district. This reduces your taxable value for school district taxes.
- TDHCA DPA pairs well with FHA. The Texas Department of Housing and Community Affairs My First Texas Home program can be layered on top of an FHA first mortgage — providing up to 5% of the loan amount in down payment assistance to qualifying first-time buyers.
