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 four tiers — a standard floor covering most of the state, and elevated limits for the three major metros with higher median home prices. 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 MSA | Travis, Hays, Williamson, Caldwell, Bastrop | $571,550 | $731,700 | $884,450 | $1,099,150 |
Houston, San Antonio, and El Paso are at the standard floor. Despite Houston being the largest Texas city, its FHA limit is $541,287 — the national standard. San Antonio has a modest elevation to $557,750. Only Dallas-Fort Worth ($563,500) and Austin ($571,550) have meaningfully higher limits. 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 | Most TX lenders apply 580–620 overlay |
| Minimum credit score (10% down) | 500 | Very limited lender options below 580 |
| Minimum down payment | 3.5% | Can be gifted; TDHCA DPA available |
| Maximum DTI | 43–50% | 50% with compensating factors |
| Upfront MIP | 1.75% of loan | Financed into loan or paid at closing |
| Annual MIP (LTV > 90%) | 0.55%/year | For 30-yr loan > $150K |
| MIP duration (<10% down) | Life of loan | Key FHA disadvantage vs. conventional |
| Property type | Primary residence | Must be owner-occupied |
| Survey requirement | Not federally required | Most TX lenders require a survey anyway |
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 |
| Seller concessions allowed | Up to 6% | 3–9% depending on down payment |
| 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. In Austin, Dallas, and Houston where median prices often exceed $400,000, 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 effective tax rates of 1.6–1.8% mean a $350,000 home costs roughly $490–$525/month in property taxes alone. This is included in your PITI and directly affects your qualifying DTI. Many Texas buyers qualify for less than they expect due to the tax escrow requirement.
- Survey requirement. Most Texas lenders require a current survey. At $400–$700, this is an above-average closing cost unique to Texas that buyers from other states often don’t anticipate.
- Homestead exemption saves money. File for the $100,000 school district homestead exemption with your county appraisal district after closing. This reduces your taxable value and can save $800–$1,500/year in 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.
