FHA Loan Guidance in Texas

The Sonic Loans® team helps Texas buyers understand their mortgage options, get their documents ready, and see what's left before pre-approval. Available programs, terms, and timing depend on the borrower, property, and underwriting review. FHA-insured mortgages may be an option for buyers who want to compare down-payment requirements with conventional financing. FHA mortgage insurance, property standards, loan limits, and lender underwriting requirements affect the total cost and availability.

Important information

Program rules, limits, rates, fees, and eligibility can change; confirm them with the relevant agency and a licensed mortgage professional before relying on this information.

General mortgage decision guidance. Current program requirements and transaction eligibility require review by a licensed loan officer. No professional review date or approval is asserted.

Key considerations

Compare financing based on total costs and your own transaction rather than a headline rate or minimum down payment.
Prepare documentation before committing to a purchase timeline.
Understand which conditions remain before approval and closing.

Eligibility and questions to review

A licensed loan officer must review credit, qualifying income, debts, available funds, occupancy, and the proposed property.
Program rules and lender requirements both apply. A published minimum is not an approval or a complete description of eligibility.
Ask for a transaction-specific comparison of down payment, mortgage insurance, closing costs, reserves, and ongoing payment obligations.
How do upfront and ongoing mortgage insurance affect my payment and closing costs?
Does the property meet FHA appraisal and condition requirements?
What loan limit applies to this county and property type?

Documents to prepare

Identification and the lender’s requested application information.
Income and employment documentation appropriate to your situation, such as pay statements, tax returns, or business records.
Account statements and documentation of the source of down-payment and closing funds.
Information about existing debts, housing obligations, and any proposed property or purchase agreement.
Additional documentation requested during the application and underwriting review. Submit sensitive documents only through the lender’s approved secure channel.

Typical process milestones

Consultation: Discuss your goals and the information needed to compare options.
Application and pre-approval review: Timing depends on documentation, verification, and the lender’s review.
Property and underwriting review: Appraisal, title, insurance, and underwriting conditions can affect timing.
Closing preparation: Confirm remaining conditions, required disclosures, funds, and the agreed closing arrangements.

Discuss Your Mortgage Options

Talk with Sonic Loans® about your Texas purchase, documentation, and questions. A consultation does not guarantee approval, a particular rate, or a closing date.

Discuss Your Mortgage Options

Frequently asked questions

What is the minimum down payment for an FHA loan in Texas?

Eligible borrowers with a credit score of 580 or higher may put down as little as 3.5% of the lesser of the sale price or appraised value. Scores from 500 to 579 are limited to 90% financing, so you would need at least 10% down. That is the down payment, not your cash to close. Closing costs, prepaid items, and mortgage insurance still apply. A lender can require more than FHA's minimum, and meeting the minimum is not an approval.

What credit score do I need for an FHA loan?

FHA's published floor is a minimum decision credit score of 500. At 580 or higher, you may be eligible for FHA's maximum financing, including the 3.5% down-payment option. Scores from 500 to 579 are limited to 90% financing. Scores below 500 are not eligible for FHA-insured financing. Many lenders set a higher bar than those FHA minimums. Your income, debts, assets, and the property are reviewed together, so a qualifying score alone is not an approval.

What is the FHA loan limit in Texas in 2026?

Texas does not have one FHA loan limit. For case numbers assigned on or after January 1, 2026, most counties, including Harris County, use the $541,287 one-unit national floor. Austin-area counties, including Travis and Williamson, are $571,550. Dallas-Fort Worth-area counties, including Dallas, Collin, Denton, and Tarrant, are $563,500. San Antonio-area counties, including Bexar, are $557,750. Confirm the property's county and unit count in HUD's official loan-limit lookup.

Do FHA loans require mortgage insurance?

Yes. Most FHA purchase loans charge a 1.75% upfront mortgage insurance premium, which can be financed, plus an annual premium collected monthly. On a typical term longer than 15 years, with a base loan of $726,200 or less and less than 5% down, the annual rate is 0.55% and lasts for the life of the loan. With 10% or more down, the annual rate is 0.50% and stops after 11 years. Confirm the current schedule on your written estimate.

Do I have to be a first-time homebuyer to get an FHA loan?

No. FHA rules do not limit these loans to first-time buyers. The home generally needs to be your primary residence: at least one borrower typically must occupy it within 60 days and intend to stay at least a year. Repeat buyers still have to meet FHA and lender requirements for credit, income, funds, and the property. Down-payment assistance programs often have their own first-time or income rules, which are separate from FHA eligibility.

Can I use gift money for an FHA down payment?

Yes, if the gift is allowed under FHA rules and is properly documented. Acceptable donors include a family member, an employer or labor union, a close friend with a documented interest in the borrower, a charitable organization, or a government agency with a homeownership program. The gift cannot require repayment. Your lender will need a signed gift letter and proof that the funds came from an acceptable source.

Does the home have to meet FHA property requirements?

Yes. The property has to meet HUD's minimum property requirements, which generally mean the home is safe, sound, and secure. An FHA appraisal is part of that review; it is not a substitute for your own home inspection. If the appraiser notes required repairs, those items usually have to be resolved before the loan can close, or the property may not be eligible as proposed. Condo and manufactured-home rules are tighter and should be checked early.

Can Sonic Loans® help with an FHA loan in Texas?

Yes. Sonic Loans® is a licensed mortgage lender, NMLS #1955855, and originates loans in Texas. Confirm current licensing on NMLS Consumer Access. Since 2020, the company has funded 1,200+ loans totaling $280M+. A loan officer can compare FHA with other options for your income, credit, funds, and property, and give you a written estimate. Current FHA and lender requirements control.

By Charlie Shami · NMLS #1097497