1st Time Buyers - Only 3.5% Down

Texas FHA Home Loans

FHA home loans are insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers; rather, it provides protection through mortgage insurance (MIP) against losses as the result of homeowners defaulting on their mortgage loan. It’s this protection that makes it possible for mortgage lenders to provide insured Texas FHA home loans.

FHA loan programs are primarily designed to help 1st time home buyers and low to moderate-income families who do not meet requirements for conventional loans. However, there are cases in which borrowers who are eligible for conventional financing would still choose a FHA home loan over a conventional mortgages as FHA loans in Texas do not adhere to strict underwriting guidelines.

FHA home loan programs are particularly beneficial to those buyers with less available cash. The rates on Texas FHA loans are generally market rates, while down payment requirements are lower than most conventional loans. 

Buying your first home? Texas FHA loans are a great option for first time home buyers due to the low down payment and easier credit standards. Your down payment can be as low as 3.5% of the purchase price, and closing costs and fees can be covered by the seller. .

FHA Loans

  • Simple Qualifying
  • Only 3.5% Down Payment Required
  • 100% Allowed with Approved Gift Fund Source
  • Seller Paid Closing Costs to 6%
  • More Flexible Underwriting
  • Higher Debt to Income Ratios
  • Lower Minimum Credit Scores
  • No Prepayment Penalties
  • Streamline Refinance Available
  • Manufactured Housing OK (Subject to Restrictions)

Your Texas FHA home loan specialist!

FHA Home Loans in Texas

More about Texas FHA Loans

FHA is an abbreviation for The Federal Housing Administration. Congress created the FHA in 1934 to make it easier for home buyers to get mortgages. By insuring mortgages for single family and multifamily homes, FHA mortgage insurance provides lenders with protection against a loss if a FHA homeowner defaults on a loan. Loans must meet requirements established by the FHA to qualify.  

Why Choose Lone Star Financing? As a local Texas mortgage company, we have the flexibility to underwrite your Texas FHA loan using common sense underwriting. Unlike many FHA mortgage companies that focus primary on rate and high pressure sales, we educate you on the best home loan program for your individual needs. Thank you for choosing Lone Star Financing as your FHA mortgage lender in Texas—we look forward to earning your business!

Texas FHA Loans - Things to Know

FHA Loan Limits

Texas loan limits for FHA loans range from $331,760 to $765,600.

FHA Loan amounts in Texas are based on the home prices. The value of the home you wish to buy must be less than 115% of the median home price in the county where the property is located.

To qualify your home will have to receive and FHA appraisal to ensure the property value is worth the amount of funds you are borrowing. 

Read More on FHA Loans.


To qualify for an FHA loan, you’ll need to meet the following requirements.

* Stable employment/income
* The home will be your primary residence
* No foreclosures (last 3 years) 
* 50% or lower DTI ratio
* Minimum 3.5% down payment

* Money to cover the upfront mortgage insurance premium (UPMIP). 

* Money to cover closing costs, which could be anywhere from 2 – 6% of the purchase price.


Lone Star Financing - FHA Home Loans

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Rebeka L
Rebeka L
Heartland, TX
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Brenda was quick to respond to questions I had and made herself available to me. She was very patient and understanding when having to resolve issues regarding my ex. The entire team, in fact, was great and a true godsend!
Michael Underwood
Michael Underwood
Austin, TX
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As a realtor here in Austin, TX, I’ve been working with Lone Star Financing for almost a decade. The loan officers at Lone Star financing are without a doubt the best communicators in the business. They provide timely updates to me and my buyers from the start of the loan to close of sale and I can't tell you how important that is during a real estate transaction. I recommend all of my clients use Lone Star financing because unlike a lot of mortgage companies they can close loans on time. During one of the most critical times of my customers lives, it's imperative that all links of the chain are strong. Having the right lender in place is key. Thanks Lone Star!
Jordan Rodriquez
Jordan Rodriquez
Bastrop, TX
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I was thoroughly impressed with the customer service from start to finish. I had a lot of questions and they were all answered. I recommend lone star to first time home buyers as well as those who have note done it before.
Veronica M.
Veronica M.
Camey, TX
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Making me feel comfortable through the entire process as I was a bit nervous but Keith’s ways with his words and staying professional never made me feel overwhelmed, as well as the staff members that also helped me. The whole process was a smooth ride with no bumps and that was a great feeling making this single mother very happy with the outcome!!! Thanks!!!
Scott Kruse
Scott Kruse
San Marcos, TX
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I have gone through the home financing five times, and this is my second re-finance. The team at Lone Star Financing was the best experience I've ever had going through the mortgage process. The previous finance company I used to purchase my home was the worst experience I'd ever had in getting a mortgage. I was extremely hesitant to go through the re-finance process, but with the interest rates being so low I knew I would be saving a lot of money. I did the research to find a highly reviewed local financing company, and Lone Star Financing was the best. They did an outstanding job helping me through the process, made it incredibly easy and quick. More...
David, Y
David, Y
San Antonio, TX
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Thanks for helping us through the loan refinance process. P.S. The only reason we can't refer family and friends is we don't live in Texas or have any contacts there!