Texas FHA Home Loans: Affordable, Low Down Payment Options for First-Time Buyers
Looking to buy your first home in Texas? Lone Star Financing specializes in FHA loans designed for first-time homebuyers. With low down payment options, flexible credit requirements, and competitive interest rates, FHA loans make homeownership more accessible for Texans across the state. Start your journey to homeownership today with a trusted Texas FHA lender.
FHA LOAN QUALIFICATIONS
To qualify for an FHA loan, you’ll need to meet the following requirements.
- Stable employment/income
- Minimum FICO 620
- Must be primary residence
- 50% or lower debt to income ratio
- Minimum 3.5% down payment
- Money to cover the upfront mortgage insurance premium (UPMIP)
With competitive rates and a focus on customer satisfaction, we make FHA loans accessible and affordable for first time home buyers in Texas. Whether you’re in Austin, Dallas, Houston, or beyond, our experienced team is here to guide you through every step of the FHA loan process.
First Time Home Buyers
Stable monthly payment with less money down
Minimum FICO Credit Score
600
Minimum Down Payment
3.5%
Maximum Loan To Value
96.5%*
Maximum Debt To Income
50%*
Except Ons To 55%
Mortgage Insurance
Yes
Years Since Bankcruptcy
2
Years Since Foreclosure
3
Years Since Short Sale
3
Special Qualification Requirements
NONE
2025 FHA loan limits: $571,550 for high-cost areas
2025 FHA loan limits: $524,225 for low-cost areas
Minimum down payment: 3.5%
FHA - Things to Know
FHA loans in Texas offer easy, affordable financing for first-time buyers and those with lower credit scores.
Why Lone Star Financing
Close on Time
Our goal is to close every loan in 30 days or less.
Low Rates
Texas FHA loans with Low Rates, Low Fees and Fast Closings.
Service
FHA loans in TX with top-notch customer support.
Lone Star Financing - Approved Texas FHA Lender
- Competitive FHA Rates
- Approved FHA Lender
- In-House Underwriting
- Same Day Approvals
- Streamline Refinance
- Texas Customer Service
Shawn Dulac
Loan Officer
NMLS #1320463
Chris Lederer
Sr. Loan Officer
NMLS #2004549
James Hair
Loan Officer
NMLS #1680348
Marla McGee
Sr. Loan Officer
NMLS #1133114
Brett Dempsey
Sr. Loan Officer
NMLS #2014728
Jump in Front of the Line
Prequalify Today
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About FHA Loans in Texas
What are the Benefits of FHA Loans?
So what is a Texas FHA loan? A Federal Housing Administration (FHA) loan is a government-backed mortgage designed to help individuals with lower credit scores and limited down payment funds purchase a home.
- Lower Down Payment: A big advantage to first time home buyers is that a FHA down payment can be as low as 3.5% of the home’s purchase price.
- Flexible Credit Requirements: While conventional loans usually require a higher credit score, at Lone Star Financing we can go down to 600 credit on FHA loans.
- Competitive Interest Rates: FHA mortgages in Texas come with competitive interest rates, which can reduce your monthly mortgage payment compared to other home loan options.
- Assumable Loans: Texas FHA loans, are one of the few loan types that are “assumable” meaning that you when you sell your home, the buyer may be able to take over your existing loan under its original terms. This can be a favorable selling point for prospective buyers in Texas.
- High Loan Limits: FHA loan limits in Texas for 2025 are $524,225, with a maximum of $571,550 for high-cost areas.
What are the Texas 2024 FHA Loan Requirements?
Texas FHA home loans are a perfect option for first time home buyers, due to lower down payments and easier credit guidelines. The FHA program is designed primarily to assist borrowers who do not meet the requirements for conventional loans. But going with a FHA loan may still be an option for conventional borrowers.
- Credit Score: While Texas FHA loans are more lenient than conventional loans, a higher credit score can still improve your chances of approval and result in better loan terms.
- Down Payment: A minimum down payment of 3.5% of the purchase price or appraised value is required for those with credit scores of 580 or higher. If your credit score is between 500 and 579, a down payment of at least 10% is necessary.
- Debt-to-Income Ratio: FHA guidelines suggest that your total debt-to-income (DTI) ratio should be no more than 43%. This includes all monthly debts, such as your mortgage payment, credit card bills, and other loans.
- Property Requirements: The property must be a primary residence and meet certain standards set by the FHA to ensure it is safe and habitable. An FHA-approved appraiser will assess the property.
- Mortgage Insurance: Texas FHA loans require both an upfront mortgage insurance premium (UFMIP) and monthly mortgage insurance premiums (MIP). This insurance protects the lender in case of default and is a key feature of FHA loans.
Texas FHA Refinance
* Streamline Option (Rate and Term)
* No Appraisal / No Income * Full Doc Loans
* Rate and Term / CashOut
* Closing Costs can be rolled into loan
* Terms: Up to 30 Years
* Purchase financing: up to 96.5% LTV
* Refinance financing: up to 97% LT
Texas FHA mortgage refinancing offers homeowners an opportunity to lower their mortgage rates and adjust their loan terms, potentially leading to reduced monthly payments and significant long-term savings. This type of refinancing, backed by the Federal Housing Administration, is especially beneficial for those with existing FHA loans or for first-time refinancers. It provides access to favorable terms with less stringent credit requirements compared to conventional loans. Additionally, refinancing in Texas can help consolidate debt or access home equity, making it a versatile option for improving financial stability and managing housing costs.
WHAT ARE TEXAS FHA QUALIFICATIONS?
For single-family homes, the 2024 FHA loan limit in Texas is $498,257 but it varies by county.
* 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
Things to know about Texas FHA Loans
- Pre-Qualification: Start by getting pre-qualified for your FHA loan in Texas. This involves providing basic financial information to a lender to determine how much you might be eligible to borrow.
- Documentation: Gather necessary documentation, including proof of income, credit history, and employment verification. This information helps the lender assess your financial stability.
- Application Process: Complete the FHA loan application with Lone Star Financing to get started online. We will review your financial documents, credit report, and property details to determine your eligibility.
- Home Inspection and Appraisal: Schedule a home inspection and appraisal. The FHA requires an appraisal in Texas to ensure the property’s value supports the loan amount and meets safety standards.
- Loan Approval: Once your loan is approved, you’ll proceed to closing. During closing, you’ll review and sign final loan documents, and the mortgage will be funded.
Call or Apply Online and see what Lone Star Financing was voted the Best FHA lender in Texas.
