Texas FHA Loan Requirements
Find out if you qualify for a Texas FHA loan by reviewing credit, income, employment, and down payment requirements
Texas FHA Home Loan Qualification Requirements
Welcome to Lone Star Financing—an approved FHA mortgage broker in Texas offering competitive rates, flexible credit requirements, and a streamlined process for fast approvals.
With competitive rates and a focus on customer satisfaction, we make FHA loans accessible and affordable for first time home buyers in Texas.
FHA LOAN QUALIFICATIONS
To qualify for an FHA loan, you’ll need to meet the following requirements.
- Stable employment/income
- Minimum FICO 580
- 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)
What Texas Buyers Should Know Before Applying
FHA loan requirements are designed to make homeownership more accessible for Texas buyers who may have limited savings, moderate credit, or need more flexible qualifying guidelines than a conventional loan allows. While FHA loans are popular with first-time homebuyers, you do not have to be a first-time buyer to qualify.
Lenders will review your credit score, income, employment history, debt-to-income ratio, down payment funds, and the property you are purchasing. In most cases, FHA loans allow a down payment as low as 3.5% for borrowers who meet the minimum credit requirements. The home must also be used as your primary residence and meet FHA appraisal and property standards.
Lone Star Financing helps Texas borrowers compare FHA loan options, review qualification requirements, and understand how FHA financing fits their budget before applying.
First Time Home Buyers
Stable monthly payment with less money down
Minimum FICO Credit Score
580
Minimum Down Payment
3.5%
Maximum Loan To Value
96.5%*
Maximum Debt To Income
50%*
Mortgage Insurance
Yes
Years Since Bankcruptcy
2
Years Since Foreclosure
3
Years Since Short Sale
3
Special Qualification Requirements
NONE
FHA Requirements
FHA Loan Requirements and Qualifications
FHA loans are designed to make homeownership more accessible for Texas buyers with flexible credit guidelines, low down payment options, and borrower-friendly qualification requirements.
Credit Score & Down Payment
600+ credit score may qualify for 3.5% down; 500–579 may require 10% down.
Flexible DTI Guidelines
Preferably 50% or lower, though higher ratios may be accepted with strong compensating factors.
Primary Residence Required
The home must be used as a primary residence and meet FHA property standards.
Your Trusted Texas Mortgage Broker for FHA Loans
FHA loans are a great option for helping first-time homebuyers and borrowers with lower credit scores secure affordable, flexible, and hassle-free home financing.
Questions about Texas FHA loans? Speak with an FHA expert today.
UNDERSTANDING FHA LOANS
Common Questions, Answered
FHA Loan Requirements
- Minimum credit score of 580 for maximum financing (3.5% down payment required).
- Borrowers with credit scores between 500 and 579 may qualify but need a 10% down payment.
- Minimum down payment of 3.5% of the purchase price for those with credit scores of 580 or higher.
- Down payment can come from personal savings, a gift from a family member, or a grant.
- Typically, a maximum DTI of 43% is allowed.
- Some lenders may allow a higher DTI with compensating factors like a large cash reserve.
- Proof of steady employment and income over the past two years.
- Verification through W-2s, tax returns, and recent pay stubs.
- The property must be used as your primary residence.
- FHA loans are not available for investment properties or second homes.
Lone Star Financing is a leading mortgage broker in Texas for FHA home loans and FHA streamline refinancing. Call to speak to a licensed loan officer to learn more about FHA loan qualifications and requirements.
Trusted by Texas FHA Homebuyers
Real feedback from Lone Star Financing clients across Texas.
4.6 out of 5
★★★★★
Based on 54 Google reviews
Sharon Darby
Outstanding experience with Lone Star Financing, thanks entirely to Brett. He did a phenomenal job from start to finish. His knowledge, creativity, and experience made all the difference when challenges arose.
Michael Underwood
As a realtor in Austin, I’ve worked with Lone Star Financing for nearly a decade. Their loan officers are among the best communicators in the business and consistently provide timely updates throughout the process.
Joshua Hayden
Great experience working with Lone Star Financing. The team was knowledgeable, responsive, and made the entire process smooth from start to finish. Highly recommend for anyone looking for a reliable mortgage broker.
Work with a licensed Texas FHA lender backed by experienced loan officers who understand Texas FHA guidelines and lending requirements. Lone Star Financing is not affiliated with an agency of the federal government or the FHA.