Texas FHA Loan Requirements: Affordable, Low Down Payment for First-Time Home Buyers
Welcome to Lone Star Financing – Your Texas FHA Home Loan Experts! We are an approved FHA lender in Texas with low rates, flexible credit requirements, and in-house underwriting for fast approvals.
FHA LOAN QUALIFICATIONS
To qualify for an FHA loan, you’ll need to meet the following requirements.
- Stable employment/income
- Minimum FICO 600
- 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.
$571,550 MaX Value
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
Credit Score & Down Payment: 580+ credit score = 3.5% down; 500–579 = 10% down.
DTI Ratio: Preferably ≤50%, but higher may be accepted with strong financials.
Property Requirements: Must be a primary residence and meet FHA standards.
Texas FHA Requirements
FHA loans in Texas are great loans for helping first-time buyers and those with lower credit scores secure affordable and hassle free home financing.
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.
Requirements for obtaining an FHA loan in Texas:
Credit Score:
- 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.
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.
Debt-to-Income Ratio (DTI):
- Typically, a maximum DTI of 43% is allowed.
- Some lenders may allow a higher DTI with compensating factors like a large cash reserve.
Employment History:
- Proof of steady employment and income over the past two years.
- Verification through W-2s, tax returns, and recent pay stubs.
Primary Residence Requirement:
- The property must be used as your primary residence.
- FHA loans are not available for investment properties or second homes.
Property Standards:
- The home must meet minimum property standards set by the FHA.
- An appraisal by an FHA-approved appraiser is required to assess the property’s value and condition.
Mortgage Insurance Premiums (MIP):
- An upfront MIP (usually 1.75% of the loan amount) is required.
- An annual MIP is also charged and paid monthly as part of the mortgage payment.
Loan Limits:
- FHA loan limits vary by county in Texas.
- In Texas, FHA loan limits for 2025 vary by county and property type. For single-family homes, these limits range from $524,225 to $571,550
Legal Residency:
- Must have a valid Social Security number and be a legal resident of the U.S.
No Recent Bankruptcies or Foreclosures:
- Generally, you should be at least two years out of bankruptcy and three years out of foreclosure.
- Must have re-established good credit.
Lone Star Financing is an approved lender in Texas for FHA home loans. Call to speak to a licensed loan officer to learn more about FHA loan qualifications and requirements.
Lone Star Financing - Approved Texas FHA Lender
- Competitive FHA Rates
- Approved FHA Lender
- In-House Underwriting
- Same Day Pre-Approvals
- Streamline Refinance
- Texas Customer Service
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