Texas FHA Loan Requirements
Texas FHA Home Loan Guidelines & Qualification Requirements
Welcome to Lone Star Financing – We are an approved FHA lender in Texas with low rates, flexible credit requirements, and in-house underwriting 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 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)
First Time Home Buyers
Minimum FICO Credit Score
600
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
Texas FHA Loan Qualifications
- 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.
Your Texas Trusted Lender for FHA Home Loans in Texas
FHA loans is a great loan option for helping first-time buyers and those with lower credit scores secure affordable and hassle free home financing.
Questions about Texas FHA loans? Speak with an FHA expert today.
FHA Loan Requirements in Texas
- 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.
- 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.
- 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.
- FHA loan limits vary by county in Texas.
- In Texas, FHA loan limits for 2026 are $541,287.
- Must have a valid Social Security number and be a legal resident of the U.S.
- 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 and FHA streamline refinancing. Call to speak to a licensed loan officer to learn more about FHA loan qualifications and requirements.
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Work with a licensed Texas FHA lender backed by experienced loan officers who understand Texas FHA guidelines and lending requirements.