1st Time Home Buyers - Only 3.5% Down

Texas FHA Loans

FHA loans are a great option for 1st time home buyers, but you don’t have to be a 1st time buyer to qualify.  Here are a few things to know about FHA Loans in Texas: 

New Home Purchase  

* Simple Qualifying
* Small Down Payment – Only Down 3.5% 
* 100% Financing (w/Approved Gift Fund)
* Closing Costs  – Seller paid (up to 6%)
* In-house Flexible Underwriting
* Higher Debt-to-Income Ratios OK 
* Lower Credit Scores OK
* 600 credit scores OK with 3.5% Down

Mortgage Refinance 

* Streamline Option (Rate and Term)
* No Appraisal / No Income
* Full Doc Loans
* Rate and Term / CashOut 
* Closing Costs can be rolled into loan

FHA loans offers as low as 3.5% down payment – this can include gift funds. 

* Metro Loan Amount: 1 unit $308,200, 2 unit $394,550, 3 unit $476,900, 4 unit $592,700
* Non-Metro Loan Amount: 1 unit $275,650, 2 unit $352,925, 3 unit $426,600, 4 unit $530,125
* Terms: Up to 30 Years
* Purchase financing: up to 96.5% LTV
* Refinance financing: up to 97% LTV

FHA Guidelines (2022)

The FHA (Federal Housing Administration) provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes. 

  • FICO® score at least 580 = 3.5% down payment.
  • FICO® score between 500 and 579 = 10% down payment.
  • MIP (Mortgage Insurance Premium ) is required.
  • Debt-to-Income Ratio < 43%.
  • The home must be the borrower’s primary residence.
  • Borrower must have steady income and proof of employment.

Learn more about FHA loans from FHA.com/reguirements.

FHA Rates

getting rates...

30 Year FHA

Stable monthly payment with less money down

Minimum FICO Credit Score


Minimum Down Payment


Maximum Loan To Value


Maximum Debt To Income


Except Ons To 55%

Mortgage Insurance


Years Since Bankcruptcy


Years Since Foreclosure


Years Since Short Sale


Special Qualification Requirements


FHA Loans - Things to Know

Things to know about FHA Loans in Texas - Benefits and 2022 loan requirements.

FHA Home Loan Limits (2022)

Texas loan limits for FHA loans range from $420,680 to $970,800. 

Texas FHA loan limits are based on the current home prices. Every year the FHA establishes the loan limits and they can vary by county. 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. 

FHA Qualifications

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.

Read More on FHA Loans. 

Lone Star Financing -Why Us?

Headquartered in Grapevine, Texas, Lone Star Financing specializes in new home purchases and refinance.  We specialize in Texas FHA loans and our loan officers have the experience to structure your loan for your individual lending needs. As a direct lender, we offer a full line of home loan products (Conventional, FHA, VA and USDA Loans). Lone Star Financing is an approved FHA lender in Texas. Apply online in minutes and we look forward to earning your business!

Read Our Reviews...

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!
Lone Star Financing - FHA Home Loans
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