First-Time Home Buyers in Texas
Financing Options for First-Time Texas Homebuyers
FHA loans are a great option for first-time homebuyers, but you don’t need to be a first-time buyer to qualify.
Unlock your Texas dream home with FHA loans—featuring low down payments and flexible credit guidelines that make homeownership more accessible. View FHA Requirements: FHA.com/requirements
First-Time Home Buyer Loan Benefits:
- Down Payment – Only Down 3.5%
- Down Payment Gift Funds Allowed
- Seller paid closing costs 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 (can include gift funds)
$541,287 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
55%*
Mortgage Insurance
Yes
Years Since Bankcruptcy
2
Years Since Foreclosure
3
Years Since Short Sale
3
Special Qualification Requirements
NONE
Texas FHA Loan Highlights
- 2026 loan limits: $541,287
- Minimum down 3.5%
- Minimum FICO >600
First-Time Buyer FHA Loans
FHA loans offer Texas homebuyers a more accessible path to ownership with low down payments and flexible credit standards. These government-backed loans are a popular choice for first-time buyers. We’re here to guide you through every step of the process.
Questions about buying your first home in Texas? Speak with an FHA specialist.
| Guide to First Time Buyer Home Loans in Texas
An FHA first-time buyer loan is a mortgage backed by the Federal Housing Administration designed to help new homebuyers, especially those with lower credit scores or limited savings, access affordable financing. It typically requires a lower down payment and has more flexible credit requirements than conventional loans, making homeownership more accessible.
Here are some common requirements for first-time homebuyer loans in Texas:
For 2026, the FHA loan limit for a single-family home in Texas is $541,287, with higher limits for multi-unit properties.
For many first-time buyers in Texas, the required down payment may be lower than you think. FHA loans require as little as 3.5% down with a qualifying credit score. Conventional loan options may allow down payments starting at 3% for eligible borrowers.
In addition, down payment funds can often come from gift funds, savings, or approved assistance programs, helping reduce your out-of-pocket costs. Our team will review your financial profile and show you the lowest down payment option available based on your goals.
Yes — many first-time buyers in Texas are surprised to learn they can still qualify with less-than-perfect credit. FHA loans are built for buyers with moderate scores, and as a mortgage broker, Lone Star Financing can often secure approval with FICO scores as low as 580, depending on overall qualifications.
Beyond your credit score, most of our lenders evaluate income stability, debt-to-income ratio, and payment history. If your score needs improvement, we can outline practical steps to strengthen your approval profile and help you move forward confidently.
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