TEXAS FHA LOANS

1st Time Buyers - Only 3.5% Down

Texas FHA Home Loans

FHA loans are the perfect loan option for first time home buyers due to lower down payments and easier credit guidelines, but remember you do not have to be a 1st time home buyer to be eligible for a FHA home loan.   FHA loans are attractive to younger buyers that may not have a lot of funds in savings, that’s because FHA loans only require 3.5% down.  

Lower credit scores OK – with 3.5% down we currently go down to a 600 FICO.  FHA loans can be used for condominiums but the the condo has to be on the FHA approved list. Current (2024) you can use Texas FHA loans to buy new homes up to $498,257.  The loan limits are higher in some metro areas, for example the loan size limits are higher in DallasAustin, Houston and Texas metro areas. 

FHA home loans are a government loan insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). 

Thee FHA program is designed primarily to assist borrowers who do not meet the requirements for conventional loans. The FHA loan may still be an option for conventional borrowers in certain circumstances. In the same way as conventional mortgages, interest rates are governed by market forces.  Much like Texas USDA loans and VA loans in Texas, the underwriting and writing a mortgage are the major differences between conventional loans and FHA mortgages.

Texas FHA home loan programs are particularly beneficial to young borrowers with less available cash and savings. FHA rates are market rates, while down payment requirements are lower than most conventional loans. 

FHA Loan Highlights

  • Simple Qualifying
  • Only 3.5% Down Payment Required
  • 100% Allowed with Approved Gift Fund Source
  • Seller Paid Closing Costs to 6%
  • More Flexible Underwriting
  • Higher Debt to Income Ratios
  • Lower Minimum Credit Scores
  • No Prepayment Penalties
  • Streamline Refinance Available
  • Manufactured Housing OK (Subject to Restrictions)
FHA Rates

getting rates...

30 Year FHA

Stable monthly payment with less money down

Minimum FICO Credit Score

620

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

Texas FHA Loans - Things to Know

More about FHA Loans in Texas

FHA is an abbreviation for The Federal Housing Administration and it was created by Congress in 1934.  The purpose of the government backed loan was to make it easier for young buyers to get mortgages. By insuring mortgages for single family and multifamily homes, FHA mortgage insurance provides lenders with protection against a loss when a borrower defaults on their loan.  Loans must meet requirements established by the FHA to qualify. FHA loans are the perfect loan for first time home buyers, but remember you don’t have to be a 1st time home buyer to qualify for a FHA loan. 

Best FHA Lender in Texas FHA mortgages are one of our specialties – we close dozens of FHA loans every month and are an approved FHA lender in Texas.   Due to our direct FHA lender status, we are able to underwrite your loan using common sense underwriting principles. Our mortgage company educates you on the best home loan program based on your individual needs, unlike many mortgage companies that focus mainly on rate and high pressure sales.  What makes Lone Star Financing one of the best FHA lenders in Texas? As an approved FHA lender we offer low rates, low fees, and in-house underwriting which means we can close loans fast – typically in 28 days or less.  Check our FHA mortgage rates in Texas.  

Texas FHA Mortgage Lenders
FHA Home Loans in Texas

Texas FHA Loan Requirements

2024 Texas FHA Loan Limits

For single-family homes, the 2024 FHA loan limit in Texas is $498,257 but it varies by county. 

The amount of an FHA loan in Texas depends on the price of the home. In the county where the property is located, the median home price must be less than 115% of the home value you wish to purchase.

To qualify you will need to have an FHA appraisal to ensure the property is valued at or above the value you intend to borrow.  

Read More on FHA Loans in Texas

Borrower Qualifications

FHA requirements will require you to meet the following:

* 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.

 

Texas FHA Loans
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Best FHA Lenders in Texas. Read what our customers are saying...
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!
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