Understanding FHA Loan Guidelines in Texas

What Are FHA Loans?

FHA loans are government-insured mortgages that allow for lower down payments and more lenient credit requirements than conventional loans. These loans are especially attractive to first-time buyers, those with lower credit scores, or individuals who may not have a large amount of savings for a down payment.

FHA Loan Guidelines in Texas: The Basics

Here’s a closer look at the standard FHA loan guidelines in Texas:

• Minimum Credit Score: Most Texas lenders require a minimum credit score of 580 to qualify for the 3.5% down payment option. If your credit score is between 500–579, you may still qualify—but a 10% down payment will likely be required.
• Down Payment: FHA loans allow for a down payment as low as 3.5% of the purchase price. The funds can even come from a gift or down payment assistance program, making it easier for buyers to get into a home.
• Debt-to-Income Ratio (DTI): Lenders generally prefer a DTI of 43% or lower, although some may allow higher ratios with compensating factors like higher credit scores or significant cash reserves.
• Property Requirements: The home must be your primary residence and meet HUD’s minimum property standards. An FHA-approved appraiser will ensure the home is safe, secure, and structurally sound.
• Mortgage Insurance: FHA loans require mortgage insurance premiums (MIP)—both an upfront premium and monthly payments. This helps protect the lender in case of default.

Why FHA Loans Are Popular in Texas

The housing market in Texas continues to thrive, and many buyers are turning to FHA loans for a smoother path to homeownership. Whether you’re purchasing in San Antonio, Austin, Houston, or a smaller Texas town, FHA loans offer flexibility and lower upfront costs.

Work with a Local Lender Who Understands FHA Loan Guidelines in Texas

At Pilgrim Mortgage, we specialize in helping homebuyers navigate the FHA loan guidelines in Texas with ease. Our experienced loan officers are based right here in the Lone Star State and know the ins and outs of the local market.

Whether you’re ready to apply or just starting to explore your options, we’re here to help every step of the way.

Contact Pilgrim Mortgage today to see if you qualify for an FHA loan—and take the first step toward your Texas homeownership dreams!