FHA Loan Guide for First-Time Home Buyers in Texas

FHA loans are one of the most widely used mortgage products among first-time buyers in Texas. The combination of a low down payment requirement (3.5 percent for buyers with a 580+ credit score), flexible credit guidelines, and government backing makes FHA financing accessible to a broad range of buyers across Texas's diverse housing markets.

FHA Loan Limits in Texas FHA loan limits in Texas vary by county. High-cost counties like Travis (Austin) have elevated limits, while rural Texas counties have lower baseline limits. Most major Texas metros, including Dallas-Fort Worth, Houston, and San Antonio, have limits that accommodate median home prices in those markets.

Combining FHA with Texas Down Payment Programs FHA loans are compatible with both TSAHC and TDHCA programs. First-time buyers can layer an FHA loan with a Texas down payment assistance program to significantly reduce or eliminate the out-of-pocket down payment. The TDHCA My First Texas Home program is specifically designed to be used with FHA, VA, or USDA financing.

FHA Mortgage Insurance in Texas FHA loans require upfront and annual mortgage insurance premiums. For buyers who put less than 10 percent down, MIP lasts the life of the loan. Some buyers choose to refinance out of the FHA loan into a conventional loan once they have built sufficient equity (typically 20 percent) to eliminate PMI.

Texas Property Taxes and FHA Affordability Texas has no state income tax but higher property taxes than many states. When calculating affordability for an FHA loan, factor in property taxes carefully. The $100,000 homestead exemption on school district taxes applies to FHA borrowers who purchase primary residences.

Working With a Homexa® Agent for FHA Purchases in Texas Homexa® agents in Texas are experienced in helping first-time buyers use FHA financing and Texas down payment programs together. Connect with a Homexa® agent in your target Texas market to start your FHA home search.